This was revealed by Herman Kotzé, CE at Net1 Technologies – owners of Cash Paymaster Services, following a positive response from the Constitutional Court based on their request of the 23 May 2018 to re-engage with National Treasury.
Kotzé confirmed that the cash payments for the June payment cycle to just under 2m beneficiaries will continue uninterrupted.
CPS has invoiced SASSA at the original rate of R14.42 (excl. VAT) per cash payment as an interim fee until such time as an agreement can be reached with Treasury.
Kotze said that while this rate is not sustainable and doesn’t cover even the cost of security, payments will not be interrupted for June.
“We are hopeful that we will arrive at a satisfactory solution with National Treasury’s inputs and finalise this matter as quickly as possible,” said Kotzé.
New Minister of Social Development Susan Shabangu wants to find alternative ways to pay grant recipients who receive their money in cash.
But she has to come up with a plan before September 2018.
She’s informed the Constitutional Court that she’s established a technical committee to guide her.
Meanwhile, the Public Servants Association of South Africa (PSA) says its members at the South Africa Social Security Agency (Sassa) will go on strike next week Friday over a salary dispute with the agency.
The union says its almost 5,000 members at Sassa will not report to work next week after talks broke down between the two over a tabled wage demand.
The PSA says it is aware this strike will hit the most vulnerable members of society, and it is, therefore, urging employers to return to discussions.
PSA national manager Reuben Maleka said: “Housing and danger allowance, leave provisions and other conditions of services. Since receiving a certificate of non-resolution at the CCMA on 23 April, the employer has not bothered to respond to our demand.”
