Reply:

 

(1)(a) 254 cases of irregular expenditure totalling R 88 million were previously finalised by SASSA and later reversed in 2017/2018 after the AGSA advised that the CEO was not the appropriate delegated authority to condone irregular expenditure.

SASSA subsequently wrote to the National Treasury for guidance and clarity on the AGSA’s findings. The National Treasury then issued a revised Irregular Expenditure Framework in May 2019 (Instruction Note No.2 of 2019/2020) which provided guidance on how institutions and departments should record and report on irregular expenditure including the process to be followed in the investigation of financial misconduct cases resulting from irregular expenditure.

SASSA had to restart the process and treat the above irregular expenditure cases in line with the revised Irregular Expenditure Framework, and all new cases were then treated the same.

The recently issued Framework requires that the cases should be submitted to National Treasury for condonation together with evidence of corrective disciplinary outcome and proof that the Agency has implemented measures to prevent recurrence of the irregularities.

To date, SASSA has submitted a total of 521 cases amounting to R 685 007 150.89 to the National Treasury for condonation. Treasury has condoned 303 cases amounting to R536 442 320.42 and still considering the remaining 218 cases totalling R 148 564 830.47.

(1)(b) In terms of the Irregular Expenditure Framework, every case submitted to National Treasury for condonation must be accompanied by evidence of corrective disciplinary outcome implemented. In all the 521 cases reported in 1 (a) and all other cases of irregular expenditure under investigation process, SASSA is complying with this requirement.

The reasons for the slow pace in the finalisation of investigations into past transgressions of irregular expenditure (Backlog cases) are as follows:

• SASSA experienced a number of changes in accounting authorities and each accounting authority required sufficient time to understand the transgressions and implement appropriate corrective disciplinary processes
• Some of the employees who need to be interviewed or assist with the information and circumstances affecting certain transactions are no longer in the employees of the Agency. Therefore, to trace them and/or request for their cooperation is to be done in terms of applicable prescripts which slow down processes.

Some of the processes are;

• cases that are before the courts require court orders.
• applying relevant Supply Chain Management (SCM) prescripts which require SASSA to appoint legal practitioners and/or engagement with National Treasury.

1. National Treasury required assurance that SASSA and DSD had

• • identified the causes for an increased debt book,
  • developed mitigating strategies,
  • provided assurance that the social grant debtors portfolio is managed well and efforts are made to reduce the irrecoverable debts.
  • errors resulting in over payment are reduced and or dealt with internally, and improved mechanisms implemented to recover funds paid erroneously.

SASSA and DSD were requested to ensure that:

• • Grants eligibility assessment are done satisfactorily at the application stage including income checks.
  • Regular reviews are done to reconfirm eligibility including income checks across various applicable database.
  • Improved validation to ensure transfers are made to the correct beneficiary and into the correct account, and corrective measures are taken swiftly where errors have occurred.
  • Review of debt recovery mechanism to strengthen tracing and follow up of debtors and deductions from existing grants where possible.
  • A quarterly report on the progress made on the recovery of the debt book is submitted to NT
  • Development of a gatekeeping and debt management improvement strategy. A draft has been written for consultation with the National Treasury before the end of the current financial year.

(3)(a) Of the 1228 cases, 566 cases of financial misconduct relating to irregular, fruitless, damages and losses are remaining, and in progress.

(b) SASSA has set target in its 2021/22 Annual Performance Plan (APP) of 95% to finalise financial misconduct cases. Efforts are being made to ensure this is achieved before the end of the current financial year.