Fraudsters using 'phantom' kids to claim grants

06 December 2006

Melanie Peters

Unscrupulous fraudsters are selling bogus children's clinic cards to people who then illegally collect support grants for "phantom" children.

The Western Cape's department of social services has been investigating a number of syndicates operating in the province.

Clinic cards, which are used to monitor immunisation, are also accepted by the Department of Home Affairs as proof of birth. This allows criminals to fabricate the existence of children who can then be registered with the department.

Officials say members of the public wanting to obtain child grants illegally have been buying the bogus clinic cards. They then go to the Department of Home Affairs and are issued with a birth certificate. It's easy to do so because the "baby" does not have to be with the "parent".

The South African Social Agency was set up to clamp down on millions of rands being stolen from the national department of social welfare each year.

Juan Smith, chief financial officer for social development in the Western Cape, said it was extremely difficult to identify whether the birth certificate was obtained illegally because it was no longer a requirement for copies of the clinic cards to be presented during the application process.

Without the clinic cards on file, it was very difficult to determine whether the child existed. It was also challenging to review the grant or do home visits, as many illegal applications contain false addresses.

He said that at least with a clinic card they could determine whether the child exists and was regularly taken to a day hospital.

But next year, to help them determine and verify how many children should be on the system, they planned to visit schools and to conduct their own census.

A child grant is R190 a month and is given to children up to the age of 14.

Smith said the Special Investigation Unit had successfully clamped down on government employees who were illegally collecting social grants and beneficiaries who received grants with forged documentation. The department had a loss of over R600 000 this year as a result of such grant fraud.

In the Western Cape, 1391 provincial government officials were caught with their fingers in the till. So far 281 had appeared in court with 206 having been found guilty. Investigations were continuing.

Those found guilty or who admitted guilt were repaying the money.

According to the department, from April last year to September 2006 the department incurred losses of R270 360 through corrupt officials. But, by taking punitive measures it saved just over R3 million a year.

Smith said the provincial investigation focused on various methods that were used to forge documentation.

In October a suspect was arrested for forging medical certificates that were used to assist applicants in acquiring disability grants. Over 900 disability applications were being investigated that were linked to forged medical certificates.

Smith said other ways people defrauded the department was by identity documents being sold to illegal immigrants, who then applied for grants, forged medical certificates and created ghost beneficiaries.

Source: IOL

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