Nkosazana Zuma's Evil Shadow

THE COMPANY THAT DISTRIBUTES millions of state social security grants has not only the govern-ment but all South Africa hanging from a cliff.

Over the past year Cash Paymaster Services (CPS), a subsidiary of the US-based Net1 Group was responsible for distributing R130 billion (close on R11bn a month) on behalf of the state to 17 million South Africans – 30% of the population – who are dependent on the grants for their survival.

But on 31 March the company’s contract comes to an end. On April Fool’s Day the Department of Social Development, by way of its division, the SA Social Security Agency (Sassa), was to have taken on that mammoth responsibility itself.

But, it can’t. Just weeks before D-Day, it has finally come clean: it does not know how to do the job. It has no plan. It is “still considering options”. (Cynics have noted that its sole achievement has been to channel tens of millions of public funds to friends in the IT business.)

The department has known this for at least a year, but at the direction of the Minister of Social Development, Bathabile Dlamini, it has been lying to Parliament and the public about the true situation.

Already in July last year Noseweek warned that if Sassa were unable to make a smooth takeover, and payments failed to reach the 17 million people on time, the consequences could be catastrophic. One third of the population would immediately be without the means to feed themselves. The national crisis would be on the scale of war.

That moment might have arrived.

By its own doing, the department has no “options” to consider: its only option is to contract with CPS to continue providing the service – at whatever price and on whatever terms that company may choose to demand.

The department and its minister have known this for months.