We saved government R3bn per year – Cash Paymaster Services

2014-05-11 06:00

The new tender process for the distribution of social grants will take at least eighteen months to complete, Net1 CEO Serge Belamant has said.

The technology company released its third-quarter results on Friday and, in a conference call with investors, Belamant said even the 18-month estimate was “being optimistic because it will probably take longer than that”.

In April, the Constitutional Court ordered the South African Social Security Agency (Sassa) to reopen the tender and appoint new members to its adjudication committee, concluding a two-year legal battle between Net1 subsidiary Cash Paymaster Services (CPS) and Absa subsidiary AllPay.

AllPay took CPS to court after Sassa had awarded CPS the five-year R10 billion welfare tender to distribute social grants to 15 million beneficiaries, and alleged foul play.

CPS is also being investigated by the US Department of Justice under the Foreign Corrupt Practices Act but Belamant said it had received no update regarding the case.

Both CPS and AllPay have said they would bid in the new tender process.

Belamant said Sassa would probably engage outside specialists to avoid repeating mistakes.

He said people misunderstood the court ruling and expected Sassa to initiate a new tender process soon, but he said Sassa first had to formulate exactly what it wanted out of the new tender and said this could take up to twelve months. He also said if it didn’t win the tender, there would be a phase-out period and “during all of this we will still be the people running the tender”.

Belamant also claimed that CPS had managed to save the government in excess of R3 billion per annum with the removal of more than a million beneficiaries.

Not being put off by doing business with government, Belamant said the technology company would remain an integral supplier to the South African government, despite the controversy around its 2011 welfare tender.

Join the conversation!

24.com 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.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

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 24.com 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.