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CPS: It’s now up to Sassa to close the deal

It emerged over the weekend that no deal has been signed between CPS and Sassa as details are still being negotiated.

FILE: A Sassa card. Picture: Supplied.

JOHANNESBURG - Cash Paymaster Services (CPS) says it will be finalising the conditions of its contract with its lawyers on Monday and it will then be up to South Africa Social Security Agency (Sassa) to close the deal.

It emerged over the weekend that no deal has been signed between CPS and Sassa as details are still being negotiated.

The current invalid contract between government and the service provider expires at the end of March, leaving uncertainty around whether 17 million South Africans will receive their social grants.

CPS’s Serge Belamant says as far as he knows, the only thing preventing a deal from being finalised between his firm and Sassa is a legal agreement signed by both parties.

“It takes them a little bit of time to do this and then typically, you’ve got to go through the agreement term by term to ensure that the attorney has not tried to be too smart and maybe written the terms in a way that it was never intended.”

He says while government is considering other channels, including the Post Office to distribute grants, CPS is by far the best option.

“They cannot provide the solution that we’re currently providing, regardless of what it is they are guaranteed. They would have to issue 10 million cards and just that issue would probably take a year and a half.”

Belamant says the service provider has made it clear that it is in a position to pay out grants and the ball is now in Sassa’s court.