Minister, there is a grants crisis

15 March 2017 - 08:15 By BIANCA CAPAZORIO, KATHARINE CHILD, NOMAHLUBI JORDAAN and KYLE COWAN
subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now
Minister Bathabile Dlamini.
Minister Bathabile Dlamini.
Image: Ruvan Boshoff

There will be no social grants-payments to more than 11million desperately poor people on April 1 unless a deal is struck with Cash Paymaster Services today.

That was the warning from CPS CEO Serge Belamant late yesterday in papers filed in the Constitutional Court. As the papers were being filed, Social Development Minister Bathabile Dlamini was speaking in parliament, promising MPs and the nation that there was no crisis.

Belamant's claim was made in an affidavit included in a flurry of court papers filed before a hearing due in the Constitutional Court today.

He said 12 business days were needed to prepare for payments.

"This effectively means that all negotiations and contract finalisation need to be completed by no later than March 15," he said in the affidavit.

  • Grants will be paid late and cost more if Post Office gets the job: CPS boss saysNot only will April grants be paid late‚ according to Cash Paymaster Services (CPS) if there is no contract in place on Wednesday‚ but it has also said the Post Office will charge more than it does. 

The SA Social Security Agency has told the court that CPS is the only company that can ensure payments continue. Its contract with CPS - declared illegal in 2014 by the court - will expire at the end of this month.

Today the court is due to hear an application by NGO the Black Sash aimed at clarifying how grants payments will be made from next month.

Sassa has failed to honour its undertakings to implement an in-house payment system, or find a new service provider in an open and competitive tender process.

There are growing fears that 17million grants payments will not be made next month.

Belamant's latest affidavit amplifies these concerns.

  • We didn’t have enough time – Sassa attorneyThe attorney for SA Social Security Agency (Sassa) and Social Development Minister Bathabile Dlamini has responded to a directive from the Chief Justice asking for an explanation on why a deadline to file papers on Monday was not met. 

Attached to his affidavit was a letter Belamant had written to Sassa on Friday, warning that today was the last day on which a new CPS contract could be finalised.

"It is imperative that Sassa understand the timeframes required for the logistical planning with specific reference to the cash cycle," he said.

But Centre for Applied Legal Services director Bonita Meyersfeld rubbished Belamant's claims, saying they were an "unacceptable negotiation tactic".

"This is exactly where CPS wants the government. They have them by the short and curlies."

She said CPS was in a position to pay grants and had a constitutional obligation to do so.

The SA Post Office has told the court that it could take over grants payments.

Belamant said in his affidavit that CPS "would step aside" if the Post Office were able to take over, but said the costs to the state could then rise by up to R1.9-billion over two years.

The CPS affidavit was filed with the court only minutes after Dlamini accused opposition parties of "manufacturing" the crisis.

  • Gordhan says a solution will be found for SA's social grants crisisFinance minister Pravin Gordhan assured Parliament that social grants will be paid on April 1 saying that between "the executive‚ the judiciary and the administration" a solution would be found within days. 

"I would like to reiterate the assurance of President Jacob Zuma that there is no crisis at Sassa," Dlamini told MPs.

"All eligible social grants beneficiaries will receive their money on April 1 and beyond."

She reiterated that the Post Office was not prepared to take over grants payments.

The IFP's Liezl van der Merwe said Zuma and Speaker of Parliament Baleka Mbete had played a part in creating the crisis because they had ignored calls for action and had allowed Dlamini to "duck and dive".

  • Sassa names and shames officials in ConCourt papersThe SA Social Security Agency (Sassa) has finally told the Constitutional Court who the officials were behind some of the major decisions that have lead to the current social grants crisis. 

Earlier yesterday, Finance Minister Pravin Gordhan appeared before parliament's public accounts committee and said he was confident that a solution would be found. He said only three days were needed to authorise payment.

"A combination of the political process and the judicial process within the next five, six days, hopefully will give us absolute certainty about the payments," he said.

In a scathing affidavit submitted to the Constitutional Court late on Monday and made available yesterday, Dlamini accused Sassa CEO Thokozani Magwaza of ignoring instructions and attending meetings behind her back.

Dlamini said she made it clear to Magwaza during a meeting on February 20 that she "expected Sassa's executive to act urgently".

"I understand that Mr Magwaza adjourned the meeting soon after I left. I know he did not heed my advice in that he did not take any urgent steps to redress the situation shortly after [the] meeting."

Dlamini claimed that Magwaza had had "engagements" with the Post Office without her knowledge.

subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now