The South Africa Social Security Agency (Sassa) has come under scrutiny after it was revealed that a staggering R140 million has been disbursed to beneficiaries who are no longer alive. Social Development Minister Lindiwe Zulu disclosed this information during a parliamentary session, responding to a written inquiry from the DA’s Jacques Smalle.
According to Minister Zulu, over the past three financial years, Sassa distributed grant payments to more than 74,000 beneficiaries who were confirmed to be deceased. Zulu acknowledged the challenges faced by Sassa, emphasizing the agency’s collaboration with the Department of Home Affairs (DHA) for deceased data validation and monthly life status checks before payments are generated.
Zulu explained, “Yes, there are instances where deceased social grant recipients have been wrongly paid. This happens when a grant beneficiary dies after proof of life is confirmed by DHA and when the payment run is released to the beneficiary’s bank account.”
The financial breakdown reveals that during the 2020/2021 financial year, Sassa paid a substantial R59 million to deceased beneficiaries. In the subsequent years, R50 million was paid in 2022/2023, and R31 million in 2023/2024.
To mitigate the risk of wrongful withdrawals, Sassa freezes the accounts of deceased beneficiaries through Post Bank. In cases where funds have already been withdrawn, a Sassa debt recovery process is initiated. Zulu added that the agency follows up with a letter to the next of kin, urging them to return the funds to Sassa.
The financial impact of these erroneous payments adds to the challenges faced by Sassa, which is responsible for the distribution of social grants to approximately 19 million South African citizens.
The government’s expenditure on social grants surpasses R200 billion annually, with the number of beneficiaries rising from 18,677,339 in March 2022 to 18,829,716 by the end of March 2023. Sassa’s efforts to address these challenges and prevent further financial mismanagement are now under increased scrutiny.