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| Version 1 | Version 2 |
|---|---|
| Sassa crisis: SA court averts welfare payments crisis | Sassa crisis: SA court averts welfare payments crisis |
| (about 2 hours later) | |
| South Africa's constitutional court has averted a crisis on welfare payments to 17 million people by extending the contract of the processing company by one year. | South Africa's constitutional court has averted a crisis on welfare payments to 17 million people by extending the contract of the processing company by one year. |
| The court had ruled in 2014 that Cash Paymaster Services (CPS) was awarded the contract unlawfully. | The court had ruled in 2014 that Cash Paymaster Services (CPS) was awarded the contract unlawfully. |
| The state had failed to clarify how the payments would be handled after CPS's contract ends on 31 March. | The state had failed to clarify how the payments would be handled after CPS's contract ends on 31 March. |
| One in three South Africans depend on these payments. | One in three South Africans depend on these payments. |
| Minister Bathabile Dlamini, who is in charge of the state's Social Security Agency (Sassa), has been facing growing calls to resign over how she has handled the crisis. | Minister Bathabile Dlamini, who is in charge of the state's Social Security Agency (Sassa), has been facing growing calls to resign over how she has handled the crisis. |
| The court ruled that Sacca and CPS are under a constitutional obligation to ensure that payments are processed at the beginning of April. | The court ruled that Sacca and CPS are under a constitutional obligation to ensure that payments are processed at the beginning of April. |
| Analysis by Milton Nkosi, BBC News, Johannesburg | |
| Welfare payments are a social safety net - one of the biggest in Africa - and among the proudest achievements in the 23 years the African National Congress (ANC) has governed South Africa, since the end of white minority rule. | |
| Beneficiaries usually stand in long queues in townships and villages across the country to receive their grants. | |
| Today's judgement requires Development Minister Bathobile Dlamini and Sassa to report their progress in finding a replacement for CPS. | |
| This raises the question - who is in charge of cabinet if a minister has to report to a court? | |
| Not only is this an indictment of the embarrassed and apologetic Ms Dlamini but also her boss President Jacob Zuma. | |
| In figures: South Africa's social grants | In figures: South Africa's social grants |