Sassa offers Post Office deal to pay social grants

[schumi]

Cape Town - The South African Social Security Agency (Sassa) has given an offer to the South African Post Office (SAPO) to take over the payment of social grants.

The offer follows talks between the two entities in what has been described as a "closed procurement process", the department of social development announced late on Thursday.

"Sassa has been hard at work under the leadership of the department of social development and the minister of social development in trying to find the best solution for the payment of social grants," the department said in a statement.

The announcement follows the agency missing a key parliamentary briefing to update MPs about its plans to terminate the relationship with CPS.

"The minister indicated that SAPO as a state entity could play a role and participate as merchants where they meet Sassa's mandatory radius.

"This can assist SAPO to revive some of its closed outlets especially in the rural areas and townships and is in line with the department's commitment in promoting Government to Government partnership as outlined in the report to the Constitutional Court," the department said.

Social Development Minister Bathabile Dlamini promised that a social grants distribution agreement would be signed by September 20, yet declined to appear before Parliament to explain why the deadline was missed.

The deal to shift the payment of the 17 million social grant beneficiaries was motivated after the Constitutional Court found the agreement between Sassa and CPS invalid.

Sassa however, failed to appoint an alternative service provider, forcing the court to grant an extension of the invalid agreement.

News24
http://www.news24.com/SouthAfrica/News/sassa-offers-post-office-deal-to-pay-social-grants-20171019

 

[schumi]

Sassa's Post Office deal in the balance

Cape Town - The pending deal between the South African Social Security Agency and the South African Post Office could be at risk, according to a letter sent to the agency.

Sassa finally made a long overdue offer to the Post Office to come on board and assist with the nationwide social grants scheme.

In a joint Parliamentary meeting on Tuesday evening, MPs heard that the offer only included one of four possible services the Post Office will perform for Sassa.

The Post Office has until Thursday to respond.

However, a letter dated Friday, October 20, showed that the Post Office has already responded to Sassa's offer.

The Post Office would only accept the deal if three other conditions were approved as well. If not, they would revert to an original offer made to the Post Office by former Sassa CEO Thokozani Magwaza in July.

Contingency plan

In the meeting on Tuesday, Inkatha Freedom Party MP Liezl van der Merwe asked acting Sassa CEO Pearl Bengu what their contingency plan was if, come Thursday, the Post Office rejected the offer.

Bengu and Sassa project lead Zodwa Mvulane responded that would "continue with their programme as planned", and could not deviate from it.

Essentially, it's now up to the Post Office to either accept or reject the offer.

Van der Merwe told journalists at the meeting that the questions posed to Sassa were in vain if the Post Office deal fell through.

It was another potential looming crisis because they still don't know what will happen to the other three services, she added.

News24 could not reach Magwaza on Tuesday.

SAPO's bid strengths

Of the four services requested during the tender process, the Post Office was only granted the right to provide "an integrated payment system, which can also handle beneficiaries' biometric data".

They were unsuccessful in their bid to also provide banking services, card production, and cash payments at pay points, Bengu told MPs.

With regard to cash payments at pay points, Sassa's bid committee felt SAPO did not show an ability to "eliminate fraud and double dipping".

It also felt that the Post Office would not have capacity to produce bank cards. Instead, they have asked the Reserve Bank for an extension to existing Sassa cards.

However, DA MP Tim Brauteseth announced in the meeting that he had received information from "the highest possible person at the Post Office" that Sassa's presentation was not accurate.

According to Brauteseth, the Post Office's capabilities were being downplayed.
Brauteseth said the person, who he revealed as Post Office CEO Mark Barnes himself, would be ready to testify to the Post Office's strengths to Parliament as soon as Wednesday.

Representations

However, Bengu defended Sassa's offer to the Post Office, saying they negotiated in good faith and that she told Barnes himself that their bid did not represent what they were offering in reality.

She took offence to accusations that she was lying to Parliament.

MPs said the Post Office has to come to Parliament to represent.

"Right now, we don't know who is telling us the truth, and who is lying," said Economic Freedom Fighters MP Veronica Mente.

The joint meeting will sit again next Tuesday, where it will invite both SAPO and the ministers of the respective portfolios to attend.

News24
http://www.news24.com/SouthAfrica/News/sassas-post-office-deal-in-the-balance-20171025

 

[schumi]

Sassa, Post Office agree to 'sit through the night' to thrash out deal

Cape Town - The South African Social Security Agency (Sassa) and the South African Post Office (SAPO) will "sit through the night" to thrash out a deal for the social grants scheme before 18:00 on Wednesday, MPs have heard.

The two entities, as well as Social Development Minister Bathabile Dlamini and Siyabonga Cwele, Minister of Telecommunications and Postal Services, appeared before a joint meeting in Parliament on Tuesday.

Dlamini told MPs that there was currently no agreement between Sassa and the Post Office.

The two entities have been attempting to sign an inter-government agreement over the nationwide grants scheme, but the deal reached a deadlock.

SASSA is only willing to offer SAPO one of four services, excluding all banking functions. The Post Office has countered, saying it makes no sense to separate the four functions.

But on Tuesday, Dlamini agreed that it was reasonable to let officials "sit through the night" in Cape Town on Tuesday to reach a consensus, after MPs were unhappy with the progress.

Her department was still committed to thrashing out a deal, and agreed "talking makes things better". SAPO acting board chairperson Comfort Ngidi made the proposal.

MPs applauded the consensus following a gruelling three-and-a-half hour meeting.

The joint meeting will reconvene again at 18:00 on Wednesday with a report back, chairperson Themba Godi said.

SAPO received '97% pass rate' in due diligence report - CEO

SAPO CEO Mark Barnes said his entity received the green light in 210 of 218 categories required to assist with the core functions of the social grants scheme.

This was according to a due diligence report into SAPO, compiled by the Council for Scientific and Industrial Research (CSIR) and requested by Sassa itself.

Despite this, Sassa on Monday announced it would opt for a tender process to find an alternative provider to carry out banking services, rather than offering it to Postbank through SAPO.

SAPO finally got its chance to publicly put forward its case to assist with the grants scheme in a joint meeting in Parliament on Tuesday.

Barnes disputed many aspects of Sassa's official reasons for collapsing the proposed deal with the Post Office.

Among the reasons was the issue that Postbank did not have a "fully-fledged" banking license, which Barnes described as "simply untrue".

Banking concerns

He said SAPO has been sponsored through Standard Bank and that's how they have been operating for years in handling 18 million transactions a year for 5.7 million customers.

"We are already licensed to do that by the Postbank Act. It is simply the accommodation of cash flows. So this is a systems capability, not a credit or risk capability.

"We do not need to register as a merchant. That disqualification is without substance."

Postbank has a net equity of R3bn, has the highest amount of physical outlets in the country outside of Sassa, and were full members of Visa and MasterCard.

Its 2 500 outlets could complement Sassa's already existing ten thousand. They were not there to replace anyone.

It had the highest capital asset value of all the banks in South Africa. It was a fully functioning autonomous division of the Post Office that handles its own finances.

Services par excellence

According to Barnes, of the eight areas of concern in the CSIR report, six of them they can upscale and have already costed the process.

"If SAPO can provide, we can provide services greater or better than everyone else."

In terms of their needs, R425m is needed to facilitate the production of new cards, which will be recouped over the five-year period of the contract.

They will spend R500m on upgrading their network, and then a further R50m a year on the network.

They will spend R6m to upgrade their call centres, another R90m and R79m on improving capital adequacy.

"All of those we have sufficient capital for and sufficient cash to spend."

It was also well below Social Development Minister Bathabile Dlamini's claims that it would require R6bn to take over the grants scheme.

In the spirit of collaboration, they would like to renegotiate, rather than enact a legally-binding letter of employment given to them in July by former Sassa CEO Thokozani Magwaza.

Dlamini wants proof

Dlamini, who was also present in the meeting, said she needs to be shown the supposed 97% figure, as the summary in her report only mentioned the upscaling recommendations.

She also could not say if Cash Paymaster Services had a banking license, after being asked by MP Tim Brauteseth.

No agreement has been signed since the initial offer was sent to SAPO, she said, and they were now at a deadlock.

Acting Sassa CEO Pearl Bengu said they can't change the outcome of the Bid Evaluation Committee's decision, as the procurement process had now been followed.

MPs were left exasperated by the seeming contradictions between Sassa's presentation last week before the committee, and the Post Office's presentation on Tuesday.

They also did not receive the full CSIR report because two sections were missing, or the initial request for proposal - both of which should have been provided by the department of social development.

"There is not one page in this CSIR report that says SAPO can't do the job. It says they just need to upscale, train and employ more staff," said Democratic Alliance MP Lindy Wilson.

Before the agreement, MPs debated whether they should call in the inter-ministerial committee to further the possibility of breaking the deadlock.

The Inkatha Freedom Party also threatened to ask for a motion requesting an ad hoc committee inquiry into the Sassa debacle.

News24
http://www.news24.com/SouthAfrica/N...through-the-night-to-thrash-out-deal-20171031

 

[schumi]

Sassa, Post Office agree to 'sit through the night' to thrash out deal

Cape Town - Social Development Minister Bathabile Dlamini says "patriarchy" is the reason MPs don't believe her side of the story in the deadlock to sign a deal with the South African Post Office (SAPO).

Dlamini, SAPO CEO Mark Barnes, the South African Social Security Agency (Sassa) and other role players appeared before a joint meeting in Parliament on Tuesday to discuss the collapsing deal.

The minister revealed in the meeting that an inter-government deal had still not been signed between the two entities, despite 13 interactions arguing for and against an agreement since July.

The two sides agreed to meet on Tuesday evening in Cape Town "through the night" to thrash out a deal, after MPs registered their unhappiness with the report back.

Dlamini hinted to journalists after the meeting that MPs were unhappy with her side of the story because of "patriarchy".

"The most important thing I saw today (Tuesday) is issues of patriarchy, and who people believe when there are discussions," she said outside the meeting.

"Look at the responses, the difference between social development responses and other responses. You'll see what is at play."

Constitutional Court directive

She was also coy about the possibility of finally reaching a much-anticipated agreement, after questioning the Post Office's ability to deliver on banking functions.

"It's not a deal per se, it's about the capacity [of the Post Office] being able to do the work," she said on Tuesday.

Dlamini also said the reason social development had insisted on an open tender process rather than a straightforward inter-governmental agreement was because of the Constitutional Court's directive.

Inter-governmental deals do not need the stringent procedures required for an open tender to the private sector.

SAPO has hinted that should talks fail, it would revert to a deal offered by former Sassa CEO Thokozani Magwaza.

Dlamini said her department would cross that bridge when they get to it should SAPO decide to seek legal advice.

'Common sense should prevail'

SAPO's Barnes was cautious going into Tuesday's showdown talks.

"If everyone goes in there with an open mind, I think common sense will prevail," he told journalists.

"But if there are procedural issues or firm positions beyond which they won't go, of course we won't do a deal."

The Post Office did not want to be the exclusive handlers of the deal, he said.

If Sassa determined that cash payments systems could be handled by another entity, for instance, the Post Office wouldn't object, but making use of Postbank made the most sense, he added.

"There's little point in getting the Post Office to develop an IT system. That's probably the weakest of all our points.

"We're not saying we are the only place in which you have to do this. We're just saying, we are a state-owned structure: use us."

Not a business, but a public service

He said he'd prefer the matter to be resolved sooner than later, adding that Sassa would be surprised at how many other companies want or can deliver on the deal, given the vast scale of the project.

The deal wasn't a business opportunity, he said, but "a public service, and should be treated as such".

He didn't want to be drawn on the possibility of talks failing, because he wanted them to succeed, he said.

National Treasury has said it would observe the discussions, while Dlamini said she would be checking in periodically to see how talks are progressing.

The officials have until 18:00 on Wednesday to report back on any progress made.

Only five months remain for Sassa to appoint a suitable service provider for the social grants scheme by March 31, 2018, as ordered by the Constitutional Court.


News24
http://www.news24.com/SouthAfrica/N...-reason-mps-dont-buy-her-sassa-story-20171031

[video=youtube;TrBMTPSKjqk]https://www.youtube.com/watch?v=TrBMTPSKjqk[/video]

 

[Sl8er]

Dlamini hinted to journalists after the meeting that MPs were unhappy with her side of the story because of "patriarchy".

"The most important thing I saw today (Tuesday) is issues of patriarchy, and who people believe when there are discussions," she said outside the meeting.

"Look at the responses, the difference between social development responses and other responses. You'll see what is at play."

You just don't want this, because you won't be able to steal as easily.
Squirm piggy, SQUIRM!

 

[TheChamp]

Dlamini hinted to journalists after the meeting that MPs were unhappy with her side of the story because of "patriarchy".

Oh? thankfully no patriarchy from MP's can move you when you are loved by uBaba.

 

[Hemi300c]

Dlamini, no matter what eh, you do eh, you are going to fvk it up eh some how some way eh and it'll not be effective or cheap eh............

Useless POS.

 

[Rouxenator]

Social grants, it's like rewarding the poor and useless for being poor and useless.

 

[cool_gi]

how many pockets need to be filled before you guys sort this mess out

 

[schumi]

Treasury to review Sassa, Post Office deal points – Dlamini

Cape Town – National Treasury has agreed to review the talks leading up to the stalled deal between the South African Social Security Agency (Sassa) and the South African Post Office, MPs have heard.

Minister of Social Development Bathabile Dlamini told MPs in a question session in Parliament that Treasury had mediated between the two entities in a late-night meeting on Tuesday night.

She revealed that Treasury had now agreed to review processes leading up to the current impasse.

"Treasury has agreed to review all the processes that we have gone through," she said in response to a question from NFP MP Sheik Imam.

"Let's hope that process will come up with a positive outcome. We do want to work with the Post Office, and we have always been committed to doing that."

At the heart of the deal's collapse were disagreements on the Post Office's capacity to distribute banking services and to produce new Sassa cards.

The Post Office has said it can deliver on all four of the requested services, while Sassa's bid evaluation committee believed it could only deliver one.



Dlamini maintained that the only reason they had reached a deadlock was because the Constitutional Court directed the department to ensure the procurement process was thorough and fair.

The department was not free to simply sign an inter-government deal unless it received permission from Treasury to deviate, which it had given in July.

Dlamini, Sassa and the Post Office are due before a joint meeting in Parliament at 18:00 on Wednesday, to report back on progress made since their last appearance on Tuesday.

They agreed on Tuesday to "work through the night" to try to find common ground on the deal.



News24
http://www.news24.com/SouthAfrica/N...assa-post-office-deal-points-dlamini-20171101

 

[Sl8er]

"Let's hope that process will come up with a positive outcome. We do want to work with the Post Office, and we have always been committed to doing that."

Lies.

 

[cr@zydude]

Social grants, it's like rewarding the poor and useless for being poor and useless.

Yeah, because anyone who isn't rich is too lazy or stupid to be rich.

We should tax the poor out of existence.

On topic, I'm glad that Parliament is finally forcing Social Development to get a payment plan in place.

 

[Rouxenator]

Yeah, because anyone who isn't rich is too lazy or stupid to be rich.

We should tax the poor out of existence.

Exactly, or at least neuter them. They are breeding way too fast.

 

[diesel]

"Sassa has been hard at work under the leadership of the department of social development and the minister of social development in trying to find the best solution for the payment of social grants," the department said in a statement.

More like "Sassa has been hard at work finding reasons not to appoint the post office but rather appointing it to a Zupta friendly organisation.

 

[cr@zydude]

Exactly, or at least neuter them. They are breeding way too fast.

Sarcasm fonts don't work on my phone. Now I'm confused about whether you think I was serious.

 

[Acid0]

So once again the PO is good for everything except doing their own work delivering post ....

 

[RedViking]

This is gonna be fun.

 

[Rouxenator]

Sarcasm fonts don't work on my phone. Now I'm confused about whether you think I was serious.

I know you were being sarcastic.

I was day dreaming. But serious.

 

[ɹǝuuᴉM]

Dlamini, no matter what eh, you do eh, you are going to fvk it up eh some how some way eh and it'll not be effective or cheap eh............

Useless POS.

Hahaha

 

[schumi]

Still no Post Office, Sassa grants deal despite govt deadline

Cape Town – The South African Post Office will likely have to wait until next week before an official agreement – which was due on Friday – to assist with the state's social grants scheme can be reached with the South African Social Security Agency (Sassa).

Cabinet's inter-ministerial committee (IMC) on social security had to step in to "resolve" a deadlock between the two entities last week, after they failed to sign an inter-government agreement following months of negotiations.

Sassa has until March 31, 2018, to find an alternate service provider for the scheme, and successfully migrate the system from invalid incumbent Cash Paymaster Services (CPS).

The IMC directed Sassa and the Post Office to come to some kind of agreement by Friday, November 17. A negotiation team chaired by the department of planning, monitoring and evaluation would oversee the latest round of protracted talks.

The department's communications head, Mmabatho Ramompi, on Friday said there was no progress to report yet, with a proposed announcement now only expected "some time next week".

"The technical teams have been working around the clock. As soon as we know something we will announce it," she told News24 on Friday.

Out of time

There is no guarantee the two entities will reach an agreement on three outstanding services still required by Sassa. The IMC had only decided to fast-track the building of an integrated IT payment system, which the Post Office was awarded.

The other three services that still need service providers are: banking functions, card body production and cash distribution of grants at outlets.

A Treasury report last week revealed that both Sassa and the Post Office no longer have enough time or resources to take over the scheme in its entirety by the deadline.

It was also damning of Sassa's handling of the negotiations with the Post Office, saying the request for a proposal was "biased".

There was also no longer enough time to issue new tenders and find new service providers for the other services before the deadline, the report warned.

Minister in the Presidency Jeff Radebe told MPs last week that as a contingency, the IMC would meet with commercial banks to see if they could come on board too.

MPs in both the Portfolio Committee on Social Development and the Standing Committee on Public Accounts have accused officials of deliberately engineering a crisis so that the CPS contract can be extended.
The IMC will be meeting with the two committees on Tuesday to update them on progress made.Seven-and-a-half months have now gone by and Sassa is no closer to finding a solution for the social grants conundrum. Just over four months remain until the deadline.

The Constitutional Court last week warned that it wanted a full migration plan from the agency by December 8.

The DA on Friday said it would write to Portfolio Committee on Social Development chairperson Rose Capa requesting that Sassa table the full deal in Parliament as soon as it is reached.

News24
https://www.news24.com/SouthAfrica/...sa-grants-deal-despite-govt-deadline-20171117