Dlamini: Progress made to appoint new social grants service provider

Some improvements include handling of deductions such as those for funeral insurance policies that beneficiaries take out of their own accord with insurance companies.

Social Development Minister Bathabile Dlamini.  Picture: Christa Eybers/EWN

JOHANNESBURG - Social Development Minister Bathabile Dlamini says plans are underway for the South African Social Services Agency (Sassa) to insource the management of payment deductions from beneficiaries.

Dlamini says progress has been made to appoint a new service provider for social grant payments and other services as per the Constitutional Court ruling.

This included the handling of deductions such as those for funeral insurance policies that beneficiaries take out of their own accord with insurance companies.

Dlamini says performing this function internally at Sassa will ensure the proper management of this process.

“We have identified the need for staff training as a critical success factor given the fact that Sassa will be insourcing some of these functions for the first time since its establishment 11 years ago.”

Meanwhile, Dlamini says Sassa is working on making direct transfers to beneficiaries with commercial bank accounts.

Dlamini has announced that the Sassa is currently consulting with National Treasury to re-establish the link to Bankserv to enable these payments.

“By the end of September, CPS will make available to Sassa a full list of all beneficiaries whose grants are paid into their commercial bank accounts.”

The minister says once this process has been finalised over two million beneficiaries will be paid directly into their bank accounts, which will reduce the number of people who depend on other payment channels.