Social grants will still be payed

2017-02-01 06:03

Social grant beneficiaries will continue to be paid on time even beyond April 2017, the South African Social Security Agency (Sassa) has announced.

Assurance by the agency that it would continue paying beneficiaries followed concerns raised by the public regarding what would happen after the current social grant payment contract with Cash Paymaster Services (CPS) expired. The current contract will expire at the end of March.

In April 2014, the Constitutional Court declared the current CPS Sassa contract invalid for the payment of social grants.

The ruling by the Constitutional Court, declaring the R10 billion contract with CPS invalid, followed a long legal challenge by losing bidder AllPay Consolidated Investment Holdings.

Subsequently, the Constitutional Court ordered Sassa to initiate a new tender process for the payment of welfare grants, but said the current contract-holder, CPS, had to continue to carry out its obligations.

Paseka Letsatsi, spokesperson of Sassa, said a task team had been set up to look at how Sassa could take over the payment of social grants internally. The task team was set up by the Minister of Social Development, Bathabile Dlamini, in line with the Constitutional Court ruling.

Letsatsi said Sassa had been inundated with concerns regarding what would happen after the current social grant payment contract with CPS expired at the end of March.

“Consultations were held with various stakeholders in an effort to determine what the best model would be and a solution had to be found in order to minimise potential unintended consequences. That process took unexpectedly long, given the competing business and other interests of interested parties,” said Letsatsi.

“Sassa also has a responsibility to deliver a quality service to beneficiaries without system hiccups. Therefore, it had to follow a thorough process to determine the best solution. We are currently finalising consultations with the Reserve Bank and the National Treasury.

“Given the nature of the essential service Sassa provides, there is a need for an efficient and tested solution as well as a matching, size­able human and material investment.

“These are some of the realities Sassa is facing, which will be detailed when Sassa goes public on the whole matter this week. Sassa will ensure that its grants are received unencumbered as required by the Social Assistance Act.”

Letsatsi said the agency would present its plan on how social grants will be paid out as from April 2017 to the Social Development Portfolio Committee. This presentation to the committee is expected to be made in parliament today (01/02).

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Partner Content
What all investors should know about index investing

Index-linked investments are growing fast in popularity globally, and are growing in size and complexity too.

Partner Content
How data is changing investments

Technological disruption is rife in many spheres of business and given the quantity of data available, it’s no surprise that the way in which asset managers work is also changing fast.


Perfect dog-walking 1: Why dogs pull on the lead

Some dogs go mad the minute they see the leash, drag their owner out the door and once outside start spinning, leaping about and pulling their humans off their feet.



SA stats: The role of pets in families
The top 6 poisonous foods for your pet
Does your dog have separation anxiety?
Fascinating facts about dogs
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.