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
      FSCA debars CEO of JSE-listed bitcoin treasury company - Warren Wheatley and Stafford Masie

      FSCA debars CEO of JSE-listed bitcoin treasury company

      2 September 2026
      Report shows big shifts in online spending in South Africa

      Report shows big shifts in online spending in South Africa

      2 September 2026
      DStv's biggest package overhaul in 12 years takes shape

      DStv’s biggest package overhaul in 12 years takes shape

      2 September 2026
      Teraco's electricity consumption triples in four years

      Teraco’s electricity consumption triples in four years

      2 September 2026
      Woolworths' online business is going nowhere fast

      Woolworths’ online business is going nowhere fast

      2 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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

    WhatsApp's free lunch ends on 1 October

    WhatsApp’s free lunch ends on 1 October

    19 August 2026
    Absa's AI is writing its code and answering its calls - Johnson Idesoh

    Absa’s AI is writing its code and answering its calls

    19 August 2026
    Absa writes off another R200-million in software - Johnson Idesoh

    Absa writes off another R200-million in software

    18 August 2026
    Company News
    Paratus Uganda first to market with Starlink service

    Paratus Uganda first to market with Starlink service

    2 September 2026
    Solid8 brings AlgoSec Horizon to Southern Africa - Simone Santana

    Solid8 brings AlgoSec Horizon to Southern Africa

    1 September 2026
    Ren-Flex installs Africa's first HP Indigo 200K

    Ren-Flex installs Africa’s first HP Indigo 200K

    1 September 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

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

    Latest Posts
    FSCA debars CEO of JSE-listed bitcoin treasury company - Warren Wheatley and Stafford Masie

    FSCA debars CEO of JSE-listed bitcoin treasury company

    2 September 2026
    Report shows big shifts in online spending in South Africa

    Report shows big shifts in online spending in South Africa

    2 September 2026
    DStv's biggest package overhaul in 12 years takes shape

    DStv’s biggest package overhaul in 12 years takes shape

    2 September 2026
    Winstone Jordaan on building a national EV charging network

    Winstone Jordaan on building a national EV charging network

    2 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}