Molefe Seeletsa
Digital Journalist
2 minute read
1 Apr 2021
2:21 pm

Cash Paymaster Services ordered to hand over financial statements

Molefe Seeletsa

CPS must provide auditors with its financial statements for verification and submission to the national Treasury for approval.

Picture: Gallo Images/Nardus Engelbrecht

The Constitutional Court has ordered Cash Paymaster Services (CPS) to release its financial statements relating to its contract awarded by the South African Social Security Agency (Sassa), that was later declared invalid.

The ConCourt ruled on Thursday that CPS must provide Rain Chartered Accountants, the auditors appointed by Sassa, with its financial statements for verification and submission to the national Treasury for approval.

Freedom Under Law had approached the ConCourt after CPS, which used to pay out social grants, failed to comply with a court order delivered on 17 March 2017.

ALSO READ: How Cash Paymaster Services ‘hid’ Sassa profits of R843m – auditor

The court order stipulated that CPS file an audited statement of “expenses incurred the income received and the net profit earned” and to allow Rain access to its financial statements.

It further stipulated that Sassa and CPS needed to ensure that beneficiaries’ grants were paid out by 1 April 2017.

In its application, Freed Under Law argued that CPS did not allow Rain full access to its financial statements and that CPS had underreported its profits by approximately R800 million.

“The relief sought by Freedom Under Law requires that CPS, KPMG and Mann Inc furnish Rain with the outstanding documentation as identified by Rain for the purposes of independent verification and submission to the national Treasury for approval whereafter 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 ConCourt said in a statement on Thursday.

READ MORE: CPS being sued again over ‘R1bn hidden’ Sassa profit

The ConCourt has also, however, postponed Freedom Under Laws challenge to determine the profits made by CPS and repayment until the  audit process was finished.

“The Constitutional Court granted the above unopposed relief sought by Freedom Under Law 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.”

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