The South African Social Security Agency (Sassa) has cut irregular expenditure from R1.8 billion in 2018/19 to R1.1 million in 2024/25. The agency credits the reduction to improvements in financial controls.
Audit Report Presented to Parliament
This achievement was highlighted during the presentation of Sassa’s 2023/24 Audit Action Plan Progress Report to the Portfolio Committee on Social Development in Parliament last week.
Key Measures to Curb Wasteful Spending
To address irregular, fruitless, and wasteful expenditure, Sassa implemented a range of measures. These included staff training, enhanced oversight, pre-audits, and strict consequence management to ensure adherence to procurement regulations.
Stronger regional oversight further helped prevent irregular contract awards and strengthened financial governance.
Through collective efforts and the will to turn the tide, Sassa has experienced a sizable decline in irregular, fruitless, and wasteful expenditure.
Treasury Support and Preventative Strategies
In 2018/19, Sassa recorded R1.8 billion in irregular expenditure. Over the years, this was addressed through National Treasury donations and preventative strategies aimed at improving procurement processes.
The interventions implemented to prevent fruitless and wasteful expenditure are notable, as there has been a decline from R134 184 in 2022/2023, to R53 001 in 2023/2024 to R22 216 in 2024/2025.
Ongoing Efforts to Strengthen Financial Management
Acting Sassa CEO Themba Matlou acknowledged the progress but noted the need for ongoing efforts to transform Sassa into a world-class social assistance institution.
We want to take the Sassa brand to greater heights, and the road towards that journey starts with how we manage our affairs and the public money we are entrusted with. We need to be prudent in our financial expenditure and we are steadily moving towards that.
By reducing irregular and wasteful expenditure, Sassa—which distributes social grants to millions of South Africans—can better allocate resources to support the country’s most vulnerable citizens.
Material Findings Against Sassa
Despite the reduction of irregular expenditure, the Auditor-General's recent review of the 2023/24 financial statements has revealed five significant material irregularities, raising serious concerns about financial management.
Among the findings is a R74-million payment made to Cash Paymaster Services (CPS) in 2018 for services that were never delivered. Further, a substantial overpayment of R316-million to CPS, which the High Court in Pretoria has mandated be repaid to Sassa, was also flagged.
The report also highlights the disbursement of R150-million in R350 Social Relief of Distress (SRD) grants to ineligible applicants. Finally, a questionable R7.8-million contract awarded to a company for photocopy machines in the Eastern Cape adds to the list of financial discrepancies.
