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Social development DG resigns

Staff Writer
By Staff Writer
Johannesburg, 04 Mar 2017
Zane Dangor and minister Bathabile Dlamini. (Photo source: GCIS)
Zane Dangor and minister Bathabile Dlamini. (Photo source: GCIS)

Zane Dangor has resigned from his post as DG of the Department of Social Development.

Dangor's resignation marks the latest development in the social grants payment disaster. The department and the SA Social Security Agency (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.

According to reports, Dangor resigned because of a complete breakdown in the relationship between him and social development minister Bathabile Dlamini over the payment of social grants and the legal requirements obliged by SASSA.

Eyewitness News reports that Dangor submitted his resignation on Friday and is "not sure" whether Dlamini received the document

"It's a breakdown in the relationship between the myself and minister following disagreements on the management of the processes on paying the grants on 1 April, particularly disagreements on SASSA's obligation in relation to the Constitutional Court," Eyewitness News quoted Dangor.

South African social grant payments are administered and distributed by Cash Paymaster Services (CPS), a subsidiary of US-based Net1 UEPS Technologies. However, the ConCourt declared the CPS contract invalid in 2013, after it emerged irregular tendering processes were followed in the awarding of the tender.

This week, the social development department, SASSA and CPS began negotiations to discuss the terms and conditions of the new contract.

After numerous failed attempts, the department and SASSA finally filed its supplementary progress report requesting the ConCourt to consider extending the CPS contract.