KEY POINTS
- Sarathamoney Devi Sigamoney was sentenced to 10 years in prison for defrauding Sassa of over R123,000 by falsely claiming an old age grant while her company earned millions from police tenders.
- The court ordered her to repay R138,593 with interest to Sassa, but the amount remains unpaid, and she has applied for leave to appeal the sentence.
- The case highlights systemic issues of fraud in South Africa’s social grant system and government tenders, prompting calls for stronger oversight and accountability measures.
A 67-year-old woman, Sarathamoney Devi Sigamoney, has been sentenced to 10 years in prison for defrauding the South African Social Security Agency, Sassa, of over R123,000 by fraudulently claiming an old age grant.
Sigamoney, the sole director of KJP Traders Pty, a company that earned approximately R88 million from police tenders, appeared in the Pretoria North Regional Court on Tuesday, where Magistrate Pieter Nel handed down the sentence.
According to TheCitizen, Sigamoney was convicted of perjury, fraud, theft, and contravening the Social Assistance Act.
The court ordered some sentences to run concurrently, resulting in an effective 10-year jail term for Sigamoney.
“She has applied for leave to appeal, and the court postponed the matter to 12 March 2025 for arguments,” said Investigating Directorate Against Corruption (IDAC) spokesperson Henry Mamothame.
Fraudulent claims and millions in tenders
Sigamoney applied for the old age grant on April 13, 2017, submitting a false affidavit claiming she had not worked for 20 years. Sassa approved her application the following day, and she began receiving monthly payments.
Despite being the director of KJP Traders, which secured lucrative police contracts, Sigamoney continued to collect the grant until July 2022, even after charges were filed against her.
The Asset Forfeiture Unit secured a confiscation order against Sigamoney, requiring her to repay R138,593 with interest to Sassa. However, prosecutor advocate Tilas Chabalala revealed that the amount remains unpaid.
“The court previously granted the Asset Forfeiture Unit a confiscation order against Sigamoney, stipulating that an amount of R138,593 with interest calculated at 11.25% per annum be paid back to Sassa,” Mamothame explained.
Magistrate Nel emphasized the need to send a strong message to deter similar crimes. “The court highlighted the need to convey a strong message to potential perpetrators on the seriousness of such offences,” Mamothame said. Sigamoney’s case underscores the pervasive issue of fraud within South Africa’s social grant system, which has seen numerous instances of abuse in recent years.
KJP Traders, co-directed by Sigamoney’s son, Matthew Pillay, reportedly earned R88 million from police contracts between 2012 and 2022. The company’s dealings with the state began long before Sigamoney’s fraudulent Sassa application, raising questions about oversight and accountability in government tenders.
The case has reignited calls for stricter oversight of both social grants and government tenders. Civil society organizations have urged the government to implement stronger measures to prevent fraud and ensure that public funds are used appropriately. “This case is a stark reminder of the need for transparency and accountability in both the social grant system and government procurement processes,” said a spokesperson for a local anti-corruption watchdog.
Sigamoney’s sentencing marks a significant step in the fight against corruption, but it also highlights the challenges of addressing systemic issues within South Africa’s public institutions. As the case moves to appeal, authorities remain committed to holding individuals accountable for defrauding the state.
