Ithala denies owing R1.1bn

Financial institution Ithala has denied allegations by Social Development Minister Bathabile Dlamini that it owes the South Africa Social Security Agency (Sassa) more than R1 billion.

On Tuesday, Dlamini told parliament’s standing committee on public accounts (Scopa) that her department was not in favour of using commercial banks to take over the payment of social grants as they had behaved improperly in the past. Dlamini said Standard Bank owed Sassa about R500 million and Ithala bank owed about R1.1 billion over dormant accounts, including interest held back by both institutions.

However, Ithala chief executive Peter Ireland refuted Dlamini’s R1 billion debt allegation.

“Ithala can confirm it does not owe the South Africa Social Security Agency any money. Ithala ... has no liability to Sassa,” he said. “Any queries pertaining to the allegation of money being owed by Ithala must be directed to either the minister’s office or Sassa.”

Sassa is in the spotlight over the payment of social grants to more than 17 million beneficiaries because the contract with Cash Paymaster Services ends in just over a fortnight and no new deal has been signed.

This has raised the ire of political parties and civil rights groups, who are demanding Sassa explain why it failed to implement an undertaking to take over the payment function from April. They also want Dlamini to step down.

Last week, social development department director-general Zane Dangor resigned over the Sassa debacle.

The Constitutional Court has given Sassa until Monday to answer several questions about grant payments. Chief Justice Mogoeng Mogoeng directed on Wednesday that Sassa must provide information on who was responsible for deciding the agency could not pay grants itself after March 2017, and the date that person became aware it could not do so. – ANA

Ithala can confirm that it does not owe the South Africa Social Security Agency any money. Peter Ireland Ithala chief executive