The African National Congress (ANC) in Parliament's Standing Committee on Public Accounts (Scopa) is "very concerned" by the South African Social Security Agency's (Sassa's) apparent lack of a plan to take over payment of social grants.

"The report tabled by Sassa showed no indication of any strategic plan by the agency to ensure that they will be ready to take over the payment of social grants at the end of the current extended contract with CPS," ANC study group chairperson Nyami Booi said in a statement on Tuesday, after Sassa briefed the Standing Committee on Public Accounts.

This was "highly disturbing" he said, after the Constitutional Court ruled on March 17 that the contract between Sassa and Cash Paymaster Services (CPS) to pay grants be extended for another 12 months.

Booi said they were concerned by Sassa's slow progress and again called on Sassa to speedily facilitate the takeover of social grant payments from CPS.

R6bn needed?

Sassa CEO Thokozani Magwaza told Scopa on Tuesday that he did not know how Social Development Minister Bathabile Dlamini determined that it would cost Sassa R6-billion to take over payment of social grants.

Dlamini told the portfolio committee on social development last week that Sassa needed R6-billion and five years to take over the scheme, as the Constitutional Court had ordered.

MPs wanted Magwaza to discuss these differences with Dlamini.

Scopa chairperson Themba Godi, however, shielded him from answering, saying it could make his work conditions untenable if he went against his political principal.

Magwaza said he believed the process could take two to three years.

"I think it can happen before, but if there are hiccups, we have set ourselves a period of five years."

Magwaza and project leader Zodwa Mvulane told MPs that Sassa was meeting SA Post Office officials on Wednesday to discuss where it could help take over the social grants scheme.

Booi said this was encouraging.

MPs said they were concerned about the "lack of urgency" in the Post Office talks. Two months had gone by, leaving 10 more months to phase out CPS.

Magwaza said he could send the committee a report once the talks were held, and asked for two weeks to reply.