Johannesburg - The head of South Africa’s welfare agency
defended his decision to initiate talks with the Post Office as a contingency
plan in case a contract to distribute grants with Cash Paymaster Services, a
unit of Net 1 UEPS Technologies, couldn’t be extended by the deadline next
month.
“In terms of the law, I am allowed to negotiate with
other government agencies. I have not done anything wrong,” Thokozani Magwaza,
the chief executive officer of the South African Social Security Agency, said
by phone on Tuesday. “As a CEO, I have to have a back-up plan in case something
were to go wrong with the CPS contract.”
While the Constitutional Court ruled four years ago that
the Net 1 contract was invalid because of the way it was awarded, the company
has continued paying the grants after Sassa failed to appoint a replacement.
The agency intends to conclude a new contract with Net 1 because no one else is
capable of stepping in at short notice, Zodwa Mvulane, an official at the
welfare agency, told lawmakers. Negotiations on the terms will begin Wednesday,
she said.
Read also: Grants will be paid, Sassa promises
Magwaza said he was on sick leave, refuting a report by
the Johannesburg-based Star newspaper that cited the Department of Social
Development spokesman Lumka Oliphant as saying he had been suspended pending an
investigation into allegations he sought to get the Post Office to distribute
grants when the Net 1 contract expires. That would have been in conflict with
the department’s plans.
“I am aware of no investigation,” Magwaza said. “The
minister has not said anything to me on this issue. If I’m being investigated I
should be told and if I’m suspended in terms of the labour act I should be told
about that and nothing like that has happened. I’m just seeing it in the
newspapers.”
Oliphant didn’t immediately respond to calls and text
messages seeking comment.