Fin24

Sassa gets new social grant contractor

2012-01-18 09:49

Johannesburg - Financial organisation Cash Paymaster Services has been appointed as the new contractor in charge of social grant payments, the SA Social Security Agency (Sassa) said on Wednesday.

"The contract will run over a period of five years at a cost of approximately R10bn, distributing grants to the value of approximately R500bn over the same period," Sassa spokesperson Lumka Oliphant said in a statement.

"It is envisaged that Sassa will, through this contract, achieve its objective of standardising the services while allowing beneficiaries flexibility to be paid anywhere in the country.

"This is the first time that Sassa awards a payment contract as previously it was extended based on the provincial contracts," she said.

Oliphant said 128 bids for the contract were submitted to a committee of senior government officials for evaluation.

"These bids were subjected to rigorous evaluation and adjudication in conformity with the bid document," she said.

After consulting with the two directors general for the department of social security, Sassa chief executive Virginia Petersen awarded the contract to Cash Payment Services.

"In this contract, the unit cost has been capped to R16.50 for the duration of the contract. This would bring saving of R3bn over a contract period of five years," Oliphant said.