(Bloomberg) -- South African Social Development Minister Bathabile Dlamini was adamant that Net1 UEPS Technologies Inc.'s Cash Paymaster Services be used to distribute welfare grants and failed to consider other options, according to Thokozani Magwaza, chief executive officer of the South African Social Security Agency.
This contradicts Dlamini's filing to the court that she did consider alternatives, Magwaza said in an affidavit filed with the Constitutional Court on Friday.
“The minister states that she engaged with Sassa on possible options and interim arrangements and concluded that CPS was a least risky option,” Magwaza said. “There is no record of the minister engaging with Sassa to consider available options.”
Magwaza responded to information contained in a court submission made by Dlamini after a March 17 ruling that castigated Sassa and the minister for their failure to adhere to a 2014 court ruling on the validity of a welfare distribution contract with Net1.
Dlamini told him she would sort out plans for future grant payments and he must focus on the day-to-day operations of the welfare agency, Magwaza said.
“Since July 2015, the minister understood the issues, was in control of the process and knew or ought to have known of all developments in this important matters and process,” he said.
To contact the reporters on this story: Rene Vollgraaff in Johannesburg at rvollgraaff@bloomberg.net, Kevin Crowley in Johannesburg at kcrowley1@bloomberg.net.
To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Karl Maier, Liezel Hill
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