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Date : 08/04/2005
Source: Ministry of Social Development
Title: Skweyiya: Cooperation of Social Development with SIU


Speech by Social Development Minister, Zola Skweyiya, on the Cooperation of the Department of Social Development with the Special Investigating Unit in Fighting Fraud, Corruption and Maladministration in Social Grants.

Ladies and Gentlemen

I have come here today together with the Head of the Special Investigating Unit (SIU), Mr Willie Hofmeyer to announce our historic cooperation agreement with regard to stamping out fraud, corruption and mal-administration in the social grants administration system.

My Department has entered into an agreement with the SIU that is contained in a Proclamation signed by the President of the Republic of South Africa, Mr. Thabo Mbeki on the 4th April 2005 and gazetted on the 6th April 2005.

The Proclamation stipulates that the SIU will assist my Department in line with its legal mandate, focusing particularly on the investigation of the following critical areas:

1. the payment and/receipt of social assistance or benefits in respect of deceased and/or fictitious persons and/or persons who do not qualify for such assistance and/or benefit or any portion thereof and any conduct directed at promoting or facilitating payment or receipt of such payment or receipt of such assistance or benefits

2. conduct of government officials and/or agents responsible for the administration and /or/ payment of social assistance of benefits, which has resulted in losses of, lack of control over, or delays in, the payment of monies allocated for the payment of social assistance or benefited and any conduct directed at promoting or facilitating the aforementioned'

This cooperation agreement will last for a period of three years in which time the SIU will amongst others provide about 200 investigators over a period of 30 months to probe various aspects of fraud, corruption and mal-administration practices.

The SIU will initially concentrate on certain categories of the grants viz.

* Disability Grant
* Foster Care Grant
* Care Dependency grant
* Child Support Grant.

The provinces that will be given priority attention are the following:

1. Mpumalanga
2. Limpopo
3. North West
4. KwaZulu-Natal and
5. Gauteng

My Department has set aside R57,9 million (Rands) for this very important project. During this period of cooperation the SIU will also be assisting in building the capacity of the DoSD to deal more effectively and efficiently with fraud and corruption.

Our aim is to make sure that this important project further reinforces our- ongoing efforts to root out fraud and corruption within the grants administration system. As you may be aware, recently we offered and indemnity to people who were receiving social grants that they were not entitled to come out and stop immediately from such practice. We had earlier reported that the number as at the time when we went public on during my budget speech was standing at about 30 000. We estimated that the number as provided at the time would be able to save the state approximately R120 million. We have now received consolidated reports from almost all the district regional and provincial offices that in fact indicate that no less than 76 000 came out by the 31st March 2005 when the indemnity period came to an end. This is indeed welcome as it will go a long way in savings the scarce resources meant to help the poor.

However, the provinces have informed me that thousands of people never come out for indemnity but rather preferred to stay away from receiving the grants illegally. This has further increased the savings. We are now processing the information and will pronounce in due course. Suffice to say that we did make it very clear that those that did not come out to be considered for indemnity will be investigated and the SIU will also assist us in that direction.

Furthermore, we made it very clear that the public servants and syndicates involved in fraud and corruption will not be considered for indemnity. The SIU will therefore give major focus on those.

Ladies and Gentlemen this cooperation with the SIU is an indication of our commitment and resolve to make sure that we stop the stealing of money meant for the poorest of the poor. We remain even more determined that those involved in such despicable acts of robbing the poorest of the poor, older persons, people with disabilities and most importantly needy children, do indeed face the full might of the law.

We now have information about many of them. We will work hard to find all those involved and make sure that they face the full wrath of the law.

This process will not only involve criminal prosecution, but also ensure that civil action is taken so that the state can recover all the monies stolen as much as possible. As I said during my Budget Speech on the 5th April 2005 at Parliament, Cape Town, we also have the support of other law enforcement agencies such as the Scorpions, the Department of Justice, Home affairs, the South African Police Services. The National Commissioner of the SAPS, Mr Jackie Selebi and the National Director for Public Prosecutions, Mr Vusi Pikoli, have already assured me of their full support and commitment to assist us in reducing and finally eliminating the scourge of fraud and corruption.

We will also be intensifying other aspects of our concerted anti- fraud and corruption efforts and campaigns including the strengthening of the verification of beneficiaries, so as to eliminate the problem of ghost beneficiaries. I will soon be meeting with the banks to ensure that we work together in that direction.

Ladies and Gentlemen, alongside we will also be forging ahead even faster to make sure that the South African Social Security Agency (SASSA) is established and becomes fully operational over the next three years. The establishment of Agency is intended to make sure that we deliver effective and efficient services with regard to the disbursement of social grants.

Alongside the Agency establishment we will also be establishing the Inspectorate to ensure the integrity of the grants administration system including the reduction of fraud, corruption and mal-administration.

Ladies and Gentlemen, we are aware fully aware that despite the unswerving commitment of the government to deal with the scourge of fraud and corruption, government alone will not succeed. We therefore appeal to the public, the media, private sector, labour, non-governmental organisations, faith based organisations, political formations across the spectrum and indeed all South Africans of goodwill, to join us in this noble endeavour. The reduction of fraud and corruption will go a long way in ensuring that we improve the quality of services we render to the most needy and vulnerable of our society and thereby take us even nearer to the goal of building not only a South Africa that truly belongs to all, but indeed, a caring society and a better life for all.

Enquiries:
Mbulelo Musi
Cell: 082 904 3395

Issued by: Ministry for Social Development
8 April 2005

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