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High administrative costs hinder timely disbursement of grants

Business

Staff Reporter

The Ministry of Gender, Youth, and Social Development has expressed concerns about the high costs of administering social grants, which it claims exceed the value of the actual grants.

This revelation was made by the ministry’s Principal Secretary (PS), Mahlapane Makakole-Bodiba, in a letter to the local rights group, Advocates for the Supremacy of the Constitution, also known as SECTION 2.

“The Ministry faces the challenge of incurring administrative costs that surpass the value of the actual grants. Due to these costs and the logistics involved in distributing the grants, the Ministry has had to implement measures to ensure effective quarterly payments,” Makakole-Bodiba stated in a letter dated November 8, 2024.

The letter was in response to SECTION 2’s inquiry to Minister Pitso Lesaoana on October 30 regarding the frequency of disability grant payments.

“On behalf of SECTION 2, the Advocates for the Supremacy of the Constitution, I write to respectfully bring to your attention a concern raised by members of the disability community regarding the frequency of their disability grant payments,” wrote the group’s Secretary-General, Tjatjapa Sekabi.

Sekabi referenced the Persons with Disability Equality Act of 2021, noting that Section 44 guarantees individuals with severe disabilities a disability grant, the amount of which is set annually under Section 45(2). He pointed out that in 2023, through Legal Notice No.56, the disability grant was set at M600 per month, effective April 1, 2023.

“However, it has come to our attention that many recipients report receiving their grants quarterly rather than monthly, as specified in the Notice,” Sekabi added.

In light of these concerns, SECTION 2 requested clarification on several points.

First, the group asked the ministry to confirm whether the grant was indeed being distributed quarterly and, if so, what circumstances led to this arrangement, despite the stipulation in Legal Notice No.56 for monthly disbursements.

Second, they sought clarification on any measures being considered to align the payments with the prescribed monthly schedule, if a discrepancy between the legislative mandate and the actual distribution existed.

“As advocates for constitutional integrity and the protection of rights for all Basotho, SECTION 2 believes it is essential to uphold the financial security and dignity of persons with disabilities,” Sekabi emphasised.

He added: “This grant serves as vital support, and we trust that under your leadership, any necessary adjustments will be made to ensure the grant reaches beneficiaries in a timely and consistent manner.”

Sekabi concluded the letter by offering SECTION 2’s assistance in addressing the issue: “Should there be any further discussions required, please know that SECTION 2 is at your full disposal to assist in addressing this important issue for the betterment of the lives of Basotho with disabilities.”

In her response, Makakole-Bodiba began by acknowledging receipt of the letter, in which SECTION 2 had raised concerns about the payment frequency of the disability grant.

“You stated that Legal Notice No. 56 of 2023 set the disability grant at M600 per month and that the Ministry has continued to pay the grant on a quarterly basis despite this notice,” she wrote.

“Kindly note that the Ministry acknowledges that the Disability Grant is to be paid monthly, as stipulated in the Legal Notice. However, it is important to note that the Disability Grant is not the only grant of its kind administered by the Ministry.”

She explained that the ministry was facing the challenge of administrative costs exceeding the actual grants, and due to these costs and the logistics of processing all the grants, it had implemented quarterly payment measures for efficiency.

“Currently, the grants are disbursed by paying officers who travel to each district to physically hand over the grant monies. The Ministry has engaged the services of G4S (a security company), which was initially contracted to pay Public Assistance and Child Grants. The Disability Grant now piggybacks on this payment method, significantly increasing the cost of the contract between G4S and the Ministry,” she elaborated.

“These costs amount to millions, and this is the reason for the quarterly payment schedule. The cost of paying the grant monthly would be substantially higher,” she continued.

To address SECTION 2’s concerns, Makakole-Bodiba reassured the group that the ministry was in the process of migrating to a digital payment system for the grants.

This, she said, would not only enable the ministry to adhere to the monthly payment requirement stipulated by law but also improve the overall efficiency of the grant distribution process.

“We thank you for your understanding and look forward to your continued cooperation,” the PS concluded.

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