Johannesburg – The South African Social Security Agency (Sassa) is pushing ahead with recouping R316 million paid to Cash Paymaster Services for the distribution of the social security grants.
This was revealed when Social Development Minister Lindiwe Zulu responded in writing to parliamentary questions from DA MP Gizella Opperman.
Opperman enquired about the overpayment of R316m that resulted in a financial loss to Sassa and the material loss of R74 million for payment of social assistance fees for services not rendered in April 2018.
The auditor-general found the expenditure on the two amounts to be irregular.
The Constitutional Court also found in 2014 the procurement of the services of CPS were invalid and irregular, and ordered CPS repay Sassa with interest.
In her response, Zulu said Sassa submitted a representation last month with supporting documents to the office of the auditor-general (AG) in response to the finding of R316m material irregularity.
She said outcomes of the further audit work by the AG would guide on further steps to be taken by Sassa.
“Furthermore, the members should note that Sassa is pursuing the recovery of this amount in line with the Constitutional Court judgement that indicated that the amount is payable to Sassa with interest.
“This is being pursued through court as CPS is under liquidation process,” she said.
Zulu also said Sassa was awaiting the outcome of CPS liquidation process that was being processed through the court.
The agency submitted a representation together with substantiating documents in response to AGSA’s material irregularity letter on 30 September 2021.
AGSA acknowledged receipt of the response and indicated that they are considering the response and performing further audit work before they pursue the matter further as a material irregularity. The AGSA’s conclusion and outcome will guide on any further steps to be undertaken.
On the R74m paid without services rendered, Zulu said Sassa has submitted a representation with supporting documents in response to AGSA’s material irregularity letter.
She also said AGSA has acknowledged receipt of the response and indicated that they were considering the response and performing further audit work.
“The AGSA’s conclusion and outcome will guide on any further steps to be undertaken,” he said.
Zulu also said Sassa was pursuing the recovery of the R74m payment through court although CPS was defending the matter indicating that they are entitled to the payment.
“Currently, the agency is awaiting the outcome of this litigation process as well as CPS liquidation process which is before the court,” she said.
The attempts to recoup the money comes hot on heels the Johannesburg Magistrate’s Court on Friday dismissing the application by former minister of social development, Bathabile Dlamini for discharge in the case of perjury against her.
Dlamini faces a charge of perjury arising from her testimony as a witness at an inquiry established by the Constitutional Court in the handling of the grant for the distribution of social grants in 2017.
Political Bureau