Thousands not eligible to apply for special grant

THE vetting of five million people who applied for the R350 special Covid-19 grant has so far saved the taxpayers a whopping R13 million in potential incorrect payments.

The amount could have escalated to R81m had 39 000 applicants not been detected over a period of six months.

This emerged yesterday as the Department of Social Development and the South African Social Security Agency (Sassa) officials told MPS that 39 000 individuals had applied, despite not being eligible.

The officials were briefing the virtual meeting of the social development portfolio committee.

Acting department director-general Linton Mchunu said the department received about five million applications for the special grant.

He added that it had started processing 2.6 million applications that had been completed.

“Some have not completed their applications,” Mchunu said.

He said they were processing the applications as they came in.

“We communicate with applicants and ask for their bank details,” Mchunu said.

He said last week the department had vetted the first batch of people, through Sars, who had applied for the special grant when there was a trial run of the network, through Sars.

“We had a trial run for 75 000. Up to 39 000 of them were drawing salaries already in April. We could have paid people who did not deserve to receive the grants,” Mchunu said.

He estimated the amount that could have been paid erroneously at R13m a month, and at R81m over the six months’ duration of the special grant.

Sassa chief executive Busisiwe Memela-khambula said: “We found it interesting that many people who did not qualify had applied.”

She said in addition to the 39 000 who did not qualify, a further 36 000 were waiting to be vetted by Sars, but had not authorised the taxman to access their tax affairs.

Memela-khambula said Sars would contact the applicants and ask for their permission to access their tax affairs as part of the vetting process.

Sars has to date verified 11 000 applicants who gave authorisation for their vetting procedure.

“We are contacting them so they get paid this week,” Memela-khumbula said.

She said the department, after starting with weekly payments, planned to pay 300 000 people every two days after verification of applications.

She said qualifying beneficiaries would have their grants paid via bank accounts, e-wallet or Post Bank.

Sassa wants to first make payments weekly and thereafter on any other day when applications are vetted.

Memela-khambula said the department was looking into using vouchers in the longer term, and had received about 50 000 unsolicited bids which would go through the normal procurement process.

Responding to a question, Sassa’s executive manager for grants Dianne Dunkerley said successful beneficiaries would be paid in the month they made an application.

“If there is delay in approving the application, they will be paid from the month they applied. They will be paid twice in June,” she said of those who would not have not been paid at the end of the month.

President Cyril Ramaphosa has announced R50 billion to relieve people desperately affected by Covid19.

He said the special grant for the next six months would be paid to individuals who were unemployed and did not receive social grants or UIF payments.

Ramaphosa also announced that child support grants would increase by R300 this month, and R500 from next month until October, while other grants would be topped up by R250.