CPS ‘must repay illegal debits’

UDM leader Bantu Holomisa has written to the Constitutional Court to ask that it look into making CPS pay back money deducted from grant recipients in the first contract, deemed illegal in 2014. File picture: Antoine de Ras/Independent Media

UDM leader Bantu Holomisa has written to the Constitutional Court to ask that it look into making CPS pay back money deducted from grant recipients in the first contract, deemed illegal in 2014. File picture: Antoine de Ras/Independent Media

Published Mar 26, 2017

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The United Democratic Movement wants Cash Paymaster Services (CPS) to pay back millions of rand it received in illegal deductions from grant recipients.

UDM leader Bantu Holomisa wrote to Chief Justice Mogoeng Mogoeng on Friday asking the Constitutional Court to look into making CPS pay back money deducted from grant recipients in the first contract, deemed illegal in 2014.

The Constitutional Court ruled earlier this month that the contract between CPS and the SA Social Security Agency (Sassa) be extended by a year. Sassa and Social Development Minister Bathabile Dlamini have also been ordered to file affidavits every three months with the court on how they would pay grants at the end of the contract.

The company was also ordered to not use grant recipients data for any other purpose than to pay them.

Holomisa said for “institutional corruption to be exposed” within Sassa and CPS, the court should form a judicial inquiry. In the letter, he says CPS deducted about R500 million a month from beneficiaries. He said the party wanted the court to recoup money deducted by EasyPay Everywhere, Manje Mobile, MoneyLine and SmartLife.

“Going to the police station and opening a case would be a restricted approach. We want the judges to institute an inquiry that will give us a clear picture of the saga. If people got the tender because of greasing palms, we need to know. A forensic audit will give us a clear picture of the paper trail,” Holomisa said.

He said a judicial inquiry would be able to “summon” anyone implicated in the debacle for answers.

In the letter, he says: “The monies that have been illegally deducted must be refunded as soon as possible. In many cases, the unfortunate circumstance would have arisen where the elderly (and other defenceless persons) had passed away, in which case the grant monies should be awarded to the beneficiaries of the deceased.

“Over the years, CPS harvested millions of biometric profiles of grant recipients and beneficiaries. The Concourt was unequivocal in its judgment that this practice must stop. It was, however, not clear on the monies deducted illegally.”

Holomisa said since the court was going to closely monitor the implementation of the new one-year contract, it should also consider setting up a judicial commission of inquiry to look into how grant beneficiaries money was illegally deducted and how much.

He asked that the auditor-general work closely with the court to look into the deductions.

Holomisa said from the evidence received from the judicial inquiry, charges against individuals would be formulated.

“We want this to serve as a deterrent for anyone who will take over Sassa in the future that corruption will not be tolerated,” Holomisa said.

Dlamini is expected to file papers with the Constitutional Court this week on why she should not pay legal fees out of her own pocket.

The Sunday Independent

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