Sassa scraps contracts of minister’s workstreams
South African Social Security Agency (Sassa) CE Thokozani Magwaza has cancelled the contracts of the workstreams that had been established and of which the staff had been hired by Social Development Minister Bathabile Dlamini.
It has been alleged that Dlamini and a few handpicked advisers, in the form of the workstreams, had constructed the illegal new contract with Cash Paymaster Services (CPS). In doing this, they had excluded Sassa and department officials.
The Treasury wrote to Magwaza in May, informing him that the deviation from normal procurement processes requested by Sassa had not been approved. The workstreams operated parallel to Sassa’s standard functions and appeared to usurp the agency staff’s roles and responsibilities.
Sassa spokesman Paseka Letsatsi confirmed that Magwaza had cancelled the contracts on June 29.
“The National Treasury wrote to Sassa to say the appointment of the workstreams was irregular, so it is incumbent on the accounting authority to act on it, so he acted on it,” Letsatsi said.
The more than R40m spent on the workstreams will be put down as irregular expenditure.
Dlamini’s office was unable to comment immediately.
In June, the Constitutional Court added Dlamini in her personal capacity in the Sassa matter, but is now giving her an opportunity to challenge allegations made against her during an inquiry into her role in setting up the workstreams.
All parties involved in the matter were given 14 days to agree on a process to resolve it and appoint a referee.
However, the parties have been unable to reach consensus on whether former deputy chief justice Dikgang Moseneke, former chief justice Sandile Ngcobo or former Constitutional Court judges Yvonne Mokgoro and Bernard Ngoepe should lead the inquiry.
Black Sash attorney Nomonde Nyembe said because of the disagreement, it would be up to the Constitutional Court to appoint a judge to head the inquiry into Dlamini.
All parties filed reports to the Constitutional Court last week.
The inquiry will possibly see parties testifying and calling witnesses to testify.
THE WORKSTREAMS WERE IRREGULAR SO IT IS INCUMBENT ON THE ACCOUNTING AUTHORITY TO ACT
In affidavits filed by Magwaza and the former social development director-general, Zane Dangor, Dlamini was accused of lying to the court about her involvement in the Sassa payments fiasco.
This was after she tried to put the blame on Magwaza.
In March this year, the Constitutional Court ordered that CPS continue to pay grants for 12 months, after it was found that Sassa was unable to take over the payment process despite saying it could.
Sassa has to give updates on its progress to the court every three months.
It is understood that Sassa is already in talks with the South African Post Office to establish if it can help to take over the administration of grants.