ConCourt gives CPS another year to pay grants

By Drum Digital
17 March 2017

The Constitutional Court has thrown a lifeline to The Department of Social Development and grant beneficiaries and allayed fears that welfare grants would not be paid on 1 April.

On Friday, the Court ordered Cash Paymaster Services (CPS) to continue paying welfare grants for another year.

The ConCourt also granted Minister Bathabile Dlamini a “stay of execution” over her handling of the matter.

Social Development Minister, Bathabile Dlamini, and the South African Social Security Agency (Sassa) have been ordered to submit reports every three months on the progress of the new contract.

Dlamini received scathing remarks from Justice Johan Froneman for creating an “unnecessary crisis” and her credibility questioned.

Froneman said while the court’s power permitted the extension of the contract, it did not resolve the issue that the contract was awarded illegally.

The contract between Sassa and CSP was declared illegal in 2014; however, the contract continued, to avoid a situation such as the impending social grant crisis.

Dlamini has been given another year to put her house in order and find another solution to pay welfare grants after the 12-month contract with CPS comes to an end.

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