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Opinion: Who benefits from Sassa/CPS contract saga?

2 March 2017 9:57 AM
Yesterday Sassa withdrew its Constitutional Court application to extend its contract with CPS.

Business Day reports that the ongoing negotiations between the South African Social Security Agency (Sassa) and Cash Paymaster Services (CPS) could generate an annual fee of more than R3 billion for CPS.

The report suggests that Sassa may have to pay CPS as much as R25 per recipient per month if it signs a new contract to pay social grants beneficiaries from April.

Xolani Gwala questions who benefits from the Sassa/CPS saga, saying it's surely not poor South Africans and tax payers.

This crisis has got to do with 17 million poorest of the poor South Africans. These are people who cannot imagine living a day without these grants.

Xolani Gwala, 702 Breakfast host

[The] Constitutional Court declared Sassa's contract with CPS invalid in 2014, subsequently decided to suspend the ruling for the duration of the contract in order to prevent the grant payment system being disrupted because they understood the people benefiting from this are the poorest of the poor.

Xolani Gwala, 702 Breakfast host

We are hearing now that negotiations are back. You have got to ask yourself, are they perpetuating the illegality? Without any approach to the ConCourt or anyone else, they are back negotiating with same supplier. There is a big issue of defying the ConCourt and Treasury.

Xolani Gwala, 702 Breakfast host

The third element is about tax payers and the amount we will pay as a result of this.

Xolani Gwala, 702 Breakfast host

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2 March 2017 9:57 AM