Just as the South African Social Security Agency (SASSA) phases out its contract with Cash Paymaster Services (CPS) which is set to end at the end of March 2018, another battle has begun looming between the parties.
CPS alleges that SASSA owes it more than R1 billion for breach of contract.
CPS says SASSA breached contracts in five provinces that were sealed in 2009 when it moved beneficiaries from receiving their grants at CPS pay points to commercial banks.
CPS has paid for each beneficiary to whom it disburses a grant.
Initially, the company said it was owed R1.3 billion, but after claims were withdrawn in the Eastern Cape, KwaZulu-Natal and the Northern Cape, the amount decreased to just under R800 million.
SASSA Spokesperson Moabi Pitsi says:
“It is Sassa’s view that we are preferring the withdrawal of each matter without any further payment.”
Sassa has already paid CPS R35 million in settlement of claims in the North West.