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
      Vodacom bundles Amazon Prime across its post-paid base

      Vodacom bundles Amazon Prime across its post-paid base

      25 June 2026
      iPadOS 26

      Apple announces big iPad, MacBook price hikes

      25 June 2026
      IBM claims major chip breakthrough

      IBM claims major chip breakthrough

      25 June 2026
      WhatsApp eyes its next act: a global superapp

      WhatsApp eyes its next act: a global superapp

      25 June 2026
      When the AI costs more than the coder

      When the AI costs more than the coder

      25 June 2026
    • World

      SK Hynix ends Samsung’s 26-year reign at the top

      22 June 2026
      Google on the hook for what its AI tells users, court rules

      Google on the hook for what its AI tells users, court rules

      15 June 2026
      How Russians juggle VPNs to outwit the Kremlin

      How Russians juggle VPNs to outwit the Kremlin

      15 June 2026
      Amazon CEO flagged Anthropic AI risks to Washington - Andy Jassy

      Amazon CEO flagged Anthropic AI risks to Washington

      14 June 2026
      Trouble at Xbox

      Trouble at Xbox

      11 June 2026
    • In-depth
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
    • TCS
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E6: ‘A flawless Alfa and a bakkie that divides’

      17 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E5: ‘A Bentley of the bush and a car that swims’

      8 June 2026
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
    • Opinion
      The pivot South Africa's MVNOs cannot afford to miss

      The pivot South Africa’s MVNOs cannot afford to miss

      23 June 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      Brazil’s online gambling crackdown is a lesson for South Africa

      22 June 2026
      Finish the job Mandela started - Farzam Ehsani

      Finish the job Mandela started

      18 June 2026
      The author, Fanie van Rooyen

      The US just showed it can switch off our AI

      17 June 2026
      The pivot South Africa's MVNOs cannot afford to miss

      The clock is ticking on South African banks’ biggest advantage

      9 June 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • 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
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • 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
    News Alerts
    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

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    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
    Kaspersky's blueprint for industrial cyber resilience

    Kaspersky’s blueprint for industrial cyber resilience

    25 June 2026
    The spaza is not informal - it is foundational - Lesaka Technologies Lincoln Mali

    The spaza is not informal – it is foundational

    24 June 2026
    A smarter way to buy or renew your Red Hat subscriptions - LSD Open

    A smarter way to buy or renew your Red Hat subscriptions

    22 June 2026
    Opinion
    The pivot South Africa's MVNOs cannot afford to miss

    The pivot South Africa’s MVNOs cannot afford to miss

    23 June 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    Brazil’s online gambling crackdown is a lesson for South Africa

    22 June 2026
    Finish the job Mandela started - Farzam Ehsani

    Finish the job Mandela started

    18 June 2026

    Subscribe to Updates

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

    Latest Posts
    Vodacom bundles Amazon Prime across its post-paid base

    Vodacom bundles Amazon Prime across its post-paid base

    25 June 2026
    iPadOS 26

    Apple announces big iPad, MacBook price hikes

    25 June 2026
    IBM claims major chip breakthrough

    IBM claims major chip breakthrough

    25 June 2026
    WhatsApp eyes its next act: a global superapp

    WhatsApp eyes its next act: a global superapp

    25 June 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}