The South African Social Security Agency (Sassa) has cancelled the tender process to find a replacement for Cash Paymaster Services, court papers show.
Sassa's invalid contract with CPS was extended for six months by the Constitutional Court in March, so that CPS could continue to operate the cash portion of the grants system until a replacement was found.
Social Development Minister Susan Shabangu had initially "suspended" the tender process in late April due to "challenges" in the advertisement.
Court papers filed to the ConCourt on Friday by Shabangu show that new acting CEO Abraham Mahlangu cancelled the tender process to find a new service provider on May 15.
Instead, new Social Development Minister Susan Shabangu will set up a "technical committee" to explore and recommend alternatives to the cash payment of social grants, the papers read.
The technical committee will "advise on matters relating to the transition from CPS and the appropriate governance dispensation of Sassa, with the ultimate purpose of ensuring that the orders of the Court are fully complied with."
Shabangu explained that the various department work streams, CSIR reports and ministerial advisory committee reports over the last few years could not assist Sassa in taking over the grants system from CPS in full, leading to the various extensions.
"A need therefore exists for a technical committee to be established to inter alia consolidate, analyse and evaluate all the reports produced by the different entities and to make recommendations on the basis of the immediate, medium and long-term strategic outlook and the overall impact this will have on Sassa."
It will "also assist Sassa with the implentation of alternatives to the cash payment services", and be operational for a period of 12 months.
The five members on the technical committee include:
"An update on the technical committee will be included in my report that is due at the end of May 2018," Shabangu concluded.
"I am mindful of the 30 September 2018 deadline and I have every intention to ensure compliance thereof.
"I further remain committed to ensuring that Sassa realises its objective to ensure the uninterrupted payment of social grants to beneficiaries."
Shabangu herself raised issues with the tender process three weeks ago, initially suspending the process pending further consultations.
The news of its complete cancelletation raises renewed doubts about Sassa's ability to find an alternative for CPS by September, if it eventually opts to advertise a new tender.
SOURCE: NEWS24
