JOHANNESBURG – a sting operation into a multi-million rand (R265 million rand) South African Social Security Agency (SASSA) fraud syndicate has led to the arrest of three officials in Johannesburg.
The arrests follow an extensive multi-agency, tracing back to October 2024, when the Department of Social Development launched a probe into a systemic corruption linked to SASSA ghost beneficiaries, identity theft, and collusion within the agency.
However, this particular sting operation began with a tip-off at a Soweto supermarket, which exposed a complex network involving fraudulent grants, identity documents, and collusion within the agency.
Students expose systemic flaws
The investigation traces back to a 2023 exposé by GroundUp (read the full report here), which revealed glaring vulnerabilities in the Social Relief of Distress (SRD) grant system.
Two University of Stellenbosch students, conducting a civic tech project, discovered they were fraudulently registered as SRD recipients despite never applying for the grant or receiving payments.
Their findings, which identified widespread identity theft and “ghost beneficiaries,” prompted Parliament’s Portfolio Committee on Social Development to demand an urgent audit of SASSA’s payment systems.
At the time, the committee condemned the fraud as a scheme that “robbed the poor and vulnerable, particularly the youth, of the social protection they need.”
The students emphasised their motivation was to protect marginalized communities reliant on the R350 monthly grant, a lifeline for over 18 million South Africans.
The Soweto tip-off and initial arrests
The case escalated in February 2024 when employees at a Shoprite store in Dlamini, Soweto, alerted police to two women withdrawing large sums using multiple SASSA cards
Police spokesperson Lieutenant Colonel Mavela Masondo confirmed: “We arrested the two ladies and found a male SASSA employee waiting outside. He had 139 SASSA cards, 60 Tyme Bank cards, 8 FNB cards, SIM cards, ID photos, and 5 passports.”
The suspect, a SASSA grant administrator, led police to an Ethiopian accomplice found with 150 additional cards, an unlicensed firearm, and cash. Four suspects were arrested, with the estimated value of fraudulent cards pegged at R265 million.
NOW read: Good News for SASSA SRD Grant in 2025 Budget Speech.
Court delays and expanding charges
During bail proceedings on March 4, 54 additional charges were added, including fraud, money laundering, and contravention of the Immigration Act, after forensic audits uncovered deeper institutional rot.
Investigations revealed collusion between syndicate members and officials at SASSA’s Johannesburg Central office, including their manager.
Friday’s sting operation
Early Friday (March 14, 2025), police moved to arrest seven suspects but found only three at work—two women and one man, all grant administrators. “Tracing of the rest continues,” said Masondo, noting that eight suspects had taken leave, evading capture. The trio faces charges linked to the syndicate, while the manager remains at large.
A Pattern of fraud nationwide
The Johannesburg arrests follow a separate Hawks operation in Mogwase, North West, where a 42-year-old SASSA administrator allegedly demanded R3,000 from a pensioner to process his grant.
Hawks spokesperson Warrant Officer Amogelang Malwetse explained: “The victim paid R2,000 after his first pension payout. The suspect was arrested after a Hawks member intervened.”
Ongoing investigations
Authorities continue tracing suspects, including the Johannesburg manager
The arrested trio will appear in court alongside the four initially nabbed in Soweto, as prosecutors consolidate charges.
Key details:
- Total arrested: 7 (4 in Soweto, 3 in Johannesburg)
- Estimated fraud: R260 million (per police) / R265 million (initial evidence)
- Ethiopian national nabbed: an Ethiopian national was also arrested after being found in possession of 150 SASSA and bank cards, an undisclosed amount of cash and an unlicensed firearm
- Total items seized: 289+ cards, IDs, passports, firearm
- Next Steps: Court proceedings pending; search for 8+ suspects ongoing.
Stories Shaping South Africa Today!.
This is a developing story, with authorities racing to dismantle a syndicate that exploited South Africa’s most vulnerable. NOWinSA is tracking live updates from courtrooms, police operations, and forensic audits.
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