Presentation to the Select Committee

on Social DevelopmentThe Indemnity Project

7 June 2005

BACKGROUND

Commitment of the Minister to eradicate fraud/corruption within grant administration system

Significant number of exceptions reports/numbers of allegations of fraud activities reported via fraud hotline/poor quality data prompted action

The Minister consulted MinMec and after deliberation decided to offer indemnity to persons who have been defrauding the system

Announcement - 13 Dec 2004 to March 2005

Process and procedure Guidelines were developed in consultation with

provinces Committees established with legal expertise to

handle cases Application forms developed for uniformity

Upon a report, grant would be suspended immediately

Fill the prescribed form/attach documents,to be considered by legal officer – recommendation to the HOD

Notification of the outcome in writing

PEOPLE TO BE CONSIDERED FOR INDEMNITY

A person against whom civil proceedings will cause unnecessary hardship

A person whom after considering the merits of the case will be able to refund the department for all monies unduly paid

Indigent people living below the means test but are receiving grants unlawful

EXCLUSIONS FROM IDEMNITY PROCESS

Cases under investigation Syndicate cases All public servants

31 March 2005 - 85 000 applications received/9,721 indemnity inquires calls via fraud hotline

North west - 8683 E/cape - 6666 W/Cape - 1378 Limpopo - 36 723 N/Cape - 1867 Mpu - 5375 Gauteng - 7325 F/State - 5874 K /Natal - 11 758

INDEMNITY APPLICATIONS RECEIVED

CURRENT STATUS

Provinces busy assessing applications to grant of indemnity /or not grant indemnity

This process to be finalized end June Cases not granted

indemnity/Cancellations – Investigation SIU,

Institute civil recoveries,criminal cases,civil action

Conclusion Estimated that the Department

would be making a saving well in excess of R225 million per annum or half a billion over the MTEF

Project was a significant success The alternative would have been

tedious and laborious investigation that would have taken years to complete