Monday, May 30, 2011

Grant fraud hits state coffers

The South African Social Security Agency has lost R238-million to social grant fraud since its creation in 2005.

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Cape Town - The South African Social Security Agency (SASSA) has lost R238-million to social grant fraud since 2005, Social Development Minister Bathabile Dlamini said on Monday.

The agency was defrauded of R12-million in 2005, when it was established. In 2006, the figure more than doubled, the minister said in written reply to a Parliamentary question by the Democratic Alliance.

She said 17 908 fraud cases were brought to court by December 2010 and 15 004 people have so far been convicted of social grant fraud.

Dlamini said by the end of last year, the government had recovered more than R85-million, and was hoping to get back all money lost due to fraud.

She said every person convicted for defrauding SASSA was made to sign an acknowledgement of debt to repay the money, with interest of 15 percent.

The state is still owed R214-million and is collecting the money on a monthly basis. The interest collected is paid over to the national treasury. - Sapa

Source: http://www.iol.co.za/grant-fraud-hits-state-coffers-1.1076016

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