CPS should not make any profit from new grants contract: Freedom Under Law

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CPS should not make any profit from new grants contract: Freedom Under Law

Nomahlubi Jordaan | 2017-03-15 17:26:09.0

CPS Chief Executive Officer Serge Belamant

Image by: KEVIN SUTHERLAND / SUNDAY TIMES

The assertion by Cash Paymaster Services (CPS) that it will behave “reasonably” when in a new contract with the SA Social Security Agency (Sassa)‚ is vague‚ Freedom Under Law (FUL) told the Constitutional Court on Wednesday afternoon.

“CPS wants a criterion of reasonableness. That is a vague criterion in respect for purposes of trying to work out the price [ CPS will be charging in its new contract]‚” said FUL’s lawyer David Unterhalter.

FUL wants to be admitted as a friend of the court in the Black Sash application and Unterhalter reiterated his earlier argument that CPS should not make a profit from the contract of distributing social grants.

“We submit that the no benefit rule is the right rule. CPS must not profit from the contract‚” Unterhalter argued.

The Constitutional Court reserved judgment in the matter. Rights group Black Sash earlier on Wednesday asked the court to play an oversight role in the payment of social grants in South Africa. Sassa and Social Development Minister Bathabile Dlamini do not oppose the relief sought by Black Sash.

The court had in 2014 declared the five-year Sassa contract with CPS‚ signed in 2012‚ invalid due to tender irregularities. However‚ the court allowed CPS to continue administering the grants‚ while Sassa devised an in-house payment system‚ something it subsequently failed to do.

TMG Digital



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