Concourt sets timeline to determine if CPS received R800m profit in unlawful social grants contract

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End in sight in long-running legal battle over unlawful lucrative contract after the Concourt ordered Sassa to appoint a suitably qualified firm to properly determine the profit made by Cash Paymaster Services (CPS).

Additionally, the country’s highest court also ordered that CPS must within 30 days of the completion of the 12-month period of the contract to file an audited statement of the expenses incurred, the income received and the net profit earned under the contract.However, after being served the documents by CPS, one of the parties in the long-running legal battle, Freedom Under Law, complained that the company had not fully complied with the court order.

In its April 1 order, the court ordered CPS, KPMG Services and Mazars Inc to furnish Rain Chartered Accountants with the listed documents in their possession within 15 days from the date of receipt of the list of outstanding documents. The Constitutional Court ordered that Sassa is responsible for paying reasonable fees for work which will be done by Rain Chartered Accountants to comply with the April 1 order.

Should Sassa not appoint Rain Chartered Accountants it must consider whether it is open to it to appoint another suitably qualified service provider in accordance with the deviation process within 14 calendar days from Friday. Rain Chartered Accountants or any alternative company will then have to submit to the National Treasury, the updated verification report and Treasury will allow Sassa and CPS to make representations on the updated verification report, if they so wish.

 

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