The Treasury has told Social Development Minister Bathabile Dlamini there would be no extra money outside of what was in the 2017-18 budget for the contract under negotiation with Net1 UEPS for the payment of social grants by its subsidiary Cash Paymaster Services (CPS). In terms of 2012’s R10.5bn contract, declared unlawful by the Constitutional Court in 2014, CPS is paid R16.44 per grant beneficiary per month. Net1 UEPS CEO Serge Belamant has indicated Net1 would be seeking an increase on this amount. Dlamini told Parliament’s standing committee on public accounts that if the contract cost was higher than the budget provision, the budget of the Department of Social Development would have to be reprioritised and deviations made. Dlamini said no new contract had been signed with Net1. The technical negotiating team was examining the outcome and would submit its report only on Thursday. The department and the South Africa Social Security Agency (Sassa) will have to get the Treasury’s...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now