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Social dev minister orders probe into SRD system

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 29 Oct 2024
The Portfolio Committee on Social Development welcomes a probe into alleged SRD grant system fraud.
The Portfolio Committee on Social Development welcomes a probe into alleged SRD grant system fraud.

Social development minister Nokuzola Tolashe has ordered an investigation, which will include cyber security experts and law enforcement, into the Social Relief of Distress (SRD) grant system.

This, after two first-year students from Stellenbosch University reportedly identified weaknesses in the South African Social Security Agency’s (SASSA’s) SRD grant payment system and fraud within the application process.

The system, according to the report, showed the students had already applied for and received the grant, even though they had not applied, nor received any payments.

The students were invited to present their findings before Parliament’s Portfolio Committee on Social Development, as well as leadership of SASSA and the Department of Social Development (DSD).

Tolashe conceded the allegations made by the students were extremely concerning.

However, she added that neither SASSA nor the DSD have been favoured with any of the research undertaken by the students, nor have they accepted the several invitations from SASSA to present their findings.

“Nonetheless, I wish to assure this committee that I view these allegations in the most serious light, and have directed SASSA to initiate investigations into the matter.

“It’s important to note that I, as minister that provides oversight to the agency, have demanded that we take drastic steps to investigate this matter fully with the aim of ensuring the alleged security breaches are addressed and dealt with accordingly, including collaborating with cyber security experts and law enforcement agencies in the country to enhance the protection of personal information.”

The DSD, through its agency SASSA, manages an annual budget of R266 billion, with the SRD grant making up R35 billion of the total allocation, covering an average of eight million working-age adults each month.

Initially introduced in 2020 to cushion qualifying citizens against the financial pressures caused by the COVID-19 pandemic, the SRD grant has continued as part of government’s social grants programme.

The grant, previously R350, has been increased to R370 as of April, representing a 5.7% increase.

The SRD grant system has faced a number of challenges during the course of its history. The auditor-general previously stated SASSA does not effectively utilise, or integrate rich data shared across government to check if people applying for benefits and grants qualify.

The committee members welcomed the commitment from the minister to initiate an investigation into the SRD grant system, saying they had raised these challenges with SASSA and the department on several occasions over the years.

Other members of the public had also alerted SASSA to this challenge, but no action was taken, according to the committee.

Due to the seriousness of the students’ findings, the committee has given the department and SASSA 30 days to conduct a full investigation into the matter and to thereafter present it with a detailed report.

“These weaknesses in the system exclude deserving people from applying for the grant, committee members acknowledged.

“As public representatives responsible for overseeing the Department of Social Development and SASSA, it is important that we ensure these allegations are investigated and SASSA is given an opportunity to respond to the allegations,” stated committee chairperson Bridget Masango.

The portfolio committee also recommended that SASSA conduct vulnerability assessments and testing of the SRD grant system to ensure weaknesses are addressed.

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