Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      Starlink satellite anomaly creates debris in rare orbital mishap

      Starlink satellite anomaly creates debris in rare orbital mishap

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Malatsi buries Post Office's long-dead monopoly

      Malatsi buries Post Office monopoly the market ignored

      18 December 2025
      China races to crack EUV as chip war with the West intensifies

      China races to crack EUV lithography as chip war with the West intensifies

      18 December 2025
    • World
      Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

      Trump space order puts the moon back at centre of US, China rivalry

      19 December 2025
      Warner Bros slams the door on Paramount

      Warner Bros slams the door on Paramount

      17 December 2025
      X moves to block bid to revive Twitter brand

      X moves to block bid to revive Twitter brand

      17 December 2025
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Chaos as welfare payments crisis deepens

    Chaos as welfare payments crisis deepens

    By Agency Staff1 March 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    South Africa’s welfare agency said it withdrew its application to the nation’s highest court to extend a payment distribution contract with Net1 UEPS Technologies the day after it filed it.

    That’s added to confusion around how the government plans to ensure more than 17m people continue to get their payments in April.

    The application was filed by CEO Thokozani Magwaza on Tuesday even as social development ministry officials told lawmakers on the same day that the South African Social Security Agency (Sassa) would inform the constitutional court of its decision to conclude a new contract with Net1.

    Nathi Mncube, a spokesman for the court, said that while it had been notified of the intention to withdraw, the process is yet to be completed.

    While the court ruled the current contract, which ends this month, invalid in 2013 because of the way it was awarded, the welfare agency failed to comply with a ruling that it conduct a new tender to find an alternative service provider.

    The withdrawal comes after Johannesburg’s The Star newspaper reported on Tuesday that Magwaza had been suspended. Magwaza denied in an interview that he’d been suspended and was on sick leave. He said social development minister Bathabile Dlamini had disagreed with his decision to write to the Post Office to ask if it could distribute the more than R140bn in welfare annually.

    Sassa’s change of heart on the court case demonstrates its poor judgment, human rights group Black Sash said in a separate court filing on Wednesday.

    “Sassa appears to consider this is an acceptable mode of behavior by a major organ of state performing a vital social function,” Black Sash said. “I respectfully submit that this demonstrates that its judgment as to what is acceptable cannot be relied upon.”

    President Jacob Zuma has asked social development department director-general Zane Dangor to a meeting in Pretoria over the issue, News24 reported, citing Dangor.

    The national treasury, which falls under finance minister Pravin Gordhan, warned Dlamini in a letter last month that extending the contract without approval from the constitutional court would open the government to legal challenges.

    Social services minister Bathabile Dlamini

    On Tuesday, Black Sash Trust filed a legal challenge asking the court to have oversight of the terms of any contract extension or new contract with Net1 and for the minister and Sassa to regularly report to it on progress in finding an alternative to Net1.

    Zodwa Mvulane, an official at the welfare agency, told lawmakers on Tuesday that Sassa had decided to conclude a new contract with Net1 because no one else was capable of stepping in to pay the grants. By doing so it may be seen to be seeking to circumvent the constitutional court’s 2013 ruling.

    “Sassa knew in August or September last year that they would be unable to handle the takeover of grants on 1 April 2017,” the opposition Democratic Alliance said in an e-mailed statement. “Why did they not put out a competitive bid then already?”

    Fee increases

    Gordhan announced increases of between 3,4% and 7% to different categories of welfare payments from state old-age pensions to child-support grants in his 22 February budget. A letter from Magwaza to the treasury that was filed as part of the constitutional court application showed the fee Net1 will charge per beneficiary under a new or extended contract may rise to R22-R25, from R16,44 currently.

    The central bank said it favours the welfare agency using a range of banks to distribute grants, which would eliminate the need to award a “winner-takes-all” tender, reduce costs and enable grant beneficiaries to select accounts and products of their choice.

    “The South African Reserve Bank will support a transitional option chosen by Sassa that will ensure continued payment of social benefits,” Tim Masela, head of the bank’s national payment system department, told members of parliament’s social welfare committee in Cape Town on Wednesday.

    “The Reserve Bank however believes that finalisation and implementation of the future architecture of the social benefits payment system should be undertaken without further delay. Choices have to be made urgently.”  — (c) 2017 Bloomberg LP



    Bathabile Dlamini Net1 Net1 UEPS Technologies Pravin Gordhan Sassa Thokozani Magwaza Zodwa Mvulane
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleGareth Cliff, in defence of free speech [podcast]
    Next Article Net1 to buy 15% of Cell C

    Related Posts

    Fingerprints, facial scans now mandatory for Sassa grants

    Fingerprints, facial scans now mandatory for Sassa grants

    27 August 2025
    Schreiber finds ally in Capitec as TymeBank cries foul over fees

    Compulsory biometric tests for some Sassa beneficiaries

    24 April 2025
    Standard Bank raises alarm over AI-driven fraud

    How South Africa’s social grants system was defrauded on a massive scale

    6 January 2025
    Company News
    Why TechCentral is the most powerful platform for reaching IT decision makers

    Why TechCentral is the most powerful platform for reaching IT decision makers

    17 December 2025
    Business trends to watch in 2026 - Domains.co.za

    Business trends to watch in 2026

    17 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Digital authoritarianism grows as African states normalise internet blackouts

    Digital authoritarianism grows as African states normalise internet blackouts

    19 December 2025
    Starlink satellite anomaly creates debris in rare orbital mishap

    Starlink satellite anomaly creates debris in rare orbital mishap

    19 December 2025
    Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

    Trump space order puts the moon back at centre of US, China rivalry

    19 December 2025
    TechCentral's South African Newsmakers of 2025

    TechCentral’s South African Newsmakers of 2025

    18 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}