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CPS claims Sassa owes it over R1bn for breach of contract

CPS says Sassa breached contracts in five provinces that were sealed in 2009 when it moved beneficiaries from receiving their grants at CPS pay points to commercial banks.

FILE: Picture: Supplied.

CAPE TOWN - As the South African Social Security Agency (Sassa) looks to phase out its controversial contract with Cash Paymaster Services (CPS) for the payment of social grants by the end of March, another battle is looming.

CPS is claiming Sassa owes it more than a billion rand for breach of contract.

But Sassa is digging in its heels and says it won’t pay the claim.

CPS says Sassa breached contracts in five provinces that were sealed in 2009 when it moved beneficiaries from receiving their grants at CPS pay points to commercial banks.

CPS has paid for each beneficiary to whom it disburses a grant.

Initially, the company said it was owed R1.3 billion, but after claims were withdrawn in the Eastern Cape, KwaZulu-Natal and the Northern Cape, the amount decreased to just under R800 million.

Sassa Spokesperson Moabi Pitsi says: “It is Sassa’s view that we are preferring the withdrawal of each matter without any further payment.”

Sassa has already paid CPS R35 million in settlement of claims in the North West.

(Edited by Zamangwane Shange)

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