Sassa unsure about contract extension costs for payout system
The agency has acknowledged that it’s failed its 18 million beneficiaries by not being ready to take over the payout system.
CAPE TOWN - The South African Social Security Agency (Sassa) says it does not know how much it will cost to extend an existing contract to continue paying out social grants.
CEO Thokozani Magwaza has told parliamentarians he’s prepared to carry the can for the irregular expenditure.
The agency on Wednesday told Parliament’s portfolio committee on social development that it has failed its 18 million beneficiaries by not being ready to take over the payout system.
In future, Sassa wants grant beneficiaries to receive their payments directly through their bank accounts and a service provider to distribute cash payments.
Magwaza says the agency is not ready to implement this plan just yet, adding that finalising the tender process will take until November.
And there are also issues of biometrics and new payment cards to consider.
Sassa says it will only be ready to implement its takeover plan in 2019.
(Edited by Shimoney Regter)