Absa and the Gauteng local government have countered claims by Net 1 Applied Technology Holdings (Aplitec) CEO Serge Belamant that they failed to follow correct tender processes in providing payment to Gauteng social welfare beneficiaries.
Angie Motshekga, Gauteng MEC for social services and population development, says government rejects Belamant`s allegations that AllPay and government did not follow the tender process by providing bank accounts and its Sekulula debit card to social grant recipients.
Belamant said on Friday that the tender specified that fingerprint verification would be needed for security and that the social grant beneficiary would not have to pay for any transaction costs.
"The Absa Sekulula debit card costs our beneficiaries nothing and allows them the ability to withdraw their pensions 24/7/365 at ATMs countrywide and also provides them with extra security in that they no longer have to carry their entire pensions in their wallets, making them vulnerable to potential attack," says Motshekga.
Responding to a Business Day article in which Belamant was quoted as saying the system was "complete daylight robbery and breaks the law", Motshekga says government views the allegations in a very serious light.
"Belamant`s accusation that the government is party to 'daylight robbery` and to 'breaking the law` is serious and uninformed. We take exception to this statement which goes against the grain of our entire philosophy behind the payment of social grants," says Motshekga.
Walter Volker, Absa GM of Payment Solutions, says the Absa Sekulula debit card is in line with all regulatory requirements as stipulated by the South African Reserve Bank, which governs the soundness of payment systems.
Errol Smith, Absa media services manager, says AllPay`s attorneys have sent legal letters to Aplitec requesting Belamant to retract his statement.
He says Belamant was incorrect in his claim that fingerprint verification from beneficiaries was specifically part of the tender requirements in the distribution of social grants.
"The tender did not specifically require fingerprint technology for the verification of the beneficiary`s identify. It simply stated that the company awarded [the contract] had to verify the beneficiary`s identity. AllPay has given social grant beneficiaries the choice of whether to make use of an ATM using a PIN code, or to take their social grant in cash from a single pay point using fingerprint verification," Smith says.
Related story:
Aplitec mulls legal action over social grant systems
Share
