Struggling SASSA Faces Uphill Battle in Recouping Millions from Debtors

Struggling SASSA Faces Uphill Battle in Recouping Millions from Debtors. The South African Social Security Agency (SASSA) has been grappling with a significant financial issue, as it struggles to recoup millions of rands owed to it by debtors. This problem has arisen due to the erroneous disbursement of grants. Here’s an overview of the situation:

SASSA Faces Pension Non-Payment Woes

As SASSA contends with the non-payment of pensions for the current month, another pressing concern has come to light. The agency is now tasked with explaining to Parliament why it needs to write off at least R250 million in irrecoverable grant payments.

Debtor Files Destroyed During KwaZulu-Natal Riots

Adding to its challenges, SASSA is also facing inquiries from Parliament about the fate of thousands of debtor files destroyed during the KwaZulu-Natal riots in 2021.

Millions Owed in Erroneously Disbursed Grants

One of the core issues at hand is the significant amount of money owed to SASSA in grants that were erroneously disbursed. The highest number of debtors can be found in KwaZulu-Natal, closely followed by the Eastern Cape.

Struggles to Recoup Debt

Despite having a debt book worth at least half a billion rand, SASSA is encountering difficulties in recouping the owed money. According to Tsakeriwa Chauke, SASSA’s Chief Financial Officer, Treasury has allowed a write-off under certain conditions, primarily when the cost of recovery surpasses the debt owed.

Challenges with Debtors’ Circumstances

Chauke further explains that some of the debtors are deceased, while others are considered to be in undue hardship, making it unfavorable for the state to pursue debt recovery due to their personal circumstances.

Reconstructing Destroyed Files

In an effort to address the challenge, SASSA has undertaken the reconstruction of over 7,000 files worth R38 million in debt. These files were destroyed during the 2021 uprising in a KwaMashu office. However, the process of locating individuals residing in villages and informal settlements to re-sign an acknowledgment of debt is impeding progress, especially with the simultaneous digitization of files.