Public debate around a Universal Basic Income Grant has focused on fierce disagreements about its economic benefits, whether it is financially feasible for South Africa , and if so, what the value of the grant should be. As UBIG campaigning takes centre stage in the 2024 elections, Open Secrets asks an equally important but often overlooked question: who will administer the payment of those grants?
The more common global practice is a basic income grant that is not universal, but that is paid to all people who fall below a certain income level. This is the current practice in, the first country in the world to have a law requiring the progressive implementation of a UBIG, and where the current basic income grant benefits over 50 million people.
Another argument is that a UBIG will create a reliance on state provided grants and lower the incentive to look for work. However, in places where a basic income grant has been introduced - including Namibia and Kenya - the opposite has occurred. The grant has helped people look for jobs or earn income through self-employment. In turn, this has contributed to local economies.
Another important omission from these party promises is any analysis of who will be responsible for administering the payments of grants to recipients. Recent events have shown that the current grant payments system is in crisis, yet no political party's manifesto mentions a way to address it.that the South African Social Security Agency had 'ceded' its contract with the South African Post Office to Postbank.
The so-called"glitches" were exacerbated by Postbank's transition from a biometric system to a PIN system. Postbank's system was also the target of fraud and cybercrime attacks, and irregular expenditure at the institution accounted for aof R118-million in November 2022. But despite this track record of poor governance, government insists on turning Postbank into a fully-fledged state bank.
Whether at Postbank or SASSA, there has been little accountability regarding these issues. Grant applicants and recipients are regularly left in the dark by SASSA and the DSD, and are forced to approach civil society groups like #PaytheGrants and Black Sash for assistance. There is still no clear explanation of why Postbank was selected by SASSA and SAPO to administer grant payments, given its reputation of being unable to manage the technical constraints and challenges of its internal systems.
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