ConCourt: social grant tender invalid

The ConCourt ruled a R10 billion tender awarded for payment of social grants is invalid.

The Constitutional Court has ruled a R10 billion tender awarded for payment of social grants is invalid. Picture: EWN.

JOHANNESBURG - The Constitutional Court has ruled a R10 billion tender awarded to Cash Paymaster Services (CPS) to pay out social grants is invalid.

A rival bidder AllPay challenged the tender saying that it was flawed.

But the court has ruled Cash Paymaster Services must keep administering the system for now so that grant payments are not affected.

In a unanimous judgment, the Constitutional Court found that the tender awarded to CPS is invalid.

But the court decided to set aside the awarding of the tender because it is worried that the social grant payments could be disrupted.

Judges have suspended the invalidity to give anyone affected time to come up with a proper solution to the problem.

This means for now CPS can continue to make the payments.

The company currently processes payments to around 15 million people in South Africa every month after winning a five-year contract.

The Constitutional Court will hear from the parties again in February.