The Department of Social Development (DSD) will soon make a decision on the future of its embattled South African Social Security Agency (Sassa) CEO Fezile Makiwane.
However, it remains silent on the fate of its R21 billion automated payment services tender.
Social development minister Edna Molewa says Makiwane, who has been on special leave since July, will first be given an opportunity to respond to a Special Investigating Unit (SIU) report, before any findings are made public.
Molewa noted that she had received the report and Makiwane had been implicated in 11 irregular processes in his capacity as CEO. The report also contains findings on an investigation into alleged flouting of Public Finance Management Act and irregular procurement processes by Makiwane and the agency.
“As required by law, [on] 7 December 2009, I gave the report to Mr Makiwane to allow him an opportunity to respond to the findings. He has until the 18 December to respond, after which I will study his response and announce my decision to the public," Molewa says.
The CEO could also face disciplinary measures if the findings reveal misuse of funds managed by pay-point service providers and the agency.
The bid, which is worth R7 billion a year, for a period of three years, was cancelled in November 2008, due to a lack of clarity on certain requirements in the request for proposals. The tender marked an attempt by the department to co-ordinate payment for social grants nationally.
Service continues
The department says service delivery has not been negatively affected by the SIU investigation.
Coceko Pakade, CFO of the DSD, has been acting as CEO since July, and provincial departments will continue to be responsible and accountable for the administration and payment of social grants, the department says.
While the payments of social grants were centralised, the DSD still relied on several service providers to disburse funds directly to households via the post office, commercial banks and payment contractors. All departments outsourced payment services to independent contractors, but there are problems with variations in the existing payment systems.
National Treasury estimates it cost the department R5 billion in 2009 to administer the R80 billion in grant payments. This figure is expected to rise to R6 billion next year and will largely be spent on private service providers to distribute the grants.
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