Petersen and Others v South African Social Security Agency

SASSA, under its CEO Dr Virginia Petersen, procured and paid for close protection security services from a private company, Vuco Security Solutions CC, in 2013–2014. The services were provided not only to SASSA-related personnel but to Ms Lumka Oliphant (a Department of Social Development official), her children, and the children of the Minister of Social Development, Ms Bathabile Dlamini. This followed threats linked to efforts to combat large-scale social grant fraud. SASSA paid approximately R3.5 million. Years later, after adverse Auditor-General findings categorising the expenditure as fruitless and wasteful, SASSA instituted a self-review in 2020 to set aside the procurement decision as unlawful and sought repayment from Dr Petersen, Ms Dlamini and Ms Oliphant. The appellants opposed the review on grounds including undue delay, prescription, applicability of the Intergovernmental Relations Framework Act, lawfulness of the procurement, and appropriateness of repayment relief.

The appeals of Dr Petersen and Ms Oliphant were upheld in part and dismissed in part; Ms Dlamini’s appeal was dismissed with costs. The High Court order was set aside and replaced. The procurement decision and contract were declared unlawful and set aside. Ms Dlamini was ordered to repay R2 008 086 plus interest to SASSA and to pay costs. No costs order was made in respect of the partially successful appeals of Dr Petersen and Ms Oliphant.

The case clarifies the treatment of delay, prescription and remedies in self-reviews under the legality principle, reaffirming that legality reviews are not subject to prescription as ‘debts’. It delineates the limits of statutory powers of public agencies to incur expenditure ancillary to their functions, particularly in relation to security services. The judgment underscores accountability of senior officials and political office-bearers for unlawful public expenditure and the proper application of just and equitable relief under s 172 of the Constitution.