Business Day

Black Sash slams minister over grants

• Suspension of efforts to find distributo­r for cash payments makes it unlikely a service provider will be found by deadline, says NGO

- Ann Crotty

The Black Sash has criticised the social developmen­t minister for suspending efforts by the South African Social Security Agency to find a new service provider for the cash-payments portion of the social grants.

The Black Sash has slammed the decision by the social developmen­t minister to suspend efforts by the South African Social Security Agency (Sassa) to find a new service provider to handle the cash-payments portion of the social grants.

The NGO said the suspension made it highly unlikely a new service provider would be appointed and fully operationa­l by end-September 2018. “We are working with shifting deadlines yet again, as the minister’s papers [filed with the Constituti­onal Court] give no indication of new timeframes for this tender process,” said the Black Sash’s Lynette Maart.

In papers filed with the court, Social Developmen­t Minister Susan Shabangu said she was mindful of the September 30 deadline “and I have every intention to ensure that Sassa complies with its obligation­s within the stated timeframe, despite my decision to suspend the tender”. However, she provided no new deadlines.

The minister described how the tender process was technicall­y flawed and had to be scrapped. The shock decision coincides with the unexpected appointmen­t of a new acting CEO at Sassa. Abraham Mahlangu replaces Pearl Bhengu, who is regarded as an ally of former minister Bathabile Dlamini. He becomes the fourth Sassa CEO in three years.

On Thursday, Shabangu told the court that the terms of reference in the tender had been returned to Sassa’s bid-specificat­ion committee three times for clarity and amendments.

The lack of clarity was raised by potential bidder G4S, which said that the tender document failed to provide bidders with accurate informatio­n about the number of beneficiar­ies to be serviced and that “the further informatio­n provided by Sassa to the bidders was inadequate, contained discrepanc­ies and made it impossible for bidders to come up with a proper costing model”, the minister said.

She said G4S had made a compelling argument on the inaccuraci­es in the tender documentat­ion. “The issues raised by G4S could not be overlooked and consequent­ly called for the suspension of the tender to resolve complaints raised by G4S,” said the minister. She also called for Sassa’s bid-evaluating committee to be reconstitu­ted as it lacked individual­s with the necessary technical skills set.

In December, when the tender process was launched, Black Sash raised concerns about the lack of technical informatio­n provided to bidders, saying that it could lead to challenges and delays.

In March the court granted a six-month extension to Sassa’s invalid contract with Net1 subsidiary Cash Paymaster Services to ensure cash payments to an estimated 2.8-million social grant beneficiar­ies would continue. Critics of CPS, who regarded the extension as necessary to secure the cash payments, accepted it reluctantl­y.

On Thursday, the Net1 share price fell 8.94% in low-volume trade to close at R91.97.

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