AllPay Consolidated Investment Holdings (Pty) Ltd and Others v Chief Executive Officer of the South African Social Security Agency and Others (No 2)

SASSA awarded a nationwide tender for the payment of social grants to Cash Paymaster Services (Pty) Ltd. In an earlier judgment (AllPay No 1), the Constitutional Court declared the tender award constitutionally invalid due to material procurement irregularities, namely SASSA’s failure to verify Cash Paymaster’s empowerment credentials and unclear tender requirements regarding biometric verification, which rendered the process uncompetitive. The declaration of invalidity was suspended, and the Court called for further submissions to determine a just and equitable remedy, given the need to ensure uninterrupted payment of social grants to millions of beneficiaries.

The contract between SASSA and Cash Paymaster Services was declared invalid. The declaration of invalidity was suspended pending a decision on whether to award a new tender after the tender process is re-run. Cash Paymaster was permitted to continue providing social grant payment services during the suspension period.

This case is a leading authority on remedies for unlawful public procurement in South Africa. It clarifies that courts must balance the rule of law with practical and constitutional considerations, particularly where vulnerable beneficiaries rely on continued service delivery. The judgment reinforces judicial oversight over state procurement while recognising flexibility in crafting remedies that avoid public harm.