R6 billion for SASSA to take over grant payment

Social Development Minister Bathabile Dlamini told the parliamentary portfolio committee on social development on Wednesday that the South African Social Security Agency (SASSA) requires R6 billion in order to successfully take over the payment of social grants. According to Bathabile Dlamini this process could take up to 5 years to implement.

“The company who is paying, CPS, has to go [in one year], we agree, but the takeover is going to be a five-year process,” Social Development Minister Bathabile Dlamini said before the parliamentary portfolio committee on social development.

“What South Africans should do is look at the whole process as an investment. Once Sassa starts paying, you won’t be paying this amount of money,”¬†Bathabile Dlamini said. Sassa CEO Thokozani Magwaza disagreed with Bathabile Dlamini on the estimated time of the SASSA take over claimed that it could take as little as two to three years.

It is understood that the constitutional court of South Africa gave the department and SASSA 12 months to get rid of CPS. “We have been given 12 months to phase out CPS. There is no doubt about that, we have not been asked, we have been told,” Sassa CEO Thokozani Magwaza said.

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