Sassa: CPS claim won't affect phasing out of grant payment contract

The South African Social Security Agency (Sassa) is digging in its heels over a billion rand claim by grants payment provider Cash Paymaster Service (CPS).

FILE: Interim Sassa chief executive Pearl Bengu. Picture: @OfficialSASSA/Twitter

CAPE TOWN - The South African Social Security Agency (Sassa) is digging in its heels over a billion rand claim by grants payment provider Cash Paymaster Service (CPS).

CPS says Sassa breached contracts in five provinces signed in 2009, when it also entered into contracts with other service providers like banks, to pay grants.

The company receives payment for each beneficiary to which it disburses a grant.

But the agency says it won't be paying the claim and the matter is set to go to arbitration in July.

Sassa’s Moabi Pitsi says the impasse doesn’t affect phasing out the CPS contract which the Constitutional Court has ordered must be terminated by the end of March.

“The previous process is continuing; in fact in December and January, grants were paid as normal and we’ll continue to give our beneficiaries the best service that we can.”