Gordhan appears before Scopa

Gordhan appears before Scopa

Finance Minister Pravin Gordhan is confident that social grants will be paid on 1 April 2017. 

Pravin Gordhan and Nhlanhla Nene_gcis
Photo: GCIS

Gordhan is appearing before the Standing Committee on Public Accounts (Scopa) to answer questions about the social grants crisis. He was called to explain Treasury involvement regarding the contract and negotiations with grants service provider Cash Paymaster Services (CPS).

 

"Everything we are doing at the moment is directed at ensuring it is within legal bounds and where flexibility is required, the court must determine that flexibility on how grants are to be paid on 1 April and I am fairly confident that grants will be paid on 1 April," said Gordhan.

 

The Constitutional Court ruled in 2014 that the South African Social Security Agency's (SASSA) contract with CPS was invalid and that a new contractor needed to be found by 31 March 2017.

 

SASSA and the Department of Social Development, along with its Minister Bathabile Dlamini, has been unable to source a new supplier and have now turned to the Constitutional Court for assistance.

 

Dlamini told Scopa last week that Treasury was not represented at negotiations with CPS.

 

Gordhan has hit back, saying the buck stops with Dlamini and that Treasury has enough money set aside to pay grants.

 

"We are just the supporting act. Primary responsibility remains with my colleague, Minister Dlamini, and the entity that report to her, SASSA," said Gordhan.

 

"There is no shortage of money in the system to do that which is required to be done both administratively and in terms of payments of grants," added Gordhan.


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