SASSA AND NDA PRESENT AUDIT ACTION PLAN PROGRESS TO PARLIAMENT

By Precious Mupenzi.

• SASSA has completed 98% of its audit interventions, with record digitisation and stricter fraud controls as major corrective measures.
• The NDA resolved 89% of findings, with outstanding issues on consequence management and the HR strategy being finalised this financial year.
• Minister Tolashe has reaffirmed a zero-tolerance stance on repeat findings, underscoring the Department’s goal of achieving clean audits and strengthening public trust.

The Department of Social Development (DSD) portfolio, led by Minister Nokuzola Sisisi Tolashe and Deputy Minister Ganief Hendricks, appeared before the Portfolio Committee on Social Development on 10 September 2025. They were joined by Director-General Mr Peter Netshipale, South African Social Security Agency (SASSA) Chief Executive Officer Mr Themba Matlou, and National Development Agency (NDA) Acting Chief Executive Officer Ms Raphaahle Ramokgopa to present progress on the implementation of their 2023/24 Audit Action Plans.

SASSA: 98% of Audit Interventions Completed

SASSA reported that it had successfully implemented 98% of its audit interventions for the 2023/24 financial year. As of 31 August 2025, four actions remained in progress: two in the ICT branch and two in Grants Administration. Three are expected to be completed by the end of September 2025, while the outstanding grant-related fraud finding will take longer, as it is under criminal investigation by law enforcement.

The Agency confirmed that repeat findings from the 2023/24 audit had already been incorporated into the 2024/25 Audit Action Plan to ensure they are not repeated.
Expanding on the Auditor-General’s findings, SASSA CEO Mr Themba Matlou explained:
“The incomplete beneficiary records are largely due to the high volume of applications we process, between 170,000 and 200,000 applications per month in all the local offices. However, we have taken a proactive approach to this issue, prioritising serving citizens at the local offices while also ensuring timely capturing of records on the system. This gap was the root cause of the findings, but we are actively working to address it,” explained SASSA CEO Mr Themba Matlou.

He highlighted the beneficiary digitisation project launched in 2023, which involves scanning and digitising records with the support of additional staff appointments. “So far, 15,600 to 17,000 files have been captured, with all active files from the audit digitised,” he said.

On fraud, Matlou confirmed that the 486 files flagged by the Auditor-General had been addressed with utmost urgency. “The flagged cases were immediately lapsed, and we strengthened our grant review process from an annual to a quarterly cycle. This swift action has already led to the suspension of implicated officials, including cases in the Eastern Cape and Johannesburg, and referrals to the Hawks and Special Investigating Unit (SIU),” he reported, underscoring SASSA’s vigilance in addressing fraudulent activities.
He added that new systems have been introduced to protect beneficiaries and strengthen accountability. “These interventions have helped us prevent repeat findings. Fraud and collusion will not be tolerated,” Matlou assured the Committee.

Strengthening Corrective Measures

During the question-and-answer session, Matlou outlined additional corrective actions. He confirmed that the Lifestyle Audit Policy had been finalised and was awaiting legal ratification before implementation. “This policy provides a proper framework for lifestyle audits, ensuring rigorous categorisation and accountability. The business case has already been approved, and we are ready to move forward,” he explained.
He further reported that contract posts had been created to accelerate record digitisation and grant reviews. “Currently, 67% of active records have been scanned, and the remaining 33% will be finalised within the next 12 months,” he said.

On disability grants, Matlou acknowledged fraud risks involving collusion. “We have identified and acted on these cases. Investigations are ongoing, and law enforcement is involved. Fraudulent practices will not be allowed to compromise our systems,” he emphasised.
He also addressed the issue of deceased beneficiaries. “Losses related to deceased beneficiaries are minimal in percentage terms, only 0.02% of our budget, but we continue to tighten controls, including biometric enrolment at application, to address identity theft and fraud risks,” he assured.

NDA: 89% of Findings Resolved

The NDA reported that it had resolved 17 of the 19 findings raised in 2023/24, representing an 89% resolution rate. Most findings were in Finance and Human Resources. To strengthen accountability, the Agency has elevated monitoring of its Audit Action Plan to the Annual Performance Plan and subjected progress to quarterly Internal Audit reviews.

Acting CEO Ms Raphaahle Ramokgopa provided a detailed update on the progress made in resolving NDA’s findings. She stated, “When we first presented in March, we had resolved 15 of 19 findings. Today, only two remain — slow implementation of consequence management and the finalisation of the Human Resource Strategy. These are receiving priority attention.” This update provides a clear picture of our current status and the steps we are taking to address the issues.

She acknowledged a regression in the NDA’s audit outcome. “The overall outcome for the year was unqualified, a regression from the prior year’s clean audit, due mainly to a misstatement on accruals. The accrual issue arose because of different interpretations between the NDA and the Auditor-General on payments to civil society organisations. This matter has since been corrected,” she said.
The NDA’s Chief Financial Officer added: “To avoid repeat findings, quarterly reports are now prepared and reviewed by Internal Audit, ensuring any errors are identified early and corrected before the annual financial statements are submitted.”

He confirmed that 51 cases under review, valued at approximately R85 million, are being fast-tracked, with consequence management processes underway. On the HR strategy, Ramokgopa concluded: “A draft HR strategy has been developed in alignment with the NDA’s turnaround strategy. A change management project is underway to embed this turnaround, define organisational culture, and strengthen employee value propositions. The strategy will be finalised in the third quarter of this financial year, closing this finding.”

Strengthening Accountability Across the Portfolio

Minister Tolashe reaffirmed the Department’s determination to strengthen governance across all entities. “We aim to stabilise systems, sustain corrective measures, and achieve clean audits. We cannot afford repeat findings. The work being done by SASSA and the NDA is essential for building trust and accountability in the services we deliver,” she said.
The Portfolio Committee welcomed the progress but urged that outstanding findings, particularly those related to fraud, consequence management, and governance, be concluded without delay.