The director general of the Department of Social Development has been summoned to meet with President Jacob Zuma over the looming social grants crisis.

Zane Dangor, who was appointed to the DG position in November, revealed on Wednesday during a portfolio committee meeting that he had been summoned to Pretoria and needed to be excused.

This followed the news, brought up in the committee by Democratic Alliance MP Evelyn Wilson, that Sassa had just withdrawn its application to the Constitutional Court to give it guidance on the CPS contract issue.

Dangor told journalists after the meeting that he did not have any details on the summons, only that he must fly back to Pretoria immediately.

The department always intended to file a supplementary report with a statement of intent to the court, he said.

Minister Bathabile Dlamini always supported the statement of intent report, he said in answer to a question from News24.

He added he did not know the details of why the application was withdrawn, and will consult with the department when he flies back to Pretoria.

He also said that the absence of current CEO Thokozani Magwaza has nothing to do with the botched application at the Constitutional Court.

As far as he knows, Magwaza is ill, and not suspended, as reported in the media, he told News24.

CPS negotiations have begun

Sassa meanwhile has begun new contract negotiations with Cash Paymaster Services for the distribution of 17 millions social grants, MPs heard.

Sassa executive manager for grant payments Dianne Dunkerley told the portfolio committee that negotiations began in Pretoria on Wednesday and will conclude on Friday.

The negotiation will include terms on the ownership of beneficiary data, transaction charges, among others.

"I'm not able to say anything more at this stage, but do commit to give a fuller report to the committee next week."

Dunkerley said the department committed to submitting a report to the Constitutional Court, which is currently being dealt with by lawyers, and more details will be furnished next week.

The portfolio committee expressed its dismay that information was revealed on Tuesday during a Scopa meeting that was not revealed to the portfolio committee.

Dunkerley and Dangor both said their options have not changed in that regard, and that Sassa is not ready.

Dangor said CPS, although not the most desired option, is the most practical option at the moment.

He said, if all else fails, 90% of the beneficiaries have bank accounts with Grindrod. For the other 10%, they will have to deal with Post Bank, and physical pay points to distribute cash.