There are many companies in the private sector that enjoyed a cosy and profitable relationship with the state during Jacob Zuma’s presidency, which was bedevilled by nine years of corruption, patronage networks and disregard for the Constitution.
The relationship between Sassa and CPS continued even when the Constitutional Court declared in 2014 that the contract between both parties was invalid and illegal because it didn’t go through a proper and competitive tender process. Sassa ignored the ruling by SA’s top court, continuing its relationship with CPS.
CPS is not happy about the way in which it was ejected out of SA’s social grants system as it launched several lawsuits against Sassa, vexed by issues that date as far back as 2009. It also claimed that Sassa was not entitled to pay social grants by electronic transfer to bank accounts of beneficiaries, and that Sassa was not entitled to cause grants to be paid in cash at Post Offices branches or by electronic transfer to Postbank and other bank accounts of beneficiaries.According to Sassa, CPS sued it for a total of R1.3-billion , or R1,362,429,942.00 to be exact. Meanwhile, CPS denies this figure, saying there “was no quantum with respect to the claim”.
CPS’ lawsuit was dealt a blow as Nugent ruled in favour of the agency and dismissed all claims lodged by CPS. The company was also ordered to pay all the legal costs of the arbitration.
At least we managed to dodge ONE bullet. It's slightly better than nothing, and yet it doesn't feel like anything.