READ: ConCourt's conditions for the extension of CPS contract

The original CPS contract comes to an end this month. The contract was declared constitutionally invalid by the ConCourt in 2013. 

In 2015 - SASSA told the court it would no longer put a new contract out to tender - but will instead be ready by the first of April to make the payment of grants itself.

SASSA has since said it won't be able to process payments next month.

In handing down judgement at the Constitutional Court this morning, Justice Johan Froneman said the renewal of the CPS contract by a further 12 months would be done so, only in accordance with the following orders:

1) The Black Sash Trust is granted direct access to bring this application.

2) Freedom Under Law MPC is granted leave to intervene.

3) Corruption Watch and the SA Post Office SOC Ltd are admitted as friends of the court.

4) It is declared that SASSA and CPS are under a constitutional obligation to ensure payment of social grants to grant beneficiaries from 1 April, 2017 until an entity other than CPS is able to do so, and that a failure to do so will infringe upon grant beneficiaries rights of access to social assistance under section 27.1c of the Constitution.

5) The declaration of the invalidity of the contract is further suspended for the contract from 1 April, 2017.

6) SASSA and CPS are directed to ensure payment of social grants to grant beneficiaries from 1 April, 2017, for a period of 12 months - on the same terms and conditions as those on the current contract between them that would have expired on 31 March, 2017, subject to these further conditions:

• 6.1) The terms and conditions shall a) contain adequate safeguards to ensure that personal data obtained in the payment process remains private, and may not be used for any purpose other than payment of the grants or any other purpose sanctioned by the minister in terms of sections 20 sub 3 and sub 4 of the Social Assistance Act 13 of 2004, and b) preclude anyone from inviting beneficiaries to "opt in" to the sharing on confidential information for the marketing of goods and services;
  
• 6.2) CPS may in writing request National Treasury during the 12 month period to investigate and make a recommendation regarding the price in the contract;
  
• 6.3) National Treasury must file a report with this court within 21 days of receipt of the request, setting out its recommendation;
  
• 6.4) Within 30 days of completion of the period of the contract, CPS must file with this court an audited statement of the expenses incurred, the income received, and the net profit earned under the contract;
  
• 6.5) SASSA must thereafter obtain an independent audited verification of the details provided by CPS under paragraph 6.3;
  
• 6.6) The audit verification must be approved by National Treasury, and the audited verification must be filed by SASSA with this court within 60 days;
  
• 6.7) CPS must permit the auditors appointed by SASSA to have unfettered access to its financial information for this purpose.

7) The minister and SASSA must file reports on affidavit with this court every three months - commencing on the date of this order - setting out how they plan to ensure the payment of social grants after the expiry of the 12 month period; what steps they have taken in that regard, what further steps they will take, and when they will take each future step - so as to ensure that the payment of all social grants is made when they fall due after the expiry of the 12 month period.

8) The reports filed by the minister and SASSA as contemplated in paragraph 7 must include but is not limited to: the applicable timeframes for the various deliverables that form part of the plan - whether the timeframes have been complied with, and if not, why that is the case and what will be done to remedy this situation.

9) If any material change arises in relation to circumstances referred to in the report in paragraph 7 or 8, the minister and SASSA are required immediately to report on affidavit to the court, and explain reason for and consequences of the change.

10) It is declared that SASSA is under a duty to ensure that the payment method it determines:

• 10.1) Contains adequate safeguards to ensure personal data obtained in the payment process remains private and may not be used for any other purpose other than the payment of the grants or any other purpose sanctioned by the minister in terms of section 20 sub 3 and 4 of the Social Assistance Act;
• 2) precludes a contracting party of inviting beneficiaries to opt into the sharing of confidential information for the marketing of goods and services. 

11) The parties are within 14 days from the date of this order, required to submit the names of individuals - with their written consent - suitably qualified for appointment as independent legal practitioners and technical experts for the purpose referred to in paragraph 12 below.

12) The Auditor General and any person or persons or institutions appointed by the court after receipt of the names submitted under paragraph 11 shall jointly and until otherwise directed by the court :

• 12.1) Evaluate the implementation of payment of social grants during the 12 month period;
  
• 12.2) Evaluate the steps envisaged or taken by SASSA for any competitive bidding process or processes aimed at the appointment by SASSA in terms of section 42a of the Social Security Agency Act of the new contractor practise for the payment for social grants;
  
• 12.3.) Evaluate the steps envisaged or taken by SASSA aimed at SASSA itself administering and paying the grants in the future, with SASSA permitting any part of the administration and payment processes in the future;
• 12.4) File reports on affidavit with this court every three months - commencing on a  date three months after the date of this order, or any shorter period as the legal practitioners and experts may deem necessary, setting out the steps they have taken to evaluate the matters referred to in paragraphs 12.1 to 12.3, the results of the evaluations, and any recommendations they consider necessary. 

13) 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.

14) Costs are reserved until conclusion of these proceedings.