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Treasury denies reports of showdown between Gordhan, Dlamini

Treasury says a report that the two ministers are headed for a showdown over the distribution of social grants is misleading.

FILE: Finance Minister Pravin Gordhan. Picture: GCIS.

JOHANNESBURG - National Treasury says it is dismayed at reports suggesting that a looming war between Finance Minister Pravin Gordhan and Social Development Minister Bathabile Dlamini.

Treasury says Wednesday’s report in _The Star _that the two ministers are headed for a showdown over the distribution of social grants is glaringly misleading.

According to the paper, Gordhan wrote a letter to Dlamini telling her that Cash Paymaster Services could not be among the companies considered for the distribution of social grants when its contract to manage the system expires at the end of March.

Sassa will file papers in the Constitutional Court on Thursday, seeking to extend Cash Paymaster Service’s contract.

Treasury says the Minister of Social Development has sole authority for paying social grants and must take a final decision on the matter.

National Treasury spokesperson Yolisa Tyantsi says these reports may be coming from a place of not understanding Treasury’s role in the matter.

“The role of the National Treasury was at the behest of the Department of Social Development, looking at options that will assist the department to make sure that on 1 April they are able to pay the grants without lapsing the services.”

(Edited by Winnie Theletsane)