Award is invalid

THE Constitutional Court yesterday ruled that the awarding of the multibillion-rand social grants administration contract to Cash Paymaster Services is invalid.

AllPay Consolidated Investment Holdings took the matter to the country’s highest court after it lost the R10bn tender to Cash Paymaster Services awarded by the SA Social Security Agency (Sassa).

The court found that Sassa had failed to give due regard to the importance of black economic empowerment in procurement.

However, due to the serious disruption which could be caused to the payment of social grants if the tender were set aside, it made no decision on whether to do so.

A further hearing to decide the remedy was scheduled for February 11. – Sapa