CPS used bullying tactics to get contract renewal, court hears

JOHANNESBURG - Freedom Under Law (FUL) has argued that service provider Cash Paymaster Services (CPS) bullied the South Africa Social Security Agency into renewing its contract to distribute social grants.

Black Sash and FUL presented their arguments in the Constitutional Court on how social grants could be paid on 1 April now that CPS’ contract is about to expire.

David Unterhalter, who is representing FUL, says the contract should be extended despite the court declaring it invalid back in 2014.

Unterhalter says CPS has sent a number of threatening letters to Sassa in recent months.

He says first CPS claimed if the contract wasn't signed it would be forced to downscale, then said it was liquidating the company.

Unterhalter believes this is a bullying tactic.

“This, we should submit, shows some clear efforts on their part to use bargaining power to secure terms of condition favourable to them.”

FUL says extending the current contract for a period of time may work to ensure grants are paid on 1 April but it believes that CPS shouldn't benefit from any extension.

Sassa and Minister Bathabile Dlamini will argue for the deal to be monitored by the Public Protector and Auditor-General, while the Black Sash wants the court to provide the oversight role.


Originally published in EWN Eyewitness News