CPS sticks to court-ordered rate for grant payouts in June
Cash Paymaster Services (CPS) says cash payments by the company to about 2-million social grant recipients in June will be made at the original rate of R14.42 a recipient.
The company said it had received a positive response on Wednesday from the Constitutional Court‚ which said CPS should re-engage with the Treasury to determine a sustainable fee for the payment of grants in cash at pay-points throughout SA to recipients.
In March‚ the Constitutional Court ordered that CPS must continue to provide the cash payments to about 2-million grant recipients until the end of September at the same rates.
The bulk of social grant payments to recipients via ATMs was taken over by the South African Post Office in April.
In its order in March‚ the court said CPS may‚ in writing‚ during the six-month period request the Treasury to investigate and make a recommendation regarding the price to be paid for its services.
After the court judgment‚ CPS asked to be paid R58 (excluding VAT) for each beneficiary‚ while the Treasury recommended R44 (excluding VAT) be paid for each beneficiary. “CPS has invoiced Sassa (South African Social Security Agency) at the original rate of R14.42 [excluding VAT] per cash payment, as an interim fee, until such time as an agreement can be reached with Treasury‚” the company’s CEO, Herman Kotzé, said on Wednesday. Kotzé said that while this rate was not sustainable and did not even cover the cost of security‚ payments would not be interrupted for June.
“We are hopeful that we will arrive at a satisfactory solution with National Treasury’s inputs and finalise this matter as quickly as possible‚” Kotzé said.