Corruption Watch is prepared to take further action based on the Constitutional Court’s findings that declared illegal and invalid the award of a R10-billion contract by the South African Social Security Agency (SASSA) to Cash Paymaster Services (CPS).

Welcoming the Constitutional Court’s judgment, Corruption Watch executive director David Lewis said he was pleased that the Court had accepted and referred to Corruption Watch’s submissions in its decision on the matter involving the irregular awarding of the SASSA tender.

Corruption Watch participated as a friend of the Court. In its submission CW argued that irregularities in a tender process were red flags indicating possible corruption. It further submitted that in the interest of justice, the SASSA/CPS contract should be terminated with minimal disruption to the payment of social grants. Both submissions were accepted by the Court.

The Court has ordered SASSA to initiate a new tender process for the payment of social grants after finding that SASSA had committed serious irregularities in the process of awarding the tender.

Corruption Watch will urge the South African police to undertake an investigation into allegations of bribery surrounding the SASSA contract.  “The presence of irregularities in the tender process begs the question: in whose interest were these irregularities perpetrated, and why?”

Lewis said: “The South African law enforcement authorities must now do their duty and investigate this matter which should have been done a long time ago.  We will approach them in this regard. If they decline to undertake an investigation we will explore other options, including the possibility of a private criminal prosecution.”

CPS, a subsidiary of listed company Net1 in the US, is already under investigation in that country for possible contravention of the Foreign Corrupt Practices Act which outlaws the bribery of foreign officials.

Lewis said Corruption Watch also welcomed the Court’s decision to monitor the new SASSA tender process.  He added that for its part, Corruption Watch would, on behalf of the public, closely scrutinise the new tender process.

For more information:  David Lewis – 082 576 3748

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Excerpt

Corruption Watch is prepared to take further action based on the Constitutional Court’s findings that declared illegal and invalid the award of a R10-billion contract by the South African Social Security Agency to Cash Paymaster Services. The organisation calls for a police investigation into the matter.