DA Demands Accountability and Immediate Action on SRD Grant Fraud Allegations

Dear Editor

Today, two Stellenbosch University students presented to the Portfolio Committee on Social Development the alleged wide-scale fraud within the Social Relief of Distress (SRD) grant system. The DA is disappointed that SASSA was ill-prepared to respond to the serious allegations, which they have been aware of for years.

The DA will not allow SASSA to evade their responsibility. SASSA is due to appear before the Portfolio Committee in a month to report back.

In the meantime, we are calling for the Special Investigating Unit (SIU) to investigate the SRD R370 grant application and payment system and for the Chapter 4: Inspectorate for Social Assistance to be urgently capacitated as an independent body as envisioned in The Social Assistance Act. The Inspectorate for Social Assistance has a variety of functions, including to conduct investigations to maintain the integrity of the social assistance systems, to investigate fraud, execute internal audits, and the like. The DA will not hesitate to lay charges against those who have illegally benefited from the SRD grant—funds that are meant to support the most vulnerable members of our society.

The Minister’s recent request for more time to respond to these allegations, citing SASSA’s unpreparedness, is nothing more than an attempt to shield SASSA and the DSD from embarrassment. The reality is that SASSA has been fully aware of these fraud issues for years, yet they have consistently failed to act.

What is even more infuriating is that SASSA officials flew to Cape Town for the Portfolio Committee Meeting, wasting taxpayers’ money, while not prepared to offer insights on the students’ revelations. Meanwhile, deserving and eligible recipients are still locked out of the grant system, while fraudsters continue to siphon off funds meant for the most vulnerable. The public and stakeholders are left in the dark, with no answers. We demand an independent investigation to get to the truth.

Moreover, the students’ findings exposed how fraudsters seem to be targeting the youth in particular, exploiting the high levels of unemployment and the apparent lack of awareness among young South Africans about the SRD grant. Shockingly, 60 of the students surveyed were unaware of SASSA’s existence and the SRD grant.

SASSA’s communication issues persist, as students have highlighted again. While SASSA directs queries to its hotline, the line is overwhelmed and ineffective. In 2022, only four of 212 SASSA offices nationwide answered their phones. A year later things were still dismal. In 2023, just 4.7% of SASSA branches responded, and only 22.6% even had a working contact number. Attempts to reach the toll-free line also failed. Such dysfunction is unacceptable and demands immediate action.

This is not just about poor management; it is about the systematic exploitation of the poorest in our society, including the youth, who are being disproportionately affected.

The DA has raised these issues since the inception of the SRD grant, and we will continue to push for accountability. We demand an independent investigation, as SASSA’s internal inquiry is clearly a stalling tactic to delay facing the truth. South Africans deserve answers, and the DA will ensure that those responsible for this gross negligence are brought to justice.

Regards

Alexandra Abrahams MP
DA Deputy Spokesperson on Social Development