NEWS & ANALYSIS

Application to extend illegal CPS tender condemned – SACP

Party says political authority of dept rendered agency incapable of competently delivering on its mandate

SACP denounces application to extend illegal CPS social grants disbursement tender

9 February 2018

The South African Communist Party (SACP) denounces the application to the Constitutional Court by the South African Social Security Agency (SASSA), forced by the executive authority of the Department of Social Development, to condone the extension of the ongoing unlawful social grants disbursement contract. This is one of the many indicators of the necessity for President Jacob Zuma to resign or be removed from office, and for a radical restructuring of the Cabinet to remove serially incompetent Ministers. The SACP calls on all South Africans, united in diversity, to forge the widest possible patriotic front and intensify the struggle against corporate capture of the state, other forms of corruption and general leadership arrogance.

The political authority of the Department of Social Development has rendered SASSA incapable of competently delivering on its mandate. For example, the former Chief Executive Officer of SASSA, Thokozani Magwaza was forced out at the time when he was visibly committed to ending the illegal social grants disbursement contract unlawfully awarded to Cash Paymasters Services (CPS), a subsidiary of Net1, a United States of America based finance administration monopoly capital.  Magwaza was visibly pushing for the state, through its own entities such as the South African Post Office, with decisive capacity building, to take direct responsibility of disbursing social grants as per the shared policies of the African National Congress and the Alliance.

The contradictory political agenda in charge of the Department of Social Development obviously laboured everywhere as could clearly be seen to perpetuate the unlawful CPS contract, while, on the other hand using the rhetoric of ending the stranglehold of foreign and “White monopoly capital” on our economy.  This is the context in which SASSA has now been forced to approach the Constitutional Court to extend the illegal CPS contract. Grindrod Bank, which is owned in majority by Remgro Limited (Remgro), a component part of colonial and apartheid era private monopoly capital, is the banking partner in the social grants disbursement fiasco.

Issued by Alex Mohubetswane Mashilo, Head of Communications and National Spokesperson, 9 February 2018