Sassa wants to extend illegal service provider for another year


Cape Town, 28 May 2016 - Fourteen suspects will appear in court next week for allegedly defrauding the social grant system. They were nabbed in what the South African Social Security Agency is calling its biggest bust yet.

CAPE TOWN – The South Africa Social Security Agency (Sassa) says the only way to make social grant payments from April is to stick with the current service provider.

The current contract, which the agency has with Cash Paymaster Services, is set to expire at the end of March.

In 2014, the Constitutional Court ruled that the tender awarded to Cash Paymaster was unlawful.

The court ordered that the tender process be re-run.

The agency wants the court to extend the suspension of the service provider for a year.

Sassa has listed six options to remedy the situation:

The first option is to procure the services of the current provider, Cash Paymaster Services. Sassa said that this option has the least risk of service delivery failure and they will therefore approach the Constitutional Court urgently since this is only mechanism to ensure payment.

The second to obtain the service from the bank that services the majority of the beneficiaries.

The third option is to acquire the services of all banks wishing to comply with the requirements of Sassa.

The fourth option is to procure the services of the banks wishing to comply with Sassa requirements for the approximately 60 percent of beneficiaries who have access to banking infrastructure and procuring the services of the current service provider (Cash Paymaster) for recipients who are currently using cash paypoints.

The fifth option is to secure the services of the Post Office, and the last option to appoint another service provider for cash distribution to grant recipients who are currently using cash paypoints and to utilise existing bank beneficiaries’ bank accounts to disburse grants through the banking sector.