The Social Grant Crisis

On 1 April, the South African Social Security Agency is meant to take over grant payment distribution. But a crisis looms.

- Gabisile Ngcobo

FOR years Government has dragged its heels. There have been threats, excuses, deadlines, delays, extensions . . . And now there’s almost no time left. On 1 April comes the final cutoff and millions are worried they’ll be unable to feed their families.

It’s a crisis with the potential to bring South Africa to its knees. Recently, a stunned parliamentary portfolio committee listened in disbelief as they were told that 17 million of the nation’s most vulnerable – pensioners, war veterans, children and the disabled – could soon be left without a cent.

And all this because the Minister of Social Development, Bathabile Dlamini, has repeatedly ignored an order of the highest court in the land.

Three years ago, the Constitutional Court declared unlawful the dodgy contract awarded to Cash Paymaster Services (CPS) to distribute social grants to the tune of R10 billion a month.

The South African Social Security Agency (Sassa), the Government agency in charge of grants, which Dlamini oversees, was ordered to award a tender to a new grants payment provider.

Sassa dragged its heels on the issue for months. It then claimed there were no other contractors equipped to do the job, so it would take over the payment role itself and do everything in-house.

The court gave the go-ahead for this to happen – provided the complex financial infrastructure and equipment were in place by April, when CPS’ contract expires. But it’s three years on, and it turns out Sassa is nowhere near ready to issue payments to the people who rely on them.