Annual Report 2004/05 - Special Investigating Unit

ANNUAL REPORT 2004/05
NATIONAL INVESTIGATIONS
Results and Achievements
Province Files Files Invalid Disciplinary
Number Number Number of arrests Number of
scanned audited licences
matters of criminal of pending Private Officials prosecu-
identifi ed referred to
DoT
referrals arrests individuals
tions
Western Cape 1 709 1 250 1 2 2 2 2
Gauteng 77 796 969 683 10 666 665 4 12 3
Eastern Cape 67 158 9 765 451 1 1 1
KwaZulu-Natal 73 142 148 21 1 17 17 3 3
North West 55 042 506 345 6 6 2
Free State 299 224 39 27 25
Mpumalanga 56 364 1 251 1 12 3 11 3 9
Northern Cape 23 302 182 35 4 21 1
Limpopo 52 837 19 1 349
Total 408 967 14 314 2 924 21 733 734 19 17 17
Department of Social Development
In terms of the Social Assistance Act, Act 59 of 1992, the Department
of Social Development (DSD) has the overall national responsibility
to pay pensions, grants and other forms of social assistance. The
provinces administer the payments on an agency basis.
Over the past few years, there has been an enormous increase in the
number of benefi ciaries as government introduced a child support
grant, and disability grants became more widely accessible. Losses
have conservatively been estimated at approximately R1.5 billion per
annum or 2.6% of the allocated budget of R56 billion. Indications are
that the losses could be substantially higher.
As a result the Minister of Social Development, Dr Zola Skweyiya,
approached the SIU in 2004 to investigate and redress any impropriety,
including fraud, corruption and maladministration in relation to the
administration of the social grant system.
Proclamation R18 of 2005, published on 6 April 2005, mandated the
SIU to investigate:
• The payment and/or receipt of social grants or benefits by unqualified
beneficiaries.
• The irregular or unlawful conduct of governmental officials and/or
agents responsible for the administration and/or payment of social
grants or benefits.
The investigation will be conducted in phases and the SIU and DSD
have agreed on prioritising the following areas or activities for phase
1 and 2:
• Analyse the Social Pension (SOCPEN) databases and identify undue
beneficiaries for forensic investigation and removal from the system.
• Investigate government officials registered on SOCPEN.
• Concentrate on high-risk social grants (old age grants, disability
grants, child support grants and care-dependency grants).
• Investigate failed amnesty applicants.
• Concentrate on high volume transactions in respect of all grants,
including high-risk grants, targeted by organised crime syndicates
often working with government officials, professionals, members of
the public, service providers, etc.
• Repatriate unclaimed grants from banks and other payment
institutions to the Department.
12