Sassa readying to roll on grant payouts without CPS

The South African Social Security Agency (Sassa) said yesterday, it was on track to do away with the services of Cash Paymaster Services (CPS) in September.

Sassa acting CEO Abraham Mahlangu told parliament’s portfolio committee on social development the agency was systematically reducing the number of grant recipients who are paid their monthly grants in cash.

These are the only beneficiaries who continue to be paid through Cash Paymaster Services – the controversial company whose contract was extended until September – while Sassa transfers the function to the South African Post Office and commercial banks.

About 1.9 million of the country’s 11 billion welfare recipients are paid in cash – down from 2.2 million in April.

Sassa estimates ultimately 789 000 people for whom no other payment method is an option.

“We will intensify efforts to bring it down even further,” said Mahlangu.

Where there was no alternative, Sassa would take “extreme measures” to deliver the money to grant recipients in remote areas, including possibly calling on the defence force to help.

Other Sassa officials told MPs the aim was to ensure that the agency could report to the Constitutional Court in September that it had terminated the services of CPS, in line with the conditions the court imposed.

“We are trying to intensify the card swap so that in August we can go to the court and say this is the last month and that is that,” said Sassa’s head of strategy, Raphaahle Ramakgopa.

She said Sassa planned to complete the migration of 2.5 million welfare card users to the Post Office card system by the end of this month and migrate a further four million to the new system by end of June.

By the end of August, the aim is to have switched over 7.9 million card users to the new system.

Inkatha Freedom Party MP Liezl van der Merwe said CPS should not simply be allowed to walk away unscathed in September but must face a full parliamentary inquiry into its conduct while acting as the sole payment provider for Sassa for five years. – ANA