Mail & Guardian
Mail & Guardian

The R10bn social grants tender that kept on giving

Picture: Social grant beneficiaries queuing
Picture: Social grant beneficiaries queuing

In 2012, the South African government outsourced the national distribution of social grants to Cash Paymaster Services. 

The company came with baggage, including numerous bribery allegations over the previous 10 years. These were denied.

In 2014, the Constitutional Court invalidated the 2012 tender because of a series of irregular acts by South African Social Grants Agency officials, which had the effect of sweeping in Cash Paymaster. 

The judges noted: “An unfair process may betoken a deliberately skewed process”.

But the court ultimately allowed Cash Paymaster to keep its invalid contract to ensure the grant payments were not interrupted.

Throughout, officials have acted questionably to repeatedly benefit one party: Cash Paymaster. 

AmaBhungane has tracked Sassa’s maladministration and Cash Paymaster’s high political links.