Page 252 - DSD ANNUAL REPORT 2022-2

DISASTER RELIEF FUND PART E: FINANCIAL INFORMATION

15. Contingent Liabilities

15.1. The following are the details of the claims against the Disaster Relief Fund:
• Civil claim (Disaster Relief: Drought) - The estimated amount of the claim is R551 700.00, and legal costs are estimated at R1 000 000.00.
A name list was sent to the Attorney of the defendants for verification. No response from the Attorney has been received.
• Civil claim (Disaster Relief: Storm) - The estimated amount of the claim is R57 600.00, and legal costs are estimated at R150 000.00
• The above matters are still pending and as such have not yet been finalised. However, there is no prospect of successful claims by the
claimants, which is likely to decrease the amount reflected as a claim or estimated claim against DSD

15.2. The lists of beneficiary names were sent to Free State, KwaZulu-Natal, Eastern Cape, Limpopo and North West provinces in the
2012/13 financial year to trace 2 449 unpaid flood relief beneficiaries. The projected amount payable to the beneficiaries was
calculated at a rate of R3 420 per beneficiary. In the 2013/14 financial year, Eastern Cape (335) and North West (45) beneficiaries
were paid to the value of R1 299 600.00. It is projected that the remaining 2 069 beneficiaries outstanding at the end of the
2013/14 financial year amounted to R7 075 980. This is an ongoing process which was expected to be finalised by the end of the
2014/15 financial year as the beneficiaries were traced. During the 2014/15 financial year, 546 beneficiaries were traced in all the
provinces combined and an amount of R1 867 320 was paid. A projected 1 523 beneficiaries were untraceable or might still come
forward in the new financial year.

However, the appointment of a new Disaster Relief Fund Board is in process and the Board might take a different decision on the
matter. There are no beneficiaries that came forward or that could be traced since the 2015/16 financial year.

16. Related Party Transactions

16.1 The Department of Social Development
The Executive Authority of the Disaster Relief Fund is the Department of Social Development (DSD). Although a related party
relationship exists between DSD and the Fund, there were no transactions with DSD.

16.2 Relief Fund Boards
A related party relationship exists between the Disaster Relief Fund and the Social Relief Fund, the Refugee Relief fund and the State
President’s Fund. There were no transactions between the above-mentioned related parties

16.3 National Development Agency (NDA)
A related party relationship exists between the Disaster Relief Fund and the NDA. There were no transactions between the parties.

16.4 South African Social Security Agency (SASSA)
A related party relationship exists between the Disaster Relief Fund and SASSA. There were no transactions between the parties.

17. Going Concern
The annual financial statements have been prepared based on accounting policies applicable to a going concern. This basis presumes
that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent
obligations and commitments will occur in the ordinary course of business. The Fund is in the process of being closed. This will be
done upon the amendment of the Social Assistance Act, the process of which commenced in the 2012/13 financial year.

252 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2021/22