Billions returned to Treasury won’t affect R350 SRD grant beneficiaries, says Zulu

Social development minister Lindiwe Zulu has cleared the air on the money her government returned to the National Treasury, saying it was not R15 billion and would not affect the social relief of distress (SRD) grant budget. 

City Press reported the department returned more than R15 billion to Treasury after it failed to pay grants. It said 6 million people, who applied for the R350 SRD grant could not be found in the last financial year, reducing the number of beneficiaries from 13 million to 7 million.

Speaking on the radio station 702, Zulu said the department returned R4 billion to the National Treasury and it did not affect the budget for the SRD grant or beneficiaries.

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She said the money was repurposed. 

“The money that was returned was for the 2022/23 financial year and it was repurposed for other areas,” said Zulu, explaining the department budgeted for 15 million people but ended up paying 10.5 qualifying beneficiaries in that financial year. 

Number of beneficiaries dropped

Zulu said the department currently pays 8.5 million beneficiaries.

“[The money returned] did not compromise those who applied for the grant and didn’t get the money because we have been paying 10.5 million and right now we are at 8.5 million.”

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According to Zulu, the number of beneficiaries dropped after the department found some beneficiaries were employed or receiving money from other parties. 

“The inconsistency [in payment] is due to us having to check whether a person is really not getting money elsewhere or receiving other grants. Many continued to apply even though they did not qualify for the SRD grant.” 

Some beneficiaries still haven’t been paid

The DA called on the South African Social Security Agency (SASSA) to consider using other banks to pay grants after more than 600,000 beneficiaries did not get their monies last week due to a technical glitch in Postbank’s social grant payment system, with some elderly beneficiaries still to receive their money.

DA MP Alexandra Abrahams said Postbank’s failure to address the various payments was the latest in a long line of “technical glitches” or “hacking attempts” that affect vulnerable grant beneficiaries on an almost monthly basis. 

Zulu said, to date, 95% of beneficiaries received their money. 

“Not every beneficiary has received their money [we] have asked PostBank to give us a detailed daily report that we can send to the president. They have given us a guarantee in the form of a plan and letter that their system is in order.”

She said the department was also looking at other payment options. 

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