Remarks by the Minister of Social Development, Ms Nokuzola Tolashe, MP on the occasion of SASSA Response to PC to the Portfolio Committee on Social Development SASSA security Bridge;  23 October 2024, Cape Town 

Chairperson and Honourable Members of the Portfolio Committee Deputy Minister of Social Development, Mr Ganief Hendricks; 
Chief Executive Officer of SASSA, Ms Totsie Memela-Khambula;
Acting Director-General of Social Development, Mr Peter Netshipale;
Executive Managers of the DSD  and DSD; 
Ladies and gentleman

A very good morning to you all. I am grateful for the opportunity to address this Committee today on the critical issue of alleged weakness in SASSA ‘s social grants payment system and fraud in the application process for SRD grant.

Let me thank you for organising this meeting to provide you with the necessary response to the alleged challenges in the SRD system Chairperson, the social grants programme is our government’s largest and most successful anti-poverty interventions, covering a total of 28 million beneficiaries.  This success has been recognized the world over, and has even won international awards from prestigious institutions such as the International Social Security Association, which commands a membership of 320 social security institutions from 120 countries across the world.

With a budget of R266 billion paid into the accounts of vulnerable older persons, children and persons with disabilities, we understand the important role we play in staving off poverty and hunger among our people.  

The SRD grant makes up R35 billion of the total allocation, and covers an average of 8 million working age adults each month.

After having been confronted by this challenge that you were presented by the Stellenbosch students, you have invited us here  to come and respond on the issues raised and to shed light on the SRD application process and system.

Indeed we are here as requested by yourselves to provide such insight into the work of the Department of Social Development and its entity—the South African Social Security Agency (SASSA).

Honourable member be aware that we live in a digital world which always pose some threat in our daily life if not properly managed. It is a growing concern globally, impacting individuals, governments, and organizations alike. As digital transformation accelerates, so too do the challenges of safeguarding personal data and ensuring the integrity of the systems we rely on. Unfortunately, this global issue has reached our shores, and we are seeing its effects in the very systems we manage to serve the most vulnerable members of society.

I wish to assure the Committee and our fellow South Africans that the department and SASSA takes very seriously any allegations of fraud and corruption in our systems.  We understand that any fraud in the system amounts to taking food out of the mouth of the poor, and this is unacceptable.  As a result, SASSA has put very stringent systems and mechanisms in place to ensure that  it achieves its motto of paying the right grant to the right person every time.  

As a department, we take this challenge very seriously, particularly in the context of our Social Relief of Distress (SRD) grant system. The integrity of our systems and the protection of personal information are paramount, as they directly impact the lives of millions of South Africans who depend on our services. We recognize the concerns that have been raised, and we are committed to addressing them with the utmost urgency and diligently. 

It is through these systems that they have been able to extend coverage from only 2.4 million in 1998 to the current 28 million beneficiaries.  Since its establishment 18 years ago, SASSA has, month after month, successfully paid millions of beneficiaries who qualify for the grants. I therefore wish to assure our beneficiaries that the system is intact, and SASSA is still able to discharge its mandate, and their social grants will be paid next month, the  month after and for all the months in the future that they are entitled to them. 

We are conscious of the fact that our significant budget makes us a very attractive target for fraudsters, some of whom have made a career out of trying to steal this money by forming very sophisticated syndicates of cybercriminals to target this large budget. Of course SASSA is fully aware of this risk, so they have put strong systems in place to detect and prevent fraud, and also investigate and prosecute any cases that are found to have managed to defraud the system.

However, it is also important to note that these alleged issues are not unique to south Africa —it is a global issue that affects financial institutions, government agencies, and private organisations worldwide. Whether it is credit card fraud, unauthorized access to systems, or the misuse of personal identification numbers, identity theft presents a threat that demands constant vigilance and innovation in how we safeguard our systems.

Honourable Chairperson, the allegations made by the students are extremely concerning.  However, they are still only allegations at this stage, since the students have not favoured the Department or SASSA with any reports or evidence to support their allegations.  I can confirm to this Committee that neither SASSA nor my Department has been favoured with any of the research that the students have undertaken, nor have the students acceded to several invitations from SASSA to come and present their findings.
Nonetheless, I wish to assure this Committee that I view these allegations in the most serious light, and have directed SASSA to initiate investigations into the matter. However, in the absence of reliable information from the source of the allegations, SASSA has not been able to complete its investigation.

Our response, therefore, will be one of both responsibility and resilience. Responsibility in ensuring we address vulnerabilities and take decisive actions to secure our systems, and resilience in recognizing that no system is immune to attack in an interconnected world. What defines us is how we respond to these challenges and the proactive steps we take to protect our citizens and beneficiaries.

It’s important to note that I as Minister that provides oversight to the agency, have demanded that we take drastic steps to investigate this matter fully with the aim of ensuring that the alleged security bridges are addressed and dealt with accordingly, including our collaboration with cybersecurity experts, law enforcement agencies in the country to enhance the protection of personal information. 

We are committed to transparency and accountability as we work to address these issues and ensure the continued trust of the public.

I will now hand over to the CEO of SASSA to take us through some preliminary input and responses as requested by yourselves on the workings of the SRD system, to provide some comfort to our beneficiaries that we do have systems in place to tackle fraud while also ensuring that our systems do not exclude deserving applicants from accessing their grants.

I look forward to discussing these matters further after having put decisive measures beyond what has been done over the period of the grant as we picked up challenges.  
Together, we can strengthen our defenses and continue to provide secure and reliable services to those who need them most.

I thank you