Sassa, Net1 agree to new contract terms

Cape Town – Net1 UEPS subsidiary Cash Paymaster Services (CPS) and the South African Social Security Agency (Sassa) agreed to the terms of a new two-year contract, but these terms have to be agreed to by National Treasury, a report reveals.

Net1 CEO Serge Belamant “would not provide details but said the fee charged each month for each of the approximately 11 million recipients would be considerably below the R25 mentioned in the media”, Business Day reported on Monday.

Social Development Minister Bathabile Dlamini on Sunday said she plans to bring in a new welfare system over the next two years as calls for her resignation mounted, with an interruption to payments to more than 17 million people threatened next month.

However, the minister said government is yet to sign the interim contract with CPS to ensure the payments continue next month after the existing contract expires payments will be made.