The South African Social Security Agency (SASSA) has rejected allegations of over R1 billion claims by Cash Paymaster Services (CPS).
SASSA Acting Chief Executive Officer Pearl Bengu said in a statement on Thursday the claims follow allegations of a breach of the terms of the social grant services contracts.
Bengu said the alleged claims relates to 2009 contracts concluded in Eastern Cape, KwaZulu-Natal, Limpopo, Northern Cape and North West.
“Upon rejection by SASSA, the issues allude to arbitration as provided for in the contracts, the arrangement of presiding officers, holding of pre-arbitration meetings for hearing,” said Bengu.
Bengu said both SASSA and CPS on several times endeavored to settle the issues, with SASSA preferring the withdrawal of each matter with no form payments.
Bengu said discussions on settlement as the favoured arrangement failed, saying arbitration proceedings had to ensue.
She said the first claim of R1.3 billion has since decreased to R792 853 000 after CPS pulled back the rest.
“CPS has confirmed that it no longer go ahead with its claims for the Eastern Cape, KwaZulu-Natal, and Northern Cape regions.
This led to the withdrawal of the agency’s counterclaim,” said Bengu.
SASSA and CPS’s disputes over the procedure to follow when appointing arbitrators, led to the process taking a long time, but, the arbitrators for each matter were named.