Picture: David Ritchie/ANA Pictures

Cape Town - The Progressive Professionals Forum (PPF) said on Monday it was alarmed about service provider Cash Paymaster Services’ claim of more than R1 billion from the South African Social Security Agency (Sassa).

CPS is reportedly claiming R1.3 billion from Sassa over what it has called a breach of the terms of a contract to process social grant payments after Sassa said beneficiaries would now receive their grants through commercial banks.

“Although the PPF respects legal processes and procedures, we wish to warn CPS that if its claim is an attempt to derail the decision to have the provision of social grants delegated to the South African Post Office, such attempts will be fought fiercely by PPF,” the PPF said in statement.

The forum said it stood by its position that critical services such as the provision of social grants to the poor should be placed under state responsibility through the Post Office.

“It is even a serious indictment that such a huge tender for crucial state services such as social grants was in the hands of an un-transformed foreign owned company," it said.

“We continue to call for and monitor the speedy handover of the provisions of this critical service from CPS to the South African Post Office."

African News Agency/ANA