Weekend Argus (Sunday Edition)

CPS can bid for distributi­ng grants


THE way was cleared for Cash Paymaster Services (CPS) to bid to continue distributi­ng social grants on Friday when the Constituti­onal Court ruled that it was eligible to tender for any contracts by the Department of Social Developmen­t.

The ruling on Friday was made after CPS made an interlocut­ory applicatio­n on February 7 asking the court to explain its judgment of March last year which declared its contract with the South African Social Services Agency (Sassa) as “illegal and invalid”.

The court then ordered Sassa to advertise for a new service provider. But this did not mean CPS should be excluded in any tenders to distribute social grants, according to the court.

“In view of the fact that CPS’s eligibilit­y to take part in future tender processes was not an issue in the applicatio­n in which judgment was handed down by this court on March 17, 2017, the judgment did not purport to deal with that issue,” the court said.

Yesterday, CPS chief executive Herman Kotze was elated with the court’s judgment. He said he had lodged the applicatio­n after there was “misinterpr­etation” of last year’s court judgment.

He said some people had interprete­d that judgment to mean the company was barred from participat­ing in any Department of Social Developmen­t tenders.

“In the middle of January Sassa advertised a tender asking for a service provider to distribute cash payments to social grant beneficiar­ies. It was on that basis that we approached the Constituti­onal Court to get clarificat­ion on whether we could submit our bid,” Kotze said.

He said the court had given CPS the green light to submit its bid before the closing date on March 7.

The South African Post Office, which will distribute social grants from April 1, will not oppose Sassa’s applicatio­n for the CPS contract to be extended for six months.

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