State targets social grant fraud
Lazarus Mabasa
1 April 2005
Starting from 1 April, all South Africans receiving social grants will have to verify their eligibility to receive a grant, as the state steps up its campaign to root out fraud and corruption in the system of administering grants.
"We have agreed with all provinces that as from 1 April, a programme will begin where all beneficiaries receiving social grants will have to report to their nearest pay point to be verified or they will not receive their grants", Social Development Minister Zola Skweyiya announced at the weekend.
"This constitutes part of the campaign to make sure that people receiving grants for 'ghost' beneficiaries, whether at post offices, pay-points or banks, are identified and measures taken against them."
The minister said that people would be notified of when to present themselves for verification, and be given time to do so. The process, he said, would be run in a phased and "caring manner".
"I want to emphasise that
no beneficiary should be prejudiced, adversely affected or have his or her dignity trampled on in the process of verification."
Since the government announced an amnesty for illegal recipients of social grants in December 2004, approximately 30 000 people came forward to request indemnity from prosecution; many others stopped claiming grants without applying for indemnity. The amnesty period ended on 31 March.
Taking into account only those who applied for indemnity, Skweyiya estimated that the campaign would save the state in the region of R120-million a year.
The Scorpions Special Investigations Unit, the police and the Justice Department and Department of Social Development are currently investigating a number of cases of fraud and corruption against public servants, syndicates and individuals across the country.
The government estimates that corruption in the provision of social grants is costing the state R1.5-billion per annum. The state pays out more
than R50-billion per annum to more than nine million beneficiaries.
According to Skweyiya, the establishment of the South African Social Security Agency, which will oversee the administration of grants, will help to curb social grant fraud. The agency, established in April, will be fully operational within three years.
Other approaches to stem fraud and corruption include the the deployment of sophisticated information technology to detect irregularities in the system, as well as a national anti-fraud hotline - 0800 701 701 - for the public to report abuses of the system.
Over the last two years, with the support of law enforcement agencies such as the Scorpions and the Asset Forfeiture Unit, 1 194 members of syndicates have been successfully prosecuted and millions of rands recovered.
Source: BuaNews
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