SASSA Underspent R4-Billion on SRD Grants: Audit Report Reveals

Introduction

The South African Social Security Agency (SASSA) has come under scrutiny after it was revealed that the SASSA Underspent R4-Billion on SRD Grants during the 2022/23 financial year. The Auditor General made the shocking revelation, sparking public outrage and criticism from Parliament. The underspend has been attributed to a low uptake of the SRD grants following the introduction of a new means test.

Why Did SASSA Underspent R4-Billion on SRD Grants?

According to the Auditor General’s report, the primary reason for the R4-billion underspend on SRD grants was a decline in eligible applicants. The new means test implemented by SASSA set a lower income threshold and included bank verification, which disqualified many former beneficiaries. As a result, fewer people received the SRD grants, leading to significant underspending.

“This resulted in SASSA not paying some beneficiaries because they were no longer eligible,” explained Auditor General senior audit manager Puleng Molapo.

Inefficiencies in Handling Grant Enquiries

The audit further revealed inefficiencies in SASSA’s ability to handle public inquiries related to grants. Molapo criticized the agency for not having a proper system to track and report on inquiries, which contributed to delays in resolving issues. This lack of service delivery has caused widespread dissatisfaction among grant recipients.

Financial Irregularities and Overpayments

In addition to the SASSA Underspent R4-Billion on SRD Grants, the audit highlighted significant financial irregularities within SASSA. These included R316 million in overpayments to Cash Paymaster Services (CPS), a company currently liquidating. The liquidation may complicate efforts to recover the overpaid funds.

Moreover, the audit uncovered that R145 million in SRD grants was paid to ineligible recipients, including government employees. In total, over R1 billion was irregularly spent in the previous financial year, raising serious concerns about SASSA’s financial management practices.

Impact of the SASSA Underspent R4-Billion on SRD Grants

Reduced Access to Social Relief

The SASSA Underspent R4-Billion on SRD Grants has had a profound effect on South Africans who rely on these funds for basic survival. Many potential beneficiaries were excluded due to the new means test, which introduced stricter income thresholds and bank verification requirements. This left a significant portion of vulnerable individuals without the much-needed financial support they had previously been receiving.

Increased Financial Strain on Vulnerable Households

For many low-income households, the SRD grants were a lifeline that helped cover essential needs like food, electricity, and healthcare. With fewer people qualifying for the grant, families were left facing increased financial pressure. The limited access to these grants contributed to a rise in poverty and hardship in communities that were already struggling.

Public Discontent and Calls for Reform

As public dissatisfaction grows, calls for reform are gaining momentum. Many believe that the means test should be revisited to ensure a more equitable distribution of the SRD funds.

Parliament’s Response to the R4-Billion Underspend

Members of Parliament expressed their frustration and disappointment with SASSA’s performance. Paulnita Marais of the Economic Freedom Fighters (EFF) emphasized the need for accountability, highlighting how many individuals have struggled to access their grants.

Bridget Masango of the Democratic Alliance (DA) echoed this sentiment, pointing out that financial mismanagement like the R4-billion underspent on SRD grants has a direct impact on the lives of vulnerable South Africans. She called for stronger oversight and consequence management within the agency.

Conclusion

The revelation that SASSA underspent R4-billion on SRD grants raises serious questions about the agency’s ability to effectively manage its resources and fulfill its mandate. With both financial mismanagement and inefficiencies in service delivery coming to light, it is clear that reforms are urgently needed. Moving forward, SASSA must take steps to improve its operations, particularly in tracking public inquiries and ensuring that eligible recipients receive the aid they need.