SOCIAL RELIEF OF DISTRESS GRANT SYSTEM VULNERABLE TO ABUSE – MINISTER

SOCIAL RELIEF OF DISTRESS GRANT SYSTEM VULNERABLE TO ABUSE – MINISTER

• 26 February 2025
• Social Development
• SA Legal Academy

‘Significant vulnerabilities and weaknesses’ have been identified in South Africa’s social relief of distress grant system, according to Social Development Minister Nokuzola Tolashe. She was briefing members of the National Assembly committee concerned on the outcome of an investigation commissioned in October 2024 at their request. This followed allegations of fraudulent transactions made by two Stellenbosch University earlier that year. In her address, the Minister also alluded to gaps in the entire social security system opening the door to widespread fraud. This will be the focus of a separate investigation.

The social relief of distress grant was introduced during the Covid-19 pandemic and has since become a permanent feature of South Africa’s social security net.

As far as can be ascertained, a final report on the findings of the social relief of distress grant system investigation is not publicly available. However, among other things a presentation document circulated to committee members noted:

• the challenges associated with ‘balancing’ the need for:
  • a ‘simple’, accessible grant application process (especially given grant beneficiary demographics), and
  • sophisticated anti-fraud measures
• measures already in place to curb ‘website mimicking’
• an 18-month action plan for addressing the issues identified in six-month phases, and
• the imminent introduction of biometric verification.

In that context, a committee media statement on the briefing refers to:

• ‘weaknesses in … OTP-based authentication’
• the pitfalls of ‘multiple applicants per cell phone number’, and
• the potential for platform abuse and fraud associated with the use of a ‘mobile money service’.

Please click the links below for more information:

• Minister’s speech
• committee statement
• presentation document

Published by SA Legal Academy Policy Watch

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