Sassa seeks new deal for grant delivery

The South African Social Security Agency (Sassa) has entered into negotiations with Cash Paymaster Services (CPS) with the aim of renewing its contract to distribute grants come April 1.

“Sassa will negotiate with the service provider and the terms are the subject of that discussion so they can’t be made public yet,” said Sassa spokesperson Kgomoco Diseko.

The last-minute plan could put aside the anxiety being felt by millions of people reliant on grants for their basic needs.

On the sidelines of a briefing to parliament’s portfolio committee on social development, director general for social development Zane Dangor said the negotiations began yesterday morning.

Dangor confirmed that Sassa on Tuesday lodged a statement of intent to seek a new contract with CPS with the Constitutional Court – which declared their current contract invalid in 2014. They later withdrew the court papers because a section was omitted, said Diseko.

“As soon as they are reworked, Sassa will make the submission to ConCourt,” he said

Dangor also confirmed that Sassa would not seek the court’s permission for a new contract but would instead appeal to National Treasury to allow a deviation from public finance rules for a procurement process that involves a single bidder.

“That is the approach. It then hinges on Treasury’s agreement,” said Diseko before excusing himself to return to Pretoria for a meeting with President Jacob Zuma on the impending welfare crisis.

Zuma told television reporters he found it “a little bit irresponsible not to deal with the issue because we knew it was coming”.

“We said no pensioner must not earn on that day.”

It sees the state with no mechanism to continue payment of welfare grants to more than 17 million beneficiaries beyond April 1.

After declaring Sassa’s contract with CPS invalid in 2014, the ConCourt suspended its ruling for the duration of the contract to prevent the grant payment system being disrupted. The contract runs out at the end of this month.

But, on Tuesday, Sassa officials informed parliament’s watchdog Standing Committee on Public Accounts that it would not seek the court’s permission to deviate from the order as it was not technically extending the contract with CPS but seeking a new agreement. – ANA and Citizen reporter

As soon as the court papers are reworked, Sassa will make the submission to ConCourt. Kgomoco Diseko Sassa spokesperson