GRANTS CRISIS CPS demands new contract to pay grants by April 1

CASH Paymaster Services (CPS) concedes it has a “constitutional” obligation to distribute social grants after March 31 if there is no other entity able to provide the service‚ but it demands that a new contract be concluded between itself and the SA Social Security Service (Sassa).

Alfred Cockrell SC, for CPS, told the Constitutional Court that CPS accepted it could not just walk away without ensuring that social grants would be distributed to the 17 million beneficiaries who depend on them.

“My client says that if it were not for the constitutional obligation‚ it would not continue after April 1.

“It [CPS] understands it can’t just walk away if there is no one to provide the service,” he said.

Cockrell said if the court was persuaded by the SA Post Office’s argument that it was ready to take over the payment of grants‚ CPS would walk away.

He asked the court to issue a directive that orders CPS to conclude a new and “lawful” contract with Sassa to ensure that social grants are paid by April 1.

“In order to carry out its constitutional obligation‚ my client would require a new contract with Sassa.

“My client will not be able to pay without a contract.

“In the absence of a contract‚ my client will be unable to discharge its constitutional obligation.”

Cockrell told the court that if his client concluded a contract with Sassa‚ it would “behave reasonably”.

“Any contract between Sassa and CPS has to be lawful beyond March 31. There is no point in telling my client that it has a void contract [with Sassa]. My client has walked down this road before.”

Rights group Black Sash yesterday asked the court to play an oversight role in the payment of social grants.

Sassa and Social Development Minister Bathabile Dlamini do not oppose the relief sought by Black Sash.

The court in 2014 declared the fiveyear Sassa contract with CPS‚ signed in 2012‚ invalid.

However‚ the court allowed CPS to continue administering the grants‚ while Sassa was meant to devise an in-house payment system.

But on March 3 this year‚ Sassa and the Department of Social Development informed the court it was not ready to take over payments. — TMG