Sassa & CPS grants contract may be extended beyond September
A panel overseeing the institutionalisation of social grant payments says it's particularly concerned over cash payments as Sassa is closing thousands of pay points.
CAPE TOWN - A panel overseeing the institutionalisation of social grant payments has again warned a disputed contract with Cash Paymaster Services (CPS) may have to be extended beyond the September court deadline.
It says unless the South African Social Security Agency (Sassa) and the Post Office come up with better contingency plans to mitigate problems with payments, it may have to continue to rely on CPS.
The panel says it's particularly concerned over cash payments, as Sassa is closing thousands of pay points.
It says the nature of issues with the payment of grants over the last month indicate a lack of adequate planning by Sassa and the Post Office and a lack of understanding of the scale of the challenge.
In its latest monthly report, the panel, headed by heavyweights Kimi Makwetu and Gill Marcus, says with only around 10% of the card swops completed, more issues can be expected and so too further delays in moving to a new payment model.
The panel says by failing to adequately plan for scenarios that could negatively impact on the payment of grants, neither Sassa nor the Post Office can confidently claim, much less guarantee, that its current plans will lead to a seamless transition.
The report concludes that without a credible alternative solution, Sassa may have to continue to rely on CPS beyond the 30 September deadline.