MPs: Sassa stalls on new service provider
Agency accused of trying to keep CPS in place to pay grants
MPs HAVE accused the SA Social Security Agency (Sassa) of dragging its feet in negotiations with the SA Post Office (Sapo) on taking over grant payments in a bid to force an extension of Cash Paymaster Services’ controversial contract with the state entity.
Sassa told Parliament’s watchdog, the standing committee on public accounts (Scopa), it was preparing to go out on tender for certain functions pertaining to the payment of some 17 million welfare grants, as it was not persuaded that Sapo had enough outlets to reach all beneficiaries.
Sassa project leader Zodwa Mvulane said Sapo only had 2 600 offices, while Sassa had 10 000 grant payment-points.
She also raised concerns about potential complaints about Sapo’s lack of a full banking licence. She said there was a risk that this could be raised by competitors and furthermore, it would be bad form to forsake proper procurement processes to give preference to Sapo.
“Hence we are not emphatic about them,” Mvulane said.
But MPs countered that Sapo had given public assurances that it was confident it could reach even into remote rural areas and, where necessary, through partnerships with local shops, supermarket chains and small supply-stores.
ANC MP Nthabiseng Khunou said: “They have reassured us here in Parliament and according to them (Sapo), they are everywhere… even in the rural areas.
“And they have said that where they have no post office, they are working with supermarkets and even small shops, so according to them, in terms of spread they can do that
“But you have said it is a problem for them,” said Khunou, adding that the contradiction made her wary that Sassa would fail to sign up a new service provider and again find itself insisting that only CPS was able to pay grants, when the deadline imposed by the Constitutional Court expired next year.
“We need to see how we can help Sassa get rid of CPS through Sapo. At the end of the day, this time next year we will still have CPS, that is the uncertainty you are leaving us with,” she pointed out.
Fellow-ANC MP Mnyami Booi warned acting Sassa chief executive Pearl Bengu not to mislead Parliament on the agency’s plans and said proof of its intentions to migrate to a new service provider would be a letter informing CPS of its intentions not to renew the current contract.
“You have a very good story. But we have to hear when CPS is getting out of the system. Where is the letter that says CPS is out, they are out of our system? That letter you don’t have,” Booi said.
“You are going to tell us CPS must be retained, because CPS has the skills.”
Bhengu said she was meeting CPS’s chief executive to discuss the termination of the contract. She added: “I know for a fact that the phasing in and phasing out process is taking place.”
But Booi, however, insisted that Sassa’s preparations were not happening at a pace commensurate with the time-frame of one year stipulated by the Constitutional Court for it to find a new service provider.
Earlier this year, the apex court extended the contract with CPS as an interim measure. A grant crisis loomed as its contract was due to expire on March 31, and no alternative arrangements were in place.
Sassa had fallen behind in its preparations to take over grant payments, with Social Development Minister Bathabile Dlamini saying it would not be ready for years to come.
Sapo chief executive Mark Barnes has maintained that it is able to do so. – ANA
SAPO MUST TAKE OVER PAY-POINTS OR THIS TIME NEXT YEAR WE WILL STILL HAVE CPS… THAT IS THE UNCERTAINTY YOU ARE LEAVING US WITH