Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      MTN and Vodacom dwarf South Africa's listed tech sector

      MTN and Vodacom dwarf South Africa’s listed tech sector

      20 March 2026
      SA firm opens Africa's largest space hardware factory

      SA firm opens Africa’s largest space hardware factory

      20 March 2026
      OpenClaw fever grips China

      OpenClaw fever grips China

      20 March 2026
      OpenAI plans desktop 'super app'

      OpenAI plans desktop ‘super app’

      20 March 2026
      How a WhatsApp bundle exposed a fault line in SA mobile

      How a WhatsApp bundle exposed a fault line in SA mobile

      19 March 2026
    • World
      Mystery Chinese AI model revealed to be Xiaomi's

      Mystery Chinese AI model revealed to be Xiaomi’s

      19 March 2026
      A mystery AI model has developers buzzing

      A mystery AI model has developers buzzing

      18 March 2026
      Samsung's trifold gamble ends in retreat

      Samsung’s trifold gamble ends in retreat

      17 March 2026
      Nvidia targets $1-trillion in AI chip sales as inference demand surges - Jensen Huang

      Nvidia targets $1-trillion in AI chip sales as inference demand surges

      17 March 2026
      Peter Thiel's secretive Rome conference draws Church attention

      Peter Thiel’s secretive Rome conference draws Church attention

      16 March 2026
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • TCS
      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses - Clare Loveridge and Jason Oehley

      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses

      19 March 2026
      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience - Theo van Zyl

      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience

      13 March 2026
      TCS+ | Flipping the narrative on AI in the Global South - Josefin Rosén

      TCS+ | Flipping the narrative on AI in the Global South

      13 March 2026
      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      5 March 2026
      TCS+ | Bolt ups the ante on platform safety - Simo Kalajdzic

      TCS+ | Bolt ups the ante on platform safety

      4 March 2026
    • Opinion
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » A » Arguments heard in social grants case

    Arguments heard in social grants case

    By Editor10 September 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    gavel-640

    The three partners of Cash Paymaster Services (CPS) were not assessed in a R10bn social grant tender process, the constitutional court heard on Tuesday.

    “Evidently, the state should not be in the business of awarding multibillion-rand tenders to persons who have no proven, or assessed, ability to implement their proposals,” said Gilbert Marcus SC, for unsuccessful bidder AllPay, part of Absa.

    The tender was awarded to CPS, part of Net1 UEPS Technologies, for the administration of social grants over a five-year period.

    The SA Social Security Agency (Sassa) had initiated the tender process, aiming in part to address fraud and theft problems within its system.

    Marcus told the court that CPS submitted a consortium bid, and as per section 217 of the constitution, it was required to be properly assessed.

    “The consortium expressly indicated that more than 74% of the execution and management of the tender would be undertaken by the consortium partners and not by CPS,” he said in his heads of argument.

    “This is inherently unfair, inequitable, and anticompetitive. It is submitted that Sassa’s failure to assess the consortium partners was exacerbated by a related irregularity that was overlooked.”

    SA Cilliers SC, for Sassa, disagreed, and said the assessment and abilities of every partner of a bidding consortium was not a requirement of section 217.

    “Sassa relied on the proven ability of CPS to perform the tendered service,” he said in his heads of argument. “CPS had, over a period of more than a decade rendered services under Sassa’s old distribution system, and had a good and reliable track record.”

    Cilliers submitted that AllPay had participated in all the steps of the tender process without objection, and had raised a litany of complaints only when it failed to win the tender.

    The court heard that there were several alleged irregularities with the tender process.

    David Unterhalter SC, also for AllPay, argued that the tender process was procedurally flawed, unfair and even irrational.

    He said the criteria for the bidding process was not clear or transparent, and that a second bidder’s notice was designed to eliminate bidders other than CPS.

    Unterhalter said “Bidders Notice Two” led to a preference being made a requirement, which had an affect on scoring and which led to AllPay being disqualified. “Only when it moved from a preference to a requirement they did not qualify.”

    Bidders Notice Two required that every payment made have biometric verification, which occurs when a person is uniquely identified through biological traits based on 10 fingerprints.

    At the moment, bank ATMs do not have biometric capabilities.

    Cilliers said CPS won the tender because it met the requirements.

    “It cannot be found that AllPay was in a position to provide the verification solution offered by CPS,” he said. “The solution required was offered by CPS and not by AllPay. AllPay disregarded the requirement for monthly verification… and this was fatal to the relative merits of its bid.”

    AllPay previously approached the high court in Pretoria with concerns about the tender process. The court found in its favour and ruled that the tender process did not comply with the requirements, and was procedurally unfair.

    The court declared the tender process invalid, but did not set the tender aside because this would have disrupted the delivery of social grants.

    AllPay appealed to the supreme court of appeal (SCA), but it overturned the high court order and found in favour of Sassa.

    The SCA held that a fair process did not demand perfection in every step, nor could a tender be set aside for inconsequential irregularities.

    In the constitutional court, AllPay wants the SCA’s decision set aside.  — Sapa

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Absa AllPay Cash Paymaster Services CPS
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSolidarity changes stance on LLU
    Next Article Report shows shambles at SABC

    Related Posts

    SA banks race to scale AI and cloud as challenger threat intensifies

    SA banks race to scale AI and cloud as challenger threat intensifies

    17 March 2026
    Absa impairs R2.4-billion in software after strategy rethink

    Absa impairs R2.4-billion in software after strategy rethink

    10 March 2026
    Smart ID card

    Standard Bank joins smart ID push with fee-free launch

    11 February 2026
    Company News

    How South African executives can crack the AI ROI code

    20 March 2026
    Africa's first Nvidia RTX Pro GPU servers have landed

    Africa’s first Nvidia RTX Pro GPU servers have landed

    19 March 2026
    How Acer Africa is bridging the digital divide through local innovation

    How Acer Africa is bridging the digital divide through local innovation

    19 March 2026
    Opinion
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026
    VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

    VC’s centre of gravity is shifting – and South Africa is in the frame

    3 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    MTN and Vodacom dwarf South Africa's listed tech sector

    MTN and Vodacom dwarf South Africa’s listed tech sector

    20 March 2026
    SA firm opens Africa's largest space hardware factory

    SA firm opens Africa’s largest space hardware factory

    20 March 2026
    OpenClaw fever grips China

    OpenClaw fever grips China

    20 March 2026
    OpenAI plans desktop 'super app'

    OpenAI plans desktop ‘super app’

    20 March 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}