The South African Constitutional Court has ruled that the tender process followed by the South African Social Security Agency (Sassa) in awarding a contract to Net1’s wholly-owned subsidiary Cash Paymaster Services (CPS) was constitutionally invalid.
However, the Constitutional Court suspended its declaration of invalidity pending determination of a just and equitable remedy. The grant of this remedy is reserved pending a further hearing, which has been set for February 11, 2014.
According to a statement from Net 1 UEPS Technologies, the parties have been ordered to submit additional information on affidavit by 30 January 2014.
The Constitutional Court has ordered the CEO of Sassa, Sassa and the company to pay costs, including the cost of three counsels – in the High Court, South African Appeals Court and the Constitutional Court – to AllPay Consolidated Investment Holdings.
The Net1 UEPS statements adds that the company cannot predict what the outcome of the February 2014 hearing will be.
However, it points out that the contract between Sassa and CPS to distribute social welfare grants to 10-million South Africans every month remains in force and effect until the Constitutional Court determines the appropriate remedy.
The Constitutional Court judgment follows an appeal by AllPay, an unsuccessful bidder, against the unanimous judgment by the South African Appeals Court on 27 March 2013, that the tender process was valid and legal.