Economy

Dlamini: Sassa has 5-year plan for takeover of grant payments

Dlamini: Sassa has 5-year plan for takeover of grant payments”

In August, South African Post Office (SAPO) was unable to make a presentation to the standing committee on public accounts (Scopa) on taking over grant payments when the South African Social Security Agency (Sassa) postponed self-imposed timelines.

"The insourcing and integration of the grants administration and payment value chain is an enormous task that requires time, high level specialised skills, and resources that are now not readily available. The gradual phasing-in of these process will ensure a seamless transition", Dlamini said.

The department of social development is closer to reaching its goal of creating a new in-house payment system for social grants, according to Social Development Minister Bathabile Dlamini. "Government, through the work of this IMC remains committed to this collaboration". SASSA issued a request for quotation to appoint a service provider for this objective.

"Due to the fact that this is a highly specialised and technical field, Sassa issues a request for a quotation to appoint a service provider for this goal. This process did not yield the desired results".

Acting Sassa CEO Pearl Bhengu said they had been instructed by the inter-ministerial task team to do "due diligence" on SAPO's proposal before finalising SAPO's agreement. "The Act clearly provides for the establishment of SASSA as an organ of State, whose primary mandate is to ensure efficient and effective management, administration and payment of social grants in South Africa", said Dlamini.

The ultimate aim is for Sassa to undertake the payments itself, although this insourcing programme will take five years to implement.

An inter-ministerial committee was appointed in March this year by President Jacob Zuma following the Constitutional Court order for "the minister of social development and the social security agency to submit quarterly reports highlighting the steps being taken to ensure the appointment of a new payment service provider when the current 12 months contract with CPS lapses at the end of this financial year".



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