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
      The Post Office is out of options - Anoosh Rooplal

      The Post Office is out of options

      24 March 2026
      Liberty hit by data breach

      Liberty hit by data breach

      24 March 2026
      Optasia wants to do for banks what it did for telcos - Salvador Anglada

      Optasia wants to do for banks what it did for telcos

      24 March 2026
      Sanlam appoints group chief AI officer - Theo Mabaso

      Sanlam appoints group chief AI officer

      24 March 2026
      SA's digital economy is booming - but so is the fraud that comes with it - Nomvuyiso Batyi

      SA’s digital economy is booming – but so is the fraud that comes with it

      24 March 2026
    • World
      It's official: ads are coming to ChatGPT

      It’s official: ads are coming to ChatGPT

      23 March 2026
      Mystery Chinese AI model revealed to be Xiaomi's

      Mystery Chinese AI model revealed to be Xiaomi’s

      19 March 2026
      A mystery AI model has developers buzzing

      A mystery AI model has developers buzzing

      18 March 2026
      Samsung's trifold gamble ends in retreat

      Samsung’s trifold gamble ends in retreat

      17 March 2026
      Nvidia targets $1-trillion in AI chip sales as inference demand surges - Jensen Huang

      Nvidia targets $1-trillion in AI chip sales as inference demand surges

      17 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
      Meet the CIO | HealthBridge CTO Anton Fatti on the future of digital health

      Meet the CIO | Healthbridge CTO Anton Fatti on the future of digital health

      23 March 2026
      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses - Clare Loveridge and Jason Oehley

      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses

      19 March 2026
      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
    • 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
      • Ascent Technology
      • 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 » R6bn cost for Sassa to take over grants

    R6bn cost for Sassa to take over grants

    By Ray Mahlaka11 May 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Bathabile Dlamini, right, with President Jacob Zuma

    Social development minister Bathabile Dlamini has claimed that it will cost R6bn for the South Africa Social Security Agency (Sassa) to take over social grant payments from Net1’s subsidiary Cash Paymaster Services (CPS).

    This is the first time that a price tag was estimated for Sassa’s grandiose plan of being responsible for social grant payments to 10,5m beneficiaries after Net1’s extended contract expires come 1 April 2018.

    In a briefing to parliament’s social development committee on Wednesday, Dlamini said the “plus/minus” R6bn figure should be seen as an investment for Sassa to build its social grant payment capacity. She added that it will be a five-year process for Sassa to finalise taking over grant payments as it does not have the expertise to manage the scheme on its own.

    “We don’t have staff that understand biometrics at Sassa. We don’t have officials that understand banking. We don’t have staff for costing and modelling, as well as cyber-risk assessment,” said Dlamini.

    The contract between Sassa and CPS, which was concluded in 2012, was declared invalid three years ago by the constitutional court as it didn’t go through proper tender processes. At the 11th hour, the court extended CPS’s contract in March for another year.

    MPs raised concerns that Dlamini’s comment on the five-year period meant that CPS’s contract might be extended beyond the prescribed 12 months.

    In response to the concerns, Sassa CEO Thokozani Magwaza said CPS’s contract would be phased out in 12 months, as per the court’s ruling. “Come 2018, there won’t be CPS,” he said.

    Magwaza said Sassa is yet to tender out a new contract or consider the South African Post Office for taking over grants payments. “Where the Post Office lacks expertise, we can use the services of a third party.”

    The third parties include the department of home affairs being responsible for the verification of biometric data and an unnamed organisation that will be responsible for handling the personal information of grant recipients and issuing cards that recipients use to withdraw money.

    This is not the first time that the post office was considered for grant payments. In November 2016, Sassa explored the option for South Africa’s major banks and the Post Office to take up responsibility for grant payments.

    These options were explored in the work streams that were set up by Sassa in July 2016 and comprised of consultants led by its head of project office Zodwa Mvulane. The work streams were tasked with exploring alternative methods of social grant payments.

    Dlamini rejected these options and was pushing for CPS’s soon-to-expire contract to be extended for two years.

    On Sassa’s funding framework to take over payments, Mvulane said the national treasury confirmed that it will be awarded R11m this year. “Sassa needs a one-year short-term plan on funding the take over of grant payments and a long-term plan,” she said.

    On the 17th day of every quarter, Sassa has to report back to the constitutional court to inform it on the steps taken to internalise grant payments and ensure that Net1’s subsidiaries no longer invite grant recipients to “opt in” to sharing their personal and confidential information for the marketing of goods and services. It will report back to the court on 17 June.

    Mvulane said Sassa had already nominated internal experts and technical advisors, who would monitor its preparation to take over grant payments.

    • This article was originally published on Moneyweb and is used here with permission
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Bathabile Dlamini Cash Paymaster Services CPS Sassa Thokozani Magwaza
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEmployment start-up Giraffe goes national
    Next Article Governments under heavy cyber attack: report

    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
    fraud

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

    6 January 2025
    Company News
    AnyDesk - high-performance remote access built for the modern enterprise

    AnyDesk – high-performance remote access built for the modern enterprise

    23 March 2026

    How South African executives can crack the AI ROI code

    20 March 2026
    Africa's first Nvidia RTX Pro GPU servers have landed

    Africa’s first Nvidia RTX Pro GPU servers have landed

    19 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
    The Post Office is out of options - Anoosh Rooplal

    The Post Office is out of options

    24 March 2026
    Liberty hit by data breach

    Liberty hit by data breach

    24 March 2026
    Optasia wants to do for banks what it did for telcos - Salvador Anglada

    Optasia wants to do for banks what it did for telcos

    24 March 2026
    Sanlam appoints group chief AI officer - Theo Mabaso

    Sanlam appoints group chief AI officer

    24 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}