Sassa: Cash grants at risk again as CPS says it has not received any payment
Cash Paymaster Services (CPS) has asked the Constitutional Court to order National Treasury to negotiate a monthly "floor fee" for the remainder of its contract with the South African Social Security Agency (Sassa).
In March, the Constitutional Court ordered Sassa and CPS to continue its invalid contract to distribute the cash portion of the social grants system in rural areas for another six months.
The cash portion of the system services roughly 2.5 million people, less than 30% of the scheme.
On Wednesday, CPS filed a letter at court, saying it has not been able to successfully invoice Sassa since April 1 for various reasons, and has therefore received no new payments from Sassa through National Treasury.
It has used cash reserves to continue to operate the cash portion of the grants system in the interim, while it waited for National Treasury to recommend a new payment structure for the remainder of the contract.