Social grant tender invalid - ConCourt

2013-11-29 15:55
(Picture: Sapa)

(Picture: Sapa)

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

Bloemfontein - The Constitutional Court on Friday ruled that the awarding of the multi-billion rand social grants administration contract to Cash Paymaster Services (CPS) is invalid.

AllPay Consolidated Investment Holdings took the matter to the country's highest court after it lost the tender to CPS.

The tender, worth R10bn, for the administration of social grants, was awarded by the SA Social Security Agency (Sassa).

AllPay initially approached the high court alleging there had been irregularities in the tender process. The high court found the tender process had not complied with the requirements set out in the tender documents and was procedurally unfair.

It declared the process invalid, but declined to set the tender aside because it would disrupt the payment of social grants.

AllPay appealed to the Supreme Court of Appeal (SCA), which overturned the high court's order. The SCA said a fair process did not demand perfection at every step and a tender need not be set aside for "inconsequential irregularities".

On this basis it concluded that the award of the tender to CPS was not unfair.

AllPay then approached the Constitutional Court which, in a unanimous judgment, upheld the appeal.

It found the assessment of the fairness and lawfulness of the procurement procedure had to be independent of the outcome of the tender process and assessed in terms of the provisions of the Promotion of Administrative Justice Act.

The court found Sassa had failed to give due regard to the importance of black economic empowerment in procurement.

Sassa had an obligation to investigate and confirm the empowerment credentials of the bidders before the award.

The Constitutional Court thus declared the decision to award the tender to CPS constitutionally invalid.

However, due to the serious disruption which could be caused to the payment of social grants if the tender were set aside, it made no decision on whether to do so.

The court suspended the declaration of invalidity pending the determination of a just and equitable remedy.

A further hearing to decide the remedy was scheduled for 11 February.

Read more on:    sassa  |  sca  |  allpay  |  johannesburg  |  tender

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.
NEXT ON NEWS24X 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

Competition regulation for a growing and inclusive economy

ADVERTORIAL: The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.


WATCH: Man films himself going down water slide upside down as things go very wrong…

What is at first an exciting tummy-turning adventure stunt, quickly turns into a scarily bad idea caught on camera. Take a look:


You won't want to miss...

WATCH: Conor McGregor: Notorious the trailer
Best date night restaurants in South Africa
WATCH: Ryan Reynolds offers fans a free tattoo in new Deadpool 2 teaser
Should you date your co-worker?
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.