The Special Investigating Unit (SIU) has saved the South African taxpayer almost R1-billion by rooting out corruption among government officials, said unit head Willie Hofmeyr on Thursday.
Most of the savings come from the departments of social development and correctional services, which have been plagued by serious graft allegations relating to social grants and medical aid funds.
Briefing the media on the unit’s successes since its re-establishment in 2001, Hofmeyr said it was planning to make future savings of R6,7billion over the next three years. It will recruit 1 000 more investigators to boost its capacity.
One of the unit’s most recent successes was its investigation of public officials unlawfully drawing social grants. According to Hofmeyr, the unit identified 43 000 such officials who were benefiting from the grants programme; 21 588 were irregular beneficiaries. Of those who benefited, 1 999 have been prosecuted, resulting in 1 221 convictions. About another 13 000 will be taken to court.
The removal of 15 982 irregular beneficiaries from the system has saved the government R51million, while the projected losses are estimated at R379-million.
A further R24,7-million has been saved by securing acknowledgement of irregular payments by 4 319 beneficiaries, who have either repaid the money or promised to do so.
In addition, Hofmeyr said, there has been a huge increase in the number of beneficiaries who have stopped collecting their benefits or have requested the cancellation of grants.
”This may be due to the deterrent effect of the investigation and a strong stance taken by Social Development Minister Zola Skweyiya against irregular beneficiaries.”
Hofmeyr said the unit’s investigation of abuse of the correctional services department’s medical aid scheme has brought immediate savings of R22,6million.
The amount saved by preventing future losses totals R3,4-million over four years.
He said the SIU will investigate the department’s procurement practices.
He would not say whether the probe will cover allegations, reported in Beeld, that Correctional Services Commissioner Linda Mti is the director of a company linked to three other firms that benefited from department tenders worth R800million.
Mti was reported to be the sole director of Lianorah Investment Consultancy, which shares the physical and postal address of Pehezulu Fencing, Sondolo IT and Bosasa, which landed the contracts.
The companies also have cross-directorships, with several common board members, according to the reports.