Date: 13/12/04
Source: Ministry of Social Development
Title: Skweyiya: Anti-fraud, corruption and mal-administration campaign
Media Statement by the Minister for Social Development, Dr. Zola Skweyiya, to announce the anti-fraud, corruption and mal-administration campaign including a call to those not eligible but receiving social grants to come out and be considered for an indemnity
13 December 2004
Ladies and Gentlemen
The purpose of today’s briefing is to announce the launch of a massive government public awareness campaign against fraud, corruption and mal-administration that continues to afflict our grant administration system and to call on those individuals who are not entitled to receive these grants and are doing so, to come forward and be considered for an indemnity by not later than 31 March 2005. Failure to do that would leave the government with no choice but to take drastic measures.
As you may be aware, currently the government spends more than R50 billion per annum to provide social security in the form of social grants to over 9 million beneficiaries. These beneficiaries constitute the most vulnerable sections of our population primarily children, older persons and people with disabilities. The provision of social security currently constitutes the biggest poverty relief programme of government aimed at ensuring the realisation of a better life for all especially the poorest of the poor.
On Friday last week (10 December 2004), we released a very significant research report on the socio-economic impact of social grants, which the Department of Social Development commissioned about two years ago. The research was conducted by the Economic Policy and Research Institute from Cape Town. The Report findings further confirmed the important and positive role as well as the correctness of the government’s social assistance policies and programmes in reducing poverty, enhancing household access to health care, education, schooling, housing, electricity, water, social infrastructure. Last but not least, the report further confirmed the positive impact of social grants on the macro-economic factors such as the labour market, employment and productivity. Therefore, now more than ever before, it has become even more imperative to make sure that the quality and integrity of the grant administration system is enhanced and improved.
As I said in 2002, the grants administration system has over the years been afflicted by continuing serious problems of fraud, corruption and mal-administration. These anomalies have been costing the government to the tune of more than R1,5 billion per annum. That is totally unacceptable and will not be tolerated any longer. We are more than committed to make sure that we drastically deal with that problem so as to ensure that the money and resources meant for the poorest of the poor do indeed reach them. We remain even more resolute to ensuring that the right amounts, for the right people, in the right way and at the right time are accordingly disbursed as social grants.
It is within that context that the government has introduced several measures in order to curb the scourge of fraud, corruption and mal-administration. One of the most significant is the establishment of the South African Social Security Agency. That process is underway and will hopefully be completed over a period of three years beginning from 1 April next year (2005). As you all know, the main purpose of establishing the Agency will be to take over the function of grant administration from the provincial administration to the national department with a view to ensuring that the beneficiaries get effective, efficient and quality services based on equitable national norms and standards such that the dignity of the poorest of the poor is restored. Alongside the process of establishing the Agency, we will also have an Inspectorate that will ensure that fraud, corruption and mal-administration are eliminated if not drastically reduced.
Ladies and Gentlemen, whilst we are engaged in these major institutional reforms, my Department has already taken significant steps to deal with the problems of fraud corruption and mal-administration by putting in place systems and programmes aimed at ensuring the effectiveness and efficiency of the grant administration system as well as service delivery as a whole.
Firstly, two years ago we I launched the Department of Social Development’s Anti –Fraud and corruption strategy aimed at preventing and detecting fraud. We have since established a strong Compliance Unit deployed both nationally and provincially.
Secondly, working together with other government Departments we have deployed sophisticated information technology to detect irregularities, fraud and leakages in the system.
Thirdly in March 2004, I launched a national Anti-Fraud Hotline urging the public to support us by reporting any form of fraud and corruption that they might come across related to the grant administration. The anti-fraud hotline with staff has since been rolled out to seven of the nine provinces and I am happy today to announce that by the end of this month all nine provinces will have anti –fraud hotline facilities.
Ladies and Gentlemen, the three measures have thus far shown remarkable success.
Over the last two years alone, with the support of other law enforcements agencies, such as the Scorpions and the Asset Forfeiture Units, 1 194 members of syndicates were successfully prosecuted and millions of Rands recovered.
Over 100 government officials have also been prosecuted. In addition, a significant number of those who were not eligible to receive social grants have been removed from the system. The anti-fraud hotline has since its launch received about 900 calls. Furthermore, about 3 300 other fraud and corruption cases were reported at the various provincial offices through other initiatives.
These initiatives have thus far also revealed very valuable information to the government. That information includes amongst others the fact that:
1. there are syndicates defrauding the system most of the time working in cahoots with some corrupt government officials; 2. there are medical doctors providing false medical reports indicating that some people are disabled when in fact they are not thereby enabling them to access the disability grants. These doctors, much against not only their code of ethics and conduct to which they have sworn an oath, they are in fact also disgracefully enriching themselves with the money meant for the poorest of the poor.
The information we have at our disposal also reveals that about 37 000 people enjoyed the benefit beyond their entitlement; over 1000 foster care parents continue to get a foster care for children that are exceeding the eligibility age.
Working in close concert with the Department of Home Affairs, we are now aware that there are indeed thousands of people who are not eligible in terms of age to receive grants, but are doing so. I am here referring specifically to men and women who do not qualify for old age grant, viz. those women younger than sixty years and men younger than sixty five years. We now have 10 273 of such cases under investigation. The Department of Home Affairs has also informed us that there are over 14 400 cases of children who according to the records of the Department of Home Affairs are indicated as deceased but people continue to collect the Child Support Grant.
Ladies and Gentlemen, we also have information at our disposal that about 50 500 officials in the employ of government or in receipt of a pension from the government pension fund that also receive social grants. We are in a process of verifying the information related to this.
It is for these reasons that we are launching this public awareness campaign urging those people to come forward before it is too late. As from today (13 December 2004) we are calling on all those falling in these various categories of people receiving grants that they are not entitled to, to come forward so that they could be considered for an indemnity.
All those involved can go to the nearest office of the Department of Social Development to confirm your eligibility, update their information cancel the grants received illegally. We will increase the staff complement in our call Centres so that you can also be able to call the toll free number and indicate that you want grant to be stopped if you are not entitled.
The toll Free number is 0800 601 011
We give all of those between now and 31 March 2005 to come forward so that they can be considered for indemnity. Failure to do so during this period will leave government with no choice, but to take drastic action against those individuals.
However, ladies and gentlemen let me hasten to say that with regard to syndicates and public servants defrauding the system they will be dealt with seriously and effectively. Working together with other law enforcement agencies, we have already started prosecutions and civil actions against syndicates and public servants in provinces such as the Eastern Cape. We will intensify those efforts.
We are also in consultation with the Ministers of Justice, Safety and Security, Health, as well the law enforcement agencies such as the South African Police Services, the prosecution authorities, Special Investigations Unit as well as the professional bodies. The objective of this campaign will also be to reinforce the ongoing campaigns and initiatives in the various provinces.
This Campaign will be called “Lets all Stop Fraud, Corruption and Mal-administration Now! See it! Come Out, Report It! Stop It!” The campaign will be run in almost all mass media and the communities. It will also be run in various languages utilising all possible public fora.
In conclusion Ladies and Gentlemen, let me once gain reiterate the government commitment to make sure that the campaign to register all those eligible for social grants especially children under eleven years this years and those under 14 years next year, will be intensified. Alongside we will be further intensifying efforts to make sure that children who benefit from social grants do go school and have access to other government services like health.
Individuals receiving pensions which are more than the current means test threshold are not eligible to receive social grants.
We are putting in place mechanisms to deregulate the assessment panels for the disability grant.
Over the past five years we have been able to make significant progress in registering no less than 5 million needy people for the old age, child support grant, foster care, and disability grants. These achievements would not have been possible without the support of the provincial government departments, partnerships with Non Government Organisations, Community Based Organisations, Labour, Business, Faith Based organisations and perhaps even more importantly the communities themselves.
As we launch this anti-fraud, corruption and mal-administration campaign including the call over the next three months on all those involved to come out, we once again call for the support from all sectors of our society. In this way we can ensure that the goal of building a caring society and a better life for all, especially our children, is indeed realised.
Enquiries: Mbulelo Musi
Cell: 082 904 3395
Issued by: Ministry of Social Development
13 December 2004
Source: Ministry of Social Development
Title: Skweyiya: Anti-fraud, corruption and mal-administration campaign
Media Statement by the Minister for Social Development, Dr. Zola Skweyiya, to announce the anti-fraud, corruption and mal-administration campaign including a call to those not eligible but receiving social grants to come out and be considered for an indemnity
13 December 2004
Ladies and Gentlemen
The purpose of today’s briefing is to announce the launch of a massive government public awareness campaign against fraud, corruption and mal-administration that continues to afflict our grant administration system and to call on those individuals who are not entitled to receive these grants and are doing so, to come forward and be considered for an indemnity by not later than 31 March 2005. Failure to do that would leave the government with no choice but to take drastic measures.
As you may be aware, currently the government spends more than R50 billion per annum to provide social security in the form of social grants to over 9 million beneficiaries. These beneficiaries constitute the most vulnerable sections of our population primarily children, older persons and people with disabilities. The provision of social security currently constitutes the biggest poverty relief programme of government aimed at ensuring the realisation of a better life for all especially the poorest of the poor.
On Friday last week (10 December 2004), we released a very significant research report on the socio-economic impact of social grants, which the Department of Social Development commissioned about two years ago. The research was conducted by the Economic Policy and Research Institute from Cape Town. The Report findings further confirmed the important and positive role as well as the correctness of the government’s social assistance policies and programmes in reducing poverty, enhancing household access to health care, education, schooling, housing, electricity, water, social infrastructure. Last but not least, the report further confirmed the positive impact of social grants on the macro-economic factors such as the labour market, employment and productivity. Therefore, now more than ever before, it has become even more imperative to make sure that the quality and integrity of the grant administration system is enhanced and improved.
As I said in 2002, the grants administration system has over the years been afflicted by continuing serious problems of fraud, corruption and mal-administration. These anomalies have been costing the government to the tune of more than R1,5 billion per annum. That is totally unacceptable and will not be tolerated any longer. We are more than committed to make sure that we drastically deal with that problem so as to ensure that the money and resources meant for the poorest of the poor do indeed reach them. We remain even more resolute to ensuring that the right amounts, for the right people, in the right way and at the right time are accordingly disbursed as social grants.
It is within that context that the government has introduced several measures in order to curb the scourge of fraud, corruption and mal-administration. One of the most significant is the establishment of the South African Social Security Agency. That process is underway and will hopefully be completed over a period of three years beginning from 1 April next year (2005). As you all know, the main purpose of establishing the Agency will be to take over the function of grant administration from the provincial administration to the national department with a view to ensuring that the beneficiaries get effective, efficient and quality services based on equitable national norms and standards such that the dignity of the poorest of the poor is restored. Alongside the process of establishing the Agency, we will also have an Inspectorate that will ensure that fraud, corruption and mal-administration are eliminated if not drastically reduced.
Ladies and Gentlemen, whilst we are engaged in these major institutional reforms, my Department has already taken significant steps to deal with the problems of fraud corruption and mal-administration by putting in place systems and programmes aimed at ensuring the effectiveness and efficiency of the grant administration system as well as service delivery as a whole.
Firstly, two years ago we I launched the Department of Social Development’s Anti –Fraud and corruption strategy aimed at preventing and detecting fraud. We have since established a strong Compliance Unit deployed both nationally and provincially.
Secondly, working together with other government Departments we have deployed sophisticated information technology to detect irregularities, fraud and leakages in the system.
Thirdly in March 2004, I launched a national Anti-Fraud Hotline urging the public to support us by reporting any form of fraud and corruption that they might come across related to the grant administration. The anti-fraud hotline with staff has since been rolled out to seven of the nine provinces and I am happy today to announce that by the end of this month all nine provinces will have anti –fraud hotline facilities.
Ladies and Gentlemen, the three measures have thus far shown remarkable success.
Over the last two years alone, with the support of other law enforcements agencies, such as the Scorpions and the Asset Forfeiture Units, 1 194 members of syndicates were successfully prosecuted and millions of Rands recovered.
Over 100 government officials have also been prosecuted. In addition, a significant number of those who were not eligible to receive social grants have been removed from the system. The anti-fraud hotline has since its launch received about 900 calls. Furthermore, about 3 300 other fraud and corruption cases were reported at the various provincial offices through other initiatives.
These initiatives have thus far also revealed very valuable information to the government. That information includes amongst others the fact that:
1. there are syndicates defrauding the system most of the time working in cahoots with some corrupt government officials; 2. there are medical doctors providing false medical reports indicating that some people are disabled when in fact they are not thereby enabling them to access the disability grants. These doctors, much against not only their code of ethics and conduct to which they have sworn an oath, they are in fact also disgracefully enriching themselves with the money meant for the poorest of the poor.
The information we have at our disposal also reveals that about 37 000 people enjoyed the benefit beyond their entitlement; over 1000 foster care parents continue to get a foster care for children that are exceeding the eligibility age.
Working in close concert with the Department of Home Affairs, we are now aware that there are indeed thousands of people who are not eligible in terms of age to receive grants, but are doing so. I am here referring specifically to men and women who do not qualify for old age grant, viz. those women younger than sixty years and men younger than sixty five years. We now have 10 273 of such cases under investigation. The Department of Home Affairs has also informed us that there are over 14 400 cases of children who according to the records of the Department of Home Affairs are indicated as deceased but people continue to collect the Child Support Grant.
Ladies and Gentlemen, we also have information at our disposal that about 50 500 officials in the employ of government or in receipt of a pension from the government pension fund that also receive social grants. We are in a process of verifying the information related to this.
It is for these reasons that we are launching this public awareness campaign urging those people to come forward before it is too late. As from today (13 December 2004) we are calling on all those falling in these various categories of people receiving grants that they are not entitled to, to come forward so that they could be considered for an indemnity.
All those involved can go to the nearest office of the Department of Social Development to confirm your eligibility, update their information cancel the grants received illegally. We will increase the staff complement in our call Centres so that you can also be able to call the toll free number and indicate that you want grant to be stopped if you are not entitled.
The toll Free number is 0800 601 011
We give all of those between now and 31 March 2005 to come forward so that they can be considered for indemnity. Failure to do so during this period will leave government with no choice, but to take drastic action against those individuals.
However, ladies and gentlemen let me hasten to say that with regard to syndicates and public servants defrauding the system they will be dealt with seriously and effectively. Working together with other law enforcement agencies, we have already started prosecutions and civil actions against syndicates and public servants in provinces such as the Eastern Cape. We will intensify those efforts.
We are also in consultation with the Ministers of Justice, Safety and Security, Health, as well the law enforcement agencies such as the South African Police Services, the prosecution authorities, Special Investigations Unit as well as the professional bodies. The objective of this campaign will also be to reinforce the ongoing campaigns and initiatives in the various provinces.
This Campaign will be called “Lets all Stop Fraud, Corruption and Mal-administration Now! See it! Come Out, Report It! Stop It!” The campaign will be run in almost all mass media and the communities. It will also be run in various languages utilising all possible public fora.
In conclusion Ladies and Gentlemen, let me once gain reiterate the government commitment to make sure that the campaign to register all those eligible for social grants especially children under eleven years this years and those under 14 years next year, will be intensified. Alongside we will be further intensifying efforts to make sure that children who benefit from social grants do go school and have access to other government services like health.
Individuals receiving pensions which are more than the current means test threshold are not eligible to receive social grants.
We are putting in place mechanisms to deregulate the assessment panels for the disability grant.
Over the past five years we have been able to make significant progress in registering no less than 5 million needy people for the old age, child support grant, foster care, and disability grants. These achievements would not have been possible without the support of the provincial government departments, partnerships with Non Government Organisations, Community Based Organisations, Labour, Business, Faith Based organisations and perhaps even more importantly the communities themselves.
As we launch this anti-fraud, corruption and mal-administration campaign including the call over the next three months on all those involved to come out, we once again call for the support from all sectors of our society. In this way we can ensure that the goal of building a caring society and a better life for all, especially our children, is indeed realised.
Enquiries: Mbulelo Musi
Cell: 082 904 3395
Issued by: Ministry of Social Development
13 December 2004
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