A Travesty That SASSA Underspent R4bn. In a concerning revelation, the Social Security Agency of South Africa (SASSA) underspent R4 billion meant for Social Relief of Distress (SRD) grants during the last financial year. This underspending, described by various organizations as a “travesty,” has left many vulnerable South Africans without the support they desperately need. The SRD grant was introduced as a lifeline for millions of people at the onset of the COVID-19 pandemic in 2020, but the failure to fully distribute these funds is raising alarms across the country.
On Wednesday, the Auditor-General’s Office brought the matter to light during a parliamentary portfolio committee meeting on social development. Senior Auditor Puleng Molapo reported that the primary cause of this underspending was a decline in SRD grant uptake, largely driven by new application and bank verification processes introduced in 2022.
The revelation has sparked widespread criticism, with organizations advocating for the rights of the vulnerable, emphasizing the urgent need for reform in the system to ensure that public funds reach those in need.
The New Application Process: A Barrier to Access
The introduction of a new application process, which requires potential SRD grant beneficiaries to apply exclusively through digital platforms, has been at the heart of the problem. While digital transformation is often praised for its efficiency, in this case, it has proven to be a barrier for many. For those without access to smartphones or the internet, the new system has effectively excluded them from accessing the grant.
Puleng Molapo emphasized that a lower income threshold and stringent bank verification requirements also contributed to many people being denied access to their grants. “This resulted in SASSA not paying some beneficiaries because they were no longer eligible due to the lower income threshold and bank verification of their income,” she explained.
For many, this new process, rather than making things easier, has made it harder to access the lifeline that was meant to help them. Vulnerable individuals, already struggling under the weight of financial hardship, have been further burdened by an overly complex system.
A Missed Opportunity for Relief
The SRD grant was originally introduced at the height of the COVID-19 pandemic, as millions of South Africans faced the crippling effects of job losses and poverty. Initially set at R350, the grant was recently increased to R370, and is available only to those earning less than R625 per month. While these amounts may seem modest, they make a significant difference in the lives of many, helping to cover basic necessities such as food and shelter.
Kelle Howson, a senior researcher at the Institute for Economic Justice (IEJ), described the underspending as a “travesty.” Through their partners, the IEJ has received numerous complaints from beneficiaries struggling to access their grants. “There are a number of reasons why the SRD grant system excludes deserving beneficiaries,” Howson said. “It is shocking that public money, earmarked to help the most vulnerable in society, is not reaching them.”
The IEJ, along with the #PayTheGrants campaign, has launched a court case against SASSA over the new application requirements, seeking to challenge the barriers that have been placed in the way of deserving individuals. The case is set to be heard next month, and it is hoped that it will bring about much-needed changes to the system.
The Role of Bank Verifications
One of the key sticking points in the current system is the bank verification process. Designed to prevent fraud and ensure that only those who truly need assistance receive it, the process has inadvertently blocked access to many legitimate beneficiaries. Several applicants have reported that they failed the bank verification despite meeting the income criteria, resulting in the denial of their grants.
Elizabeth Raiters, deputy chair at #PayTheGrants, emphasized the need for intervention by the new Social Development Minister, Sisisi Tolashe. “It is unfortunate that SASSA is underspending at the cost of declining the most vulnerable beneficiaries who really depend on the grants,” Raiters said. She added that the tribunal, set up to review appeals, has an alarmingly high decline rate, rejecting more than 90% of appeals.
This widespread rejection, coupled with the flawed bank verification process, has left many individuals without the funds they were counting on, leading to increased frustration and hardship.
SASSA Inability to Track Inquiries
Adding to the concerns surrounding the SRD grant, SASSA has been criticized for its lack of a robust system to track and report grant inquiries. According to Molapo, this deficiency has contributed to inefficiencies and public dissatisfaction. “SASSA doesn’t have a process to report and track grant inquiries received from the public, with the result that they cannot accurately report resolved and unresolved cases,” Molapo explained.
This inability to respond effectively to inquiries has compounded the frustrations of beneficiaries, who feel that their concerns are falling on deaf ears. With no clear mechanism in place to address issues, many are left in limbo, waiting for answers that never come.
Political and Public Outcry
The underspending has also drawn sharp criticism from political figures. Bridget Masango, the chairperson of the parliamentary portfolio committee on social development, expressed deep concern over the Auditor-General’s report, calling the findings “depressing.” Masango emphasized the human toll of financial mismanagement, pointing out that “At the back of every key unachieved target are starving people and stunted children.”
The portfolio committee has vowed to hold the department accountable, summoning officials to provide answers in the upcoming Budget Review and Recommendations Report (BRRR). “These are life-saving grants,” Masango said. “There must be timelines for ensuring that these controls don’t prevent people from receiving these essential grants.”
The report also highlighted long-standing issues within SASSA and the Department of Social Development, revealing that over the past five years, they have been implicated in multiple material irregularities. Molapo further disclosed that SASSA had withheld R145 million from alleged overpayments of SRD grants, including cases where government employees had fraudulently applied for and received the grants.
The Human Cost of Bureaucratic Failures
As the debate over SASSA’s underspending continues, the human cost remains the most tragic aspect of this issue. For the many individuals who rely on SRD grants, bureaucratic failures and an overzealous approach to preventing fraud have resulted in deprivation and hardship. Paulnita Marais of the EFF summarized the impact on ordinary people, saying, “Our people are suffering. People are sending me messages that their mothers’ R370 is being paid to the wrong person.”
Marais’s words echo the frustrations of countless South Africans who have struggled to access their SRD grants. Despite repeated complaints, it seems as though the system is still failing those it was designed to help.
Conclusion
The underspending of R4 billion by SASSA on the SRD grant is nothing short of a travesty. At a time when so many are in need of financial relief, the system’s inefficiencies and overly stringent requirements have left vulnerable individuals without support. The new digital application process, coupled with a flawed bank verification system, has created barriers that prevent deserving beneficiaries from accessing their grants.
