As culled from the South African Social Security Agency’s annual report, Sassa’s waste ascended by 1000 percent to R1.1 billion in the last financial year.
The Agency’s irregular expenditure climbed from R93 million in the 2014/15 financial year, to R1.1 billion in 2015/16.
Among other things, Parliament’s portfolio committee on social development heard that R414 million, was irregularly spent on the extension of contracts with security companies.
Sassa’s waste was further presented to the committee as an irregular spending of R316 million for re-registering grant beneficiaries and R223 million for lapsing lease contracts.
That’s not all, R74 million was irregularly spent on forensic investigations and another R18 million on “other matters”.
Speaking, Tsakeriwa Chauke Sassaa’s chief financial officer disclosed that the R414 million waste was triggered when the department renewed expiring contracts with a company instead of opening a new bidding process.
He buttressed that the R414 million waste was accumulated since 2012 and isn’t for the past financial year alone.
Adding that “the committee no longer has to worry about” the irregular spending, Chauke divulged that Sassa has resolved the issue by signing another contract with a security company following a decent bidding process.
Regarding the R316 million, the chief financial officer remarked that it is “linked to a very important project for the country.”
The 223 million was paid to a landlord between 2006 and 2009 without adequate documentation. Also, it was identified that the R74 million was wasted on a three-year contract with a forensic investigation service provider. Again, there was no proper bidding processes before embarking on the contract.
Meanwhile, R16 million out of the R18 million wasted on “other matters”, was on an unknown lease which expired but Sassa continued to pay for it.
Sassa’s chief executive officer, Raphaahle Ramokgopa assured the Parliament’s portfolio committee that the irregularities identified are been examined and that disciplinary actions will be initiated against those involved.