The South African Social Security Agency(SASSA) has worked tirelessly in a year of financial challenges to improve financial oversight. The agency has made great progress in reducing wasteful expenditures. However, it is still far from being finished. The agency is still facing a major issue despite its progress, as R1 million of wasteful expenditure has been recorded.
Financial Reform: A Journey of Financial Reform
SASSA’s handling of finances has brought it to the forefront of public scrutiny for many years. SASSA was under scrutiny for its financial practices as the agency that distributes social grants to South Africans. A few short years ago, the agency faced alarming numbers: In 2018/2019, irregular spending reached a staggering R1.8 billion. It was clear that something had to be done.
Today, SASSA can celebrate. The agency has drastically reduced its irregular spending under the leadership of Themba Matlou. The amount of irregular spending dropped to R34.2 million for the 2023/2024 fiscal year. Most recently, it has been reduced to R1.1 million. This is a huge achievement for a company that manages billions of Rands.
Matlou, SASSA’s leader during this transformation, expressed his pride: “While there is still work to be done, the progress that we have made in improving financial oversight is indisputable.” These changes were instrumental in ensuring taxpayer money was used efficiently.
Matlou is candid when he says that the fight is not over. SASSA had to report R1m in wasteful expenditure during the last financial period despite the reduction of irregular spending.
The R1 Million Question: Wasteful Spending Explained
Although R1 million may seem like a small amount when compared to the total budget, this is a major concern for an organization tasked with managing the public’s funds. By definition, wasteful expenditure is spending that doesn’t add value or achieve the intended purpose.
The wasteful expenditure was mainly due to inefficiencies within the procurement process. This is a common problem in the public sector. When funds are allocated for services, goods, or contracts that do not produce the desired results, the effects can be far-reaching. It’s a breach of trust for a government agency. Especially when the funds could have been used to help South Africans who rely on social grants.
SASSA has taken steps to combat this. The agency is intensifying its training and awareness campaigns, focusing on supply chain management and procurement. Workshops and collaborations are being held with the National Treasury and Department of Trade and Industry to ensure that all parties involved have the necessary skills and knowledge to manage finances responsibly.
The work does not stop here.
SASSA’s Accountability Goes Beyond the Numbers
Pre-audits are one of the most effective tools SASSA uses to combat wasteful expenditure. The agency implements a pre-audit process for every new contract to ensure that all deals are scrutinised before signing. The agency will ensure that all contracts are valid and in line with SASSA’s financial policies. These audits aim to detect irregularities and prevent them before they occur. This gives an extra layer of protection from wasteful spending.
SASSA also worked to improve its regional oversight mechanisms. Decentralisation of the financial monitoring makes it possible to identify issues faster in different provinces. This allows you to take action before they become serious.
The journey to financial discipline is not without its challenges. Experts agree that, despite their tremendous progress, a culture of accountability must be strengthened. Professor Susan Williams of the University of Cape Town’s Department of Public Finance said, “Improving oversight of financial matters is a long-term process that takes consistency and commitment.” SASSA has made great progress but must refine its systems in order to avoid complacency.
The Road Ahead: SASSA’s Commitment to Continuous Improvement
What is the future of SASSA? The agency is dedicated to maintaining momentum in financial reforms with a focus on accountability, transparency and efficient spending. SASSA will achieve long-term success by investing in better training and improving procurement processes.
Matlou said, “We’re determined to make each cent count.” “We are aware of our responsibility to South Africa’s people and will not stop until the agency is as effective and efficient as possible.”
SASSA’s progress in financial oversight is a story of perseverance and progress. It is a story of a constant drive to improve. Although R1 million of wasteful expenditure may seem like a step in the wrong direction, SASSA’s resolve to improve its financial systems and protect public funds is a testament to their commitment. The hope is that SASSA, as South Africa’s safety net evolves, will continue to build upon these positive changes and ensure a brighter tomorrow for millions of South African citizens.
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