South Africa’s agency that administers social security, the South African Social Security Agency (SASSA), has begun rolling out a new biometric card to social grant beneficiaries to cut down on fraud and corruption in its grants system.
The “newbiometric magstripe cards” that is also expected to improve the delivery of grants and reduce the payout costs will be given to grant holders.
They are set to replace the Sekulula cards, the temporary smart cards issued in Gauteng, Western Cape, the southern part of the Eastern Cape, Mpumalanga, and Free State, says SASSA.
The new cards, and the verification process attached to the issuing of the cards, will help SASSA to reduce the incidence of fraud and corruption, over which Auditor-General Terence Nombembe has repeatedly raised concern.
SASSA has also successfully implemented its integrity model, which serves to address and monitor irregular practices by both its employees and the public.
The SIU has recommended to SASSA that it remove all improperly received grants, involving savings to the government — and the taxpayer — of over R1-billion, and the prevention of future losses of over R11.8-billion.
Marika Muller, the SIU’s acting head of communications, says that since the SIU’s investigation into the SASSA began in April 2005, the unit has helped the government recover over R104.6-million.
She says the SIU is still collecting an average of over R2.3-million a month in cash repayments from those who claimed grants irregularly.
The cards will also allow beneficiaries access grants through points of sale, banks, merchants and cash pay points in SA.
Way back in 2006, the government of South Africa estimated an R1.5-billion loss each year through corruption and the maladministration of social grants, as reported in a 2008 report by the Institute of Security Studies. The government then embarked on a move to end this trouble.
The government’ SIU between 2006 and March 2012 prosecuted 20,554 people for fraud and corruption relating to grants and ended up convicting 17,880.
More than 46,237 beneficiaries who wrongly received social grants ended up acknowledging debts totalling to R304.9-million. The beneficiaries, according to SIU, are supposed to pay back the money.
Among the 132,603 beneficiaries verified, 7,133 were fraudulent.
Speaking during her budget speech, Bathabile Dlamini, Minister for Social Development, said the new biometric payment system would help the government save R800-million a year once completely installed.
