This is the latest development in the department amid growing calls for minister Bathabile Dlamini to be fired, eNCA reported.
"The political fallout from... Dlamini and the [South Africa Social Security Agency] Sassa's spectacular bungling in relation to the payout of 17 million social grants when the contract with its current service provider Cash Paymaster Services (CPS) comes to an end on March 31 has begun. On Friday, the department’s director general Zane Dangor tendered his resignation," the Daily Maverick reported.
"It had become increasingly clear at presentations to Parliament's portfolio committees on social development and public accounts that Dangor and Sassa CEO Thokozani Magwaza have been sidelined and kept out of what appears to be a closed loop with regard to the agency's readiness to act as paymaster for social grants as well as backroom negotiations that have been taking place with CPS," the Daily Maverick said.
In 2014, the Constitutional Court ruled that Sassa's contract with CPS was invalid because the tender process was flawed.
Dangor said he had resigned because of a "complete breakdown in relationship between him and the minister over the payment of social grants and the legal requirements obliged by Sassa", eNCA reported.
In a terse statement late on Friday night, the social development department said Sassa and CPS had "reached an agreement after they were locked up in intense negotiations for three days".
Dlamini would announce the "nature of this agreement soon. Details of the announcement will be communicated in due course", the brief statement said.