Social Development Mr Vusi Madonsela on allegations by City Press published on
29 March 2009
2 April 2009
"I would like the City Press to know that my rights are fully reserved. I
have served my movement, the African National Congress (ANC), and our people
with courage, to face daily the plight of the poor and execute my tasks with
dedication and commitment. I realise that these articles are intended to hurt
the ANC in the upcoming elections on 22 April 2009, more than they are intended
to hurt me. I urge them to cease this campaign forthwith."
This message was delivered by the Minister of Social Development, Dr Zola
Skweyiya, following another so-called 'exposé' by the City Press newspaper.
Needless to say the payment of social grants has been one of the ANC-led
government's most effective poverty alleviation strategies. While the period
leading up to an election is seen by many as the silly season, it does not
afford the City Press the right to reduce government's poverty relief measures
to a sideshow in an effort to undermine the achievements of the ANC. For a
considerable amount of time now, and more particularly in recent times,
post-Polokwane, the City Press has led with numerous articles relating to the
tender for the disbursement of social grants.
It is now common cause that Mr Fezile Makiwane, South African Social
Security Agency's (SASSA) Chief Executive Officer (CEO), cancelled the tender
in December 2008, following the recommendations of the Bid Adjudication
Committee's advising against the awarding of the tender. In its report, the Bid
Adjudication Committee, chaired by Advocate Norman Arendse SC, had expressed
grave concerns regarding some discrepancies identified in the request for
proposal and their implications for both the technical and financial evaluation
process and final adjudication of bids.
Despite our repeated incontrovertible statements, with all emphasis at our
command, advising that the minister does not play any role in the tender or
procurement processes of the department or agencies associated with it, the
City Press has consistently ignored such advice and has persisted with its
rolling media campaign against the minister. We reiterate that according to the
relevant provisions of the Public Finance Management Act (PFMA), SASSAs CEO
(not the minister) is fully empowered to make a final decision on procurement
matters. Ministers are responsible for policy decisions, in respect of which
they account to both Cabinet and Parliament.
As more fully appears from the various lead stories published thus far,
especially in the period leading to and during the current political season,
the central tenet of these articles is a persistent manifest attack on the
minister's political integrity.
Last month, the City Press published an article on the Provision of a
Payment Service Tender: SASSA 19/06/BS, in which it claimed that the awarding
of that tender was cancelled as a result of its so-called 'exposé' of the links
between the minister's wife and some or other of the bidding companies. In a
new twist, on 29 March 2009, City Press now claims that the cancellation of the
tender was a consequence of "Skweyiya's bungling".
In that same article of 29 March 2009, the City Press accuses the Limpopo
government of defying the court order, thereby making payments close to R1
billion to Cash Paymaster Services (CPS) a company they believe to be linked to
the minister's wife. The City Press insinuates that Minister Skweyiya had
something to do with the so called 'defiance' of the court order, in order for
the payments to be made to CPS, for his wife to benefit from them.
The facts are as follows:
The Limpopo Tender Board awarded the contract to CPS for the period
commencing 1 December 2003 to 30 November 2006. It is common cause that
Empilweni Payout Services successfully applied to the High Court to have the
awarding of the contract set aside, which order was granted on 1 August 2005.
However, the City Press is wrong in stating that the court ordered the
government "to restart the tender process anew in 2005." In fact, the presiding
judge, Preller J, stated that, "To go through the entire process of inviting
tenders and attending site demonstrations again will waste an enormous amount
of money, which should be avoided, if possible. I will leave it to the Tender
Board to decide upon the way forward in view of the contents of this
judgment."
Following the judge's decision the Limpopo Tender Board considered two
options. The first was to cancel the awarding of the contract to CPS and wait
for a new tender to be advertised, evaluated and awarded; meanwhile no social
grants payments would happen. The second option was to cancel the awarded
contract with CPS in accordance with the court order, and introduce an interim
contract to ensure that there is no interruption of social grant payment
services to the beneficiaries.
The Limpopo government decided to conclude an interim agreement with CPS
until a new tender was published and awarded. The decision to grant this
interim contract to CPS other than any other service provider was based on the
fact that CPS payment infrastructure including payment schedules were already
in place and that was the only practical way to avoid the disruption of
services. Meanwhile there was already an initiative in view, of the pending
operationalisation of SASSA effective 1 April 2006, to a centralised process
for the procurement of social grant payment tenders processes to ensure
uniformity across all provinces and leverage economies of scale. On 1 April
2006 SASSA inherited payment services and contracts from all provinces,
including the interim contract awarded by the Limpopo government to CPS.
It is a common cause that the centralised tender for social grant payment
services, SASSA 19/06/BS was published in February 2007 and cancelled by the
CEO in December 2008.
Since 2002, the minister is on record as having expressed his preference for
the post office as government's service provider of first choice, as a matter
of policy. To this end, in May 2007, SASSA, the South African Post Office,
supported by the Departments of Social Development (DSD) and communications,
respectively, entered into a Memorandum of Understanding (MoU) in terms of
which SASSA and the post office agreed to further their collaboration to, at a
minimum, leverage each other's expertise with the key short term focus being to
effect a partnership in the implementation of a back office system in the
social grants payment process.
The minister has remained constant in his commitment to deal with the
discrepancies in the manner in which social grant payments are being handled by
various service providers in the different provinces. The minister's statement
and actions definitely contradict the character being painted of him by the
City Press, being a man who would do anything to give the payment tender to
specific private companies in order to benefit his wife.
We regret that City Press did not do enough research before it put pen to
paper. We are aware that the City Press circulation figures are declining,
especially after Polokwane. But we refuse to let City Press use the name of the
minister to boost circulation. We are aware that it is trying to compete with
other newspapers in the field of investigative journalism, including that of
the Mail & Guardian; hence the hiring of the latter newspaper's editor. It
is obvious that she has her work cut out for her.
The City Press insists on repeating, often with very little new information,
the same issue over and over again. This begins to call into question the
integrity and agenda of that newspaper and begs the questions, "What exactly is
the agenda of the City Press?"
Enquiries:
Zanele Mngadi
Cell: 082 330 1148
Issued by: Department of Social Development
2 April 2009
