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How Sassa got itself into the dodgy grants tender saga with contractor CPS

23 February 2017 5:36 PM
Amabhungane investigative reporter Craig McKune reflects on the timeline of events which led Sassa to a legal contractor debacle.

It's reported that the South Africa Social Security Agency (Sassa) has yet to file papers in the Constitutional Court to ask for the extension of its contract with Cash Paymaster Services (CPS).

CPS was found to be an illegal service provider by the Constitutional Court and their tender contract to pay social grants ends at the end of March.

But Sassa insists that grant payouts will not be affected by the contractor debacle.

If the contract is not extended in time, at least 17 million South Africans may not be paid come April.

Meanwhile, investigative reporter Craig McKune claims Sassa has a long history of making compromising decisions in favour of CPS over the past few years.

The relationship between Sassa and the contractor Cash Paymaster Services is highly problematic.

Craig McKune, investigative reporter at Amabhungane

In 2011, Sassa issued a tender for contractor to distribute grant payouts to its beneficiaries, advises McKune.

He explains that the bidders were whittled down to CPS and AllPay, but at the last minute Sassa officials ruled out AllPay on a technical inability.

According to McKune, Sassa officials also handed the tender to CPS without interrogating the contractor's BEE partners, which it turns out were used as a front.

Had Sassa scrutinised that BEE relationship they would have found a front.

Craig McKune, investigative reporter at Amabhungane

McKune says CPS Director Serge Belamant allegedly cut his BEE partners out of the deal after the tender was awarded and continued under the false pretense of equity ownership.

None of them were in the position to be doing the services that CPS had promised in its tender to do.

Craig McKune, investigative reporter at Amabhungane

He alleges that Belamant later inserted a new BEE partner, Brian Mosehla, who did no work for CPS but walked away with a sizeable share of the company and at least R80 million in his personal bank account.

McKune also unpacks the nexus of politically connected individuals linked to the CPS saga.

Take a listen to Craig McKune explain how the events unfolded:


This article first appeared on CapeTalk : How Sassa got itself into the dodgy grants tender saga with contractor CPS


23 February 2017 5:36 PM