DA calls on Auditor General to investigate corrupt spending at SASSA
28 July 2015
Note to editors: This statement was delivered to members of the media at a press briefing hosted by DA Shadow Minister of Social Development, Patricia Kopane MP, DA Shadow Deputy Minister of Social Development, Lindy Wilson MP, DA Deputy Chief Whip, Michael Waters MP, and DA Member on the Social Development Portfolio Committee, Karen de Kock MP this morning. A press pack with supporting documentation can be accessed here, here, here, here, and here.
The DA today revealed details of systemic and wide-ranging corruption, maladministration and nepotism at the South African Social Security Agency.
The DA holds an opinion that SASSA is abusing its position as distributor of South Africa’s multi-billion Rand welfare payments, using state resources as a slush fund for personal gain of senior SASSA officials, procuring services that are entirely outside of SASSA’s mandate, and procuring assets that are devoid of any relevance to its core function or business.
All the while, Minister Bathabile Dlamini has protected SASSA, has denied the evidence and has hidden from answering the DA’s questions on these matters.
The DA today revealed the following allegations of corruption, maladministration and nepotism within SASSA:
1. The procurement of R159,000 worth of firearms, including rifles and pistols, that to date do not appear on the Department of Social Development’s asset register – these arms must therefore be considered missing or unlawfully disposed of.
2. Expenditure of R10 million on bodyguards for the SASSA CEO, Virginia Petersen, and Renay Ogle, general manager for fraud management and compliance at SASSA.
3. Undocumented provision of bodyguards to an Administrator at SASSA, a Mr Nene and his family, the Social Development Minister’s spokesperson, Ms Oliphant, from the Department of Social Development and her children, the Minister’s children, and a Free State official, a Mr Maqetuka. There were no signed service agreements for the protection of these people, yet their bill is paid by SASSA.
4. Expenditure of R465,000 for the installation of comprehensive security systems in a SASSA employees’ house by a Vuco Security, which the Auditor-General has found was “not in accordance with the service agreement between SASSA and Vuco.”
5. The appointment of Ms Renay Ogle, a close friend of SASSA CEO, Virginia Peterson, as a general manager in the Fraud Management and Compliance department of SASSA despite Ms Olge not having the required qualifications, or a driver’s license, and being resident in Cape Town yet employed in Johannesburg.
6. Expenditure by SASSA on travel and accommodation for Ms Ogle on every commute between Cape Town and Johannesburg, despite her being unqualified for the position she occupies.
7. Expenditure of almost R800,000 to Werksmans Attorneys for that firm to respond to the Public Protector’s requests for information on certain allegations against SASSA, instead of SASSA responding with the assistance of the Office of the State Law Advisor, as is provided for in the law which would have been at no cost.
8. In 2012, CPS which is a subsidiary of Net1 UEPS Technologies, won a social grants tender to the value of R10 billion to distribute electronic payments to over 10 million South Africans. In 2014 the Constitutional Court declared the contract for the payment of social grants between SASSA and CPS invalid and ordered that the tender process be re-run. This matter is still not resolved and has cost millions in legal fees, and the invalid contract has not been rescinded by SASSA or the Department.
9. Ms Petersen, having paid CPS an additional R317 million for the registration of social grant beneficiaries on a database, despite the initial R10 billion contract clearly providing for service of registering all beneficiaries.
The DA has submitted 128 questions pertaining to the corruption that seems to be rife at the Department of Social Development and the South African Social Security Agency. The replies to these questions display a blatant disregard for the Parliamentary process and the seriousness of the corruption allegations by the Minister of Social Development, Ms Bathabile Dlamini.
It is evident from the many vague and purposefully obtuse replies that the Minister does not take the parliamentary process seriously which only points to her complete disregard for accountability. It also suggests that the Minister has much to hide.
The Minister has already been found guilty of fraud by a court of law and was ordered to payback approximately R254,000 for her role in Travel-gate in 2006.
The plague of corruption is a very real threat to all South Africans, a threat that only steals opportunities from the most vulnerable and those who are struggling to get ahead.
It is for these reasons that the DA will call on the Auditor-General, Thembekile Makwetu, to conduct a thorough forensic investigation into the Department and SASSA. It is important that the South African public know that corruption will be dealt with.
The Minister has shown very little will to take seriously the allegations of corruption against her Department and at SASSA. It is high time that she accounts.
Statement issued by Patricia Kopane MP, DA Shadow Minister of Social Development, July 28 2015
