By: Bright Ntulli
The South African Social Security Agency (SASSA) has welcomed the Constitutional Court’s ruling against Cash Paymaster Services (CPS).
The apex court has ordered CPS to pay R81.3 million to SASSA, marking a significant development in the long-running dispute over the country’s social grant payment system.
The matter relates to the nationwide payment tender that was awarded to CPS by SASSA, which was formally declared unlawful by the Constitutional Court in 2014. Despite this finding, the court allowed CPS to continue administering grant payments temporarily to ensure that millions of beneficiaries were not left without critical financial support.
SASSA spokesperson Paseka Letsatsi said the central issue before the court was whether CPS should be required to repay profits it earned under the invalid contract.
The ruling is expected to reinforce accountability in public procurement processes and underscores the court’s stance on unlawful state contracts, particularly where they involve essential public services.
