Issued by: Ministry of Social Development
5 July 2002
The Minister of Social Development is dismayed to learn that payments due to social grant beneficiaries have been delayed in the Eastern Cape Province.
We have been informed that the service provider, Paragon, has failed to print cheques on time affecting about 240 000 beneficiaries of social grants.
"We apologise to affected persons unreservedly and regret that they must be the victims of this failure" said Minister Skweyiya.
We want to state that we abhor this incompetence and we will be investigating the matter fully. If the service provider is in breach of the service level agreement, then the relevant penalty clauses will be applied.
The service provider will be required to compensate beneficiaries the interest that should have accrued to them because the money is paid out later. This action would be inline with the norms and standards regulated by the National Department.
Contact persons: Fezile Makiwane 0824991347
Selwyn Jehoma 0824463185