Cash Paymaster Services and auditing firms KPMG and Mazars have been ordered to produce financial statements relating to a contract with the SA Social Security Agency. File photo.The Constitutional Court has ordered Cash Paymaster Services , formerly hired by the SA Social Security Agency to pay social grants, and auditing firms KPMG and Mazars to provide financial statements and documents to verify the service provider’s profits.
The order comes after Freedom Under Law approached the apex court asking it to oversee compliance to a 2017 order directing Sassa and CPS to ensure payment of social grants from April 2017 for a period of 12 months, by extending the contract awarded to CPS for the payment of social grants. The contract was declared invalid.
The order had imposed conditions, including that CPS file an audited statement of “expenses incurred, the income received and the net profit earned” and allowing RAiN Chartered Accountants, the auditors appointed by Sassa, free access to its financial statements to verify them for submission to national treasury for approval.
In the application before the ConCourt, FUL asked for an order compelling compliance with the conditions. It alleged CPS did not allow RAiN free access to its financial statements and that the verification report produced revealed CPS had under-declared its profits by about R800m. FUL wanted the court to force CPS, KPMG Services and Mazars to furnish RAiN with outstanding documentation.
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