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
      Netflix, Warner Bros talks raise fresh headaches for MultiChoice

      Netflix, Warner Bros talks raise fresh headaches for MultiChoice

      5 December 2025
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      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
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      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
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      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
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      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
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 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 » In-depth » Grants fiasco underscores SA leadership crisis

    Grants fiasco underscores SA leadership crisis

    By Agency Staff9 March 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Jacob Zuma

    One of the ANC’s signature programmes, a welfare system for the poorest third of South Africa’s people, is in chaos.

    The monthly stipends are distributed to more than 17m people by Net1 UEPS Technologies, whose contract is due to expire on 31 March, and a new one is being concluded against the advice of the treasury and in possible violation of a court order.

    Amid the turmoil, the head of the social welfare department has quit, the welfare agency’s chief executive went on sick leave and social development minister Bathabile Dlamini has faced calls to resign.

    Any halt to the more than R140bn/year programme, which has underpinned support for the ANC since it won power in 1994, may cost the party heavily in elections scheduled for 2019 and spark protests in poor communities where many households have no other income.

    The debacle 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.

    “There is a general sense of paralysis,” Zwelethu Jolobe, a politics lecturer at the University of Cape Town, said by phone. “When there is no accountability and when there are no consequences for making bad decisions, then people pretty much do as they want.”

    Zuma has been dogged by allegations that he’s failed to be accountable for his actions.

    He refused to step down after the nation’s top court found he violated his oath of office when he failed to repay taxpayer money spent on his private home. He denied culpability for a sell-off in the rand and nation’s bonds after he appointed a little-known lawmaker as his finance minister in December 2015. He hasn’t sanctioned Dlamini for her stewardship of the welfare grants programme and urged members of his cabinet to stop talking about it.

    The ruling party has shot itself in the foot in its handing of the crisis, according to Daniel Silke, director of Political Futures Consultancy in Cape Town.

    “The social grant system is one of the crowning glories of ANC policy,” Silke said by phone. “It was rolled out efficiently and met a need by providing a social security net that had not been provided for before. However, it now appears to have been grossly mismanaged and adds to a general perception of incompetent government.”

    Disgruntlement over the way the country is being run, a stagnating economy and a 26% unemployment rate contributed to the ANC’s worst-ever electoral performance in a local government vote in August last year, and cost it control of Pretoria, the capital, and the main economic hub of Johannesburg.

    With the party due to hold internal elections in December, a number of its leaders appear more focused on jockeying for posts than on improving their performance. Dlamini, who heads the ANC Women’s League, has been spearheading a drive for Nkosazana Dlamini-Zuma, the former head of the African Union Commission and the president’s ex-wife, to become the party’s first woman leader in its 105-year history.

    The welfare grants crisis dates back to 2012, when Net1’s Cash Paymaster Services unit was awarded a five-year contract to distribute the payments. 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.

    The treasury recommended that several banks and the Post Office distribute the grants, but Dlamini and the welfare agency insisted that Net1 is the only company that currently has the necessary capability and is negotiating a new contract with it. The terms have yet to be agreed and the treasury will have to sign off on it because there was no public tender.

    The constitutional court is also seeking details on any new deal and has been petitioned to supervise its implementation by the Black Sash Trust, a civil rights group. The treasury won’t act illegally and approve a new welfare deal unless the court sanctions it, ANC spokesman Zizi Kodwa said Wednesday in an interview.

    Dlamini told members of parliament’s public accounts committee on 7 March that the welfare agency tried to appoint a new grant distributor, but two of the five companies that submitted bids dropped out and the other three didn’t meet the government’s requirements. While she insisted payments won’t be interrupted, even members of her own party aren’t so sure.

    “This is a crisis,” Mnyamezeli Booi, an ANC lawmaker who sits on the public accounts committee, said in an interview in Cape Town. “It is not just about votes. It is about feeding people. If we don’t feed the poor, we will have instability in this country and we will have blood on our hands.”  — (c) 2017 Bloomberg LP



    Bathabile Dlamini Cash Paymaster Services CPS Daniel Silke Jacob Zuma Mnyamezeli Booi Net1 Net1 UEPS Technologies Zwelethu Jolobe
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBezos seeks to commercialise space tourism
    Next Article App takes aim at Cape Town traffic

    Related Posts

    Bain shuts scandal-tainted South African consulting business - Jacob Zuma

    Bain shuts scandal-tainted South African consulting business

    30 July 2025

    Zuma daughter to face terrorism incitement charges over social media posts

    29 January 2025
    Ramaphosa orders probe into dodgy Gupta breakfasts - Jacob Zuma

    Ramaphosa orders probe into dodgy Gupta breakfasts

    21 October 2024
    Company News
    Beat the summer heat with Samsung's WindFree air conditioners

    Beat the summer heat with Samsung’s WindFree air conditioners

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Opinion
    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

    Subscribe to Updates

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

    Latest Posts
    Beat the summer heat with Samsung's WindFree air conditioners

    Beat the summer heat with Samsung’s WindFree air conditioners

    5 December 2025
    Netflix, Warner Bros talks raise fresh headaches for MultiChoice

    Netflix, Warner Bros talks raise fresh headaches for MultiChoice

    5 December 2025
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 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}