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The Federation of Unions of South Africa (FEDUSA) has welcomed the ruling by the Constitutional Court ordering the extension of the social grants payment contract between Cash Paymaster Services (CPS) and the South African Social Security Agency (Sassa) by a further 12 months.

More than 17 million South Africans, mostly elderly and disabled people depend on social grant payments to wade off hunger and extreme suffering. Both Social Development Minister Bathabile Dlamini and President Jacob Zuma have robustly denied that there was any pending crisis threatening to collapse the entire system.

The extension will facilitate a due process of appointing another service provider other than CPS which has been also ordered to report to Sassa every three months over the period.

"SASSA and CPS must ensure payment from April 1 for 12 months on the same terms and conditions as the contract which expires on March 31," Justice Johann Froneman said on handing down the judgement.

The ruling will bring stability to a highly volatile situation and ensure that millions of South African are not unfairly prejudiced by the incompetence of executive authority,” said FEDUSA Secretary General Dennis George.

“FEDUSA will hold Minister Dlamini personally accountable if there are any disruptions of grant payment to needy South Africans over the 12 months period that has been ordered by the Constitutional Court”.

FEDUSA also welcomed a further court ruling ordering Dlamini to show cause why she should not be added to the matter in her personal capacity and why she should not be required to pay the legal costs from her own pocket rather than using state money.

Issued by FEDUSA