Radical overhaul for grants system

2010-07-22 21:49

Pretoria - The social grants system is to get a "radical overhaul" to eliminate wasteful expenditure, the SA Social Security Agency (Sassa) said on Thursday.

The agency was aware of deficits, administration problems and budget pressures and was seeking to address them, acting CEO Coceko Pakade told a press briefing in Pretoria.

"The long-term plan is to develop a new payment model which will radically overhaul the current one, which is obviously inefficient and costly."

The briefing followed a presentation by Treasury to Parliament's standing committee on public accounts (Scopa), indicating that around R1bn was being overspent.

The strategy would include developing a cost-effective national payment system, stringent austerity measures to curtail operating costs and re-negotiating the current payment contract to reduce handling fees.

"Already R319m was saved in the past financial year through this process. For the current financial year Sassa targets a savings of R370m," Pakade said.

R10.5m recovered

Other measures would include recouping money from unclaimed benefits from a number of banks.

To date a total of R10.5m had been recovered.

Sassa had also obtained a preservation order for 153 government officials who had diverted unclaimed benefits to their accounts.

An estimated 22 000 beneficiaries had also been identified as inactive or dormant.

"We are currently exploring all legal avenues with the aim of attaching their property to reclaim the money owed to us."

Pakade said the number of accounts belonging to dead beneficiaries had not been estimated, as their next of kin had not reported the deaths.

He said while the presentation to Scopa was "in a sense fair", they had also not been given the opportunity to respond.

"We were not given a chance to respond, because we were not present at the meeting," he said, adding that not only the agency was accountable, but also the department of social development.

"We are a joint team."

Read more on:    sassa  |  scopa  |  corruption  |  service delivery
NEXT ON NEWS24X

SHARE:

Read News24’s Comments Policy

Inside News24

 
SPONSORED CONTENT
SA road trips you’ll never forget

Fill the tank and head for the open road to see our beautiful country at your own pace.

/News
 

Must see! The most luxurious dog house!

This dog house comes with a treadmill and hot tub, you have to see it!

 
 

Luxury living

WIN!
Ridiculous demands people with too much money make
8 of the priciest places to dock your yacht
Habits of the world’s richest people
Horoscopes
Aquarius
Aquarius

You are a high flier with idealistic and set standards. There is a tendency to be too idealistic or fixed on one way and this can...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.