The cost of preparing the Social Security Agency of South Africa (Sassa) to take over the payment of social grants to 17-million beneficiaries will cost about R6bn, Social Development Minister Bathabile Dlamini disclosed on Wednesday. It is the first time that a price tag has been attached to the takeover of the grants payments by Sassa, which is currently undertaken by Net1 subsidiary Cash Paymaster Services (CPS). The minister said in a briefing to Parliament’s social development committee that the R6bn cost should be seen as an investment. She also stressed that it would take longer than 12 months to bring the whole takeover process to finality — it was going to be a five-year process. Dlamini’s comment on the time period was of concern to IFP MP Liezl van der Merwe. The Constitutional Court extended the CPS contract to pay grants for only one year and Van der Merwe was concerned that the minister’s comment meant it would have to be extended for a further period. However, Sassa C...

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.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.