SASSA Flags Nearly 495,000 Ineligible Grant Recipients, Saving Government R500 Million a Year

The South African Social Security Agency (SASSA) has flagged nearly 495,000 individuals who were previously counted as recipients of monthly social grant payouts after discovering they had received money they were not entitled to.

The government entity realised that millions in taxpayers’ funds were being paid to ineligible people following an internal control process.

This was revealed by the agency’s CEO, Themba Matlou, last week during a briefing to Parliament on SASSA’s third-quarter performance.

The revelation came after SASSA initiated a rigorous review of its social grant programme, aligned with new stringent verification and control conditions set by the National Treasury.

“This action is part of a larger strategy aimed at ensuring compliance and promoting fiscal responsibility within the agency,” Matlou said.

Treasury insisted that the agency implement the stricter policy in October. Matlou said approximately 240,000 grant recipients’ credentials had already been scrutinised, resulting in nearly 70,000 accounts being suspended due to non-compliance.

It was further revealed that close to 400,000 beneficiaries have been informed that their eligibility is currently under review.

Matlou highlighted that these actions have already resulted in substantial savings for the government, amounting to about R44 million per month and nearly R500 million annually.

This tightening of the grant process follows the Department of Social Development (DSD) informing Parliament last year of tighter controls imposed by Treasury, which now mandates monthly income checks, expanded verification practices, and regular reporting to ensure systems are safeguarding taxpayer funds.

Against South Africa’s harsh economic realities, nearly 45% of the population relies on financial assistance to make ends meet.

Recently, Finance Minister Enoch Godongwana announced a significant extension of the Social Relief of Distress grant, which is now set to continue until March 2027, as the DSD prepares for budget allocations of R260 billion for 2026/27 and R271 billion for 2027/28 aimed at social assistance.

To streamline and strengthen the review process, SASSA has expanded its data-matching and verification partnerships.

Collaborations with credit bureaus, banks, the South African Revenue Service, government payroll systems, the National Student Financial Aid Scheme and correctional services have helped identify beneficiaries with undeclared income or employment, as well as those whose circumstances may have changed since grants were awarded.

In the third quarter alone, SASSA earmarked around 162,000 beneficiaries for additional verification, while another 201,000 were identified through government payroll data as receiving grants despite being employed by the state.

The agency has also intensified direct engagement with beneficiaries, issuing letters to approximately 25,000 individuals in December requesting that they present themselves for reviews.

Matlou confirmed that the review process is grounded in the Social Assistance Act, which obliges SASSA to verify beneficiaries’ ongoing eligibility.

While beneficiaries are legally required to report any changes in their circumstances, the agency insists these systematic reviews are essential to safeguard the system.

He reassured that grants are not cancelled automatically, with beneficiaries given a month to complete their review after being notified.

Failure to respond leads to further notices before suspension, followed by a final notice prior to possible cancellation, although Matlou said timeframes are often extended to accommodate those who may not have received notifications.

As an additional measure, SASSA has introduced a “fourth payment date” for beneficiaries under review, allowing them to receive grants later than their regular cycle. This serves as a prompt for them to contact the agency and clarify their status.

This renewed focus on fraud prevention gained momentum after revelations by Stellenbosch University students Joel Cedras and Veer Gosai, who uncovered significant fraud linked to the Social Relief of Distress grant in October 2024.

Their findings prompted a parliamentary inquiry, leading SASSA to commit to stricter measures to curb fraud and improve accountability.

Organisation Undoing Tax Abuse (OUTA) spokesperson Wayne Duvenage said he was not surprised by the delayed discovery.

“Our government is not on the ball, and it doesn’t have the capacity to deal with these issues. Why did it take them so long to find this? Now the question is how long it will take to fix the situation,” Duvenage said.

DAILY NEWS