SASSA SOCIAL GRANT DEBACLE
OUTA INVESTIGATES THE SASSA SOCIAL GRANT DEBACLE
In 2012, the South African government outsourced the national distribution of social grants to Cash Paymaster Services (CPS). The contract was deemed illegal because due procurement processes were not followed. One of the irregularities included not opening the tender process to the public.
This contract was ruled to be unlawful by the Constitutional Court in 2014 and SASSA was instructed to find an alternative service provider. SASSA delayed the process, flouting all instructions by the Constitutional Court.
The defiance of the court ruling meant that the millions of beneficiaries would have been left without any source of income. As a result, an extension of CPS’s contract was given to ensure grant beneficiaries continue to receive their grants. This extension has resulted in R10.00 bank fees per beneficiary.