Social development minister Bathabile Dlamini has dismissed the special advisor that explored a future of social grant payments without Cash Paymaster Services (CPS).
Business Day confirmed Sipho Shezi was relieved of his duties as the minister's special advisor.
According to the newspaper, Shezi was one of the SA Social Security Agency (SASSA) officials that tried to find a way to pay social grants without CPS.
Without providing any reasons, Dlamini informed Shezi in a letter that his services were no longer required.
"In terms of the contract, at any given time, the parties can decide to terminate the contract without giving notice," Shezi said. "So I have respected that position and I would like to remain at that level."
Shezi's dismissal comes as SASSA CEO Thokozani Magwaza and former social development DG Zane Dangor submitted affidavits to the Constitutional Court identifying Dlamini as the cause of the widespread panic with regards to the social grants saga.
Magwaza and Dangor have disputed the minister's version of events and claims that she cannot be held responsible for the uncertainty over the future of social grant payments.
Dangor has told the court the crisis was "self-created" to ensure CPS retained its business as social grants distributor past 1 April.
The contract was declared invalid in 2013 after it emerged irregular tendering processes were followed in awarding the tender. Last month, the contract was extended to ensure payment of social grants to 17 million South Africans.
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