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Govt reads riot act to E Cape pension companies

17th January 2003

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Several Eastern Cape companies, tasked with disbursing social grants in the province, have been ordered to get their acts together by improving on their service delivery or risk losing their contracts.

The agencies, which have been partly blamed for delays, shoddy services and the poor treatment of pensioners during pension payments came under the spotlight recently, with many calling for the termination of their contracts.

The harsh stance by authorities follows an investigative tour by a two-man team to the troubled Eastern Cape province to collect information on the problems relating to the slow or non-distribution of pension payouts.

The two Pretoria based social development managers, who were sent by minister Zola Skweyiya on a fact-finding mission to the Eastern Cape, met with senior provincial managers and top managers of the disbursing companies Cash Payment Services yesterday.

Some of the problems identified were the changing of payment dates without proper consultation and communication between the companies and the provincial department, poor client care and overcrowding at pay points.

Other serious problems included the frequent breaking down of equipment used by the companies to pay pensions and the non-provision of shelter and first aid kits at pay-points.

The findings were highlighted in a preliminary report from senior officials of the department of social service, which has since been handed to minister Skweyiya.

An unhappy minister said in a strongly worded statement today that government would not be party to any situation where the constitutional and human rights of the vulnerable in society, namely the elderly, people with disabilities and children were violated through poor service delivery.

‘One wonders whether these companies are only interested in maximising their profits rather than providing better quality services to the needy as required in their contractual obligations,’ said the Cape Town born minister.

He however called for drastic measures to be taken against those found to be responsible for what he said was ‘on-going chaos in the payment of pensions in the Eastern Cape.’ Meanwhile, minister Skweyiya, who has since called for the re-evaluation of the situation countrywide, is expected to study the report and pronounce early next week some drastic measures that will be taken in the short, medium and long term, to resolve the situation – BuaNews.

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