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The Constitutional Court has allowed the South African Social Security Agency to extend its contract with Cash Paymaster Services by another six months.
The Social Security Agency had approached the Constitutional Court last month urgently requesting the extension of its contract with CPS, saying it wouldn’t be able to pay the 2.5 million beneficiaries who are paid in cash.
Electronic services are set to be taken over by the South African Post Office.
Prior to this, the court had demanded that the Social Security Agency and the Post Office clarify contingency measures put in place to pay out social grants.
The contract with CPS was deemed unlawful by the court and expires on March 31.
CPS has now been ordered to pay back the R316 million it received from the Social Security Agency almost four years ago for the registration and payment of grant beneficiaries.
The North Gauteng High Court in Pretoria, which ordered the repayment, found the Social Security Agency’s conduct to have been unlawful.
Justice Leona Theron, who granted the six-month extension to the Social Security Agency, ordered that the beneficiaries be paid on the same terms and conditions as those in the current CPS contract.
The select committee on social services in Parliament welcomed the extension in a statement released after the ruling.
“The committee urges the Social Security Agency to work with speed to finalise the processes towards South African Post Office taking over the payment of grants.
“In line with this, the committee will urgently call the Social Security Agency and the social development department to outline the process going forward, which must have clear timelines.
“We are hoping this will be the last request for an extension and that this matter will be finalised soon,” committee chairperson Cathy Dlamini said.
