Fears of CPS returning to social grant scene soothed

MINISTER in the Presidency Jeff Radebe has allayed the fears of parliamentarians that current service provider Cash Paymaster Services (CPS) might again feature in the payment of social grants after April next year.

“Our understanding of CPS is that we are in this because the Constitutional Court declared that contract to be illegal. That is why CPS is not on our radar as an alternative because the Constitutional Court said there must be another entity,” Radebe said in response to questions from MPs.

He made the comments when the inter-ministerial committee (IMC) on comprehensive social grants appeared before the joint meeting of the standing committee on public accounts (Scopa) and social development portfolio committee yesterday.

The IMC was reporting on progress made in the negotiations between the SA Social Security Agency (Sassa) and the SA Post Office (Sapo).

Although they signed an “implementation protocol”, it emerged yesterday that Sapo has yet to be assessed on capacity to perform some of the core functions and services in the hybrid model for the payment of social grants, that will include commercial banks.

“Right now there is a process to finalise the capability and capabilities of Sapo on the basis of collaboration agreement that will be signed by November 24,” Radebe said.

Radebe said an “implementation protocol” had already been signed between the two entities last Friday.

“This protocol forms the foundation for the signing of a further detailed collaborative agreement between Sassa and Sapo with the detailed project plan, which will be submitted to the IMC by December 6, and to the panel of experts or Constitutional Court by December 8,” Radebe said.

It is, however, subject to Sapo providing Sassa, by April 1, “cost-effectiveness” to the four services it will perform.

Radebe also said financial institutions and the banks had agreed, in principle, to establishing affordable accounts for social grant beneficiaries.

He said the Government Communications Information Services had developed a communication strategy to keep the beneficiaries abreast.

“The strategy will reassure all the grant beneficiaries that government has no intention to cancel or frustrate this social security programme.”

While Radebe’s presentation was unanimously welcomed, MPs wanted to know if there was a contingency plan.

“What is the plan B if it turns out that Sapo are not cost effective?” the DA’s Tim Brauteseth asked.

His sentiments were echoed by the ANC’s Beverley Abrahams, who asked whether there was a “contingency plan in place, just in case”.

The IFP’s Mkhuleko Hlengwa, who is sceptical about the negotiated contract, also asked the “alternatives” if Sapo did not meet the benchmarking.

Radebe said they had an implement plan for the Constitutional Court directives, which now had attached timelines for Sassa.

“We don’t have plan B in a loose way. In that plan, as you will see when we report by December 8, it includes all risk mitigation measures and all contingencies to highlight difficulties in executing the court order,” he said.