PUBLIC Protector Thuli Madonsela is to conduct a preliminary probe of claims that a company distributing social grants was operating an illegal loan scheme.
"She is going to do an extended assessment and a preliminary investigation," her spokeswoman Kgalalelo Masibi said yesterday.
The DA approached Madonsela after allegations were made that Cash Paymaster Services (CPS) was operating a loan scheme targeting social grant beneficiaries.
DA MP Mike Waters said CPS had won a multi-million rand tender last year to distribute SA Social Security Agency grants.
Waters said it was alleged that CPS officials offered certain beneficiaries microloans with repayments automatically deducted from their social grants.
"These practices are not only a contravention of the Social Assistance Act, but a blatant manipulation of some of the most vulnerable members of our society."
Net1's Dr Serge Belamant said it welcomed any investigation into allegations that subsidiary CPS was operating an illegal loan scheme.
Illegal loan scheme using social grants
PUBLIC Protector Thuli Madonsela is to conduct a preliminary probe of claims that a company distributing social grants was operating an illegal loan scheme.
"She is going to do an extended assessment and a preliminary investigation," her spokeswoman Kgalalelo Masibi said yesterday.
The DA approached Madonsela after allegations were made that Cash Paymaster Services (CPS) was operating a loan scheme targeting social grant beneficiaries.
DA MP Mike Waters said CPS had won a multi-million rand tender last year to distribute SA Social Security Agency grants.
Waters said it was alleged that CPS officials offered certain beneficiaries microloans with repayments automatically deducted from their social grants.
"These practices are not only a contravention of the Social Assistance Act, but a blatant manipulation of some of the most vulnerable members of our society."
Net1's Dr Serge Belamant said it welcomed any investigation into allegations that subsidiary CPS was operating an illegal loan scheme.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos