Grant mess ‘self-created’
Ex-social development boss sticks to his guns in affidavit to the ConCourt
THE delay in the South African Social Security Agency (Sassa) taking over the payment of social grants appeared to be “self-created” to facilitate a continuous relationship with Cash Paymaster Services (CPS), former director-general in the Department of Social Development Zane Dangor said.
Dangor resigned from his job at the height of the social grant debacle, citing a breakdown in the relationship between him and Social Development Minister Bathabile Dlamini.
In an affidavit to the Constitutional Court, Dangor confirmed Sassa chief executive Thokozani Magwaza’s assertion that workstreams set up to look into taking over the payment of social grants were working as a parallel structure to Sassa and reporting directly to Dlamini.
Dlamini has put the blame for the fiasco at the feet of Sassa officials, specifically the chief executive.
Dangor said that based on the fear of possible legal challenges as a result of the workstreams approach to the relationship with CPS, as well as the “moral and political hazards” of continuing with the company, he, Dlamini’s special adviser Sipho Shezi and deputy director-general Brenton van Vrede started looking at options that would exclude CPS or only use it for a limited period.
The three met with the Banking Association of SA and MasterCard in November 2016. Dangor, Van Vrede and deputy governor of the Reserve Bank Francois Groepe also met with Grindrod Bank.
“These recommendations found no traction within the workstreams and ... the technical team finally resolved to propose that a 12-month extension based with CPS was perhaps the least risky emergency option,” Dangor said.
A plan was put together, based on legal advice, which would have been presented to the court for guidance.
The document was presented to the minister on February 14, but she raised some concerns. Another meeting took place on February 16 to discuss and refine the document if necessary, Dangor said.
This meeting was attended by the most senior members of the department and Sassa as well as two members of the workstreams and project manager Zodwa Mvulane, who worked closely with the workstreams and Dlamini.
Dangor said most of the discussion revolved around the time-frame.
In the end participants agreed on the reviewed document, which only extended the CPS contract for 12 months.
The Sassa legal team was instructed to file it with the court the same day.
Dangor said later that same evening Sassa lawyer Busisiwe Mahlobogoana informed him that Dlamini told her not to file the document with the Constitutional Court, as she needed to do further consultation.
On February 21, Mvulane, in preparation for a progress report on the Sassa payment system, revealed that a new approach had been agreed upon, he said.
This new approach was premised on the notion that the court had discharged its supervisory role and therefore Sassa did not need its consent.
The time-frame for the contract with CPS had then been changed from 12 months to 24 months, said Dangor.
Between February 23 and 27 he had asked Mvulane and Mahlobogoana whether Sassa had filed the “statement of intent” with the court.
Finally, at his insistence, an affidavit signed by Magwaza was filed with the Constitutional Court on February 28, but was withdrawn by Dlamini less than 24 hours later.
“These processes serve to confirm that Mr Magwaza cannot be blamed for noncompliance with filing a document with the Constitutional Court as suggested in the minister’s affidavit,” Dangor said.
“It further serves to strengthen the views that Mr Magwaza, others and I held that the parallel decision-making structures in the form of the workstreams may have been deliberate to ensure a continued relationship with CPS under conditions favourable to CPS, through a self-created emergency.” — BDLive