South African Social Security Agency (Sassa) programme manager Zodwa Mvulane has confirmed that there is currently no programme in place to deliver social grants in South Africa – meaning 17 million South African will be left stranded on 1 April, reports ENCA.
Mvulane was speaking at a public accounts committee briefing on Sassa on Tuesday (28 February), in which she also confirmed that the agency will not approach the Constitutional Court to ask for an extension on its contract with current provider CPS, but will rather negotiate a new one.
In 2016, the court handed down the judgement stating that CPS could not continue to provide Sassa with social services, after it emerged that the tender had been awarded by Sassa without following correct tender procedures.
However, the new rate at which CPS would negotiate the contract terms could rise between 30% and 50%, said DA MP Timothy Brauteseth.
“The current rate CPS charges is R16.44 per recipient. Their new rate, its CEO had bragged at a public meeting, could be between R22-R25,” said Brauteseth .
As a result, the social grants budget could rise as high as R3.4 billion – an R800 million increase on Sassa’s proposed budget of R2.6 billion.