Question NW4569 to the Minister of Social Development
28 December 2022 - NW4569
Arries, Ms LH to ask the Minister of Social Development
Noting the arrest of two elderly persons for allegedly defrauding SA Social Security Agency grants, while they are directors in companies, what (a) total number of grant beneficiaries who are owners of businesses have been arrested in the past five years and (b) is the total amount that has been recouped?
Reply:
Social Assistance is provided to individuals based on their income and asset status that they declare upon application, or when there is a change in their circumstances. SASSA does not check employment status, or director status of applicants, other than to confirm income levels.
a) Therefore, no records are kept of individuals based on their employment status or directorships.
b) SASSA does not have a record of funds recouped from directors of companies and who are also social grant beneficiaries.
It is important to note that being employed and/ or a director of a company (for profit or not- for- profit) does not disqualify a person from receiving a grant. Eligibility is determined by the income they receive from these activities; thus income needs to be assessed.
SASSA undergoes continuous reviews of social grants and investigates cases where fraud may have occurred. On the 4th of December 2021, 10 company directors were arrested on other matters, which were not social grant related fraud. Recovery of loss in relation to the aforementioned case will be done in terms of the Criminal Procedure Act, which goes concurrently with criminal prosecution. The case in question is at the criminal prosecution stage.