Strike set to disrupt distribution of grants

THE National Education, Health and Allied Workers’ Union (Nehawu) has warned that distribution of social grants will be disrupted this month, as it embarks on a full-blown strike at the South African Social Security Agency (Sassa).

At the heart of the union’s strike action is the new biometric system, which it said was vulnerable to fraudulent activity and was pitting its members against beneficiaries when it did not work.

The strike action is set to start tomorrow and will see all Sassa operations halted across the country, according to the union.

Nehawu briefed the media yesterday about the strike, which it said followed attempts to consult the agency and the Social Development Ministry.

Nehawu general secretary Zola Saphetha said the union had backed and advocated for improvements on the Social Pensions (Socpen) system since 2014 as a result of fraud, but it was opposed to the new measures, which he said were unilaterally implemented and opened more doors for fraudulent activity.

“The system as presented to workers was meant to protect them from Socpen fraud and any other Sassa-related systems that workers operate under have to date failed dismally to yield the desired results. Workers continue to access Socpen the very same way they did before and it is still a very vulnerable system to fraud and hackers,” Saphetha said.

Continuing glitches with the system pitted its members against beneficiaries as they did not understand why they could not be assisted.

An override function was also not built into the system, meaning it could not be legally used to assist beneficiaries.

He said complaints by the union have been ignored by Sassa.

“After numerous attempts by Nehawu to avert the strike and followed by a nationwide consultation process of all our members we have come to a conclusion that, given the inability to resolve the impasse between Nehawu and Sassa in the boardroom, picket lines are the necessary way to go in trying to twist the arm of the employer to concede to our demands.

“Indeed, it has been our understanding that the strike remains a last resort after exhausting all available avenues, including seeking an intervention from the Minister of Social Development, the Honourable Susan Shabangu,” he said.

The shutdown from tomorrow would not stop until the situation had been resolved, he said.

“For us this is a fight we are not prepared to lose because we are waging it not only on behalf of our members and workers in general but mostly on behalf of the most vulnerable section of society who rely squarely on Sassa for a livelihood,” Saphetha said.

“We are also intending to meet with our sister union, the Communications Workers’ Union (CWU) which is organising in the South African Post Office on the threat to grant beneficiaries which potentially will affect their members too,” he added. THE Property Management Trading Entity has maintained that it would continue as a going concern despite it recording, as at March, an overdraft and liabilities exceeding assets.

The entity, which falls under the Public Works Department, made the assertion after Auditor-General Kimi Makwetu found that it had a bank overdraft totalling R2.2 billion and its liabilities exceeded its assets by R10.3bn at the end of 2017/18.

He made the statement in the audit report submitted along with the entity’s 2017/18 annual report to Parliament.

Makwetu also found that material impairments to the tune of R1.1bn were provided for as a result of irrecoverable receivables.

“The corresponding figures for March 2017 were restated as a result of errors in the financial statements of the trading entity at, and for the year ended March 31, 2018,” he said.

But the entity downplayed concerns raised by Makwetu, saying it would be able to continue as a going concern into the foreseeable future.

The entity said it operated under the Public Works Department and that National Treasury had been informed about its position.

“Management is embarking on a revenue generation drive and has reinforced its collection of all outstanding debt.”

It claimed that R838m was received on the outstanding debt as at March this year.

The AG also said the leadership at the entity did not in all instances exercise effective oversight of the effective implementation of audit action plans, resulting in the negative audit outcomes.

“Leadership did not institute effective measures to ensure that the issue of incorrect payments being made to suppliers (was dealt with).”

Makwetu found that no effective