Ministers blew R2.6 Sassa money… Why Sassa grant payouts are delayed

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PIETERMARITZBURG – The South African Social Security Agency (Sassa) is currently embroiled in a series of controversies, ranging from ministerial misconduct to payment delays affecting vulnerable citizens. A recent report by the Public Protector has uncovered damning findings against former ministers of social development, while simultaneous reviews of beneficiary eligibility have left many Pietermaritzburg residents unable to collect their grants.

The Public Protector's report, released on Wednesday, 2 July, stems from a probe launched in July 2019 following a tip-off by an anonymous whistleblower. The investigation focused on alleged delays by Sassa in assuming control of social grant payments, questionable dealings in the South African Post Office's (SAPO) management of the system, and the controversial appointment of Sassa's former CEO.

While the Public Protector found no evidence that Sassa deliberately delayed taking control of payments, having legally signed agreements with SAPO, the implementation of the system was flagged as problematic. Of particular concern were the findings regarding the March 2019 appointment of Sassa's former CEO by then minister Susan Shabangu.

The Public Protector determined that the CEO's R2.6 million yearly salary package was approved without the necessary authorisation from the ministers of finance and public service and administration, contravening section 7(2) of the Sassa Act.

Evidence revealed that former finance minister Tito Mboweni and public service minister Senzo Mchunu did not endorse the pay package. Despite being instructed to rectify the salary package or consider other candidates, former minister Lindiwe Zulu, Shabangu's successor, failed to take action.

Furthermore, the probe exposed that Sassa lacks a proper Human Resources Policy, exacerbating governance issues within the agency. The Public Protector concluded that the appointment process constituted improper conduct and maladministration under the Constitution and the Public Protector Act.

The Public Protector's report outlined several remedial actions:

  • The President and relevant ministers must take note of findings against Shabangu and Zulu.
  • The Department of Public Service and Administration must develop and implement a Human Resources Policy for Sassa within 90 days.
  • The Auditor-General must audit the dodgy CEO appointment.
  • The Reserve Bank must take note of findings regarding Postbank's failure to implement fixes.

This report is part of the Public Protector's investigation update for the period 1 April to 30 June 2025. During this period, the office received 1 866 complaints, including 74 early resolution cases, 104 Good Governance and Integrity matters, and 615 service delivery complaints. Of these, 1 461 matters were finalised through investigation, and 1 059 through advisory services, with 12 reports signed by the Public Protector.

Adding to the agency's woes, many Pietermaritzburg residents were unable to collect their Sassa grants on Wednesday due to a review process targeting beneficiaries suspected of having undisclosed income.

Sassa has stated that payments have not been suspended, but reviews are being conducted to ensure that only eligible individuals receive grants.

When The Witness visited payout points on Thursday, some beneficiaries reported being advised to wait before checking their accounts. "I have received my payout as my details are correct. We are shocked that there are people among us who are dishonest and getting extra money, while we are in need," said one beneficiary, who asked to remain anonymous.

Lower Northdale Ward Councillor Rooksana Ahmed issued a notice informing beneficiaries that they should check again with their respective banks on the following day due to the review.

In a statement, Sassa explained that it is reviewing the eligibility of targeted beneficiaries who may have other income sources not disclosed at the time of their application. "These targeted beneficiaries are expected to present themselves at a Sassa local office where their eligibility will be reviewed. Those who fail to comply may face suspension of their grants. Continued non-compliance may result in permanent cancellation," the agency stated.

Sassa emphasised that beneficiaries are legally obligated to fully disclose all income sources during the application process and report any changes in financial circumstances thereafter.

Sassa national spokesperson Paseka Letsatsi said failure to comply with these rules is a violation of the Social Assistance Act and may lead to corrective action. "Sassa has undertaken a review of its database and processes to root out fraud and ensure grants go to eligible recipients. Reviews are focused on those active in the labour market, especially where income exceeds the means threshold and was not declared," said Letsatsi.

He clarified that no grants have been suspended at this stage, and "only the payment schedule has been amended for those asked to undergo the review."

Letsatsi expressed concern that many clients do not update their contact details, leading to missed notifications. A second payment date has been issued for those under review, but if no contact is made within two months, the grant will be suspended. Beneficiaries will then have one month to respond before the grant is permanently cancelled, and a fraud investigation may follow.

Sassa has urged all beneficiaries to declare any additional income or bank accounts and to replace green ID books with smart ID cards due to the risk of fraud.

Approximately a month ago, Sassa identified nearly 210,000 grant recipients who had not disclosed their earnings. SASSA’s spokesperson, Andile Tshona, explained that they have made arrangements for additional pay dates for individuals who have been placed on review.

“As we begin the payment cycle for July, SASSA would like to advise that the review of social grants for targeted beneficiaries will continue. If you are a SASSA beneficiary and you did not receive your payment this month or the previous months, we appeal to you to visit your nearest SASSA local office to update your personal details. The ongoing review of social grants is to ensure that SASSA pays the right social grant to the right person,” Tshona stated.

The combination of ministerial misconduct and beneficiary reviews has created a perfect storm of challenges for Sassa, raising concerns about the agency's ability to effectively serve the most vulnerable members of South African society.




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