Sassa Ceo Busisiwe Jacquiline Memela. Image:

Sassa Ceo Busisiwe Jacquiline Memela. Image:

CPS loses Supreme Court appeal, still owes Sassa R316 million

CPS was instructed to pay back the money with interest that would backdate to 2014.

Sassa Ceo Busisiwe Jacquiline Memela. Image:

Sassa Ceo Busisiwe Jacquiline Memela. Image:

On Monday, the Supreme Court of Appeal (SCA) has dismissed the appeal lodged by Cash Paymaster Services (CPS), contesting the previous Pretoria High Court ruling that ordered the entity to pay back R316 million to Sassa.

What is next for Sassa with the Supreme Court of Appeal’s dismissal?

The fight will continue, as the South African Social Security Agency (Sassa) heard judgement from the SCA in Bloemfontein, regarding the long R316 million battle with CPS.

What brewed the long-standing CPS vs Sassa court-battle?

It is reported that CPS approached the SCA in aims of contesting the Pretoria High Court ruling; which indicated that CPS needs to pay Sassa R316 million from monies that were irregularly paid in 2014.

The high court ordered CPS to pay back the money after Corruption Watch took both entities, CPS and SASSA to court in 2015, for a missed payment made separately from contract payments of the Sassa grants.

After being unable to appeal the High Court ruling, CPS submitted to the SCA that it would be unreasonable to pay the disputed R316 million to Sassa, and argued that their initial contract with Sassa didn’t include the registration of children.

The anti-corruption organisation found inconsistencies with CPS claims

Sassa brushed-off their claims and simply declared that CPS could have asked for clarification regarding any inconsistencies with their contract, Corruption Watch has been on the side-lines also challenging the legality of the payment made to CPS.

The anti-corruption organisation disputed that the re-registration of Sassa beneficiaries was effectively stipulated in the initial contract signed between CPS and Sassa, which now proves that CPS’ claims regarding inconsistencies with the contract are questionable.

Sassa dropped a contest against Corruption Watch’s appeal in 2017

Initially, Sassa and CPS contested Corruption Watch’s court appeal, in 2017 Sassa had a change of heart and withdrew its opposition and adhered to the court’s ruling.

What is next for CPS with the Supreme Court of Appeal’s dismissal?

The court had ordered CPS to pay back the money, in full, and with interest. CPS was further instructed that the interest would backdate to 2014 and the High Court refused to hear contesting from the entity.

With the Supreme Court of Appeal dismissing the company’s appeal which contested the High Court ruling, it only brings CPS back to square one as the group will have to obey the High Court ruling as Sassa’s R316 million payment is due.