South African Social Security Agency (Sassa) has reportedly requested yet another extension of its contract with Cash Paymaster Services, this time for an additional six months.
According to reports, the agency filed papers on Wednesday asking the court for another extension.
Sassa’s spokesperson Paseka Letsatsi explains their decision: “It’s a six-month phase-in and phase-out process so that you don’t collapse the system come 1 April. The current payment contractor will work with the Post Office to ensure there is a smooth handover.”
This comes after the Constitutional Court in March last year ruled that the invalid contract with CPS should be extended for another 12 months by which time Sassa would have to find an alternative payment partners.
Last year, Sassa admitted they would not be able to pay million of social grant beneficiaries by 1 April. As a result, The Black Sash Foundation approached the court.
Investigations are currently underway to establish whether Social Development Minister and ANC Women’s League leader Bathabile Dlamini should be held personally liable for the crisis the Social Security Agency finds itself in.