Shabangu on social grants: No CPS extension beyond September

Social Development Minister, Susan Shabangu, is adamant that the former South African Social Security Agency (Sassa) partner, Cash Paymaster Services (CPS), will not pay a single social grant beyond September.

The minister’s statement is in accordance with a Constitutional Court ruling that deemed Sassa and CPS’s matrimony unholy. The court granted a grace period, allowing CPS to phase-out its administrative duties leading up to September.

But the divorce between Sassa and CPS is turning into an ugly one, with Shabangu accusing the company of wilfully misleading and misinforming social grant beneficiaries in an effort to retain some executive leverage.

The government is calling on all social grant recipients to comply with the crossover, by swapping their old payment cards for new Sassa gold cards. The process has been fraught with frustrations and setbacks.

In 2017 the South African Post Office (Sapo) secured a contract with Sassa – to become the social welfare scheme’s new and improved administrative partner, ensuring that beneficiaries receive their government grants.

It has not been a smooth transition. First, it was a total technical system failure which crippled the payment structures. Then came the wage strikes – first Sassa employees and later dissatisfied Sapo staff, both downing tools at critical moments.

All the while CPS continues to administer government grants, effortlessly, as their wind-down process continues.

Shabangu reports CPS at the cop shop

According to Shabangu and the Inter-Ministerial Committee, CPS is deliberately sabotaging the migration process, in duplicitous violation of the Constitutional Court order.

EWN report that Shanbangu has now laid a criminal charge against the former payment agency, saying:

“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.”

1.6 million Beneficiaries successfully transitioned

Just under a million recipients still need to successfully migrate to the new system by registering and receiving Sassa gold cards.

Shabangu was adamant that they would not seek a further extension with the Constitutional Court beyond September, saying:

“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.”