Social Development on contracts relating to payment of social
grants

Media statement on contracts relating to the payments of social
grants

25 March 2009

The South African Social Security Agency (SASSA) will do everything possible
to enable social grants to be paid to beneficiaries despite the current dispute
with one service provider.

The Chief Executive Officer of the South African Social Security Agency,
Fezile Makiwane, has confirmed that SASSA has not received a positive response
from Cash-Paymaster Services (CPS) yet regarding the payment of April social
grants, but other service providers will effect payments.

“Regarding Empilweni and Allpay, we have received assurances that payment
will be effected for the month of April. As far as Cash-Paymaster Services
(CPS) is concerned we understand that payment will not be effected unless CPS
is granted a two year contract at the same terms and conditions as the expiring
contracts. The agency is unable to grant CPS a two year contract given the
grant conditions by the National Treasury and the Auditor-General that all cash
payment contractors must get an interim contract for a period of one year and
that a new tender be must be published and finalised within that fiscal year
(2009/10),” said Mr Makiwane.

The Minister of Social Development, Dr Zola Skweyiya has assigned the
Director-General of Social Development, Vusi Madonsela to prioritise the matter
and work with SASSA with a view to finding an urgent solution.

Enquries:
Zanele Mngadi
Cell: 082 330 1148

Issued by: Department of Social Development
25 March 2009

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