Salt River, Cape Town  3 October 2024

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SASSA faces backlash after underspending R4 billion on SRD grants

By Ragheema Mclean

The South African Social Security Agency (SASSA) is under fire after the Auditor-General revealed it had underspent by R4 billion on Social Relief of Distress (SRD) grants during the 2022/23 financial year.

Last week, the Auditor-General presented these findings to the Portfolio Committee on Social Development in Parliament.

Senior Audit Manager at the Auditor-General’s office Puleng Molapo attributed the underspending to a lower uptake of the SRD grants following the introduction of a new application and bank verification process in 2022.

“This resulted in SASSA not paying some beneficiaries because they were no longer eligible – due to the lower income threshold and bank verification of their income,” Molapo explained.

Meanwhile, the underspending has sparked outrage, particularly from civil society groups.

Speaking on VOC Breakfast, Evashnee Naidu, the Regional Manager at Black Sash, described the underspending as “shocking” and “horrifying,” especially considering the struggles faced by beneficiaries in accessing their grants.

Naidu expressed concern over the shift to a fully digital application system, which she said has made the process “far more punitive” for potential recipients.

“Black Sash is horrified that R4 billion has had to be sent back to the government because of an underspend on a critical poverty alleviation measure for the poorest of the poor,” she said.

Naidu also criticized the current value SRD grant, which provides R370 per month, recently increased by just R20.

She argued that this amount is insufficient for individuals living in poverty.

“The fact that they have now sent back R4 billion shows how barriers are being created for people to gain access to this grant,” she added.

Over the years, the requirements for accessing the grant have become “far too restrictive,” according to Naidu, who highlighted the difficulties beneficiaries face in proving their eligibility for social assistance.

“We are horrified at the hoops that people must jump through to prove that they are deserving of social assistance,” she added.

Listen to the full interview below:

VOC News

Photo: @OfficialSASSA/X

Picture of Aneeqa Du Plessis
Aneeqa Du Plessis

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