CPS contract extended by further 6 months
The Constitutional Court has extended the contract between the South African Social Security Agency (SASSA) and Cash Paymaster Services (CPS) to pay social grants for a further six months.
Justice Leona Theron said the ruling only extends to cash payments made to approximately 2.8 million beneficiaries living in rural areas.
Advocacy group Black Sash, which fought a lengthly court battle to have the CPS contract declared invalid, has welcomed the judgement.
"We are glad those category of people will be paid as it is affecting about 2.8 million people mostly living in rural areas", says Lynnette Maart.
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She says the contract's terms and conditions will remain the same, with beneficiaries charged R16.44 per month.
"If CPS wants to make a case then they will have to write to National Treasury to argue the price," Maart says.
Last year, SASSA put out a tender for to take over the social grants system but by end of February that tender was not yet closed as bidders were still making submissions.
This means that SASSA would not have been able to meet the 1 April deadline for a new contract to be awarded.
The judgement also ordered former Social Development Minister Bathabile Dlamini and acting SASSA CEO Pearl Bhengu to explain why they should not be personally held liable for the legal costs.