In his report to the Constitutional Court over the running of the grant payment system, auditor-general Kimi Makwetu has called for a review of the SA Social Security Agency (Sassa) Act.
Makwetu has recommended to the court that Minister of Social Development Susan Shabangu review the efficacy of the Sassa Act and give Parliament a report within six months.
“The panel respectfully recommends that the court instruct the Department of Social Development, together with the Department of Planning, Monitoring and Evaluation, to conduct a review of the efficacy of the Sassa Act, and in particular the lacunae in respect of oversight and governance structures and mechanisms.”
This after finding that Sassa has weak monitoring and evaluation systems. In an affidavit dated October 15 for the Constitutional Court, Makwetu said: “Sassa did not comprehensively monitor the service delivery by CPS, partly because the standards in the service level agreement were poorly articulated.”
He said that Sassa didn’t routinely prepare a consolidated statistical report for its executives. The panel is concerned that the weak monitoring and evaluation may be perpertuated, unless there are clear and comprehensive standards in the service level agreement between Sassa and Sapo (the SA Post Office).
The Auditor-General says the South African Post Office did not do enough to stop the haemorrhaging of more than R122.5m.
The payment of social grants is being migrated from Cash Paymaster Services (CPS) to Sapo. Makwetu also recommends that Sassa urgently provide the court with a copy of the signed agreement.
He is leading a high-level panel appointed by the court to provide monthly reports on the running of the grant payments system. Other members of the panel include the ANC’s Mavuso Msimang and ex-Reserve Bank governor Gill Marcus.
Makwetu in his report said there was an effort to move beneficiaries from CPS and Grindrod bank to PostBank, but he lamented that there were still plenty of uncertainties over the payment dates at cashpoints.
He said the Post Office had also not yet swopped the cards of the approximately 100000 beneficiaries who were forced to open PostBank accounts earlier this year when the new Sassa-branded Sapo cards were not yet available. Regarding the cards, he said some beneficiaries forgot their withdrawal pin numbers. He suggested that a system allowing beneficiaries to withdraw money using their biometric details be implemented.
The panel also wants Sapo to look closely into providing better service. The report notes that in September some money arrived late at some paypoints, and run out at others.
“The panel recommends Sapo take the necessary steps to address the delays,” he said.
In his final recommendations, Makwetu has called on the Court to to review CPS’s profits.