Finance Minister Pravin Gordhan will appear before Parliament’s standing committee on public accounts (Scopa) on Tuesday to clear up Treasury’s stance on the social grants crisis.<\/p>\n
Committee chairperson Themba Godi said last week the meeting would help the committee understand Treasury’s reservations on the proposed new contract with current grants service provider Cash Paymaster Services (CPS).<\/p>\n
“The committee is looking forward to this engagement to get a complete picture of what led to this crisis and how it is being resolved,” Godi said.<\/p>\n
The committee’s main concern was that grant payments on April 1 be made according to the prescripts of laws governing public procurement, he said.<\/p>\n
The ANC last week said Treasury would not act illegally and approve a new welfare distribution deal with Net1 UEPS Technologies, CPS’s parent company, unless it is sanctioned by the Constitutional Court.<\/p>\n
“It’s even exaggerated to think that people won’t be paid by April 1. They will be paid, but the manner in which it will be done may not be legal,” ANC national spokesperson Zizi Kodwa said.<\/p>\n
The portfolio committee on social development has apologised for its role in the crisis which it said could lead to beneficiaries not being paid.<\/p>\n
“If the process is stalled, we will be the first to know. We wish to offer our apology as a committee for the crisis which threatens to destroy the lifeline of our own,” chairperson Rose Capa said last week.<\/p>\n