No disruptions to social grant payments

The Department of Social Development has welcomed the court to not abort the "illegal" R10 billion grant payments tender awarded by its agency, SASSA.

Following a court judgement slamming its procurement processes, the Department of Social Development says grant payments will not be affected.

Speaking at a briefing on the court decision, Social Development minister, Bathabile Dlamini, welcomed the decision of the North Gauteng High Court to not abort the R10 billion grant payments tender awarded by its agency, the South African Social Security Agency (SASSA).

“We agree with the court that the continued service to the citizen is of paramount importance. Going forth SASSA will factor the prudent feedback observed on the integrity of SASSA's procurement processes in order to correct and strengthen its processes,” she said.

SASSA went to tender on 15 April 2011. Twenty one companies presented the bids for the tender. It was awarded on 17 January 2012 to Cash Paymaster Service.

The process was challenged by unsuccessf

ul bidder, AllPay, which submitted applications to the High Court for review and setting aside of the award.

The court ruled that there were irregularities in the supply chain management processes  and declared the awarding of the tender “illegal and invalid”.

Dlamini noted that this year, SASSA introduced a new biometric system which compelled beneficiaries to undergo a life verification process. The system was introduced to deliver an improved payment experience for beneficiaries, to reduce costs and curb the vulnerability of the system to fraud and corruption.

Over 13 911 grants have been voluntarily cancelled, saving R800 million, Dlamini revealed.

According to her, SASSA identified weaknesses in the methodology of payment which resulted in, among other deficiencies, duplicated payments, payments to persons who were not eligible beneficiaries and other fraudulent conduct which had an adverse impact on the budget allocated by Parliament, for social grants to persons who qualified.

“We now have the automated intelligence to track where grants are being paid out and have discovered that 482 beneficiaries are receiving their social grants outside the boarders of South Africa.”

“We want to reassure all our 10.6 million beneficiaries that the 16 million social grants will be paid without disruption - it is business as usual,” Dlamini emphasised.