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Presentation to the Select Committee on Social Development The Indemnity Project

Presentation to the Select Committee on Social Development The Indemnity Project. 7 June 2005. BACKGROUND. Commitment of the Minister to eradicate fraud/corruption within grant administration system

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Presentation to the Select Committee on Social Development The Indemnity Project

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  1. Presentation to the Select Committee on Social DevelopmentThe Indemnity Project 7 June 2005

  2. 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

  3. 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

  4. 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

  5. EXCLUSIONS FROM IDEMNITY PROCESS • Cases under investigation • Syndicate cases • All public servants

  6. INDEMNITY APPLICATIONS RECEIVED • 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

  7. 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

  8. 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

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