South Africa’s R800m Fraud to Continue for at Least 9 months

Net 1 auxiliary firms, Easy Pay and Cash Paymaster Services (CPS) are continuously servicing South Africa Social Security Agency (SASSA) beneficiaries despite yesterday’s discovery of an alarming R800million SASSA fraud due to  irregular debiting of clients by these firms. Only R1.5 million have been retrieved.

Although, the SASSA is very uncomfortable with this ongoing activity, they are unable to prevent the activities of the CPS and Easy Pay since they are the official agency responsible for distributing beneficiary  grants. As it stands now, SASSA is unable to expend funds themselves and will have to depend on a signed contract with Easy Pay and CPS to distribute funds to beneficiaries.

SASSA contract with the Net 1 subsidiaries will be legitimately due in about 9 months. Until then, SASSA will  lose public funds through corruption and fraud in the next 9 months. Previous measures to prevent such corruption and wrongful debiting of beneficiaries have not been effective due to many reasons.

According to the Chairperson of the Standing Committee on Community Development in the Western Cape Provincial Parliament (WCPP), he is arranging a collaborative meeting with the Standing Committee on Public Accounts (SCOPA). To him, the meeting is to help SASSA to make known to all associated stakeholders the impacts of the R800m loss – grant money. Additionally, SASSA will have a platform to tell all about some of the challenges they are facing within their financial sector.

Chairperson of WCCP, added that he has commissioned a working group to bring out a detailed report on the illegal activity of Easy Pay and CPS. This report will include inputs, suggestions and recommendations made by the general public and the committee itself on Dispute Resolution measures.

DA has promised to appropriately deal with anyone found accountable to the ongoing fraud.

Source: Media for DA Western Cape Provincial Parliament, South Africa.

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