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
      Post Office on the brink of collapse

      Post Office on the brink of collapse

      13 March 2026
      New policy direction targets South Africa's municipal broadband logjam - Solly Malatsi

      New policy direction targets South Africa’s municipal broadband logjam

      13 March 2026
      How electronic warfare is threatening ships and their crews

      How electronic warfare is threatening ships and their crews

      13 March 2026
      Rand slumps for second week

      Rand slumps for second week

      13 March 2026
      Parliament opens nominations for Icasa council seats

      Parliament opens nominations for Icasa council seats

      13 March 2026
    • World
      Musk launches Macrohard in cheeky nod to Microsoft - Elon Musk

      Musk launches Macrohard in cheeky nod to Microsoft

      12 March 2026
      Europe is building an alternative to Microsoft Office

      Europe is building an alternative to Microsoft Office

      11 March 2026
      Microsoft bets on Anthropic as it loosens ties with OpenAI

      Microsoft bets on Anthropic as it loosens ties with OpenAI

      10 March 2026
      World hit by worst oil shock since the 1970s

      World hit by worst oil shock since the 1970s

      9 March 2026
      iStore prices MacBook Neo at R11 999 in South Africa

      Apple debuts MacBook Neo to challenge Windows PCs, Chromebooks

      5 March 2026
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • TCS
      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience - Theo van Zyl

      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience

      13 March 2026
      TCS+ | Flipping the narrative on AI in the Global South - Josefin Rosén

      TCS+ | Flipping the narrative on AI in the Global South

      13 March 2026
      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      5 March 2026
      TCS+ | Bolt ups the ante on platform safety - Simo Kalajdzic

      TCS+ | Bolt ups the ante on platform safety

      4 March 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
    • Opinion
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
    • Company Hubs
      • 1Stream
      • 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
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • 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
      • 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 » Government read riot act over grants crisis

    Government read riot act over grants crisis

    By Agency Staff17 March 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    The constitutional court ordered South Africa’s welfare agency to extend Net1 UEPS Technologies’ contract to distribute grants to the poorest third of the nation’s people for a year to avoid a “potential catastrophe” and slammed the government’s handling of the matter.

    The ruling on Friday effectively ends the threat of an interruption to a signature programme of the ANC but leaves President Jacob Zuma’s administration with a stinging condemnation by the nation’s top court of its performance.

    Social development minister Bathabile Dlamini must explain before the end of the month why she shouldn’t pay personally the costs of the case. The court said it would supervise the new agreement.

    “This court and the whole country are now confronted with a situation where the executive arm of government admits that it is not able to fulfil its constitutional and statutory obligations to provide for the social assistance of its people,” Justice Johan Froneman said in the ruling.

    “And in the deepest and the most shaming of ironies, it now seeks to rely on a private corporate entity with no discernible commitment to transformative empowerment to get it out of this predicament.”

    In the ruling, the court said the South African Social Security Agency’s contract extension with Net1’s Cash Paymaster Services unit must continue on the same terms as the previous agreement that expires on 31 March, although the company can ask the treasury to review the pricing. CPS has a constitutional obligation to continue dispersing the monthly stipends to more than 17m people, Froneman said.

    “The court has basically said the minister and Sassa cannot be trusted to do what they are supposed to do and it is going to supervise the process to make sure they do their job in a very hands-on manner,” said Pierre de Vos, a law professor at the University of Cape Town. “It is an excellent judgment because in a way it saves the day and it tries to protect the country from the incompetence of the minister.”

    The system of payments of more than R150bn/year was on the brink of collapse because Dlamini and Sassa failed to find a new company to administer the programme after the court declared the original contract with Net1 invalid more than two years ago.

    “We dropped the ball, we apologise to the nation,” Sassa CEO Thokozani Magwaza told reporters outside the court in Johannesburg.

    The fiasco is the latest in a series of missteps by Zuma’s administration that have curbed growth, dented investor confidence and stoked conflict between government officials and departments. Zuma on Thursday rejected criticism of Dlamini, saying there is no crisis.

    This is the second time the nation’s highest court has censured the government following its ruling a year ago that Zuma violated the constitution for failing to repay taxpayer money spent on his private home.

    Dlamini will follow the constitutional court’s ruling, her spokeswoman Lumka Oliphant said by phone.

    “We’d like to apologise for the anxiety and the fear that the people of South Africa, who are beneficiaries of the social grants, had to endure in the past few weeks,” she said.

    Human rights groups and opposition parties have accused Net1 of using information gathered on grant beneficiaries to sell services ranging from mobile-phone airtime to loans to some of South Africa’s poorest people without them always understanding what they were agreeing to. It has denied the allegations.

    Ethical behaviour

    The court ruled that personal grants data must remain private and not be shared for the purpose of marketing goods and services.

    Net1’s second biggest shareholder said that while it welcomed the court ruling and its oversight of the new agreement, there should be changes in the company’s board if it doesn’t alter is behaviour.

    “It has done things that may be legal but are not, to my mind, ethical,” Andrew Lapping, chief investment officer of Allan Gray, said by phone from Cape Town. “There must be accountability. If we cannot see firm proof they’re taking up that responsibility there has to be action.”

    Lynette Maart, national director of the human rights group, Black Sash, which brought the case to the constitutional court, called the ruling a “victory”.

    “What is quite significant in this instance is the protection of confidential data and dealing with all these rogue marketing devices,” she said. “All of that is now protected.”  — (c) 2017 Bloomberg LP

    • Reported with assistance from Mike Cohen, Arabile Gumede and Kevin Crowley
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Bathabile Dlamini Cash Paymaster Services CPS Jacob Zuma Net1 Net1 UEPS Technologies Sassa
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleCPS unveils proposed grants pricing model
    Next Article Hacker army targeting world’s central banks

    Related Posts

    Hold the doom: the case for a South African comeback - Duncan McLeod

    Hold the doom: the case for a South African comeback

    26 February 2026
    Television at 50 | How the SABC lost its way - and what it must become

    Television at 50 | How the SABC lost its way – and what it must become

    5 January 2026
    ICT BEE fight deepens as MK, EFF target Malatsi - Colleen Makhubele

    ICT BEE fight deepens as MK, EFF target Malatsi

    15 December 2025
    Company News
    Households still under big pressure, Altron Fintech index shows

    Households still under big pressure, Altron Fintech index shows

    13 March 2026
    How AI is changing the way we work - Angela Ho, Obsidian Systems

    How AI is changing the way we work

    12 March 2026
    Domains.co.za introduces complete domain protection service

    Domains.co.za introduces complete domain protection service

    12 March 2026
    Opinion
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026
    VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

    VC’s centre of gravity is shifting – and South Africa is in the frame

    3 March 2026

    Subscribe to Updates

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

    Latest Posts
    Post Office on the brink of collapse

    Post Office on the brink of collapse

    13 March 2026
    New policy direction targets South Africa's municipal broadband logjam - Solly Malatsi

    New policy direction targets South Africa’s municipal broadband logjam

    13 March 2026
    How electronic warfare is threatening ships and their crews

    How electronic warfare is threatening ships and their crews

    13 March 2026
    Rand slumps for second week

    Rand slumps for second week

    13 March 2026
    © 2009 - 2026 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}