Billions already lost to SRD grant scam, independent investigation into SASSA system shows

John Perlman gets an update from Eyewitness News reporter Babalo Ndenze.

The Minister of Social Development, Sisisi Tolashe, reported back to Parliament's portfolio committee on Wednesday, after an independent investigation conducted into the Social Relief of Distress (SRD) system and other grant systems administered by SASSA.

The investigation was ordered by the Department following two Stellenbosch University students' findings that suggested SASSA's application system is vulnerable to abuse.

RELATED: Stellenbosch University students uncover massive SRD grant scam at SASSA

The computer science students reported that they'd uncovered a massive SRD grant scam at SASSA.

John Perlman gets the latest from the briefing from Eyewitness News reporter Babalo Ndenze.

The month-long probe that's just concluded is a preliminary one, and the Minister has undertaken to investigate further, Ndenze says.

"This investigation has confirmed what the two students themselves presented to the committee - how easy it is to apply for this R370 SRD grant, using people's IDs fraudulently, using people's cell numbers fraudulently... making multiple applications as well and targeting different age groups, especially people that are young and in their teens."

Babalo Ndenze, EWN Reporter

The auditors also presented a list of at least ten recommendations, Ndenze reports.

These include increased use of a biometric system, stronger password protection as well as limiting the number of applicants to cellphone number.

Deputy Minister Ganief Handricks also gave the committee an idea of the scale and cost of the fraud already perpetrated, mentioning a figure of around R3 billion, Ndenze says. 

While fixing the stopgaps will not happen overnight, there are immediate actions SASSA can take as far as encryption is concerned, he goes on.

"Hanif said they might have to engage National Treasury at some point, but it doesn't look like these improvements will be immediate... The Minister and the Department and SASSA will be returning to the committee in due course to give them further updates."

Babalo Ndenze, EWN Reporter

Listen to the interview audio for more detail