SASSA owes millions in unpaid rent across seven offices

The South African Social Security Agency (SASSA) owes municipalities and other landlords R17.89 million in unpaid rent across seven offices, including its Records Management Centre.

The outstanding amount was revealed by Social Development Minister Dina Pule in a written parliamentary response.

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Linked to disputes

According to Pule, the rental arrears are linked to disputes over municipal rates, billing and lease agreements rather than a straightforward refusal to pay.

One of the most significant cases involves SASSA’s New Hanover Local Office in KwaZulu-Natal, where rent has reportedly not been paid since 1 September 2023.

Pule said the dispute relates to billing rates and invoices that have not been ratified.

SASSA and the municipality are currently negotiating a new lease agreement, which is expected to include arrangements for settling the outstanding rental debt.

Municipalities under pressure

SASSA’s unpaid rent comes against the backdrop of growing concern over government departments failing to settle their municipal accounts.

Municipalities rely heavily on payments from government institutions to help fund basic services, and National Treasury has previously raised concerns about mounting government debt.

Finance Minister Enoch Godongwana announced in May that National Treasury would deduct money from national and provincial departments to settle outstanding municipal debts.

Godongwana said provincial government departments owed municipalities more than R14 billion, while national departments owed a further R8.2 billion.

“National Treasury has taken a decision to deduct monies from national and provincial departments to settle outstanding debts owed to affected municipalities,” he said.

SASSA is among the government entities facing scrutiny over unpaid accounts, with several of its outstanding rental obligations involving municipalities in KwaZulu-Natal.

No consequence management

The parliamentary response also raised questions about accountability within SASSA.

Pule revealed that no consequence management measures had been implemented in any of the cases involving SASSA officials connected to the outstanding rental matters.

The disclosure means that, despite millions of rand in rent remaining unpaid, no disciplinary action has so far been taken against officials responsible for the relevant payment or lease processes.

SASSA was established in 2005 and is responsible for administering and distributing social grants to millions of vulnerable South Africans.

Its offices and service points are therefore an important part of the country’s social safety net, particularly in poorer communities.

However, with some rental disputes still unresolved and new lease agreements being negotiated, the agency’s outstanding rental bill may remain an issue until the billing and contractual disagreements are settled.

Office	Outstanding period	Amount
Dukuza Service Point, Kwa-Zulu Natal Region	11 months	R120 761.52
New Hanover Local Office, Kwa-Zulu Natal Region	3 years	R503 469.87
Lamontville Service Point Kwa-Zulu Natal Region,	8 months	R69 431.95
Umnini Service Point, Kwa-Zulu Natal Region	19 months	R439 704.85
Karoo Hoogland Local Municipality, Fraserburg Local Office	3 months	R10 000.00
Nebo Local Office (Provincial Department of public works)	21 months	R235 018.62
Records Management Centre, National	3 months	R16 512 361.09
TOTAL		R17 890 747.90