Sassa sticks to its guns over grants payments

The South African Social Security Agency (Sassa) still insists that extending Cash Paymaster Services’ (CPS’s) invalid contract is the only way to ensure social grants are paid on April 1.

The Constitutional Court invalidated the contract in 2014, but allowed it to run its course after Sassa told the court it could not find compliant bidders to take over the contract.

In November 2015, Sassa told the court the agency would take over grants payments.

Sassa spokesman Kgomoco Diseko confirmed to Business Day on Thursday, that the agency had entered into negotiations, which started on Wednesday, with Net1 CEO Serge Belamant for a contract extension. Net1 is CPS’s parent company.

Diseko said the negotiations with Belamant were ongoing.

The agency hoped to "avoid jeopardising them by pre-empting their outcome". Diseko said Sassa had presented six options to Parliament for the payment of grants, most of which offered two channels of payment.

"Beneficiaries are currently paid via different channels such as cash at paypoints, cash back at selected stores, ATMs and points of sale where swiping for goods can be done. CPS uses a combination of these channels and a system that has been tested in the past four years.

"It is in this context, Sassa feels CPS is better placed to handle the grant payments in the short term up until a new tender is advertised and awarded. That tender will be advertised in June," said Diseko.

After Social Development Minister Bathabile Dlamini had written to Finance Minister Pravin Gordhan, asking for a condonation, he pointed out it would be unlawful.

At the post-Cabinet briefing on Thursday, Minister in the Presidency Jeff Radebe said an emergency meeting would be convened next week to discuss the issue. "We are deeply and totally committed to making sure the 17-million plus beneficiaries will receive their grants. We will make sure all the affected departments deliver a report before we say what the position of government is," he said.

Lumka Oliphant, the Social Development spokeswoman, said it could provide no updates until Sassa concluded its negotiations with CPS.

The Treasury has distanced itself from the matter, saying the distribution of grants falls within the ambit of Dlamini and Sassa.

Corruption Watch executive director David Lewis said it was important to establish why Dlamini and Sassa insisted the only option for ensuring that the grants were paid was a further contract with CPS.

"We are certain that those millions of people for whom the social grant is a life-and-death matter and who have been caused unimaginable anxiety by Dlamini’s disgraceful conduct, would welcome her departure from public life," said Lewis.