The Constitutional Court has ordered Cash Payment Services (CPS), currently in liquidation, to repay R81,286,177 to the South African Social Security Agency (SASSA).
The ruling brings closure to a dispute that has returned to the apex court on 12 separate occasions.
“This is the latest episode in the long-running saga involving the unlawful award of a tender for the country-wide payment of social grants to beneficiaries,” wrote Justice Steven Majiedt, delivering an unanimous judgment on Wednesday.
In reaching the R81.3 million figure, the court adopted a pragmatic approach, relying on a certified profit statement verified by independent chartered accountants.
Justice Majiedt noted that the circumstances were exceptional. Although CPS operated as a private contractor, its function in distributing social grants effectively rendered it an organ of state for the purposes of public accountability—a consideration the court found justified the repayment order. This principle of accountability remains central to the new SASSA grant model outlined by President Cyril Ramaphosa during his much-scrutinised February 2026 State of the Nation Address.
The judgements further acknowledged CPS’s insolvency and the fact that state entities—including SASSA and the South African Revenue Service (SARS)—constitute the majority of its creditors.
Majiedt emphasised that a full forensic inquiry to determine the precise profits would be disproportionate and likely futile, given CPS’s insolvency.
“There is, to my mind, only one practical, sensible solution. We need to draw a line in this never-ending saga,” he wrote.
Accordingly, the court fixed R81.3 million as a fair and final repayment amount.
SASSA response and broader implications
SASSA CEO Themba Matlou welcomed the ruling as an affirmation of the rule of law, adding that the agency would comply with the court’s directives.
“We are satisfied with the order handed down by the justices of the Constitutional Court,” Matlou said. “We believe this is a vital precursor to addressing other outstanding issues concerning CPS and finally close the chapter.”
The court also directed that each party bear its own costs—a reflection of its frustration with a case that has consumed substantial judicial resources and public funds for over a decade.
The liquidator has cautioned that should SARS’s contested claim succeed, concurrent creditors, including SASSA, may receive only a pro rata dividend—or no dividend at all.
Read also: SASSA April 2026 grant delays and warnings that contextualise ongoing pressures on social grant administration.
