CPS should be probed - Cosatu

Published Mar 17, 2017

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Johannesburg – SA’s largest trade federation, the

Congress of South African Trade Unions, is demanding that Cash Paymaster

Services be probed for corruption.

This comes as the Constitutional Court is set to, on

Friday, to rule whether it should oversee any new contract.

The current contract with Net1 unit comes to an end this

month, and there are concerns over whether 17 million South Africans will

receive their grants come April 1. The state pays more than R170 billion a year

to those surviving on grants, and CPS’s deal is worth R10 billion.

It was declared invalid by SA’s highest court in 2014, but

allowed to continue as the South African Social Security Agency did not enter a

new deal – allowing the CPS agreement to run for the full five years.

On Thursday, Cosatu handed over a memorandum to SASSA CEO

and delegates of the Department of Social Development.

In its memorandum, the federation says the grants are

under “threat”. President Jacob Zuma has said there is no need to panic, while Finance

Minister Pravin Gordhan is sure the grants will be paid.

Read also:  CPS tried to 'blackmail' government

CPS and SASSA want to continue their agreement, with CPS

saying it’s the only company capable of handling payments. SASSA also has

contingency measures, which includes bank transfers and cash deliveries to

recipients.

Cosatu says its main concern is that the department has “failed

to comply with the Constitutional Court order in relation to the dispensing of

the grants. The court has found that the CPS should not be allowed to continue

with the disbursement of the funds to social security recipients.”

It adds social security is the most important assistance

that poorer communities get from the state.

The federation says CPS must be investigated for “corruption,”

without providing any grounds, but also asking that any links between the CPS

and politicians be revealed.

It also wants the 2014 Constitutional Court decision that

found the initial deal invalid be implemented.

It also echoed calls for Social Development minister

Bathabile Dlamini’s head.

“Minister we call for your resignation due to your

failure to lead this department. We further call on the President to remove you

from office, should you refuse to resign.”

Cosatu has given the minister until March 21, threatening

to have a massive protest should she fail to resign.

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