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MPs grill Dlamini on company paying social grants

Parliament’s Standing Committee on Public Accounts (Scopa) wants Social Development Minister Bathabile Dlamini to explain why a white-owned company has been contracted to make social grant payments in the wake of President Jacob Zuma’s call for radical economic transformation in his State of the Nation address.

Dlamini was summoned to appear before Scopa on Tuesday to explain how her department had found itself in what committee chairman Themba Godi called “this emergency”.

Dlamini arrived late for the meeting and then raised hackles when she wanted to leave early to attend a cabinet meeting before MPs could question her. She butted heads with opposition MPs who said that she was dodging the issue.

She however told MPs that the grants issue was “very important” and she did not want South Africans “thinking that I am arrogant.”

She also made several reassurances that grants would be paid on time when the current contract with Cash Paymaster Services (CPS) comes to an end on March 31.

However‚ MPs across all party lines were concerned that the re-negotation of the contract with CPS at the 11th hour‚ did not address the company’s BEE status‚ especially in light of her own comments to the committee that she wanted grant money to “go where the people are” and ensure that it went to developing communities rather than “big retailers” where it is currently spent.

IFP MP Mkhuleko Hlengwa asked whether the company was BEE compliant‚ given that it was “a white-owned‚ American-owned” company while the EFF’s Mbuyiseni Ndlozi said‚ “CPS is not BEE compliant‚ why are you in negotiations with them if you believe in radical economic transformation”?

He said that black people were relegated to doing “gardens and small deals”.

ANC MP Nyami Booi also questioned who the BEE partners were and said Zuma had focused his SONA address on radical economic transformation.

“These guys are getting richer than us [South Africans] and they may be a private company but it is government revenue that is assisting them.”

Dlamini however side-stepped the question saying that all matters of CPS’ BEE compliance had been dealt with in the Constitutional Court.

She also side-stepped questions about what the new CPS contract would cost‚ saying negotiations were still underway.

Officials from her department and the South African Social Security Agency met for three days of negotiations last week. And while talks have been completed‚ no deal has been signed yet.

Dlamini said the current cost stood at R16.44 per grant‚ for a total of 11 million payments. There are currently about 17 million grant recipients‚ but Dlamini explained that in some instances a number of grants are paid into one account‚ bringing the total number of payments to 11 million.

She insisted that the department would remain within its budget as Treasury had already indicated that there are no additional funds available.

 

— TMG Digital

 

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