Date: 16/03/2004
Source: Department of Social Development
Title: Z Skweyiya: Launch of social security fraud prevention facility
OPENING REMARKS BY DR ZOLA SKWEYIYA, MINISTER FOR SOCIAL DEVELOPMENT AT THE LAUNCH OF THE NATIONAL SOCIAL SECURITY FRAUD AND CORRUPTION PREVENTION FACILITY, 16 March 2004
MECs
Heads of Department
Members of the media
Ladies and gentlemen.
We are committed and determined in our efforts to fight poverty and corruption. We say this with confidence not only because of the government's track record over the past ten years but also because of our track record over the past three weeks.
As indicated in the Ten-Year Review, the provision of social grants is government's most effective programme to address income poverty of our people. Government expenditure on social grants has increased from R10 billion in 1994 to R34,8 billion in 2003.
More importantly, during this period the number of beneficiaries has increased from 2,6 million to over 7,7 million currently. We therefore say with confidence, we are committed and determined in our efforts to fight poverty.
Just over three weeks ago Parliament passed the Social Assistance and the South African Social Security Agency Bills. These Bills provide framework for shifting social assistance function to the national sphere and for establishing both the Social Security Agency and an independent Inspectorate for Social Security. The Inspectorate is specifically charged with ensuring the integrity of the social grants system.
Today, we are officially launching the Department of Social Development's new national facilities to combat fraud and corruption in our social security system. These facilities are in line with government's Integrated Corruption Management Information System, which is being developed to improve the efficiency and the follow-up of the reporting of corruption.
We know that there are government officials and syndicates who have made a livelihood out of looking for ways of subverting our social security system. We are aware of some of the scams they use to make a living out of stealing from the poorest and most vulnerable members of society. In some cases duplicate identity numbers or duplicate bank account numbers are used. To further enhance the department's fraud detection strategies we are in the process of procuring sophisticated information technology software to address these deficiencies.
In some cases false medical certificates are used and in other cases deaths of beneficiaries are not registered at the Department of Home Affairs. In some instances micro lenders illegally hold on to the smart cards of pensioners and hold them to ransom. In other instances pensioners are registered for funeral policies without their consent.
As a result of all these activities, we estimate that fraudulent claims for social security benefits currently total over R1,5 billion per annum. This level of losses is unacceptable, despite the fact that the international norm is a loss of between 5 and 10% of revenue or expenditure due to commercial crime and insufficiently robust internal controls.
As part of our Anti-Corruption and Fraud Prevention Strategy, launched in 2001, we have been improving our internal control systems and have been progressively deploying our forensic auditing and investigating teams in all the provinces. We can report steady progress in uncovering the scams, building strong cases against commercial crime syndicates running these operations, and in arresting the government officials involved. We are also being deliberate in our efforts to ensure that these cases reach the courts so that the individuals concerned can face justice. Up until January this year we have arrested a total of 147 government officials.
Regarding the criminal syndicates, we have also begun to make some headway and have recorded some successes. There are also a number of criminal cases underway in various provinces.
* In the Eastern Cape a wealthy family syndicate is facing 11 000 charges of laundering R3,5 million in social assistance grants intended for older persons and disabled people.
* In KwaZulu-Natal a syndicate defrauding the department of over R3 million by depositing 1567 grants into a single bank account has been uncovered.
* In Gauteng province a syndicate of four family members issuing false medical certificates to people to access disability grants have been arrested. Almost 500 people fraudulently receiving disability grants to R1,.5 million were taken off the Social Security system.
Our success in uncovering these syndicates and arresting corrupt government officials is due to the co-operation and assistance we have received from a number of organisations. Although our successes are due to collective effort, I would like to make special mention of committed individuals like Ms Mary Turok and others who regularly support the department's fraud prevention initiatives. Various organisations have provided forensic services in support of the Auditor-General's Office and the Scorpions - we appreciate their commitment and support.
We reiterate, government will neither tire nor relent in its efforts. We are committed and determined in our efforts to fight poverty and corruption. More and more, we are turning the tide against corruption in our social assistance system.
Today, by launching our new national social security facilities to combat fraud and corruption we are adding new dimension and scope to our efforts. Parliament can change the structure of our social security system and government can investigate and arrest corrupt officials, but for all these efforts to succeed we need community participation. The fight against poverty and corruption is everyone's business.
As stated in the department's posters - as a member of the public, "Fraud Costs You Money. See it, Report it, Stop it!" Timeous assistance from concerned citizens is of vital importance in the early detection and prevention of fraudulent activities.
Our new national facilities to combat fraud and corruption in our social security system consist of the following elements:
1. A toll fee national social security fraud hotline, staffed by 24 trained call centre operators, that operates 24 hours a day, seven days a week. This toll free number (0800 60 10 11) should be used by anyone in the country to report information or suspicions about fraud or corruption. The hotline is able to handle calls in all the official languages. Callers have the right to remain anonymous and as whistleblowers are protected by the Protected Disclosures Act, No. 26 of 2000. This toll free number (0800 60 10 11) is supported by powerful back office workflow software, which generates reports and creates audit trails. An extensive communication plan is being implemented as we speak to create and maintain public awareness over the long term.
2. An e-mail address (fraud@socdev.gov.za) and a free call fax service number (0800 61 10 11) to facilitate the electronic reporting of fraud and corruption.
3. A Fraud Register Database, which will provide, in real time, statistics on the number of cases of fraud and their monetary value. The national database also generates fraud profiles, which allow us to pro-actively investigate suspicious activities.
This national facility to combat fraud and corruption will be linked to all provincial departments and information will be accessible from the provinces. The facility enables the national department to track, co-ordinate and control the entire process of handling fraud cases - from the initial report of suspicious information through to the court judgments on specific cases.
These initiatives will be further enhanced by specific fraud prevention legislation that strengthens the system of checks and balances and improves the integrity of the social security system. The department will also be doing a thorough audit and review of the tendering processes in order to ensure that government obtains value for money.
We are also expanding our collaboration with the Micro Finance Regulatory Council and the Human Rights Commission to ensure that social grant beneficiaries are protected from any form of fraud, abuse or exploitation.
I presume you are all aware that later this week on Friday, 19 March, at the Voorbrug Stadium in Delft (Western Cape), we will be officially launching a yearlong programme of activities to celebrate the Tenth Anniversary of the International Year of the Family.
This anniversary and the planned activities remind us that strengthening families is a key building block in our efforts to fight poverty.
Building families, moral regeneration and fighting poverty and corruption are all key components in our contract with the people. We are confident of success if we work together in a People's Contract to Create Work and Fight Poverty. Together we can build a better life for all.
I thank you.
Enquiries: Mbulelo Musi
Cell: 082 775 2823
Issued by Department of Social Development
16 March 2004
Source: Department of Social Development
Title: Z Skweyiya: Launch of social security fraud prevention facility
OPENING REMARKS BY DR ZOLA SKWEYIYA, MINISTER FOR SOCIAL DEVELOPMENT AT THE LAUNCH OF THE NATIONAL SOCIAL SECURITY FRAUD AND CORRUPTION PREVENTION FACILITY, 16 March 2004
MECs
Heads of Department
Members of the media
Ladies and gentlemen.
We are committed and determined in our efforts to fight poverty and corruption. We say this with confidence not only because of the government's track record over the past ten years but also because of our track record over the past three weeks.
As indicated in the Ten-Year Review, the provision of social grants is government's most effective programme to address income poverty of our people. Government expenditure on social grants has increased from R10 billion in 1994 to R34,8 billion in 2003.
More importantly, during this period the number of beneficiaries has increased from 2,6 million to over 7,7 million currently. We therefore say with confidence, we are committed and determined in our efforts to fight poverty.
Just over three weeks ago Parliament passed the Social Assistance and the South African Social Security Agency Bills. These Bills provide framework for shifting social assistance function to the national sphere and for establishing both the Social Security Agency and an independent Inspectorate for Social Security. The Inspectorate is specifically charged with ensuring the integrity of the social grants system.
Today, we are officially launching the Department of Social Development's new national facilities to combat fraud and corruption in our social security system. These facilities are in line with government's Integrated Corruption Management Information System, which is being developed to improve the efficiency and the follow-up of the reporting of corruption.
We know that there are government officials and syndicates who have made a livelihood out of looking for ways of subverting our social security system. We are aware of some of the scams they use to make a living out of stealing from the poorest and most vulnerable members of society. In some cases duplicate identity numbers or duplicate bank account numbers are used. To further enhance the department's fraud detection strategies we are in the process of procuring sophisticated information technology software to address these deficiencies.
In some cases false medical certificates are used and in other cases deaths of beneficiaries are not registered at the Department of Home Affairs. In some instances micro lenders illegally hold on to the smart cards of pensioners and hold them to ransom. In other instances pensioners are registered for funeral policies without their consent.
As a result of all these activities, we estimate that fraudulent claims for social security benefits currently total over R1,5 billion per annum. This level of losses is unacceptable, despite the fact that the international norm is a loss of between 5 and 10% of revenue or expenditure due to commercial crime and insufficiently robust internal controls.
As part of our Anti-Corruption and Fraud Prevention Strategy, launched in 2001, we have been improving our internal control systems and have been progressively deploying our forensic auditing and investigating teams in all the provinces. We can report steady progress in uncovering the scams, building strong cases against commercial crime syndicates running these operations, and in arresting the government officials involved. We are also being deliberate in our efforts to ensure that these cases reach the courts so that the individuals concerned can face justice. Up until January this year we have arrested a total of 147 government officials.
Regarding the criminal syndicates, we have also begun to make some headway and have recorded some successes. There are also a number of criminal cases underway in various provinces.
* In the Eastern Cape a wealthy family syndicate is facing 11 000 charges of laundering R3,5 million in social assistance grants intended for older persons and disabled people.
* In KwaZulu-Natal a syndicate defrauding the department of over R3 million by depositing 1567 grants into a single bank account has been uncovered.
* In Gauteng province a syndicate of four family members issuing false medical certificates to people to access disability grants have been arrested. Almost 500 people fraudulently receiving disability grants to R1,.5 million were taken off the Social Security system.
Our success in uncovering these syndicates and arresting corrupt government officials is due to the co-operation and assistance we have received from a number of organisations. Although our successes are due to collective effort, I would like to make special mention of committed individuals like Ms Mary Turok and others who regularly support the department's fraud prevention initiatives. Various organisations have provided forensic services in support of the Auditor-General's Office and the Scorpions - we appreciate their commitment and support.
We reiterate, government will neither tire nor relent in its efforts. We are committed and determined in our efforts to fight poverty and corruption. More and more, we are turning the tide against corruption in our social assistance system.
Today, by launching our new national social security facilities to combat fraud and corruption we are adding new dimension and scope to our efforts. Parliament can change the structure of our social security system and government can investigate and arrest corrupt officials, but for all these efforts to succeed we need community participation. The fight against poverty and corruption is everyone's business.
As stated in the department's posters - as a member of the public, "Fraud Costs You Money. See it, Report it, Stop it!" Timeous assistance from concerned citizens is of vital importance in the early detection and prevention of fraudulent activities.
Our new national facilities to combat fraud and corruption in our social security system consist of the following elements:
1. A toll fee national social security fraud hotline, staffed by 24 trained call centre operators, that operates 24 hours a day, seven days a week. This toll free number (0800 60 10 11) should be used by anyone in the country to report information or suspicions about fraud or corruption. The hotline is able to handle calls in all the official languages. Callers have the right to remain anonymous and as whistleblowers are protected by the Protected Disclosures Act, No. 26 of 2000. This toll free number (0800 60 10 11) is supported by powerful back office workflow software, which generates reports and creates audit trails. An extensive communication plan is being implemented as we speak to create and maintain public awareness over the long term.
2. An e-mail address (fraud@socdev.gov.za) and a free call fax service number (0800 61 10 11) to facilitate the electronic reporting of fraud and corruption.
3. A Fraud Register Database, which will provide, in real time, statistics on the number of cases of fraud and their monetary value. The national database also generates fraud profiles, which allow us to pro-actively investigate suspicious activities.
This national facility to combat fraud and corruption will be linked to all provincial departments and information will be accessible from the provinces. The facility enables the national department to track, co-ordinate and control the entire process of handling fraud cases - from the initial report of suspicious information through to the court judgments on specific cases.
These initiatives will be further enhanced by specific fraud prevention legislation that strengthens the system of checks and balances and improves the integrity of the social security system. The department will also be doing a thorough audit and review of the tendering processes in order to ensure that government obtains value for money.
We are also expanding our collaboration with the Micro Finance Regulatory Council and the Human Rights Commission to ensure that social grant beneficiaries are protected from any form of fraud, abuse or exploitation.
I presume you are all aware that later this week on Friday, 19 March, at the Voorbrug Stadium in Delft (Western Cape), we will be officially launching a yearlong programme of activities to celebrate the Tenth Anniversary of the International Year of the Family.
This anniversary and the planned activities remind us that strengthening families is a key building block in our efforts to fight poverty.
Building families, moral regeneration and fighting poverty and corruption are all key components in our contract with the people. We are confident of success if we work together in a People's Contract to Create Work and Fight Poverty. Together we can build a better life for all.
I thank you.
Enquiries: Mbulelo Musi
Cell: 082 775 2823
Issued by Department of Social Development
16 March 2004
Advertisement
EMAIL THIS ARTICLE SAVE THIS ARTICLE FEEDBACK
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
