/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Honourable Chief Justice of South Africa, Mogoeng Mogoeng
Private Bag X1
Constitution Hill
Braamfontein
2017

Dear Honourable Chief Justice

REFUNDING OF CPS ILLEGAL DEDUCTIONS, DISSEMINATION OF BENEFICIARIES’ INFORMATION AND PROPOSED JUDICIAL COMMISSION OF INQUIRY

This matter has reference.

Illegal deductions to the tune of over R500 million per month has been taken from the grants paid, via the services of Cash Paymaster Services (CPS), over the period of the first contract with Government i.e. the contract which the Constitutional Court ruled invalid in 2014.

Each beneficiary (and in many cases “extended beneficiaries”) had less money to live on for extended periods, because of these foul deeds and they will have suffered because of it. It is unconscionable that the most vulnerable in our society was so duped; loans and illegal deductions from social grants, is exploitation at its worst.

We have heard of grants recipients who were essentially forced to make use of services from EasyPay Everywhere (smart cards), Manje Mobile (airtime and electricity) MoneyLine (loans) and SmartLife (insurance). The MoneyLine loans has the added dimension of possible flouting of credit regulations.

The monies that have been illegally deducted must be refunded as soon as possible. In many cases, the unfortunate circumstance would have arisen where the elderly (and other defenseless persons) had passed away, in which case the grant monies should be awarded to the beneficiaries of the deceased.

Over the years, CPS harvested millions of biometric profiles of grant recipients and beneficiaries. The Constitutional Court was unequivocal in its judgment that this practice must stop. It was, however, not clear on the monies deducted illegally.

This issue may not have been discussed at the South Africa Social Security Agency (SASSA) court hearing, because no such papers were served before the Constitutional Court. But since the Court will closely monitor the implementation of the extended CPS contract, it should make it its business to consider the flaws in the existing system going forward. The Court’s decision that the illegal use of beneficiaries’ personal information must stop could be handled in concert with enforcing a situation where the illegal deductions are reversed (and backdated). There is no doubt that there is a symbiotic relationship between these two issues.

Under normal circumstances a judicial commission of inquiry would be instituted (with forensic powers) to investigate exactly how these illegal deductions came about and how much money was channeled where. There are fears that certain corrupt individuals and/or political parties may have used CPS as a cash cow. Given the monitoring mantel which the Constitutional Court will don in the next twelve months, we think that the Court may still recommend that Government institutes such a commission of inquiry,

We would advise that, in the meantime, the Auditor General should perhaps be invited to work with the Constitutional Court to verify to what extent these illegal deductions affected beneficiaries and, if any, how much profit the aforementioned companies possibly made and/or interest earned.

Kind regards

Mr Bantu Holomisa, MP
President of the United Democratic Movement
082 552 4156

Issued by UDM