Dlamini wants a “new” 2 year social grants contract with CPS: report
In an address to stakeholders on Monday (6 March), social development minister Bathabile Dlamini has assured pensioners that they would get their social grants come 1 April .
In the briefing covered by eNCA journalists, Dlamini detailed the processes followed by the department of social development (DSD) since the Constitutional Court ruling against the Sassa/CPS deal in 2014.
The court found that the deal with Cash Payment Services did not follow procedures, and ruled that it was invalid and should be set aside. It also ordered that a new tender processes be issued.
According to the minister, the department did in fact start a new process to find a new service provider, but one could not be found. Of the different companies that were in the running, one dropped out, and two could not meet the capacity, she said.
The broader plan was to adopt the delivery method to Sassa itself, but it, too, did not have the capacity. The minister said that the DSD was looking at alternatives, and was aiming to adopt a “people-focused” delivery method, involving the youth.
She that there were six alternative methods to distribute money to the 17 million people on grants, including using the post office.
One of the methods mentioned previously, involved using 2,600 Post Office branches to pay grants – however, this was also deemed insufficient for the task.
Details of “new” contract
Dlamini gave more detail into the reported agreement reached with CPS, and the DSD’s desire to continue working with the group, at least over the next two years.
CPS, a subsidiary of Net1, confirmed on Monday that an agreement had been made with the social development department, and that, once signed-off, would allow the company to continue distributing Sassa grants.
The proposal is that the department continue working with CPS for another two years, until a new service – headed by Sassa – can be found.
The first 12 months of this contract would be focused on exiting the CPS systems, the minister said, with the next 12 months used to “put processes in place and extend life of the card”.
However, the deal has not been signed, as it needs approval from National Treasury.
Dlamini said that the DSD has had discussions with both president Jacob Zuma and National Treasury over the weekend, and was confident – however, the message from Treasury was that they would only support a deal with CSP if the Constitutional Court endorsed it.
As it stands, the CPS’ current contract remains invalid, she noted, adding that her department has filed papers with the Constitutional Court explaining its position.
According to acting Sassa CEO, Thamo Mzobe, however, the court application is not to seek the extension of the CPS contract – which is invalid – but rather just to explain why the group is not ready to take on grants payments itself.
The proposed deal with CPS is being handled as a new contract process, he said.
Read: Social development minister refuses to answer tough questions on grants crisis
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