Data Inefficiency Concerns Following SASSA Grant Payments to Deceased Beneficiaries
Data Inefficiency Concerns Following SASSA Grant Payments to Deceased Beneficiaries. The South African Social Security Agency (SASSA) has come under scrutiny after it was revealed that approximately R140 million in social grants were mistakenly paid to over 75,000 deceased individuals during the 2023/2024 financial year. This discovery has raised serious concerns about data management inefficiencies, outdated record-keeping processes, and the risks of fraudulent claims within the system.
SASSA Grant Payment Issues and the Auditor-General’s Findings
SASSA recently presented its audit action plan for the 2023/2024 financial year in response to the Auditor-General of South Africa’s (AGSA) findings and recommendations. Despite SASSA’s ongoing efforts to modernize and digitize its processes, there remain significant challenges in synchronizing data and ensuring timely reporting of deceased beneficiaries.
Why Do Grant Payments Reach Deceased Beneficiaries?
According to Tsakeriwa Chauke, SASSA’s Chief Financial Officer, the grant payment process is structured in a way that leads to unavoidable delays in updating records. Payment files are prepared at the end of each month to ensure that grants reach beneficiaries at the beginning of the following month.
However, if a beneficiary passes away after the payment file has been prepared but before the actual payment date, the system fails to detect the change in status, leading to erroneous payments. This accounts for the R140 million disbursed to deceased individuals in the last financial year.
Financial and Administrative Challenges in Recovering Funds
Can SASSA Recover the Lost Money?
According to Brenton Van Vrede, SASSA’s Executive Manager for Grants Administration, many families of deceased beneficiaries are financially disadvantaged and often rely on these grants for survival. As a result, recovering the funds becomes a significant challenge, as most recipients are unable to repay the mistakenly disbursed amounts.
Proposed Solutions to Prevent Future Grant Payment Errors
Van Vrede suggested that an aggressive life certification system could be a potential solution. However, with over 19 million beneficiaries, implementing a monthly verification system would be a logistical nightmare, placing extra strain on both beneficiaries and administrative resources.
SASSA Digitization Efforts to Improve Data Accuracy
SASSA has recognized the need to enhance its data accuracy and is currently undertaking a digitization drive to improve audit readiness and database alignment.
Scanning Beneficiary Records for Digital Accessibility
According to Van Vrede, SASSA is scanning every beneficiary record to create electronic versions that will be readily available for auditing by AGSA. This process is expected to be completed by the beginning of the new financial year.
Database Misalignment Between SOCPEN and BRM
One of the key concerns highlighted by AGSA was the lack of alignment between SASSA’s two primary databases:
- Beneficiary Records Management (BRM) System
- Social Grant Payment System (SOCPEN)
Why Is Database Misalignment a Problem?
- Not all beneficiaries receiving grants were recorded in the BRM system.
- Internal audits uncovered discrepancies and missing information in certain cases.
- Officials have committed to conducting a population analysis to compare records between SOCPEN and BRM to identify and resolve discrepancies.
| SASSA Database Misalignment Issues | Impact |
|---|---|
| Some beneficiaries missing from BRM system | Data inconsistency and lack of proper record-keeping |
| Duplicate entries or outdated information | Possibility of fraudulent claims and unnecessary payments |
| Delays in updating deceased records | Payments continue to deceased beneficiaries |
Concerns Over Manual Registration and Data Security Risks
Problems with Manual Registers
Another major issue raised by the Auditor-General was the continued reliance on manual registers in local SASSA offices.
When individuals visit SASSA offices, their information is recorded manually in registers before being entered into digital systems. However, auditors found that some beneficiaries listed in these registers did not appear in SASSA’s internal control systems.
This raises concerns about:
- The completeness and accuracy of records
- Whether all beneficiary interactions are properly logged
- Possible fraudulent activities involving manual registrations
Steps SASSA Is Taking to Address Manual Register Issues
To eliminate discrepancies, SASSA is gradually phasing out manual registration, except when digital systems are temporarily unavailable.
| Challenges with Manual Registers | Solutions Being Implemented |
|---|---|
| Incomplete or missing records | Phasing out manual registrations |
| Increased risk of fraudulent entries | Enhancing digital registration |
| Delays in updating beneficiary data | Real-time digital entry into secure systems |
Data Security Measures to Prevent Fraud and Loss
With millions of South Africans depending on SASSA grants, data security remains a critical issue.
How SASSA Protects Sensitive Beneficiary Data
Jabulani Makondo, Acting Chief Information Officer, explained that SASSA uses multiple technologies to prevent data loss and fraud, including:
- Firewalls to monitor incoming and outgoing data.
- Antivirus software to detect and prevent cyber threats.
- Encryption to protect organizational and staff data.
- Regular backups conducted on a weekly and monthly basis.
- Offsite data storage to prevent permanent data loss in case of system failures.
| Data Security Measure | Purpose |
|---|---|
| Firewalls | Monitors and controls network traffic |
| Antivirus software | Prevents malware attacks |
| Data encryption | Protects sensitive information |
| Regular backups | Ensures recovery of lost data |
| Offsite data storage | Prevents permanent data loss |
These data loss prevention (DLP) measures are crucial in safeguarding the personal and financial information of millions of South Africans.
Conclusion
The recent revelation that SASSA paid grants to deceased individuals highlights the urgent need for improved data management and record-keeping within the agency. While SASSA has made strides in modernizing its systems and increasing audit readiness, there are still significant challenges to overcome, particularly in the areas of data synchronization, manual record-keeping, and death reporting.
