During a virtual meeting held on 2 May, the Auditor-General of South Africa (AGSA) presented a review of the Department of Social Development's (DSD) Annual Performance Plan for the 2023/24 financial year, highlighting material irregularities and calling for a culture shift within the department.
The AGSA's review pointed out a significant material irregularity, namely the payment of the Sassa R350 grants to unqualified beneficiaries. This raised concerns about the department’s accountability and highlighted the need for improved consequence management and timely investigations.
To address these issues, the AGSA issued recommendations for Sassa urging them to strengthen and enhance their controls to prevent similar irregularities in the future. Furthermore, the AGSA instructed the accounting officer to implement these recommendations within the next six months.
One of the AGSA's key concerns was the payment of the R350 grant to ineligible beneficiaries, including state employees. It was stressed that the DSD should take immediate action to recover the funds paid to these individuals.
Despite these challenges, the DSD assured the committee that social grants would continue to be paid, with an estimated monthly value of over R90 million. The R350 grant, which has so far benefited over 8 million vulnerable South Africans, would also continue to reach a larger number of people.
Department of Social Development's Budget Allocations For 2023/24
For the 2023/24 financial year, the Department of Social Development has allocated R253 billion to Sassa for the administration and disbursement of social grants. Out of this amount, R35.7 billion has been set aside for the continuation of the R350 grant until March 2024.
Additionally, the DSD has allocated R5.8 billion for 2023/24, R9.1 billion for 2024/25, and R14.5 billion for inflationary increases to social grants.
To address the challenges faced by the SRD grant system, the Sassa representative explained that they had successfully automated the process, allowing them to reach approximately 95% of the grant's beneficiaries.
Although there were initial system challenges at the beginning of the year, they have been resolved, and the agency is confident in achieving its targets going forward.
The revelations from the AGSA's presentation have sparked discussions about the need for a cultural shift within the DSD to promote accountability, transparency, and effective management of social grants.
As South Africa continues to navigate the socio-economic impact of the ongoing pandemic, it becomes crucial for government departments to implement robust controls and ensure that public funds are allocated appropriately to those who need them most.
The AGSA's recommendations serve as a vital roadmap for the DSD and SASSA to strengthen their systems, improve controls, and regain public trust. The coming months will be crucial in implementing these changes and restoring confidence in the administration of social grants in South Africa.
