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Shabangu: CPS will not pay social grants beyond end of September

Social Development Minister Susan Shabangu has indicated govt is unlikely to ask the Constitutional Court for a further extension of the contract it ruled was unlawful and invalid.

Social Development Minister Susan Shabangu. Picture: EWN

CAPE TOWN - Social Development Minister Susan Shabangu says grant payments will not be made through Cash Paymaster Services (CPS) beyond the end of September – the deadline imposed by the Constitutional Court.

The government is urging the country’s millions of grant beneficiaries to swap their old cards for the new South African Social Security Agency (Sassa) gold card, a process that’s been beset by technical hitches as the Post Office found its systems initially overwhelmed.

But government ministers have also accused CPS employees of trying to frustrate the migration to the new system by persuading beneficiaries against making the switch.

The Inter-Ministerial Committee in charge of ensuring the Constitutional Court’s orders relating to social grants are complied with gave a report back earlier on Thursday.

Shabangu says they’ve opened cases with the police about alleged CPS interference and have also informed the Constitutional Court.

“Cases have been opened, but we have also [made sure] we inform the Constitutional Court in our continual reporting to it that CPS continues to try and lure our beneficiaries to be part of them.”

The minister says so far 1.6 million of the 2.5 million grant recipients who get paid in cash through the company have signed up for new gold Sassa cards.

She's indicated the government is unlikely to ask the Constitutional Court for a further extension of the contract it ruled was unlawful and invalid.

“Those who have not come on board continue to be paid by CPS and the decision of the court says, up to September - that should be the last payment by CPS. Beyond September, we can’t go to court or go anywhere and say we want CPS to continue making payment.”

(Edited by Thapelo Lekabe)

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