Net1 has applied to put its subsidiary Cash Paymaster Services into business rescue following the loss of the social grants payment contract. Archive photo: Barbara Maregele / GroundUpWhile the battle rages over how much money Cash Paymaster Services might have to pay back to the South African Social Security Agency , its parent company Net1 has applied to put CPS into business rescue.
Kotze said in the court papers that CPS’s current assets amounted to about R15 million but it owed Sassa — CPS’s main creditor — about R316 million plus interest. CPS owed about R72.5 million to other companies in the Net1 group and about R10 million to various trade creditors like landlords and municipalities, said Kotze. Net1 and CPS had agreed that business rescue was the best way to maximise creditors’ return, he said.CPS to pay back R316 million, plus interest, to Sassa. This came after Corruption Watch asked the High Court in Pretoria to review Sassa’s decision to pay CPS an additional R316 million for registration of beneficiaries.
Meanwhile, CPS has claimed about R338 million plus interest from Sassa for services rendered during the second extension of the social grants distribution contract between April and September 2018. This represents an estimate of the difference between the price paid by Sassa and the price recommended by National Treasury for the services.
Totally predictable, given who we're talking about.
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