The South African Social Security Agency (Sassa) has rejected claims of over R1 billion by Cash Paymaster Services (CPS) based on the apparent breach of terms of social grant payment service contracts.
Acting Sassa CEO Pearl Bengu said the contracts in question were concluded in 2009 for Limpopo, Eastern Cape, KwaZulu-Natal, the Northern Cape and the North West.
“The parties agreed that the matters be referred for arbitration as provided for in the contracts. The arbitration proceedings involved the exchange of pleadings, appointment of presiding officers, holding of pre-arbitration meetings and the actual setting down of the arbitration proceedings for hearing,” Bengu said.
The parties, on a number of occasions, attempted to settle the matter with Sassa preferring the withdrawal of the contracts without any form of payment but the suggested solution did not succeed.
Bengu said CPS initially claimed R1.3 billion and the money decreased to R792 853 000 after CPS withdrew its other claims.
She said Sassa and CPS had some difference over the process to be followed when appointing arbitrators, which led to the process being prolonged but the arbitrators for each matter were finally appointed.