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
      Malatsi comes out swinging in Starlink lobbying row - Solly Malatsi

      Malatsi comes out swinging in Starlink lobbying row

      6 July 2026
      'Functioning but limping': PSC lays bare the rot at Sita - State IT Agency

      ‘Functioning but limping’: PSC lays bare the rot at Sita

      6 July 2026
      Bookmakers to ISPs: stop debating, start blocking

      Bookmakers to ISPs: stop debating, start blocking

      6 July 2026
      MTN's Ralph Mupita named to new UN AI commission - Ralph Mupita

      MTN’s Ralph Mupita named to new UN AI commission

      6 July 2026
      British TV giants merge to take on Netflix

      British TV giants merge to take on Netflix

      6 July 2026
    • World
      Swingeing jobs cuts at Microsoft's Xbox unit

      Swingeing jobs cuts at Microsoft’s Xbox unit

      6 July 2026

      SK Hynix ends Samsung’s 26-year reign at the top

      22 June 2026
      Google on the hook for what its AI tells users, court rules

      Google on the hook for what its AI tells users, court rules

      15 June 2026
      How Russians juggle VPNs to outwit the Kremlin

      How Russians juggle VPNs to outwit the Kremlin

      15 June 2026
      Amazon CEO flagged Anthropic AI risks to Washington - Andy Jassy

      Amazon CEO flagged Anthropic AI risks to Washington

      14 June 2026
    • In-depth
      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
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
    • TCS
      TCS+ | How Tracker is turning vehicle data into business strategy - Silvia Schollenberger

      TCS+ | How Tracker is turning vehicle data into business strategy

      1 July 2026
      TCS+ | IBM Bob: an AI-powered 'development partner' for the enterprise - David Spurway

      TCS+ | IBM Bob: an AI-powered development partner for the enterprise

      30 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E6: ‘A flawless Alfa and a bakkie that divides’

      17 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E5: ‘A Bentley of the bush and a car that swims’

      8 June 2026
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
    • Opinion
      The author, Jannie van Zyl

      South Africa’s broadband future is being decided in orbit, not in Pretoria

      30 June 2026
      The author, Pambos Soteriades

      The pivot South Africa’s MVNOs cannot afford to miss

      23 June 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      Brazil’s online gambling crackdown is a lesson for South Africa

      22 June 2026
      Finish the job Mandela started - Farzam Ehsani

      Finish the job Mandela started

      18 June 2026
      The author, Fanie van Rooyen

      The US just showed it can switch off our AI

      17 June 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 Telecom
      • 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
      • 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 » News » CPS set to be paymaster for a while longer

    CPS set to be paymaster for a while longer

    By Ray Mahlaka6 February 2018
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Social development minister Bathabile Dlamini (image c/o GCIS)

    Incumbent social grants distributor Cash Paymaster Services (CPS) might swoop in again at the last minute to help the South African Social Security Agency (Sassa) avoid a crisis that would place the livelihoods of the country’s most vulnerable citizens in jeopardy.

    Arguably, this was already suspected and feared by many observers due to Sassa’s self-imposed delays and missed deadlines to find another service provider to pay 17m social grants from 1 April 2018.

    And with less than two months to go before CPS’s contract to pay social grants expires, the likelihood of the company still being part of the payment system is high.

    Sassa’s lawyers wrote a letter to chief justice Mogoeng Mogoeng on 18 December 2017 asking the court to suspend the invalidity of CPS’s contract and extend it until September 2018

    In a third report to the constitutional court, a panel of experts said they were informed that the services of CPS would still be required for another six months after the 1 April deadline.

    Sassa’s lawyers wrote a letter to chief justice Mogoeng Mogoeng on 18 December 2017 asking the court to suspend the invalidity of CPS’s contract and extend it until September 2018.

    This request is a major concession as Sassa’s five-year contract with CPS, which began in February 2012, was declared invalid by the court in 2014 as it didn’t go through proper tender processes.

    It also brings more questions as to why embattled social development minister Bathabile Dlamini is determined to keep CPS, which is a subsidiary of US Nasdaq-listed Net1 UEPS, in the social grants payments system.

    Sassa told the panel of experts that it “had not yet launched an application in this regard (to ask for an extension) but was still waiting for guidance from its counsel”.

    If the court agrees to Sassa’s request, it would be the second time CPS’s invalid contract is extended, as in 2017, the court extended it for a year ending 31 March 2018 to avert a crisis.

    Panel of experts

    The panel of experts said in the report that Sassa’s letter states that the agency “has not procured a service provider” for recipients receiving their social grants in cash and that a “further directive was being awaited from the court”.

    The panel of experts — appointed by the court to oversee the process to phase out the CPS contract — includes the auditor-general, Kimi Makwetu, Anthony Felet, Gill Marcus, Tim Masela, Heinz Weilert, Angela Bester, Werner Krull, Mavuso Msimang, Doris Tshepe, Mmamolatelo Mathekga and Barend Taute. They are supported by secretariat Marissa Bezuidenhout assisted by Walter Bhengu and Paklo Leung.

    It’s the second time that the panel of experts has warned about no end to the CPS and Sassa contract. In their first report in October, they said it’s possible that CPS may still be required for the payment of social grants given the failure of Sassa to meet its key deadlines.

    Another possibility is that Net1 might establish a new company with black empowerment partners that could bid on a Sassa contract.

    It was agreed — through a last-minute intervention by an inter-ministerial task team led by minister in the presidency Jeff Radebe in December 2017 — that the Post Office would collaborate with commercial banks in order to distribute social grants from 1 April 2018. Recipients are expected to access their social grants through Post Office branches and bank ATMs using low-cost bank accounts.

    However, two Sassa insiders have told Moneyweb that the agency is yet to define the respective roles of the Post Office and commercial banks in the social grants payment system. The banks — mainly Nedbank, Standard Bank and FNB — are yet to be contracted by Sassa, a process that might add more delays, paving the way for CPS to continue being the paymaster.

    Sassa is expected to complete the evaluation of tender bids by February 2018, sources told Moneyweb.

    Dlamini’s affinity for CPS was questioned during a constitutional court-mandated inquiry, which is tasked with determining whether she should be held personally liable for the Sassa fiasco and pay legal costs.

    In his testimony at the inquiry, Zane Dangor, a former social development director-general, accused Dlamini of creating delays in finding another social grants distributor for CPS to continue being the paymaster.

    At the heart of the inquiry is Sassa’s controversial work streams, a parallel function that had been established in July 2016 comprising Dlamini’s handpicked advisors to investigate Sassa’s capacity to take over social grant payments from CPS.

    The work streams failed to make progress on its mandate and more than R30m was spent on them, which national treasury has recorded as irregular expenditure.

    On Friday, Dangor said Dlamini and her established work streams had a “lack of urgency” when looking for legal options that would allow Sassa to take over social grant payments from CPS. “The delay was to ensure that CPS continues (to pay social grants), despite it being illegal,” Dangor said.

    • This article was originally published on Moneyweb and is used here with permission
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Bathabile Dlamini Cash Paymaster Services CPS Sassa
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTelkom to roll out faster mobile broadband
    Next Article Bitcoin rout may have further to go

    Related Posts

    fingerprint

    Fingerprints, facial scans now mandatory for Sassa grants

    27 August 2025

    Compulsory biometric tests for some Sassa beneficiaries

    24 April 2025
    fraud

    How South Africa’s social grants system was defrauded on a massive scale

    6 January 2025
    Company News
    Finding focus: a strategic approach to cybersecurity for SMBs - Kaspersky

    Finding focus: a strategic approach to cybersecurity for SMBs

    6 July 2026
    Why voice-first communication matters more in the AI era - Mitel

    Why voice-first communication matters more in the AI era

    6 July 2026
    Friendship was the hard part of online school - until now - CambriLearn

    Friendship was the hard part of online school – until now

    6 July 2026
    Opinion
    The author, Jannie van Zyl

    South Africa’s broadband future is being decided in orbit, not in Pretoria

    30 June 2026
    The author, Pambos Soteriades

    The pivot South Africa’s MVNOs cannot afford to miss

    23 June 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    Brazil’s online gambling crackdown is a lesson for South Africa

    22 June 2026

    Subscribe to Updates

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

    Latest Posts
    Malatsi comes out swinging in Starlink lobbying row - Solly Malatsi

    Malatsi comes out swinging in Starlink lobbying row

    6 July 2026
    'Functioning but limping': PSC lays bare the rot at Sita - State IT Agency

    ‘Functioning but limping’: PSC lays bare the rot at Sita

    6 July 2026
    Bookmakers to ISPs: stop debating, start blocking

    Bookmakers to ISPs: stop debating, start blocking

    6 July 2026
    MTN's Ralph Mupita named to new UN AI commission - Ralph Mupita

    MTN’s Ralph Mupita named to new UN AI commission

    6 July 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}