Dlamini sought to thwart Net1 welfare alternatives: Dangor

File picture: David Ritchie/Independent Media

File picture: David Ritchie/Independent Media

Published Apr 11, 2017

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Johannesburg - South African Social Development Minister

Bathabile Dlamini bypassed officials at the country’s welfare department and

helped create a crisis that would ensure that Net1 UEPS Technologies would

continue to distribute payments on behalf of the government, her former director-general

said.

The minister created a parallel structure where so-called

work streams headed by officials other than executives at the department

advised her on how to comply with a 2014 Constitutional Court Order that a new

distributor be found after Net1’s contract was declared invalid, former

Director-General Zane Dangor said in a court affidavit. On March 17 the court

ordered Net1’s Cash Paymaster Services unit, whose contract expired at the end

of March, to continue making the payments for another year because the ministry

hadn’t come up with an alternative.

Read also:  Net1 inks addendum with Sassa

“The parallel decision-making structures in the form of

the work streams may have been deliberate to ensure a continued relationship

with CPS under conditions favourable to CPS, through a self-created emergency,”

he said. The affidavit was filed in response to a submission by the minister

that she was not liable to personally pay legal costs because the welfare

department and its CEO, Thokozani Magwaza, had been to

blame for the crisis.

The court made its March ruling after human rights group

The Black Sash Trust applied to it with the aim of ensuring grants were paid

legally to more than 17 million people after the end of March and that any

relationship between the welfare department and the Net1 unit would be

supervised by the court.

Dangor included a copy of his March 3 resignation letter

in which he said he had been accused of racism and sexism by the minister by

mobile phone text message and had been belittled by her in front of staff at

the welfare department.

Dlamini has fired her special adviser, the

Johannesburg-based Daily Maverick news website reported on Tuesday.

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