Cash Paymaster Services (Pty) Ltd v Chief Executive Officer of the South African Social Security Agency and Others

SASSA issued a request for proposals for the registration of social grant beneficiaries and the payment of social grants, and awarded the tender to Cash Paymaster Services (Pty) Ltd (CPS) in January 2012. A contract and service level agreement (SLA) were concluded in February 2012. In June 2012, senior officials of SASSA and CPS allegedly agreed, during a meeting, to vary the contract so that CPS would register additional beneficiaries (including children and procurators) at cost, with payment to be determined later. Based on this purported variation and an external KPMG report, SASSA paid CPS R316 447 361.41. Corruption Watch, acting in the public interest, challenged the lawfulness of the payment, contending that there was no lawful contractual basis for it and that it contravened procurement and public finance requirements.

The appeal was dismissed. CPS was ordered to pay Corruption Watch’s costs, including the costs of two counsel. The High Court order setting aside the payment decision and directing repayment stood.

The case reinforces strict compliance with public procurement, contract variation requirements, and public finance controls. It affirms that organs of state may not retrospectively justify payments without a clear contractual and lawful basis, and underscores the role of civil society organisations in enforcing accountability for the use of public funds.