BREAKING: CPS contract with SASSA to be extended

BREAKING: CPS contract with SASSA to be extended

The Constitutional Court has ruled that the contract between the South African Social Security Agency (SASSA) and Cash Paymaster Services (CPS) be extended by 12 months.

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Photo: Facebook, Sassa News

The contract will be extended to allow payment of 17 million social grants on 1 April 2017.

"This court and the whole country are now confronted with a situation where the executive arm of government admits that it is not able to fulfil its constitutional and statutory obligations to provide for the social assistance of its people. And in the deepest and most shaming of ironies, it now seeks to rely on a private corporate entity to get it out of this predicament," said Justice Coenraad Froneman.

The court ruled that the application by non-governmental organisation, Black Sash is granted and that it will intervene in the monthly payment of SASSA social grants. 

"SASSA and CPS should continue to fulfil their respective constitutional obligations in the payment of social grants for a period of 12 months as an extension of the current contract. To the extent necessary, our earlier declaration of invalidity of that contract must be further extended. In the event that CPS wishes to alter the content of its financial obligations, the order makes provision for it to approach National Treasury for its consideration and approval," said Froneman. 

Froneman also said the court has ordered Social Development Minister Bathabile Dlamini to show cause why she shouldn't be held personally liable for expenses incurred in the Constitutional Court application.

"The minister is called upon to show cause on affidavit on or before Friday, 31 March 2017 why 1.) she should not be joined in her personal capacity, and 2.) she should not pay costs of the application from her own pocket," said Froneman.

Maryke Vermaak reports.

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