Over R1 billion Irregular Expenditure, DA Choke-holds Former SASSA CEO

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South Africa’s official opposition party has called on South Africa’s Directorate for Priority Crime Investigation (DPCI) to investigate former SASSA CEO for the R1 billion in irregular expenditure the Social Security Agency gathered.

To the Democratic Alliance (DA) party, three controversial contracts authorised by former SASSA Chief Executive Officer, Virginia Petersen, must be thoroughly investigated by the Hawks.

DA’s call follows the SCOPA hearing today where the party questioned SASSA’s current CEO, Thokozani Magwaza and Mr Tsakeriwa Chauke, the Chief Financial Officer (CFO), relating to R1.1 billion in irregular expenditure.

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DA said:

“Front and centre of this were the payment of R316 million to CPS for an invoice that should never have been generated in the first place. The CEO held fast, defending the CPS line, but there is no doubt that former CEO Petersen completely ignored basic definitions in the Supply Chain Management (SCM) Policy and in the contract between SASSA and CPS.

CPS successfully ‘double invoiced’ SASSA for work it had already committed to in terms of these agreements.



Both the Auditor General and Treasury declared this payment irregular, with Treasury bordering on declaring the payment as fruitless and wasteful expenditure.”

Moreso, there’s the issue of security contracts to the value of R414 million that were allowed to muddle along for four years while SCM processes were fudged and obfuscated. Once again, CEO Petersen presided over this mess that ensured that seven contractors successfully kept

DA indicate that CEO Petersen presided over the security contracts which saw seven contractors rolling-over 6-month contracts for four years until her departure in May 2016.

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That’s not all, CEO Petersen also backed a bid by SAB & T for a R74 million contract despite a Bid Adjudication Committee recommendation that the competing bidder that scored the highest points be awarded the contract.

“Indeed, this matter was challenged in court and was found to be irregular. Former CEO Petersen actively supported controversial and irregular contracts over the past four years to the value of R804 million,” added Maimane’s party.

With the above, DA expressed that there is clear evidence of criminality in all the procurement processes. As such, the party disclosed that it will be urging SCOPA to officially initiate an investigation into the actions of CEO Petersen.

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