The Portfolio Committee on Social Development heard on Wednesday that its R600 million budget cut will impact the operations of the South African Social Services Agency (Sassa).
Sassa and the National Development Agency came to brief the committee on their annual performance plans. Minister of Social Development Ms Lindiwe Zulu led the delegations and informed the committee that Covid-19 uncovered a lot about the experiences of many South Africans. “We should commit to improving the lives of our people,” she said. Sassa Chief Executive Officer Ms Totsie Memela noted that the Covid-19 pandemic dramatically increased the need for social assistance, with 10 million applications received for the social relief package.
The committee asked questions on a number of issues, including the large proportion of the budget going to compensate employees, challenges related to the R350 payments, the Sassa anti-corruption unit, irregular expenditure and the impact of the budget cuts on the entire portfolio.
Committee Member Ms Liezl van der Merwe applauded the department and Sassa for approaching Cabinet and the National Treasury to extend the R350 grant. She asked whether the six million beneficiaries had received their payments. “Some beneficiaries had claimed on social media that some payments in some months had been skipped,” she said.
In light of the increased demand for social services arising from the pandemic, Committee Member Bridgette Masango was particularly concerned by the department’s budget cuts. “What is the projected value of the child support grant in 2022/23 in light of these cuts? It seems the child support grant is reducing when we are in need of more,” she said.
Committee Member Alexandra Abrahams wanted to know what Sassa is doing to recover debt owed to it, as this might offset budget cuts. It is important that Sassa does not bow to pressure from labour unions, she remarked, as this would compromise the poor.
The department replied that it has always had a fraud strategy, but that a proper gatekeeping strategy is needed to eliminate all fraud. It also said that beneficiaries are paid through the South African Post Office and are stringently validated, as 70% of its clients use the post office. “We should have efficient mechanisms to recover erroneous payments and we need to ensure that there is consequence management,” Ms Memela said.
The Chairperson of the committee, Mr Mondli Gungubele, noted that the Auditor-General’s report on Sassa is not complimentary. “The things raised in that report are things that could be done; the matter requires urgent attention.”
Sibongile Maputi
5 May 2021
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