Sassa, CPS at loggerheads once again

Cash Paymaster Services says it's running at losses of over R114 million a month and has not been paid for the last three months.

FILE: Old and new Sassa cards. Picture: OfficialSASSA/Twitter.

CAPE TOWN - The South African Social Security Agency (Sassa) and grant administration provider Cash Paymaster Services (CPS) are once again at loggerheads over payment for its services.

CPS says it's running at losses of over R114 million a month and has not been paid for the last three months.

It now wants the Constitutional Court to force the agency to pay up and for Treasury to review what it can charge for its services until its contract expires.

CPS, which has a contract to pay grants in cash until the end of September, says it can no longer sustain the losses without risking its operations.

The number of beneficiaries who receive their money in cash is steadily declining; from 1.9 million paid in June to around 1.1 million in August.

But only around 10% of cash pay points have been closed down, adding to the operational losses.

CPS says Sassa owes it R99 million for its services for April, May and June, but won't pay unless the court accepts Treasury's payment recommendations.

The company is now asking the Constitutional Court to review what it may charge Sassa, saying it expects losses of R76 million this month and for these to increase in August and September, as the number of beneficiaries continues to decline.