Irregular Expenditure: Minister of Social Development must take action

A reply to a Democratic Alliance (DA) parliamentary question has revealed that in the 2008/09 financial year, the South African Social Security Agency (SASSA) lost over R1-million as a direct result of criminal misconduct. A further R69-million in irregular expenditure was incurred as a result of 116 SASSA officials failing to follow proper tendering procedures. While the DA applauds the Minister of Social Development for taking action against the officials involved, the Minister needs to explain precisely why officials entrusted with administering social grants have not been following the legislative procedures that govern the awarding of tenders. This excessive irregular expenditure points to a broader trend of chronic mismanagement and a disregard for the correct distribution of public funds.

The reply reveals that in the 2008/09 financial year R1 080 223-million was lost due to criminal misconduct within SASSA. The action taken by the Department of Social Development against SASSA officials was as follows:

• 1 instance where criminal action was bought against a staff member
• 2 dismissals
• 2 acquittals
• 5 cases where money was recovered from officials
• 1 suspension without pay
• 2 withdrawals of cases as staff members who resigned
• 1 case still in progress

However, with regard to the R69-million irregular expenditure incurred, the Minister stated that only written warnings were issued against those responsible. The DA believes that the mere issuing of written warnings against those responsible for mismanaging public funds is not sufficient sanction, strict performance management standards must be applied to them. The administration of public funds is a serious responsibility that is governed by stringent procedures precisely to ensure the maintenance of public trust. Any breach of that trust must bring with it equally serious measures to ensure the prevention of future transgressions.

The Minister further indicated that the Department has since put in place measures to ensure a reduction of irregular expenditure. While the institution of preventative measures to curb irregular expenditure is to be welcomed, a total of R69 million demonstrates more than a few isolated instances of officials failing in their duties. This raises the serious question as to what sort of oversight mechanisms are in fact in place at the Agency. The Minister must explain why public funds are being managed with such a cavalier attitude and must provide a detailed plan beyond a mere mention of ‘preventative measures.'

The DA will therefore be writing to the Minister of Social Development suggesting that those who have been given written warnings are subjected to stringent performance management and if there are any future transgressions, they are dismissed. It is imperative that money intended for the millions of South Africans dependent on social grants is not mismanaged. The DA will further ask exactly what sort of administrative action will be taken to correct oversight measures within the agency.

Statement issued by Patricia Kopane, MP, Democratic Alliance shadow minister of social development, June 24 2010

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