ConCourt must keep an eye on Sassa/CPS deal - Black Sash

2017-03-06 14:40


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cape Town - The Black Sash will ask the Constitutional Court to oversee the Sassa grant payments system when the court hears its application regarding the proposed extension of Cash Paymaster Services' (CPS) contract, the organisation said on Monday.

"It would seem that Parliament has failed the poorest and most vulnerable South Africans," the organisation said in a statement.

"We are now left with no option but to appeal to the highest court in the land."

The Black Sash wants the Constitutional Court to resume its oversight of the processes around the payment of the grants, after the Social Development Minister Bathabile Dlamini provided scant details on the proposed extension of the contract to CPS to pay SA Social Security Agency grants.

Explaining the background, Black Sash said Sassa had contracted CPS in 2012 to make the grant payments on government's behalf, but in 2013 the Constitutional Court had declared that contract invalid.

READ: Sassa's 3 phase plan to take over grant payments

Revised CPS contract

The order of invalidity was suspended in April 2014 and, on November 5, 2015, Sassa told the Constitutional Court that it would not award a new contract.

Instead, it would take over the grant payments from April 1, 2017, when the suspension of invalidity would lapse. After that, the Constitutional Court ended its "supervisory" role in the matter.

However, Sassa is not ready to take over the grant payments and it has apparently entered into a revised or new contract with CPS to make sure everybody is paid on April 1. It also has a "three-phase plan" to phase out CPS, which could take years.

Black Sash said Finance Minister Pravin Gordhan had stated that an extended or new contract with CPS would be unlawful and uncompetitive, because it deviates from procurement processes.

He would not sanction it unless the Constitutional Court approved it.

Sassa announced that it would approach the court to have the new arrangement approved, but has since withdrawn the application.

It said it would just report to the Constitutional Court before the end of March on what it had done.

The Black Sash lodged an urgent application with the Constitutional Court so that it could have oversight of the new agreement before it is a "fait accompli".

The matter is expected to be heard in Johannesburg on March 15.

Read more on:    sassa  |  black sash  |  judiciary  |  social grants

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Partner Content
What all investors should know about index investing

Index-linked investments are growing fast in popularity globally, and are growing in size and complexity too.

Partner Content
How data is changing investments

Technological disruption is rife in many spheres of business and given the quantity of data available, it’s no surprise that the way in which asset managers work is also changing fast.


7 weirdly awesome pets you can own

If you think it’s too boring to own a cat or a dog, consider getting one of these pets.



Pack theory: fact or fiction?
Perfect dog-walking 1: Why dogs pull on the lead
SA stats: The role of pets in families
The top 6 poisonous foods for your pet
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.