Registered users can save articles to their personal articles list. Login here or sign up here

Sassa seeks Treasury funds to replace Net1

Agency says its needs funding to trial Post Office payments.

The South African Social Security Agency said it’s in talks with the National Treasury to provide additional funding so that it can comply with a Constitutional Court order and replace Net1 UEPS Technologies as the distributor of more than R150 billion ($11.4 billion) of welfare payments a year to at least 17 million people.

The agency, known as Sassa, wants funding to finance a pilot project so that it can conduct a trial for the South African Post Office to make the payments even though it only has funding to pay Net1, it said in the first progress report ordered by the court so that Net1 is replaced by April next year. While the court in 2014 ruled that the contract with Net1 was invalid, Sassa failed to find a new service provider. Net1’s contract was extended until 2018 to ensure welfare payments didn’t stop.

“The lack of budget may negatively impact on Sassa’s ability to pilot and may result in disruption of social grants payments on April 1 2018,” it said in the documents. 

The failure of Sassa to comply with the 2014 order and threat to welfare payments this year have caused criticism of Social Development Minister Bathabile Dlamini, the government and Net1, which human rights organisations allege has been illegally deducting payments from welfare checks for goods and services. Dlamini has admitted some fault while saying she wasn’t solely responsible. Government has apologised and Net1 has denied wrongdoing.

Welfare payments are a signature policy of the ruling African National Congress, which says its working to reduce the inequality caused by apartheid.

© 2017 Bloomberg

COMMENTS   1

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

The government and the ANC are truly stupid – it they don’t get this payment sorted out the elections will occur at about the same time that the system is likely to fall over and the ANC will lose substantial numbers of voters and would ensure their ousting as the leading political party. Hooray

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
Insider GOLD
ONLY R63pm

Moneyweb's premium subscription is a membership service which will give you access to a number of tools to take charge of your investments.
Or choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be suspended at any time.

Podcasts

GO TO SHOP CART

Follow us:

Search Articles:Advanced Search
Click a Company:
server: 172.17.0.2