Sassa lost R536 million due to people receiving fraudulent grants

Social Development Minister Lindiwe Zulu.

Social Development Minister Lindiwe Zulu.

Published Oct 18, 2022

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Cape Town - The South African Social Security Agency (Sassa) has lost R536 million over the past 10 years due to 1 174 people unduly benefiting from receiving social grants through fraud and/or corruption.

This was revealed by Social Development Minister Lindiwe Zulu when she was responding to parliamentary questions from DA MP Bridget Masango, who asked about the total number of persons who have unduly benefited from receiving social grants and the amount stolen by the individuals.

In her written response, Zulu said that 1174 people were suspected to have unduly benefited from the social grant system, leading to cases referred to law enforcement from 2012-2013 to 2021-2022.

She said the category of person included 761 officials, 221 beneficiaries, 120 money lenders and 72 private persons.

“The total potential loss is projected at R536 683 179.12. Some of the cases are not yet finalised to come to full determination of the actual loss,” Zulu said.

The breakdown of the losses showed that Sassa recorded R215 million in potential loss in 2018-19 and R109m in 2013-14.

Responding to questions from EFF MP Laetitia Arries, Zulu said Sassa recorded that 82 084 Sassa cards were stolen in the past five years and that R23m was stolen from the cards since 2018.

Meanwhile, Human Settlements Minister Mmamoloko Kubayi said two officials in her department were fingered in allegations of illegal activities.

Kubayi was responding to IFP MP Sibuyiselwe Angela Buthelezi, who enquired about the number of employees of her department that were fingered as perpetrators of scams and other illegal activity.

Buthelezi also asked about the number of cases or complaints brought against her department and its employees in the past five financial years.

Kubayi said two cases were referred to the department, and one criminal case was opened with the South African Police Service.

“The matter is currently in court, and the other matter is still under investigation within the department,” she said.

Kubayi stated that the department lost an amount of R3 200 000 during the 2018-2019 financial period through two fraudulent payments, and the other matter was reported in the 2022-2023 financial period.

“The matter is still under investigation, and the determination of financial implications will be concluded once the investigation has been completed.”

Cape Times

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