Table of Contents

An investigation into the type of corruption experienced by Social Grants Introduction & MotivationThe abuse of entrusted power reasons to gain in private, as to speak in general. This term cannot or may be the classification of Corruption which is confirmed that there are various types of Corruption in the Western Cape and in so many other premiers as researched for example Corruption of Social Grants. This includes also the establishment of new agencies including the SASSA and a brief explanation of how these new systems are being put into place. In South Africa there has been a significant increase in the provision of the social assistance of the provision of grants despite facing a beleaguered history of Corruption of Social Grants. According to the methodological approach the realization of an estimated loss of about R1.5 billion a year and that is through corruption in the delivery of social grants. A relatively sound policy framework and mechanisms has been developed by the South African state to counter corruption and to promote effective service delivery. The critical reflection activities employed in the DSD, aimed on the focus of social grants. Social grants should be highlighted in the departments as a sector where corruption problems are being systematically addressed. South Africa consist of the social grant fraud which is the main unit which was discovered, and this is not a holistic study of any of these particular agencies and bodies, but more rather on how their involvement is assisted with the anti-corruption process which is at hand. The social grant fraud should be noted that the experiences in the Eastern Cape according to investigations and which their results are concerned, does not necessarily present as a microcosm of the national picture. An opinion was stated by the public that said out of all the types of corruption that the political corruption is entrenched. Besides political corruption all types of corruption including Corruption of Social grants cannot be rooted out with just one step, however fighting will be a project-by-project and step-by-step process. To address a alleged act like corruption the approach should necessarily be confronted with all parties around the negotiation table.PRELIMINARY SURVEY SCRUTINYThe South Africa Social Security Agency (SASSA) in KwaZulu-Natal has welcomed the sentencing office of its officials to total of 37 years behind bars for processing fraudulent Social grants amounting R750,000 (Mthethwa:2018)The Five Officials were convicted in the Ulundi Regional Court following a five-year investigation which started in 2013 after Police received a tip off about their scam.The tip off led to the arrest of officials employed by Sassa Service provider cash paymaster service (CPS) to distribute social grant payments to beneficiaries. The suspect included member of the Public. The convicted officials were implicated in stealing enrolment equipment from Sass’s Umbumbulu office, South Durban, which they used to process fraudulent social grant in Ulundi in Northern KwaZulu-Natal.The applicants paid money to the officials for them to process their fraudulent application and officials gave Sassi-branded cards to enable them to receive and draw social grants.The agency revealed during its presentation of 2012/13 annual report to the National Council of provinces that 50 people in Mahlabathini near Ulundi had been found in possession of 127 unregistered sassa cards, three Cash paymaster services registration Machines and R47,000 in cash.Vusumuzi Mahaye, Sass’s Senior Manager for communication and Marketing, said fraud Committed by the convicted officials through processing fraudulent through processing fraudulent grants amounted to R750,000.The frauds of social grantsAccording to a corruption watch on the 20 November 2014, a nurse sister at a provincial hospital is receiving social grant for a child that does not exist. The nurse managed 2 get a forged birth certificate through a connection by the home affairs department so that she can receive social grant for a non-existent child. Social grant fraud is known as a situation where people receive grants that they are not entitled to. They sometimes fake their illness just to receive a grant. More than 600 000 fraud claimers were removed from the system in 2013 so that they can find a correct number of legitimate beneficiaries. Several social grant cases were identified and the main perpetrators were the public servants. Sassa discovered in investigations that their employees were involved in this fraud and took serious action. There was a report that a doctor from the North West is responsible for frauding disability certificates. This is a serious illegal matter and serious action needs to be taken against him. The doctor is registered with Sassa andd verify fake disability certificates as legitimate. The social workers integrity is the main key in the cases of children. Some foster parents uses children to receive illegal grants, which is called the foster care grant. A complainant state that a child were removed from a foster parent without following the right procedure. These serious crimes were noted and some was taken care of. According to the minister of social development, Bathabile Dlamini: "A key feature of the current payment model is the institutionalisation of the biometric system, which offers many important benefits, both as a measure to combat fraud and corruption and as a more accurate and reliable means of beneficiary authentication.”SASSA TO END CORRUPTIONSassa has taken steps towards government officials and citizens who obtained social grants illegally. Renay Ogle (2014) stated that SASSA wont show any mercy towards members of the public or SASSA employees who are caught in social grant fraud. In the 2012/2013 financial year, there were 7734 cases of corruption and fraud reported. The failure of Sassa , which is responsible for the payment and administration of social grants, to act timeously has created a crisis that threatens to deliver grant recipients on a silver platter into the hands of unscrupulous financial services companies.In 2017,the latest instalment created chaos when Sassa officials announced that they would file papers with the Constitutional Court proposing that their invalid contract with Cash Paymaster Services (CPS), which holds the contract for grant distribution, should be extended for another year.Deadlines passed, and by the end of 2016 it was clear that Sassa had utterly failed to act on the court’s instructions. That previous week , Sassa had missed another one. Sassa supports over millions of people, but there’s even more at stake(Du Toit: 2017). If the court allows a further extension of the invalid contract, Sassa will have perpetuated a situation in which the accounts of grant recipients have in effect become mere conduits between the South African fiscus and the private financial empire that has taken shape around grant disbursement.More than just at the centre of the storm is CPS, originally a small financial services company. CPS is a subsidiary of Net1 UEPS Technologies, a listed global financial services and logistics group with operations in a number of countries including South Africa, India and Tanzania.Net1 owns the fingerprint-based biometric identification and payment system that is central to CPS’s operations. Their proprietary Universal Electronic Payments System technology forms the “back end” of the Sassa smart card CPS uses in the electronic payment of grants. It is access to this system that has enabled CPS to roll out paymexxnts to the whole country.This creates two problems. Firstly, this arrangement may be in violation of competition law. It looks as if Net1 is making use of CPS’s privileged position as social grant paymaster to give its sister companies first bite and privileged access to a vast potential client base.Secondly, it raises an issue that’s often forgotten in sweeping generalisations about the need to cover the “unbanked” with financial services. Yes, poor people need access to banking services, and may benefit from smart cards and electronic banking. But these services should be designed with their interests in mind.Deborah James and Dinah Rajak have shown how in South Africa the history of “credit apartheid” and paternalistic control over poor people’s finance has created a situation where creditors wield disproportionate power. Unbridled financial inclusion of the poor may amount to adverse incorporation into a financial sector geared towards preying on them. Already, the Black Sash has collected evidence of troubling instances of unauthorised and unlawful deductions from accounts set up for grant recipients, often with very little recourse.This is why the social grants crisis has implications beyond the distribution of payments. Sassa has missed a major opportunity to ensure that financial inclusion happens in a beneficial, “pro-poor” way. It failed to follow the Constitutional Court’s order that the payment of social grants should be done in a way that protects the rights, interests, and confidential data of grant beneficiaries. Instead, it has created a situation in which CPS and Net1 hold all the cards. Problem StatementThe problem of corruption in social grants in South Africa is very big and has been ongoing and increasing over the years. Millions of rands are lost each year, all taxpayers money, taken away from those who need it, to fill the pockets of corrupt people. The agency who is responsible for the 17-billion payment of social grants beneficiaries in the country is still to report to the Public Service Commission(PSC) against its employees on the status of fraud and corruption(Mahlakoana:2018). This problem is detrimental to the lower class and those living in poverty, that are dependent on social grants. Especially with inflation and the high unemployment rates, more people make use of social grants. It increases the percentage of people living in poverty. And what also appears to be a problem is that the cases are not addressed properly. There is problems developing regarding individuals that is waiting or expecting that social grants and who are not getting it due top money being missing or late(Maharaj:2019) which is unfair because individuals are not suppose to wait for there needs to be filled. Research QuestionsWhat type of fraud is social grants played with ? What are the interventions that social grants face worth? What type of corruption does social grants face?What interventions has the social grants put in place, and if any, and are they effective ?Research ObjectivesTo study the effects of the corruption in social grantsTo learn about the problem of corruption in social grantsTo figure out ways in decreasing fraud and corruption of social grantsTo develop ways in which to prevent cases of fraud and corruption of social grants.When a crime is perpetrated the next move of the challenge should be to stop it from happening again. To determine how people are being caught. Research Design and MethodologyCurrent study does adopt a quantitative method of enquiry. The department as a sector where corruption problems are being highlighted in the delivery of social grants and are being systematically addressed. The focus is mainly on how the national department is identifying the problem which is corruption of social grants e.g. SASSA. SIU (Special Investigation Unit) and Law enforcement are also involved in corruption of social grants. Research tools: Official data: Journal articles from national and local news about the history and the current situations of our problem corruption of social grants. Desktop research: Documents including information about the social problem/issue. Conceptualisation and Clarification of TermsSUI: Special Investigation Unit(Newspaper:2019).DSD: Department of Social Development(Politics web: 2019).Fraudulent : Involving criminal deception -officials of SASSA had dealt with Fraudulent Share dealing.(Smith:2019).Possession: There were found possession/custody over unregistered cards(Jacobs:2013).Convicted: Having been declared guilty of criminal offence by verdict of a jury or decision of a judge(Mthetwa:2018).Framework of the studyIn conclusion the study has been made that this social issue is effective on our country’s people. The issue generally has an impact on our economic system and future plans for South Africa. In this study there has been found guilt on actions which are effective. The problem in corruption are going to be a downfall in the future. There need to be new implementations and structures to overcome this basic problem, for now there need to be focus on the point which have never been worked on, hope in the present future there will be new ideas manifested. This study are currently quantitative.