Allan Gray signals Net1 shareholder revolt over South Africa grants debacle

President Jacob Zuma

In this regard, I particularly welcome the requirement of the Constitutional Court that she report to it every three months.

Cape Town - President Jacob Zuma on Saturday announced that he will lead the Inter-Ministerial Committee (IMC) on social security, which is focusing on grant reforms.

The fact that it has come to this underlines the moral bankruptcy of the Zuma regime, the blind misplaced loyalty of the ruling tripartite alliance to the minister, the failure of the executive to fulfil its responsibilities, and the inability of Parliament to hold the government accountable.

In a long-awaited ruling, the Constitutional Court extended the contract between the state social security agency (Sassa) and the private company Cash Paymaster Services (SPC), which it is subcontracted for the payment of the aid, for one year.

Net1 and CPS on Thursday expressed concern at government comments that they had acted arrogantly.

She went on to say: "I think there must be an understanding that there are people who get very sick in their lifetime and when they get better they say that God has given them a second life".

The court gave Dlamini until March 31 to show why she should not pay the costs of the case from her own pocket.

"The declaration of invalidity of the contract is suspended for twelve months from 1 April 2017", said Judge Johan Froneman in reading the Court's judgment, stating that the payment of social benefits was a "constitutional obligation".

National Freedom Party MP Sicelo Mabika will ask if Zuma meant to appoint Molefe to an executive position given his implication in matters discussed in the Public Protector's State of Capture report.

But his stance jarred with the tone of the ANC, which in a statement called for an investigation and action "against those responsible for this embarrassing and undesirable situation".

Zuma's remarks fly in the face of remarks made by Chief Justice Mogoeng Mogoeng this week, where he described the current grants crisis in the country a result of "absolute incompetence" on the part of Dlamini and the department of social development.

The welfare scandal threatened to instigate a shareholder revolt with investment firm Allan Gray saying could call a meeting for the removal of the board over the service provider's handling of the crisis.

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