Old Age Pension scheme is Father Xmas � PAC
Mpho Mokwape | Thursday May 28, 2015 15:35
Public Accounts Committee (PAC) member Dithapelo Keorapetse said yesterday that this is because it gives money to just about anyone over 65 years regardless of their financial status.
This was during a presentation by the Ministry of Local Government and Rural Development to the PAC.
Keorapetse said he could not understand why the scheme was designed for everyone including the monied and does not have any assessment criteria.
“This scheme does not differ in any way with Father Christmas. It just gives out money to anyone, including those that do not really need it,” he said.
He pointed out that there was not enough assessment done to identity only those worthy of the pension and those that should be exempted simply because they do not need it.
“People running businesses making millions are still being enrolled with the old age pension whereas they do not necessarily need the money and this is all due to ministry’s lack of continuous assessment,” he said.
The legislator further said it was so disturbing that the ministry does not have an assessment policy but only relies on the age, resulting in undeserving people also benefiting from the scheme.
He also said the ministry should consider plans to make reforms to revise the scheme and also assess beneficiaries through such things as asset acquisition and financial status.
Furthermore he requested that the age of pension which is 65 should also be reviewed to at least make it 60 so that people who cannot sustain themselves after retirement can benefit straight away.
“There are people who retire without pension and those that retire at age 60 but cannot sustain themselves while waiting for the age 65. I do not understand what difference the five-year waiting period makes. “People should not be left to suffer when they can benefit from the old age pension,” he said.
Keorapetse also said the ministry’s books had loopholes that opens doors for corruption and mismanagement of funds as the ministry had completely lost control of some of its accounts including the latter scheme and the destitute one.
“The accounts have not been reconciled. You cannot give figures and P19 million remains unclaimed for old age pension at Post Offices, but you have not made any attempts to see why,” he said.
In his defence, the Ministry’s Permanent Secretary, Molefi Keaja said the ministry was doing everything to account for money left unclaimed at Post Offices. He said the reasons were many especially that the money was meant for old people who sometimes could be sick and bedridden to collect the money and many other reasons. For the old age scheme, Keaja said there were no plans to make any reforms to revise the scheme, but added that it was something to consider in future.
“It is understandable that the committee is worried about the scheme’s beneficiaries and its assessment policy. It is an areas that can be looked into in future and map a way forward” .