Sassa scores major victory in grants payment war with CPS
Former grants manager Cash Paymaster Services has failed to prove that its contract with the South African Social Security Agency gave it exclusive rights to pay out social grants. The company’s resounding loss before retired Judge Robert Nugent, who was arbitrator in the dispute between CPS and Sassa, has saved the government more than R1.3 billion.Central to the company’s claims was that Sassa violated exclusive payment rights it had granted it in a contract.
Judge Nugent heard from CPS that during the time it administered grants to millions of recipients it had exclusive rights. Nugent found in favour of Sassa’s evidence that when it concluded the agreement, its aims were not the exclusion of its consistent policy of allowing beneficiary choice. Sassa agency celebrated Judge Nugent’s ruling, saying it scored a major victory against a company that sought to create a monopoly in the grants system.
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