logo
Tensions grow between SASSA and the National Treasury

Tensions grow between SASSA and the National Treasury

SASSA and the National Treasury were at loggerheads this week in Parliament. New SASSA CEO Themba Matlou, who's barely been in the job permanently for two months, had to answer to the Parliament portfolio committee on social development.
At the centre of tensions between SASSA and the National Treasury are conditions attached to the R265-billion budget allocation. On one hand, you have the High Court ruling back in January 2025 that said SASSA was being 'deliberately exclusionary.' And now you have the National Treasury wanting to see have SASSA is reviewing, suspending and cancelling grants to keep the budget in check … It's a little farfetched to expect SASSA SRD R370 applicants to have a smartphone and data for monthly verifications. Image: File
Unfortunately, this puts the South African Social Security Agency in a highly compromised position. If it doesn't actively exclude grant recipients, the National Treasury will say conditions to its budget allocation are not being met. However, after the High Court ruling earlier this year, civil society is watching closely to see how the agency 'increases grant inclusivity.'
As such, SASSA CEO Themba Matlou told the committee this week that its new review process for social grants will comply with the National Treasury's requirements. The first necessity is a quarterly report, due at the end of July, that proves the number of grants reviewed, suspended, cancelled and money saved by the agency. Meanwhile, it's the elderly who suffer and must travel to SASSA offices to have their identity verified. Image: File
Key to the agreement between SASSA and the National Treasury is the agency must improve its income, biometric and governmental verification systems. Meanwhile, it's overtly clear that these new digital processes are impacting poor beneficiaries who don't have access to smartphones and data.
Nevertheless, when the National Treasury allocated R265 billion budget to SASSA, it had the following provisos. 'SASSA must introduce bank income checks on grants. It must conduct large-scale database checks at least twice a year. It must finalise agreements with SARS and NSFAS to verify beneficiaries' income. And it must intensify biometric checks on suspicious applications,' reports GroundUp . SASSA's first report is due to the National Treasury next month. Image: File
As a result, these reviews have already started being implemented. Specifically, Child Support, Old-Age, Disability and Care Dependency grants were flagged for undisclosed income and alternative forms of identification. Instead of the usual three-month review period, affected individuals had their grants withheld until they completed in-person verification at a SASSA office.
However, Matlou and SASSA has come under fire over these latest verification policies. And he told Parliament he is aware of the frustration. 'Through beneficiary education, we emphasise that citizens have a responsibility to assist the government to save money. And beneficiaries need to notify SASSA when their financial circumstances have changed,' explained Matlou.
Furthermore, the agency says it will start rolling out service kiosks at offices to help clients with remote biometric identity verification. 'The goal is to make biometrics compulsory for all SASSA applicants, whether you are trying to access the social assistance programme with or without identification,' concluded Matlou.
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

We're not responsible for SANDF budget cuts: National Treasury
We're not responsible for SANDF budget cuts: National Treasury

TimesLIVE

time4 hours ago

  • TimesLIVE

We're not responsible for SANDF budget cuts: National Treasury

The National Treasury says it is not responsible for any budget challenges experienced by the South African National Defence Force (SANDF). The Treasury said it was concerned by remarks made by the head of the navy, Adm Monde Lobese, who accused it of compromising national security by not providing the defence force with resources. Lobese made the comments during a joint standing committee on defence meeting in parliament on Friday. In response, the Treasury said in line with the constitution, withdrawing funds from the National Revenue Fund can only be done through an act of parliament. 'Final approval is by parliament and the National Treasury is then entrusted to ensure the implementation of parliament's decisions. It is therefore incorrect to suggest the National Treasury is responsible for budget challenges experienced by the SANDF,' it said. Lobese told the committee it needs to take a stand against what he called the 'sabotage' of the defence force due to years of defunding. 'National Treasury for a change needs to be patriotic in how they address the funding of the SANDF. National Treasury can't be allowed to be a super department,' he said. However, the Treasury said in terms of the Public Finance Management Act, the Treasury is responsible for managing the budget process and exercising control over the implementation of the national budget. According to the Treasury, the 2025/2026 proposed defence allocation of R57.2bn in the Appropriation Bill was informed by the government's broader fiscal strategy, which aimed to stabilise public finances, reduce debt service costs and create space to invest in critical infrastructure and frontline services in support of higher growth. 'In this constrained fiscal environment, the department of defence has been allocated an additional R4.3bn over the 2025 medium-term expenditure framework to support priority needs — most notably, the orderly and safe withdrawal of troops and mission equipment from the Democratic Republic of the Congo (DRC), with other essential operational requirements.' TimesLIVE previously reported that defence and military veterans minister Angie Motshekga said better funding could have allowed the defence force to handle the repatriation of troops deployed to the eastern DRC as part of the Sadc Mission in the DRC, avoiding trauma and logistical chaos.

eThekwini Municipality denies awarding contracts for smart meters amid allegations of wasteful expenditure
eThekwini Municipality denies awarding contracts for smart meters amid allegations of wasteful expenditure

IOL News

time6 hours ago

  • IOL News

eThekwini Municipality denies awarding contracts for smart meters amid allegations of wasteful expenditure

eThekwini Municipality denies purchasing smart meters from seven companies, saying the procurement process is still ongoing. Image: Willem Phungula eThekwini Municipality has denied awarding seven companies to supply electricity smart meters. In a written response to the story that the Independent Media published last week, the city's spokesperson, Gugu Sisilana, said the municipality was not aware of differing quantities being placed across suppliers; therefore, dismissing the assertion of wasteful expenditure. Sisilana said the procurement process is still ongoing. 'The allegations of wasteful expenditure, which are not corroborated by any evidence, are not true. This is due to the fact that the procurement process for electricity meters is still ongoing through the Supply Chain Management process. We are not aware of differing quantities being placed across suppliers,' she said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Despite the city's denial and information obtained from the city's website, it was revealed that indeed the companies were awarded. Independent Media also saw purchase orders matching the companies on the city's website. Sources within the municipality have described the decision to award all the companies as an attempt to avoid awarding the tender to a qualified supplier with the lowest quote. The source said the only possible reason for this was that the officials wanted kickbacks from the highest bidders. In May 2024, the National Treasury approved the RT29 national transversal for smart metering. The Treasury approved seven companies for the city to choose from when buying these smart meters. In the purchase orders, the city ordered 2,000 smart meters from a particular supplier, which cost R2,591 per unit, whereas the other supplier's unit price was R1,645. One provider charged R2,218 per item, while the other charged R1,811. The city had to pay R5.9 million for 2,000 smart meters from the highest-priced supplier, which likewise had a unit price of R2,600. The source said the city also ordered non-smart meters for R1,996 per unit, which totalled R4.5 million for 2,000 units. It is not clear why the city needed non-smart meters and which customers will be supplied with them, whereas others use smart meters. Among the companies are two giant cellular network companies. In contrast to non-smart meters, which require personnel to physically visit the site and disconnect when consumers have circumvented them or established unauthorised connections, smart meters may be switched off by city officials from the office, the source claimed. 'This is another wasteful expenditure the city has incurred, and there is no valid reason why the officials chose to purchase the same product with the same quality from different suppliers with varying prices. Surely, there is something fishy,' said the source. The municipality has been in the headlines for incurring costs that many view as wasteful, stemming from court cases it has lost. It was recently forced to pay a supplier more than R20 million, which was an interest that had accumulated from the court appeals it had finally lost. The supplier had initially demanded R30 million, which the city disputed but lost the appeal.

Ramaphosa slams opposition parties' criticism of economic reform
Ramaphosa slams opposition parties' criticism of economic reform

The Citizen

time8 hours ago

  • The Citizen

Ramaphosa slams opposition parties' criticism of economic reform

A progress report on Operation Vulindlela was released last week to show the progress on economic reform. President Cyril Ramaphosa has slammed opposition parties who claim the economic reforms in the country represent a 'form of privatisation'. Ramaphosa said South Africa is making steady progress on economic reform to combat an unreliable energy supply, inefficient rail and ports, high data costs and a visa system that has deterred investors and tourists. Progress report Last week Pretoria released a progress report on Operation Vulindlela, a government-wide initiative to accelerate progress on economic reform. Established in the aftermath of Covid in October 2020, the joint initiative of the Presidency and National Treasury was formed with the aim of driving rapid and inclusive economic growth and job creation through structural reforms. The first phase of Operation Vulindlela focused on tackling issues in five areas – energy, logistics, water, telecommunications and the visa system. ALSO READ: 'Operation Vulindlela update provides detailed progress' – Presidency 'Baseless claims' Writing in his weekly newsletter on Monday, he said South Africa has made progress despite criticism from opposition parties. 'The claims by some opposition parties that these reforms represent a form of privatisation are baseless and misguided. The measures we are taking are common sense reforms that will preserve public ownership of key infrastructure while introducing greater competition, dynamism and investment. 'A number of our peer countries introduced similar reforms, which have powered their economies to higher levels of growth,' Ramaphosa said. Steady progress Ramaphosa said the Operation Vulindlela report showed that the economic reform programme is making steady progress, opening the way to more rapid, inclusive and sustainable growth and job creation. 'We have made significant progress since then in clearing these obstacles with a clear view to enhance economic growth. The reduction in load shedding over the past year was supported by the reforms that we introduced to unlock private investment in electricity generation, while reforms in the telecommunications sector have brought down the cost of mobile data. 'We have reduced the turnaround times for approval processes for water use licences and energy projects, made great progress in clearing the visa application backlog, and expanding the eVisa scheme,' Ramaphosa said. ALSO READ: Ramaphosa defends police commission of inquiry Next phase Ramaphosa said the next phase of Operation Vulindlela, which was initiated in April this year, builds on 'these successes'. 'As part of Operation Vulindlela Phase II, we are also reforming the local government system to ensure that basic services such as water and electricity – which are essential for economic growth – are delivered efficiently and reliably.' Ramaphosa said all of these reforms are 'designed to boost economic growth and create jobs for South Africans'. ALSO READ: 'Ramaphosa will go down in history as one of the most useless presidents' – analyst

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store