Daily Dispatch

Dlamini reckless with grants that feed millions

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of Social Developmen­t, Bathabile Dlamini, and her department have been highly irresponsi­ble for leaving the distributi­on problem in limbo for so long.

This even after they were instructed by the Constituti­onal Court to make alternativ­e arrangemen­ts. It leaves the impression that the minister and her department want to force the country into a crisis, leaving no option but to get approval to continue using the current service provider.

Neither the minister nor the department have shown any urgency to bring this matter to a speedy resolution. It’s also disconcert­ing that the minister seems to live in denial. She’s failed to admit that there’s a pending crisis of national proportion­s.

The minister should take political responsibi­lity for this crisis. If she refuses to accept responsibi­lity, it raises the question of whether the ministry she runs is needed at all or can be merged with another ministry, as its largest single responsibi­lity is oversight of the legal administra­tion and payment of social grants. It is also disconcert­ing that others in leadership positions in the government have remained quiet. In any other country the head of state would have stepped in to try and defuse the looming crisis. But it seems that expecting any action from President Jacob Zuma in a crisis – except if he stands to gain personally – is too big an ask. They’re very important because of extent of poverty, the consequent number of recipients, and the amount paid out. Total expenditur­e on grants in the 2017-18 financial year will amount to more than R150billio­n.

Grant money is not only used to support beneficiar­ies. It’s also used to provide broader support. Based on research I conducted, more than onethird of South Africans depend – directly and indirectly – on grant payments. Any disruption of grant payments will therefore have a massively detrimenta­l impact on a large number of poor households.

In addition, the economies of small towns and villages would be hit hard because they are heavily dependent on grant payments being used to buy goods and services in local shops. One knock-on effect would be that shop owners’ income streams would be affected and they wouldn’t be able to pay employees’ salaries. Grant payments redistribu­te income to poor households and have contribute­d to a reduction in poverty in South Africa.

The social grant net is the government’s biggest poverty alleviatio­n and redistribu­tion interventi­on. There are others, such as government housing provision and free water allocation. But payments in grants outstrip these by a large margin. had about 4.2 million beneficiar­ies of social grants.

This grew rapidly to about 17 million beneficiar­ies as the grants were expanded to include older children.

Because SA was going through a period of rapid economic growth at that time it could easily afford new spending initiative­s and projects.

But since 2008 the country has suffered a period of low economic growth. And there isn’t any expectatio­n that the situation is likely to improve in the foreseeabl­e future. As a result the system has become unaffordab­le.

An additional concern is that the Minister of Social Developmen­t has suggested there might be an extension of child support grants. This is simply unaffordab­le and will push South Africa closer to the fiscal cliff – the point at which its spending outstrips its revenues and it can’t meet its debt obligation­s.

In any other country the head of state would have stepped in to try and defuse the looming crisis

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