CPS requests to be paid higher price for its services

Sassa was meant to take over all grant payment services to its beneficiaries by the end of March but applied for an urgent extension in February.

FILE: Picture: Supplied.

JOHANNESBURG - While the Constitutional Court has heeded the request by South African Social Security Agency (Sassa) for an extension of its contract with Cash Paymaster Services (CPS), it has come with strict terms and conditions.

Sassa was meant to take over all grant payment services to its beneficiaries by the end of March but applied for an urgent extension in February.

The Social Security Service told the court that it’s not ready to hand out the cash payments.

The Constitutional Court granted it a six-month extension.

While CPS has requested to be paid a higher price for its cash payments services in the next six months, Justice Leona Theron left the terms unchanged.

She says National Treasury will, however, investigate the request and present a report.

“CPS may in writing request National Treasury during the six-month period to investigate and make a recommendation regarding the price to be paid for the services it’s to render.”

In addition, she says Social Development Minister and Sassa must appear before court monthly.

Former Social Development Minister Bathabile Dlamini and Sassa acting CEO Pearl Bhengu have again be ordered to explain why they shouldn’t be held liable for the legal costs in the matter.