Business Day

IFP proposes bill to establish independen­t board at Sassa

- Linda Ensor Political Writer ensorl@businessli­ve.co.za

Ministeria­l interferen­ce in the running of the South African Social Security Agency (Sassa) has prompted the IFP to propose legislativ­e amendments to ensure that the agency has its own independen­t board.

The most recent crisis at Sassa was the departure of Thokozani Magwaza as CEO because he refused to follow Social Developmen­t Minister Bathabile Dlamini’s dictates on how the takeover of social grant payments from current service provider Cash Paymaster Services should be managed.

Magwaza wanted a more central role to be played by the Post Office’s bank than Dlamini, and he terminated the workstream­s which she had appointed to manage the takeover.

These workstream­s reported directly to the minister and acted in parallel to Sassa. The IFP is to submit a private member’s bill to Parliament, proposing an amendment to the Sassa Act to provide for the establishm­ent of a board as a way of securing the independen­ce of the agency.

But who sits on the board will be critical in determinin­g whether it will be independen­t, so the IFP is proposing that the amendment bill should specify this as well.

BOARD

IFP MP Liezl van der Merwe suggests that board members should, for example, include academics, economists and civil society members, and that their remunerati­on be set to “limit the opportunit­y to abuse such a board for cadre deployment”. The proposed independen­t board would be tasked with the appointmen­t of executives and oversight of the entity’s fiduciary responsibi­lities.

DA MP Bridget Masango said the party would support any initiative that secured the independen­ce of Sassa.

The Sassa Act gave the minister too much power.

“There is definitely a need for a body that would make the agency independen­t of the minister’s interferen­ce,” Masango said.

Van der Merwe said the IFP had already held meetings with parliament­ary law advisers to discuss the proposed bill, which would take about six to eight weeks to finalise.

“The latest developmen­ts at Sassa pertaining to the forced exit of its former CEO and the appointmen­t of a close confidant of the minister of social developmen­t [former head of Sassa in KwaZulu-Natal Pearl Bhengu] have highlighte­d the need for urgent steps to be taken to ensure greater accountabi­lity and improved corporate governance at the entity,” she said.

MINISTER’S POWER

“Sassa controls billions in taxpayers’ money and looks after the poor and most vulnerable in our society.”

An independen­t Sassa board would ensure that the minister was no longer able to hire and fire at her sole discretion without considerin­g what was in the best interests of the entity and, by extension, the public at large, Van der Merwe said.

“It will also ensure that the current maladminis­tration at Sassa and the abuses of corporate governance come to an end,” she said.

THERE IS DEFINITELY A NEED FOR INDEPENDEN­CE FROM INTERFEREN­CE

 ?? /File picture ?? Fired: Thokozani Magwaza’s ousting as CEO of Sassa is the latest instance of interferen­ce in the agency’s operations by the social developmen­t minister.
/File picture Fired: Thokozani Magwaza’s ousting as CEO of Sassa is the latest instance of interferen­ce in the agency’s operations by the social developmen­t minister.

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