The South African Social Security Agency (Sassa) yesterday (Wednesday, 14 March 2018) assured the Portfolio Committee on Social Development that all social grants will be paid on 1 April, as per the deadline. Sassa today briefed the committee on the implementation of the Constitutional Court judgment, while regional managers provided briefings on their state of readiness to pay social grants from 1 April 2018.
Ms Dianne Dunkerley, Executive Manager: Grants Administration at Sassa, said the closing date for the bid to appoint a service provider for the cash payments had to be delayed to 12 March 2018, and further requests for delays were not accommodated. While the new service provider will be afforded an opportunity to prepare to pay grants from 1 July 2018, Sassa is in the process of finalising the contingency plan, should the Constitutional Court not approve the extension of the Cash Paymaster Services contract for another six months.
The committee heard that the contingency plan for cash payment is premised on:
- Direct deposits into the current Sassa card for all
- Identification of post offices that can provide over-the-counter payments (within five kilometres of pay points)
- Identification of banking infrastructure that can be used by cash beneficiaries
- Request banks to provide mobile infrastructure in under- or un-serviced areas
- Provision of transport to take residual numbers of beneficiaries to the nearest infrastructure to access cash
Ms Dunkerley said that despite the delay in appointing a service provider, which could affect 2.8 million beneficiaries and which has various risks relating to attendant costs to beneficiaries, as well as transport costs, as highlighted in the contingency plan, all beneficiaries will receive their social grant payments on 1 April.
Regional managers from the various provinces reported that they have aligned their plans and adopted the draft contingency plans, as provided to them to ensure that payments are made.
While expressing their satisfaction with the proposed contingency plan, and pending the outcome of the final plan currently before the Inter-Ministerial Committee, the portfolio committee raised concerns with the use of commercial banks, as they will now benefit from providing cash payments to grant beneficiaries.
The committee said that a social grant is one of government’s poverty alleviation mechanisms and beneficiaries should not held liable for commercial banking fees, which would be deducted by these banks. National Treasury should assist in ensuring that the South African Post Office (Sapo) deals with the issues prohibiting it from becoming a registered bank, the committee said.
The committee also raised concerns about the number of acting executive managers currently at Sassa. Chief Financial Officer Mr Tsakeriwa Chauke said that seven of the nine regional managers are currently acting in those positions. Sassa was instructed to provide the committee with a comprehensive report on all acting and vacant positions, as well as the financial implications thereof.
Felicia Lombard
15 March 2018
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