MINISTER TOLASHE ADDRESSES ALLEGED SRD SYSTEM FRAUD AT PORTFOLIO COMMITTEE MEETING

Precious Mupenzi

• Minister of Social Development, Ms. Nokuzola Tolashe, MP, has assured both the public and Parliament that the South African Social Security Agency (SASSA) is dedicated to addressing allegations of fraud within its Social Relief of Distress (SRD) grant system, following concerns raised by Stellenbosch students.
• Highlighting the significance of the social grants programme, which supports 28 million beneficiaries and allocates R35 billion annually to the SRD grant, Tolashe reiterated the government’s commitment to combating fraud and ensuring system integrity.
• Despite the lack of formal evidence from the students to substantiate their claims, Tolashe has instructed SASSA to investigate the allegations seriously while maintaining that the agency’s systems remain robust and capable of delivering essential services to vulnerable groups.

Minister of Social Development, Ms. Nokuzola Tolashe, MP, assured the public and Parliament that the South African Social Security Agency (SASSA) remains committed to tackling alleged fraud within its Social Relief of Distress (SRD) grant system. During her response to the Portfolio Committee on Social Development today, Minister Tolashe addressed concerns raised by Stellenbosch students, who highlighted potential blindspots in the system.

A Critical Anti-Poverty Measure

Opening her remarks, the Minister emphasised the importance of the social grants programme, calling it “our government’s largest and most successful anti-poverty intervention.” The programme supports 28 million beneficiaries nationwide, distributing over R266 billion annually to vulnerable groups, including the elderly, disabled, and children. Of this, R35 billion is allocated to the SRD grant, which provides monthly assistance to 8 million working-age adults. “This success has been recognised worldwide, winning international awards from prestigious institutions such as the International Social Security Association,” she stated.

Fraud Allegations Addressed

In response to the concerns raised, Minister Tolashe reassured the Committee, stating, “The department and SASSA take any allegations of fraud and corruption in our systems very seriously.” She noted that SASSA has implemented stringent mechanisms to ensure the integrity of the system, describing the threat of fraud as “taking food out of the mouths of the poor, and this is unacceptable.”

Acknowledging the broader global challenges posed by digital systems, Tolashe remarked, “We live in a digital world, which always poses some threat in our daily lives if not properly managed. It is a growing concern globally, impacting individuals, governments, and organisations alike.” She added that as digital transformation accelerates, so too do the threats of cybercrime, identity theft, and unauthorised access to systems.

Minister Tolashe also confirmed that no evidence or formal reports from the students had been presented to either the Department or SASSA. “The students have not provided the Department or SASSA with any reports or evidence to support their allegations,” she explained, adding that SASSA had extended several invitations for the students to present their findings, but they had not responded.

However, the Minister was resolute in her commitment to addressing these concerns. “I view these allegations in the most serious light and have directed SASSA to initiate investigations into the matter,” she said. In the absence of concrete information, SASSA’s investigation remains ongoing, but Minister Tolashe stressed the importance of proactive measures to safeguard the system.

Ensuring System Integrity

Reaffirming the strength of SASSA’s systems, the Minister noted the agency’s success in delivering grants to millions of South Africans each month. “Since its establishment 18 years ago, SASSA has successfully paid millions of beneficiaries who qualify for the grants month after month,” she stated. Despite the allegations, Tolashe assured the public, “I wish to assure our beneficiaries that the system is intact, and SASSA is still able to fulfil its mandate.”

Minister Tolashe acknowledged that the scale of SASSA’s budget makes it a tempting target for cybercriminals. “Some have made a career out of trying to steal this money by forming very sophisticated syndicates of cybercriminals,” she said, but added that SASSA has robust systems in place to detect and prevent fraud, as well as to prosecute those found to have defrauded the system.

The Minister also highlighted that this issue is not unique to South Africa. “These alleged problems are not unique to South Africa—it is a global issue that affects financial institutions, government agencies, and private organisations worldwide.”

A Commitment to Transparency and Accountability

In concluding her address, Tolashe assured the Portfolio Committee of the Department’s transparency and accountability. “As the Minister overseeing the agency, I have demanded that we take drastic steps to investigate this matter fully,” she emphasised, committing to further collaboration with cybersecurity experts and law enforcement agencies.

The Minister then handed over to SASSA CEO, Ms. Totsie Memela-Khambula, who was to provide preliminary insights into the workings of the SRD system and to reassure the public of ongoing efforts to tackle fraud without excluding deserving applicants.

“Our response will be one of both responsibility and resilience,” Minister Tolashe declared, promising that “together, we can strengthen our defences and continue to provide secure and reliable services to those who need them most.”