Breaking: Sassa back in court

The South African Social Security Agency (Sassa) is again being taken to court over the payment of child support and pensioner grants in a last-ditch attempt to ensure South Africans get their grants on April 1.

The court action is being brought by the Centre for Applied Legal Studies‚ on behalf of the Black Sash Trust. On Tuesday‚ the centre filed papers at the Constitutional Court to ask it to oversee the new contract between Sassa and Net 1's Cash Paymaster Services (CPS).

Sassa has not organised a new company to take over the paying of grants on April 1‚ a day after the contract with CPS comes to an end.

Black Sash wants the court to intervene to ensure someone is appointed to pay grants so the poor do not suffer.

Black Sash Spokesman Esley Philander said: "Sassa has no choice but to negotiate a further uncompetitive contract with Cash Paymaster Services. It is currently the only entity capable of distributing social grants to over 17 million South Africans."

Sassa has entered into last-minute talks with CPS to see if they can continue their project. Sassa does not have the capacity to pay 17 million people grants itself‚ which it admitted to parliament. CPS has indicated the new contract may be at a premium with suggestions Sassa could pay R1.3 billion more to it for paying out grants. The Black Sash Trust‚ therefore‚ is asking the court to ensure that "the continued relationship with Cash Paymaster Services is based on terms not harmful to‚ or exploitative of‚ the grant system".

It is also asking the court that the personal data of beneficiaries is owned by Sassa and such data is kept confidential and not used for marketing purposes targeting grant beneficiaries.

CPS used the data of grant beneficiaries to market polices such as funeral protection cover and airtime and then deduct it before paying grants.

Philander said: "We can only hope to avoid more harm by ensuring that the contract going forward is not negotiated on terms only favourable to CPS and instead protects the constitutional rights of the people it is meant to benefit." In 2014‚ the Constitutional Court ruled Sassa's contract with CPS was invalid because of a flawed tender system but said CPS must complete its contract to ensure pay-outs to the poor.

The court ordered that Sassa start its tender process by October 2016 in order to find a new company to pay grants from April 2017. Sassa ignored the court ruling.

 - TMG Digital