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The South African Social Security Agency will approach the Constitutional Court to extend its “unlawful” grants contract so that social grants will still be paid come April 1.
In 2014 the Constitutional Court declared the contract with Cash Paymaster Services (CPS), the service provider that pays out social grants, invalid.
The contract was later extended to the end of March this year to give the social security agency time to prepare for new tenders or other options for these payments.
On Wednesday, the agency admitted to Parliament’s portfolio committee on social development that it would not be ready to take over the distribution on April 1, and would have no choice but to seek an extension of the invalid contract.
Sassa earlier admitted that it had underestimated the time it would need for this “mammoth” task.
Raphaale Ramakgopa, executive manager of strategy and business management, said Sassa had put six options on the table, and extending of the CPS contract was the only one that would ensure nearly 17 million South Africans who are dependent on social grants would get their money on April 1.
Sassa will now approach the Constitutional Court to suspend the order of invalidity for at least one year. The Treasury will also be approached.
The latest developments have been met with outrage by opposition parties, who have been pushing for clarity on the issue for months.
Inkatha Freedom Party spokesperson Liezl van der Merwe, slammed Sassa over the decision to extend the “invalid contract of a bunch of crooks who had stolen from the poorest of the poor”.
The Democratic Alliance’s Bridgitte Masango said the party believed that “Sassa never planned to meet the April 1 deadline and delayed to manufacture an emergency to allow them to continue with the current service provider”.
The party is calling for Minister of Social Development Bathabile Dlamini and the South African Social Security Agency to be held accountable for their failure to secure a credible service provider for social grant payments.
Earlier on Wednesday, MPs were on the warpath over Dlamini’s absence. She was attending a Cabinet meeting.
She was also absent last week when her department was meant to make submissions to the portfolio committee on the issue of the social grants payment system. However Dlamini was in Ethiopia attending an African Union dinner. The meeting was then postponed until this week.
DA MP Lindy Wilson asked what could be more important than this meeting that was discussing the grants paid out to 17 million South Africans.
“What is more important? Her party or the lives of 17 million South Africans?”
Wilson rejected Dlamini’s excuse.
“It is a damn disgrace.”
ANC MPs in the committee defended Dlamini.
Hope Malgas reminded those present that the ANC was the governing party.
“The ANC is the governing party so it is important to attend the lekgotla.”
ANC MP Solomon Mabilo pleaded with MPs for “sanity to prevail”.
“We are creating a big hullabaloo that is not assisting us. This will not be the first time we will do our work without the minister. We cannot be bogged down with this.”
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