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Dlamini, give Sapo a chance to distribute social grants, says EFF

The Economic Freedom Fighters (EFF) has rejected Minister of Social Development Bathabile Dlamini’s refusal to give the South Africa Post Office (Sapo) opportunity to distribute social grants as despicable behavior, bent on bringing back corrupt Cash Payment Services (CPS) “in a back door.”

EFF National Spokesperson Mbuyiseni Ndlozi said in a statement on Thursday Minister Dlamini and acting CEO of South Africa Social Services Agency (Sassa) Pearl Bhengu’s decision to refuse Sapo opportunity to distribute social grants on the basis of lack of capacity were unfounded and ill-advised.

“This is despite the Constitutional Court judgement which found that CPS contract with Sassa was illegal.  CPS cost taxpayer’s exorbitant R170 million a month to administrate social grants. It has too many corrupt dealings,” said Ndlozi.

A joint meeting of the Standing Committee on Public Accounts (Scopa) and the Portfolio Committee on Social Development resolved in Parliament on Wednesday to give National Treasury until Monday to finalise the review of Sapo capabilities to implement and manage the national payment system of social grants

The Committee has also resolved that the review should be shared between Sapo and Sassa on Tuesday, November 7 and that the two entities should brief the Inter-Ministerial Committee (IMC) when it meets on the same day.

The Committee has also decided to request the leadership of the IMC to brief the joint Committee on Wednesday, November 8 on the decisions it has taken on the review and the issue at hand.

The Committee has instructed Sassa to halt the advertising of the tender to the public that was scheduled for Friday, November 3, 2017.

This is to give an opportunity for National Treasury to conduct the review and come up with measures that would iron out the issues that are problematic.

The Committee said it would adopt a report next week Wednesday, November 8.

“The report will be tabled before the National Assembly on the outcomes and the resolutions taken by the Committee in an effort to assist in reaching a solution that will be to the benefit of the country,” said the Committee.

Ndlozi said SASSA and the Minister wasted seven months of the whole year given by the Constitutional Court doing absolutely nothing.

“CPS, is in the process of making undue profits, as a subsidiary of Net1. It is used as a secret back door to peddle information about grant beneficiaries. The information is in turned used to make millions in selling insurance, loans and financial services to grant beneficiaries. Net1 made well over half a billion on social grants beneficiaries in one year alone, leaving many of them with nothing in their SASSA cards because of illegal and corruption deductions,” said Ndlozi.

He said the web of corruption involving CPS extend to Grind rod Bank, used to clear social grants from government to beneficiaries and is apparently paid close to R500 million monthly.

  • The web of corruption also includes EOH, which is paid R300 million per month for consultancy services.
  • The web of corruption also includes the companies that provide insurance to the money when being transferred to recipients.
  • The web of corruption also includes the R11, which will soon be increased to R22 charged by CPS for each and every recipient of social grants per month.

“Politicians are in one way or another embroiled in this web of monies paid to different companies and they know that if taken from corrupt private service providers, social grants will not continue to privately benefit them. The Minister is clearly at the Centre of coordinating what is evidently a frustration of the South African Post Office’s takeover of the payment of social grants,” said Ndlozi.

According to Ndlozi  Minister Dlamini’s behaviour was in contempt of  the highest court of the land, saying her insistence on CPS as a preferred service provider was  part of the looting happening at an industrial scale.

Ndlozi said if Minister Dlamini fails to comply with the constitutional court ruling, EFF will open a criminal case against her and she must be personally held liable.


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