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OUTA

SASSA WASTEFUL EXPENDITURE

OUTA INVESTIGATES SASSA WASTEFUL EXPENDITURE 

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Overview

In early July 2016, SASSA awarded the Mikondzo tender project to Azande Consulting CC and Vee-el Promotions (Pty) (Ltd). SASSA contracted Azande to provide food parcels for the Mikhondzo Project (a door-to-door food package distribution and survey company) to disadvantaged communities. The tender was irregularly awarded with a competing bidder coming in at a third of the price quoted by Azande. No Service Level Agreement was reached nor were deliverables defined. 

Outa is challenging the CPS because of misuse of beneficiary personal information to market products that are no related to grants; such as selling airtime and funeral policies; and corruption. Former Minister of Social Development and the South African Social Security Agency (Sassa) appears to have misrepresented many facts in order to keep the SASSA/CPS contract going. She created and appointed work streams to prepare SASSA to take over grant payments. This function was also being performed by SASSA internally, thus creating parallel working groups to achieve one goal. This is corruption and taking advantage of the poor and needy.

According to records obtained by OUTA, there is no proof of food distribution. This is extremely concerning given the millions paid over to Azande.  In addition, given the small pool of taxes flowing into government we believe that a more cost-effect supplier should have won the bid, without compromising the health of vulnerable citizens. 

OUTA challenged SASSA to justify the spending on Azande. OUTA further challenged irregularity of payments without legitimate receipts and proof of delivery.  

 

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