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
      Meta met Information Regulator over its camera glasses - Mark Zuckerberg

      Meta met Information Regulator over its camera glasses

      6 October 2026
      Why South Africa's biggest drone isn't flying for the country - Milkor 380

      Why South Africa’s biggest drone isn’t flying for the country

      6 October 2026
      Nersa wants five-year ban on automated electricity trading

      Nersa wants five-year ban on automated electricity trading

      6 October 2026
      South African boardrooms are about to get a lot less private

      South African boardrooms are about to get a lot less private

      6 October 2026
      FNB launches crypto trading - Bheki Mkhize

      FNB launches crypto trading

      6 October 2026
    • World
      BMW restructuring plan bets on AI and new models

      BMW restructuring plan bets on AI and new models

      1 October 2026
      OpenAI's rogue agent problem keeps getting bigger - Sam Altman

      OpenAI’s rogue agent problem keeps getting bigger

      28 September 2026
      The new battle over the desktop

      The new battle over the desktop

      23 September 2026
      AMD is now worth a trillion dollars - Lisa Su

      AMD is now worth a trillion dollars

      22 September 2026
      Anthropic weighs new model launch to blunt OpenAI's Astra surge - Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman

      Anthropic weighs new model launch to blunt OpenAI’s Astra surge

      21 September 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
      TCS | Octotel's Trevor van Zyl on the fibre merger question

      TCS | Octotel’s Trevor van Zyl on the MetroFibre merger question

      16 September 2026
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
    • Opinion
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 2026
      What Revolut can and cannot take from South Africa's banks - Pambos Soteriades

      What Revolut can and cannot take from South Africa’s banks

      15 September 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Game of chicken grips SA welfare crisis

    Game of chicken grips SA welfare crisis

    By Agency Staff14 March 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Jacob Zuma with Bathabile Dlamini

    The crisis swirling around South Africa’s system of welfare payments to the poorest third of its people has become a game of chicken.

    Social development minister Bathabile Dlamini insists that Net1 UEPS Technologies must continue to distribute the payments after its contract, which the constitutional court ruled illegal, expires on 31 March. An interministerial task force voided a new deal between the South African Social Security Agency and Net1, and will conduct any future talks with the company.

    The constitutional court takes up the case on Wednesday when it considers a request by the Black Sash Trust, a human rights group, for the tribunal to oversee a short-term contract for Net1 to continue the payments for a year and supervise efforts of the ministry and Sassa to find a new system after that time. The Post Office said in an application to join the case that it can run the programme within 12 months.

    The fiasco is the latest in a series of missteps by President Jacob Zuma’s administration that have curbed growth, dented investor confidence and stoked conflict between government officials and departments. At stake is a system of welfare payments to more than 17m people a year that’s been a signature programme of the ANC to reduce inequality in one of the world’s most unequal nations.

    The ANC, which has governed South Africa since the end of white minority rule in 1994, suffered its worst electoral performance yet in a municipal vote in August, losing control of Pretoria, the capital, and the economic hub of Johannesburg amid mounting discontent over high levels of poverty, unemployment and corruption.

    “I think it’s a reasonable deduction that the ANC derives a lot of support from the social grants,” said Daryl Glaser, a politics professor at the University of Witwatersrand in Johannesburg. “So, this is potentially dangerous for the ANC.”

    The treasury must agree to allow a “deviation” from normal procurement processes before talks can be concluded with Net1 on a new contract for the more than R150bn of payments because it wasn’t put out to a tender. While the government is seeking to contain the costs of the new deal within its budget, failure to agree a price with the company could result in millions of people not being paid, and possible social unrest.

    Finance minister Pravin Gordhan (image: World Economic Forum)

    “Strictly speaking, national treasury does not have to get the constitutional court’s permission to approve a deviation,” finance minister Pravin Gordhan said after a briefing to lawmakers on Tuesday. “However, the constitutional court can take this into account when it deliberates over the current legal actions.

    “We have to ensure that the payments are done in a legal way,” Gordhan told parliament’s public accounts committee.

    The welfare grants crisis dates back to 2012, when Net1’s Cash Paymaster Services was awarded a five-year contract to distribute the payments, which range from pensions to child-care grants. While the constitutional court ruled the contract invalid two years later because procurement rules weren’t followed, the company continued making the payments after the welfare agency failed to appoint a replacement.

    Opposition parties and labour union allies of the ANC have demanded that Dlamini resign over the risk that the programme will be interrupted and her failure, despite the court order, to find a new provider for the payments.

    “A lot is going to depend on whether the grants actually get paid to all the recipients,” Glaser said. “If the public is seriously inconvenienced, I think that the ANC is taking itself into dangerous territory.”  — (c) 2017 Bloomberg LP

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Bathabile Dlamini Cash Paymaster Services CPS Net1 Net1 UEPS Technologies Pravin Gordhan Sassa
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticlePromising breakthrough in battery technology
    Next Article Netflix’s next move: battling cinema

    Related Posts

    fingerprint

    Fingerprints, facial scans now mandatory for Sassa grants

    27 August 2025

    Compulsory biometric tests for some Sassa beneficiaries

    24 April 2025
    fraud

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

    6 January 2025
    Company News
    Why laser technology makes sense for small businesses

    Why laser technology makes sense for small businesses

    6 October 2026

    Human-centred design: the business case for simpler enterprise software

    6 October 2026
    iONLINE launches Sydney breakout point, expanding its global network core

    iONLINE launches Sydney breakout point, expanding its global network core

    6 October 2026
    Opinion
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026
    South Africa's next energy crisis is in the accounts department - Craig Holmes

    South Africa’s next energy crisis is in the accounts department

    29 September 2026
    The steam engine lesson AI doomsayers keep missing - Sam Clarke

    The steam engine lesson AI doomsayers keep missing

    28 September 2026

    Subscribe to Updates

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

    Latest Posts
    Meta met Information Regulator over its camera glasses - Mark Zuckerberg

    Meta met Information Regulator over its camera glasses

    6 October 2026
    Why South Africa's biggest drone isn't flying for the country - Milkor 380

    Why South Africa’s biggest drone isn’t flying for the country

    6 October 2026
    Nersa wants five-year ban on automated electricity trading

    Nersa wants five-year ban on automated electricity trading

    6 October 2026
    South African boardrooms are about to get a lot less private

    South African boardrooms are about to get a lot less private

    6 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}
    🇿🇦 Sign up to the TechCentral newsletter