The Democratic Alliance (DA) has called for the South African Social Security Agency (SASSA) CEO to be fired following the Constitutional Court's decision to declare a R10 billion deal to provide the payment solution for the distribution of grants invalid.
DA shadow deputy minister of social development, Mike Waters, says he will write to social development minister, Bathabile Dlamini, demanding that SASSA CEO, Virginia Peterson, be fired.
Last year, Net1 subsidiary Cash Paymaster Services (CPS) won the multibillion-rand tender from SASSA to distribute social welfare payments to millions of South Africans every month, for five years. Months of court litigation followed, after losing bidder AllPay, unit of big four bank Absa, turned to several courts to have the tender process declared invalid.
Last week, the Constitutional Court declared the tender process "constitutionally invalid". According to Waters, the court found Peterson and the adjudication committee failed to ensure due diligence during the tender awarding process; SASSA failed to objectively confirm CPS's claimed empowerment credentials, in contravention of the Promotion of Administrative Justice Act; and there were "vagueness and uncertainty" over the requirements of the tender on the part of both bidders and members of the Bid Evaluation Committee, due to inadequate notices for the tender.
However, the Constitutional Court has decided the tender will not be set aside for the moment to avoid disruptions in the grants process and a hearing has been scheduled for 11 February to arrive at a solution.
"In the meantime, minister Dlamini must fire the CEO of SASSA for failing to meet constitutional and legislative requirements in the awarding of the tender," says Waters. "Social grants provide financial relief to over 15 million of South Africa's most vulnerable citizens, improving their quality of life and providing short-term financial relief. These beneficiaries deserve a system that is administered in adherence to constitutional and legal provisions."
Absa says it is pleased the Constitutional Court found in favour of AllPay. "The court unanimously found the tender award to be constitutionally invalid and ordered the CEO of SASSA, SASSA and CPS to pay AllPay's costs in each of the High Court, Supreme Court of Appeal and Constitutional Court cases."
CPS did not respond to a request for comment by time of publication. SASSA referred ITWeb to the Department of Social Development, which could not be reached this morning.
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