South African Social Security Agency (Sassa) CEO Fezile Makiwane has resigned, following a probe into tender irregularities and financial mismanagement at the organisation.
Social development minister Edna Molewa, who called for the probe, is yet to release the findings of the investigation. However, Makiwane's resignation signals the agency's inability to deal with crippling levels of corruption in the social grant system.
Molewa previously noted she had received the report and Makiwane had been implicated in 11 irregular processes in his capacity as CEO. The report also contains findings on an investigation into alleged flouting of the Public Finance Management Act and irregular procurement processes by Makiwane and the agency.
He was scheduled to appear before a disciplinary hearing following an investigation by the Special Investigations Unit (SIU) into the irregularities, but this was not carried out.
Makiwane headed several controversial tenders, the largest of which was the automated payment services bid, which is worth R7 billion a year, for a period of three years. The tender was cancelled in November 2008, due to a lack of clarity on certain requirements in the request for proposals, and the tender is still on ice.
Sassa has been criticised by the auditor-general (AG) for irregular expenditure of R64 million for the year ending 31 March 2008. The AG also slammed Sassa for the levels of fraud within its system, saying it was a major problem in the organisation and was affecting its functions.
Coceko Pakade, CFO of the Department of Social Development, has been acting as CEO since July 2009, and provincial departments will continue to be responsible and accountable for the administration and payment of social grants.
No word yet
The minister previously stated Makiwane was handed the findings of the SIU report to allow him an opportunity to respond. He was given until 18 December, after which the minister promised to study his response and announce her decision to the public.
The department has since remained silent on the investigation and Makiwane's response. He was scheduled to face disciplinary measures as the findings revealed the misuse of funds managed by pay-point service providers and the agency.
Molewa previously stated that projects are being reprioritised and tenders would only be issued once Sassa had been cleaned up.
In May 2007, an SIU report revealed high levels of corruption in the social grant payment system. Over 60 000 dormant accounts were identified by Standard Bank and Absa. Another 39 000 accounts with unclaimed benefits were found, and there were 250 000 failed bank accounts, where details of the beneficiary did not match that of the account holder.
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