Cabinet has not discussed Sassa saga

Minister in the Presidency Jeff Radebe says Cabinet has not discussed the matter regarding how the Social Security Agency of South Africa (Sassa) will social grants from 1 April.

In his post-Cabinet briefing today, Radebe did not say anything about the Sassa saga until media asked him about it. He said Cabinet will hold a special meeting next week to discuss all the "complexities".

Sassa is currently negotiating a new contract with current service provider Cash Paymaster Services (CPS) despite Constitutional Court 2014 ruling which declared that contract invalid and unconstitutional.

The agency has less than a month to put a plan in place as to how it will pay 17 million beneficiaries.

University of Cape Town's Professor Nicoli Nattrass says many South Africans rely on social grants due to high rates of unemployment.

Nattrass says the delay in payments will affect the economy and possibly cause political crisis.

One in four people get grants. We are spending 3.5% of GDP on social grants. You are talking about a chunkable amount of money. The social system relies on this.

Professor Nicoli Nattrass, UCT department of sociology

It does go straight back to the economy. Even grants that are supposed to help people with disabilities, they do help people with disabilities and the whole household. The same goes for pensioners.

Professor Nicoli Nattrass, UCT department of sociology

Listen to the audio below for more information...

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