BREAKING: ConCourt extends CPS contract
The Constitutional Court has ruled that the South African Social Security Agency (SASSA) and Cash Paymaster Services (CPS) contract in the payment of social grants - will continue for another year. This now means that 17 million social grant recipients will receive payments as of April 1, 2017.
Justice Johan Froneman delivered his judgement in the controversial matter this morning - saying that in spite of the CPS contract remaining invalid, the matter necessitated the extension of the contract by an additional 12 months. The original CPS contract comes to an end as of 31 March, 2017.
"Our order reflects to SASSA and CPS should continue to fulfill their respective constitutional obligations in the payment of social grants for a period of 12 months as an extension of the current contract. To the extent necessary, our earlier declaration of invalidity of that contract must be further extended," said Froneman.
Froneman said the sole reason for the litigation was a result ofboth SASSA and Social Development Minister Bathabile Dlamini's failures to keep their promise to the people of South Africa - with regard to the distribution and payments of social grants.
The court also ordered CPS to provide a detailed account of its finances every three months, adding that SASSA must appoint auditors to evaluate the service provider's finances.
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Froneman also lambasted Minister Dlamini for her role in the social grants crisis - adding that she now bears the responsibility of ensuring that SASSA fulfills its function. He also gave her until next Friday to make representations as to why the costs of the court application should not be paid out of her own pocket.
"The minister is called upon to show cause on affidavit on or before Friday, 31 March 2017 why 1) she should not be joined in her personal capacity, and 2) she should not pay costs of the application from her own pocket," he said.
Human rights group, Black Sash, approached the Constitutional Court earlier this month - with an urgent application for the court to play an oversight role in the grant payments deal.