Subscribe

SASSA CEO on 'sick leave'

Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba, IT in government editor
Johannesburg, 28 Feb 2017
SASSA CEO Thokozani Magwaza takes sick leave amid social grants payments debacle. (Photo source: GCIS)
SASSA CEO Thokozani Magwaza takes sick leave amid social grants payments debacle. (Photo source: GCIS)

The South African Social Security Agency (SASSA) says CEO Thokozani Magwaza is "on sick leave", despite reports that the agency boss has been suspended.

Today, The Star reported Magwaza was suspended on Monday night, pending an investigation into his conduct.

According to the newspaper, Magwaza's suspension follows his decision to defy social development minister, Bathabile Dlamini.

The Star reported last week that Magwaza allegedly wrote to SA Post Office (SAPO) CEO Mark Barnes requesting the struggling parastatal take over the social grant payments contract.

It has been alleged Magwaza sent a letter to the SAPO CEO to apply for the social grants distribution contract after the deadline for the submission of bids.

Magwaza, who was appointed as SASSA CEO in June 2016, reportedly tried to withdraw the letter when minister Dlamini became aware of it.

Responding to ITWeb's requests for comment on the CEO's reported suspension, SASSA spokesperson Kgomoco Diseko says "he is on leave".

Diseko did not say when the CEO will be back at work, or from which date his leave has been applicable.

'Fake news'

SASSA this morning issued a statement blasting "fake media reports claiming SASSA CEO Thokozani Magwaza has been suspended from work".

The statement reads: "SASSA notes with concern the fake media reports claiming SASSA CEO Thokozani Magwaza has been suspended from work. This happens at a time when the media is battling with the challenge of fake news sites. It is disconcerting to learn that the fake reports about the CEO are actually peddled by legitimate publications we hold in high esteem. Worse still, the writers don't even bother about getting a comment from SASSA before going public on the matter.

"SASSA wishes to put it on record that its CEO is on official sick leave until he recovers and Ms Thamo Mzobe is the acting CEO. Social grant beneficiaries and the South African public can rest assured that we will continue to provide all our services at the required standard despite this needless distraction."

Looming deadline

The social security agency is in the dog-box as it attempts to avert social payment disaster. SASSA must ensure 17 million beneficiaries receive their social grants when the tender with the current social grants distributor expires at the end of March.

South African social grant payments are administered and distributed by Cash Paymaster Services (CPS), a subsidiary of US-based Net1 UEPS Technologies.

Social development minister Bathabile Dlamini. (Photo source: GCIS)
Social development minister Bathabile Dlamini. (Photo source: GCIS)

The CPS contract was declared invalid by the Constitutional Court in 2013, after it emerged irregular tendering processes were followed in the awarding of the tender.

The decision to extend the CPS contract has been slammed. However, Dlamini told the social development portfolio committee in Parliament last week that her department is in the process of negotiating with the current service provider.

Meanwhile, the Standing Committee on Public Accounts is today hosting a hearing with the social development department on irregular, fruitless and wasteful expenditure and on the CPS contract.

On Wednesday, members of Parliament will receive a briefing from the South African Reserve Bank on its role, position and readiness in the implementation of SASSA's institutionalisation of the social grant payment system.

Share