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Net1 to appeal court ruling to pay back R317m to Sassa

Net1 CEO Herman Kotze says he is disappointed by Friday's North Gauteng High Court ruling that the money be repaid with interest.

Picture: Supplied

CAPE TOWN - The parent company of social grants disburser Cash Paymaster Services (CPS) says it plans to seek leave to appeal a ruling that it pay back R317 million to the South African Social Security Agency (Sassa).

Net1 CEO Herman Kotze says he is disappointed by Friday's North Gauteng High Court ruling that the money be repaid with interest.

Corruption Watch took the matter to court, arguing that the payment was invalid.

Meanwhile, the company has welcomed a Constitutional Court ruling that it continues to pay the country's cash recipients for another six months, to allow Sassa more time to get its house in order.

Net1 says CPS performed the services for which it was paid R317 million at Sassa's request, when in 2014 it was asked to biometrically register all social grant beneficiaries, including children.

CPS says that it performed 11 million additional registrations beyond those it tendered to register and claimed the additional cost from Sassa based on an independent audit.

Net1 CEO Herman Kotze says that the process led to the removal of ghost beneficiaries and duplicate grants from the system.

He says it's unfortunate the company is once again being prejudiced by apparent shortcomings in Sassa's processes.

(Edited by Shimoney Regter)

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