ConCourt ups the ante on Sassa

SASSA TO REPORT REGULARLY ON PROGRESS IN FINDING NEW SERVICE PROVIDER . Sassa must also give information on progress to a panel.

The Constitutional Court (ConCourt) has ordered the SA Social Security Agency (Sassa) to provide a progress plan on phasing out Cash Paymaster Services’ (CPS) contract to avert a crisis that could place 17 million vulnerable South Africans at risk.

The court ordered Sassa to provide a progress plan by December 8 on finding another service provider to pay grants from April 1, 2018. It must include details of the uninterrupted payment of social grants worth over R130 billion annually, precise timelines and risk-mitigation measures for a smooth exit of CPS. Sassa must also provide monthly reports on its progress in phasing out CPS.

The court is taking no chances after Sassa officials and Social Development Minister Bathabile Dlamini missed key self-imposed deadlines and engineered delays over the last seven months in contracting the SA Post Office (Sapo) to take over from CPS.

In March, the court extended the invalid CPS contract for a year, giving Sassa time to prepare to take over the payments or find another service provider. CPS’ contract was declared invalid as it didn’t go through proper tender processes more than five years ago. At the time, the court also ordered Sassa to submit progress reports, but the agency missed some deadlines.

Sapo has been favoured by Members of Parliament who argued it would be affordable for the fiscus if a state entity is included in Sassa’s payment system. An impasse ensued as Sassa argued Sapo doesn’t have the capacity.

It took a last-minute intervention by Jeff Radebe, Minister in the Presidency and head of the inter-ministerial committee on social security, to fast-track a yetto-be-announced grant payment plan between Sassa and Sapo. The proposed model is for Sapo to collaborate with commercial banks to distribute grants. This deal is expected to be concluded on November 17 and presented to Parliament on November 21.

The court has also ordered Sassa to give a panel of experts access to information on the process undertaken to find another service provider, and its pending deal with Sapo by November 17. The panel’s first report to the court in September found Sassa had repeatedly failed to provide access to information on Sapo’s proposal to pay grants, the cost structures involved, and Sassa’s provision of risk management when CPS exits.

The panel had scathing words for Sassa officials. “The failure, for whatever reason, to provide the relevant information calls into question the integrity and competence of Sassa, which must reflect on its ability to execute its responsibilities.”

The experts warned that given Sassa’s failure to meet deadlines, CPS may still be required to pay grants or might be indirectly involved in 2018. Sassa must inform the public about the transition to another service provider.

Failure... calls into question Sassa’s integrity.