Sassa to issue new tender

THE SA Social Security Agency (Sassa) will file its second report to the Constitutional Court on September 19.

THE SA Social Security Agency (Sassa) will file its second report to the Constitutional Court on September 19.

The first report, required in terms of the court's ruling that the tender awarded to Net1 subsidiary Cash Paymaster Services (CPS) by Sassa was unlawful, was filed in June. In its ruling the court declared that Sassa's contract award to CPS for the payment of social grants was invalid and that the tender must be rerun.

Because of the potentially dire implications of disrupting payments, the court suspended the declaration of invalidity while Sassa arranged a new tender. Sassa must report back to the court at each crucial stage of the new tender process.

Sassa would say only that a new tender "will be advertised in due course". Sources report that recommendations for specifications have been finalised, and a committee has been appointed to oversee the tender process.

The earliest expectation for completion of the new tender is expected to be around next April. This is just 20 months shy of the scheduled expiry date of the controversial five-year contract.

Because Net1 is listed in New York, US authorities are investigating.