'Extend CPS's Sassa contract with no-profit clause'

Cash Paymaster Services (CPS) should not be making a profit from its extended contract with the SA Social Security Agency (Sassa)‚ the counsel for Freedom Under Law has argued.

Gilbert Marcus SC argued on Tuesday that the organisation is not opposed to Sassa's application to have its contract with CPS extended.

However‚ the organisation wants the court to apply a no-profit principle.

"If the no-profit principle is not put in place‚ this would reduce the court's orders into academic exercise. The court required that the statements of profits (from CPS) be independently verified and audited‚" Marcus argued.

The contract Sassa currently has with CPS was declared invalid by the Constitutional Court‚ but it was extended it to the end of March after the agency failed to find a new contractor.

Sassa is asking the Constitutional Court to extend its contract with CPS by six months again‚ insofar as cash payments are concerned.

Marcus described the application as "materially deficient". "Not only was it late‚ but it was missing information."

CPS told the court that it is not to blame for the social grants crisis. "CPS is not bluffing. We asked Sassa to deal with the situation‚" counsel for CPS Les Morison SC argued. "CPS has not been found guilty of corruption except for irregularities which are on the part of Sassa."

He said CPS has executed its job of administering social grants for five years "efficiently and effectively".