Photo: Open Secrets
Current Project
New digital Welfare profiteers
In 2020, President Cyril Ramaphosa introduced a new cash transfer, called a Covid-19 Social Relief of Distress (SRD) grant, for unemployed people between 18 and 59. Because these grantees had never been previously registered with SASSA, private partners such as GovChat were brought on board to digitise the enrolment process. GovChat volunteered to do this for "free" in the hopes that it could reuse personal data gathered through welfare payment for profit. They intended to develop their business in two ways. First, much like Net1, they planned to sell financial products to grantees. And second, unlike Net1, they planned to conduct algorithmic analyses of grantee data and sell these information products to public and private buyers. As they built more relationships with government departments, specifically the Department of Health, they would have access to increasingly valuable population data. GovChat, however, was not able to achieve their goal as they had serious funding constraints. They closed their business in South Africa, changed their name, and are currently in the process of re-establishing themselves abroad.
Even as GovChat is no longer a threat, SASSA has continued to seek help from a variety of companies to digitise its services. At present, there is not a lot of information available about who they are and what they are doing. Aside from the data privacy issues, the digital systems have made it more difficult for people to qualify for and receive their grants, particularly if they do not have the smart phones, bank accounts, internet access and English proficiency. And yet, SASSA still aspires to roll out digital service provision to all grantees beyond those receiving the Covid-19 SRD grant. I collaborated with Open Secrets to show how these digital systems can cause harm to people in need of social assistance.
Even as GovChat is no longer a threat, SASSA has continued to seek help from a variety of companies to digitise its services. At present, there is not a lot of information available about who they are and what they are doing. Aside from the data privacy issues, the digital systems have made it more difficult for people to qualify for and receive their grants, particularly if they do not have the smart phones, bank accounts, internet access and English proficiency. And yet, SASSA still aspires to roll out digital service provision to all grantees beyond those receiving the Covid-19 SRD grant. I collaborated with Open Secrets to show how these digital systems can cause harm to people in need of social assistance.
PATHWAYS TO IMPACT:
- Open Secrets is submitting Freedom of Information Requests for the contracts of all the partners involved with welfare delivery.
- We are reviewing the contracts to understand who is making money off grant payment and how they are doing so.
- We are engaging with DSD, SASSA, parliament, and contracting parties to advocate for better contracts with more beneficiary protections.
IMPACT ACHIEVED:
- We raised awareness about the dangers of digital systems for social grantees, specifically GovChat's potential misuse of data.
- We potentially contributed to GovChat's decision to close in South Africa and relocate elsewhere.
FUTURE IMPACT:
- We will fight to ensure any new companies involved in grant payment are not using beneficiary information for profit.
- We will fight to ensure new digital application processes and security checks do not prevent people from accessing grants.
Advocacy agenda
protect personal data
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Read: Our investigative report about digital profiteering off welfare recipients.
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Watch: Our report launch with Rob Rose from the Financial Mail from 25 November 2021.
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Read: This book by Open Secrets on the many unaccountable politicians and corporations in South Africa.
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