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Sassa cancels tender for cash payment provider

The agency has decided to completely cancel the tender which it had earlier put on hold to review the process in the wake of a legal challenge.

A Sassa card. Picture: Supplied

CAPE TOWN - The South African Social Security Agency (Sassa)'s attempt to find a service provider to pay recipients who receive their grants in cash has hit yet another snag.

The agency has decided to completely cancel the tender which it had earlier put on hold to review the process in the wake of a legal challenge.

Social Development Minister Susan Shabangu confirmed to Eyewitness News at Parliament on Tuesday that the tender has now been cancelled completely.

In papers filed with the Constitutional Court, Minister Shabangu says in the wake of the tender being cancelled, she’s decided to establish a technical committee.

It will have to recommend to her alternatives to the cash payment of social grants.

The committee will also have to advise her on matters relating to the transition from Cash Paymaster Services.

The Constitutional Court has ordered that this contract be terminated by September.

Among individuals appointed to the technical committee are former Transport Minister Dipuo Peters, director general in the Justice Department Vusi Madonsela and Sipho Shezi, the former special advisor to former Minister Bathabile Dlamini.

Shabangu says she will update the court on the establishment of the committee in a report due at the end of the month.

(Edited by Winnie Theletsane)