The SA Social Security Agency (SASSA) told the social development portfolio committee in Parliament, the only way to ensure social grants are paid out on 1 April 2017 is to extend the contract with the current service provider, it has been reported.
Social grants in SA are currently administered and distributed by Cash Paymaster Services and Grindrod Bank, subsidiaries of US-based Net1 UEPS Technologies, after it was awarded a five-year, R10 billion tender in January 2012.
In 2014, the Constitutional Court declared the contract invalid after it emerged that irregular tendering processes were followed in the awarding of the tender.
According to Eyewitness News, SASSA plans to approach the Constitutional Court next week, to extend the existing contract of its service provider, to continue with the payment of social grants for at least another year.
Eyewitness News quoted SASSA's Raphaahle Ramokgopa: "The only thing that will help us would be to go to court as a matter of urgency and a request the extension."
Today, ITWeb reported that the social security agency is briefing Parliament's social development portfolio committee on the agency's readiness to take over payment of social grants.
SASSA's presentation comes on the back of growing uncertainty on how social grants will be paid out as from 1 April 2017.
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