The Black Sash Trust and Freedom Under Law (FUL) — two of the parties engaged in a long-running battle with the South African Social Security Agency (Sassa) — will ask the Constitutional Court on Tuesday to place Sassa under the supervision of another government department or minister.
FUL wants the court to order the Treasury or the minister in the Presidency for planning, monitoring and evaluation to be given responsibility for Sassa. The Black Sash has endorsed this submission. It is unclear whether the recent removal of controversial social development minister Bathabile Dlamini will affect these requests.
Tuesday’s hearing was called to consider an urgent application to have the suspension of invalidity of Sassa’s contract with Cash Paymaster Services (CPS) extended for six months to the end of September. The hearing is being held just three weeks before the contract is to expire.
Sassa’s concerns relate to the payment of social grants to around 2.5-million beneficiaries who receive their grants as cash payments. However, it also appears Sassa will need CPS to continue to provide back-end banking systems for the entire grant distribution process until at least the end of September.
In her application to the court on February 8, Sassa CEO Pearl Bhengu said they had "made arrangements" for the remaining 8.3-million recipients.
Neither FUL nor the Black Sash are opposing the extension but want the court to continue exercising its supervisory function. In addition, in recognition of the urgency of the situation, FUL has suggested the extension should provide for CPS’s assistance in the payment of all the grants until the expert panel, appointed by the court, declares that Sassa has safely taken over the grant payment system.
FUL also argues that CPS should pay back all audited and admitted profits it earned during its six-year contract with Sassa.
It wants the court to order an investigation into whether Sassa or Social Development Department officials are responsible for the failure to comply with the court’s order.
CPS does not oppose the extension, whether for another six months or until such time as Sassa fully takes over.
However, if the extension is limited to cash payment to 2.5-million recipients, CPS wants authority to apply to the Treasury for a "reasonable fee".
Herman Kotze, CEO of CPS’s holding company, Net1, said that if forced to pay cash to only 2.5-million on the existing terms and conditions, CPS would operate at a loss.
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