“Application to suspend social grants tender will not affect payments”

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Social Development Minister Susan Shabangu has assured Parliamentarians that their court application to suspend the social grants tender will not affect payments to beneficiaries.

The Department and South Africa Social Security Agency (Sassa) have approached the Constitutional Court to suspend the tender application, pending the correction of certain technical matters.

All Sassa beneficiaries should not be worried about their payments. It will be paid on time at regular pay points. This is according to Shabangu.

Similarly, those who draw money from commercial banks or retail stores can still receive their money there. “There is a suspension we have lodged with the court. There is nothing we are doing which is illegal. We suspended the tender of the R2.5 million payment. We did that because there are challenges. When we identify challenges we cannot just watch them and fold our arms because that was going to make us to be in court forever.”

Shabangu says the department continues to comply with the ConCourt ruling on social grants payments. The Cash Paymaster Services contract is expected to end in September.

However, the company’s subsidiary is under the spotlight. “Grindrod because it is the one which dispenses and deals with the money, they are charging R10. So you’ll hear even the beneficiaries there’s an extra R10. We are challenging that because we never agreed they must pay themselves R10.”

The Minister has also committed to deal with long queues and systems that are constantly down at some pay points.