The South African Social Services Agency (Sassa) will start the tender process for a “mechanistic” (automated) payment solution, worth more than R21 billion, in 12 months' time.
The controversial tender was scrapped late last year due to irregularities in the tender process, as well as unclear requirements for the payment solution.
The large-scale, nationwide electronic payment system is valued at R7 billion, over three years.
Sassa says it has been granted special approval from National Treasury to conclude 12-month contracts with its current service providers, including the establishment of a social welfare grant payment solution with NET 1 UEPS Technologies. The technology company already provides a grant payment service to Sassa in five provinces around the country.
The agency says, in a media statement, it will sign service level agreements with these service providers without having to go through a tender process.
Sassa media relations manager Tshediso Mahlaku says the payment solution tender, which was published in 2007, is yet to be awarded.
The tender called for a solution which would ensure efficiency and effectiveness of service delivery operations, reduce cost of payment and related services, and reduce fraud, corruption and leakage.
Sassa adds the service provider would have to provide a standardised payment service in line with the norms and standards of service delivery approved by government in 2001.
Blocked by irregularities
In November last year, Sassa scrapped the tender process for the solution, worth more than R7 billion a year over three years. It cited irregularities in the tender evaluation process and a lack of clarity in certain requirements in the request for proposals.
Sassa CEO Fezile Makiwane sent out a Bidders Notice 11 to the nine companies bidding for the tender, including NET 1 UEPS, advising them the bid recommendation committee had advised no award should be made in respect of the tender and that a fresh tender process should commence.
"Due to the protracted process that Sassa undertook, this outcome is not in any way surprising," said NET 1 UEPS chairman and CEO Serge Belamant at the time.
NET 1 UEPS Technologies has stated a number of the bid evaluation technical criteria, specified in the request for proposal, were vaguely formulated and resulted in a high degree of subjectivity in the decision-making process and inconsistent scoring of bids.
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Sassa scraps R21bn tender
R21bn govt tender in limbo
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