Court unsympathetic in CPS’s bid to increase its fee’s for cash grant payments
June 1 2018
Cash Paymaster Services (CPS) approached National Treasury for an increase in fees of R66.70 per beneficiary who receive their grants in cash at SASSA pay points. Treasury could not make a conclusive recommendation to the Constitutional Court due to insufficient financial information supplied by CPS.
Last week CPS created a storm in a tea cup, by threatening to not pay social grants in June 2018, as it was unable to invoice SASSA. The Constitutional Court on Wednesday reminded CPS of its March 2018 order granting the company an extension on the same Terms and Conditions as the previous contract. Thus the cost per beneficiary fee remains at R16.44 until Treasury can make a recommendation.
In response to the media statement (see below) issued by CPS CEO, Herman Kotzé; “The Black Sash finds CPS’s legal action last week added unnecessarily to the increasing uncertainty amongst grant beneficiaries who are concerned about receiving their monthly grant.”
Update From Herman Kotzé, CEO of Net1 1 UEPS Technologies, INC.
Johannesburg, May 30, 2018 –Herman Kotzé confirmed that CPS has received a positive response from the Constitutional Court based on their request of the 23 May 2018 to re-engage with National Treasury to determine a sustainable fee for the payment of grants in cash at pay-points to SASSA grant beneficiaries.
Kotzé confirmed that the cash payments for the June payment cycle to just under 2m beneficiaries will continue uninterrupted.
CPS has invoiced SASSA at the original rate of R14.42 (excl. VAT) per cash payment as an interim fee until such time as an agreement can be reached with Treasury. Kotze said that while this rate is not sustainable and doesn’t cover even the cost of security, payments will not be interrupted for June. “We are hopeful that we will arrive at a satisfactory solution with National Treasury’s inputs and finalise this matter as quickly as possible,” said Kotzé.