Judgement Date: 01 April 2021
Post Judgment Media Summary
The following explanatory note is provided to assist the media in reporting this case and is not binding on the Constitutional Court or any member of the Court.
On 1 April 2021 at 09h00 the Constitutional Court handed down judgment in an application brought by Freedom Under Law NPC (FUL) in which it sought compliance with a court order dated 17 March 2017 that was granted in an application brought by Black Sash Trust. In that application, Black Sash Trust and FUL sought an order directing the South African Social Security Agency (SASSA) and Cash Paymaster Services (Pty) Limited (CPS) to ensure payment of social grants to grant beneficiaries from 1 April 2017, for a period of 12 months, by extending the tender contract that was awarded by SASSA to CPS for the payment of social grants, which was declared invalid.
The order imposed conditions that CPS file an audited statement of “expenses incurred, the income received and the net profit earned” and to allow Rain Chartered Accountants (RAIN), the auditors appointed by SASSA, free access to its financial statements for the purpose of verifying such statements for submission to National Treasury for approval.
In the current application, FUL sought an order compelling proper compliance with the above conditions as it alleged that CPS did not allow RAIN free access to its financial statements and further that the verification report that was produced reveals that CPS had under declared its profits by an amount of approximately R800 million. The relief sought by FUL requires that CPS, KPMG Services (Pty) Limited and Mazars Inc furnish RAIN with the outstanding documentation as identified by RAIN for the purposes of independent verification and submission to National Treasury for approval, where after the approved verified report is to be filed with the Registrar of the Constitutional Court. This relief was unopposed by all the parties cited.
The Constitutional Court granted the above unopposed relief sought by FUL and deferred the portion of the relief that was opposed by CPS which concerned the determination and repayment of profits made by CPS from the unlawful contract.
The Full judgment here