The South Africa Social Security Agency (Sassa) has created a “crisis” by failing to comply with its undertaking of either getting a new tender for the payment of social grants or taking over the payment itself.
This is the argument NGO Black Sash is bringing before the Constitutional Court on Wednesday.
Black Sash wants the highest court in the land to grant it access to “address matters relating to the payment of social grants beyond 31 March…”.
The organisation’s application comes after Sassa went to the Constitutional Court to ask that its contract with Cash Paymaster Services to pay social grants be extended by a year.
Sassa and the Department of Social Development will not oppose an application by lobby group Black Sash for the reinstatement of the Constitutional Court’s oversight role over the social grant payment contract.
There have been reports that the company could charge Sassa another R1.3 billion to extend the contract at the last minute.
In 2014‚ the same court held that the award of the tender to CPS was constitutionally invalid.
A year later‚ the court made a remedial order directing that either a new tender be awarded or that Sassa take over the payment of social grants.
In its court papers‚ Black Sash argues that the court is entitled to impose contractual conditions with regards to a new contract between Sassa and CPS.
“The court should order the protection of the personal information of grant beneficiaries.
“CPS is a subsidiary of Net1. Net 1‚ through its other subsidiaries‚ seeks to sell airtime‚ electricity‚ funeral insurance and loans to grant beneficiaries‚” Black Sash argues in its papers.
Black Sash argues that Sassa intends to extend its contract with CPS without a proper tender process being followed‚ and in circumstances under which “there will otherwise be little or no oversight”.
“Sassa is not in a position to take over the payment of social grants after 31 March 2017.
“The Minister and Sassa do not say what steps‚ if any‚ Sassa or the minister took to implement the fourth report from October 2015‚ when the decision not to award the tender was taken‚ to July 2016‚ when the task team was appointed‚” Black Sash argues.
Black Sash will also ask the Constitutional Court to order CPS ensure that a “workable” payment system remains in place until a new one is operational.
“The Black Sash submits that the court ought to make an order that will ensure that any contract ensures that both Sassa and CPS comply with their constitutional obligations‚ in such a manner that the rights of grant beneficiaries are protected.”
CPS has come under fire for using millions of grant beneficiaries as a database to sell funeral policies‚ airtime and other products to‚ deducting premiums before paying out grants.
Black Sash says the court must order that child support grants cannot be used for funeral policies. It wants the details of all beneficiaries wiped from the CPS database when its interim contract ends.
Social Development Minister has failed to exercise oversight over Sassa: Black Sash
The South Africa Social Security Agency (Sassa) has created a “crisis” by failing to comply with its undertaking of either getting a new tender for the payment of social grants or taking over the payment itself.
This is the argument NGO Black Sash is bringing before the Constitutional Court on Wednesday.
Black Sash wants the highest court in the land to grant it access to “address matters relating to the payment of social grants beyond 31 March…”.
The organisation’s application comes after Sassa went to the Constitutional Court to ask that its contract with Cash Paymaster Services to pay social grants be extended by a year.
Sassa and the Department of Social Development will not oppose an application by lobby group Black Sash for the reinstatement of the Constitutional Court’s oversight role over the social grant payment contract.
There have been reports that the company could charge Sassa another R1.3 billion to extend the contract at the last minute.
In 2014‚ the same court held that the award of the tender to CPS was constitutionally invalid.
A year later‚ the court made a remedial order directing that either a new tender be awarded or that Sassa take over the payment of social grants.
In its court papers‚ Black Sash argues that the court is entitled to impose contractual conditions with regards to a new contract between Sassa and CPS.
“The court should order the protection of the personal information of grant beneficiaries.
“CPS is a subsidiary of Net1. Net 1‚ through its other subsidiaries‚ seeks to sell airtime‚ electricity‚ funeral insurance and loans to grant beneficiaries‚” Black Sash argues in its papers.
Black Sash argues that Sassa intends to extend its contract with CPS without a proper tender process being followed‚ and in circumstances under which “there will otherwise be little or no oversight”.
“Sassa is not in a position to take over the payment of social grants after 31 March 2017.
“The Minister and Sassa do not say what steps‚ if any‚ Sassa or the minister took to implement the fourth report from October 2015‚ when the decision not to award the tender was taken‚ to July 2016‚ when the task team was appointed‚” Black Sash argues.
Black Sash will also ask the Constitutional Court to order CPS ensure that a “workable” payment system remains in place until a new one is operational.
“The Black Sash submits that the court ought to make an order that will ensure that any contract ensures that both Sassa and CPS comply with their constitutional obligations‚ in such a manner that the rights of grant beneficiaries are protected.”
CPS has come under fire for using millions of grant beneficiaries as a database to sell funeral policies‚ airtime and other products to‚ deducting premiums before paying out grants.
Black Sash says the court must order that child support grants cannot be used for funeral policies. It wants the details of all beneficiaries wiped from the CPS database when its interim contract ends.