To download the soundbite of the Chairperson, Ms Bridget Masango, click here: https://iono.fm/e/1480393
Parliament, Thursday, 12 September 2024 - The Portfolio Committee on Social Development wants consequence management instituted for officials from the South African Social Security Agency (SASSA) implicated in the material irregularities identified by the Auditor-General of South Africa (AGSA).
The material irregularities include an amount of R316 million, which SASSA paid to Cash Paymaster Services (CPS) for services not rendered in June 2012, for re-registering social grants beneficiaries. In this matter, the Gauteng High Court ruled that CPS was not eligible to receive money and should repay it to SASSA. Another material irregularity was SASSA’s payment of R74 million in social assistance fees for services not rendered by CPS. CPS has not repaid these amounts.
Material irregularities refer to non-compliance or contravention of legislation, such as fraud, theft, or breach of a fiduciary duty, that results in material financial losses.
The committee received a briefing yesterday from the AGSA on the Department of Social Development and its entities’ audit outcomes and performance for the 2022/23 financial year. The briefing was to induct newly appointed committee members on the Culture Shift Strategy, Accountability Ecosystem, Audit Outcomes for the last 5 years and Material Irregularities (MI’s) of the department and its entities. The AGSA informed the committee that the five material irregularities it identified were resolved. However, the committee remains seriously concerned that no appropriate consequence management was instituted against the implicated officials because they had resigned, and the prescription period had lapsed. SASSA suffered material financial loss as a result of these material irregularities.
The committee resolved that law enforcement agencies investigating these matters should provide them with an update on the progress of the cases. Accordingly, it will schedule a meeting with the responsible law enforcement agencies to follow up on this matter.
“This is setting a horrible precedent of lack of consequence management. At the back of every R1.00 is a vulnerable child, an older person who is not receiving lifesaving services, a person with disabilities whose grant is not renewed and a child who is stunted”, said committee Chairperson, Ms Bridget Masango.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT, MS BRIDGET MASANGO.
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Name: Ms Faith Ndenze
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Email: fndenze@parliament.gov.za
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