Net1 holds the cards in talks on grant payments
Sassa is relying on Net1 subsidiary Cash Paymaster Services to continue paying social grants in April as it has not found a viable alternative
Net1 subsidiary Cash Paymaster Services (CPS) will be in a strong bargaining position when talks with the South African Social Security Agency (Sassa) get under way in the coming week on the extension of its contract to pay social grants beyond the March 31 expiry date. Sassa is relying on CPS to continue paying social grants after this date and has no viable alternative. This will put Net1 in a position to call the shots, but Sassa CEO Thokozani Magwaza said on Wednesday that he would not allow Sassa to be taken to the cleaners. Sassa will approach the Constitutional Court in the next week or so for approval to extend the contract with CPS, which the court declared invalid and unlawful in 2013. It will ask for a one-year extension of the suspension of the invalidity order. This would give Sassa time to prepare for the takeover of the payment of social grants to 17-million beneficiaries, a process that started three years ago and should have been finalised by now. Questioned by memb...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.