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Dlamini: New grant payment system to eliminate fraud

Bathabile Dlamini has announced the department will again procure external service providers to assist the Post Bank in paying grants.

FILE: Telecommunications and Postal Services Minister Siyabonga Cwele (left) and Social Development Minister Bathabile Dlamini (centre) at a media briefing. Picture: EWN.

CAPE TOWN - Social Development Minister Bathabile Dlamini says a new grant payment system will eliminate fraud and corruption and be more centred on the beneficiary.

She's announced the department will again procure external service providers to assist the Post Bank in paying grants.

Dlamini is due to appear in Parliament on Tuesday to explain progress in meeting a Constitutional Court deadline to phase out the current service provider.

Minister Dlamini says the Post Bank can only provide one of four services required.

She says the department will be initiating a tender process for the other services, with a notice in the Government Gazette on Friday.

Social Development spokesperson Lumka Olifant says the Post Bank simply doesn't have all the capabilities required by Sassa.

“Any person who wants to be in the payment of social grants must have an online and an offline infrastructure.”

Post Office CEO Mark Barnes says he won't be commenting on Sassa's plans to go out to tender until he's presented the bank's capabilities to Parliament at a meeting scheduled for Tuesday.