The Constitutional Court of South Africa has ordered that Net1 UEPS Technologies’ subsidiary, Cash Paymaster Services not be precluded from participating in SASSA’s tender process, which started in December 2017.
On February 6, 2018, CPS launched an application with the Constitutional Court requesting a declaration that CPS is not prohibited from participating in the December 2017 tender issued by SASSA, following statements made by SASSA that it interpreted the original Constitutional Court order to preclude CPS from tendering in any future social grant distribution tenders.
In its February 23, 2018, order, the Constitutional Court clarified that CPS’s eligibility to take part in future tender processes was not in issue in the application in which the judgment was handed down by it on March 17, 2017, and that judgment did not render CPS ineligible to participate in SASSA’s tender process.
CPS has obtained the December 2017 SASSA tender bid documentation. The Company cannot predict the timing of the SASSA tender process, whether it will actually participate or what the outcome will be.
The Constitutional Court has also scheduled a hearing on March 6, 2018 to consider SASSA’s application for a six month extension of its contract with CPS, which expires on 31 March 2018.
The application has not been opposed by any parties to the matter, although certain respondents have requested that the Constitutional Court considers further orders, including the repayment of any profits derived by CPS under the SASSA contract and a moratorium on the roll-out of Net1’s EasyPay Everywhere product.