The South African Social Security Agency (Sassa) has awarded a tender worth approximately R86 million for a networking solution, but has still made no decisions on its embattled R21 billion centralised automated payment solution tender.
The agency, which has been shrouded in controversy since it took over the payment of over 15 million social grants in April 2008, says the tender would be awarded, but this would be at the discretion of social development minister Edna Molewa.
Sassa says no decisions have been taken on the tender, which was cancelled in December 2008, following an investigation into irregular tender processes. Other projects would continue and the tender would be awarded in the near future, says Sassa.
“No decision has been taken on the payment services tender, but one is expected in due course,” says Sassa.
In April, Sassa said it would start the tender process for an automated payment solution in 12 months. However, the minister has noted the process may only be completed once the agency has been cleaned up.
This would not affect other IT projects, says Sassa. In terms of the new tender, networking company 3Com was chosen to run a distributed network of H3C and 3Com-branded solutions for its vast social security grant system across the country. The $12 million, or R86 million deal is for the implementation of a national network for 600 branch offices around the country during the next three years.
“Sassa selected 3Com as the preferred networking supplier because we are convinced that the technology is robust enough for our unique requirements. We have built a relationship with 3Com and believe the company has the right skills, products and commitment to adding value. This gives us confidence that their solution will sustain our nation-wide networking strategy.”
CEO woes
Sassa says the main challenge now is to manage the administration and payment of these grants effectively and efficiently in line with the relevant financial prescripts and legislation.
While the payments of social grants were centralised, the department of social development still relied on several service providers to disburse funds directly to households via the post office, commercial banks and payment contractors. Currently, provincial departments are responsible and accountable for the administration and payment of social grants. All departments outsourced payment services to independent contractors, but there are problems with variations in the existing payment systems.
In July, Sassa CEO Fezile Makiwane was placed on special leave pending an investigation into alleged irregularities. The minister also informed Makiwane of possible disciplinary measures against him.
“There were grave concerns regarding some discrepancies identified in the tender process and the minister is addressing these. No decisions have been taken on the fate of the CEO yet,” says Sassa.
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