South Africa's Constitutional Court has ruled that Cash Paymaster Services must pay the South African Social Security Agency R81.3-million for profits earned under an invalid contract. Recovery remains uncertain due to CPS's insolvency since 2020. The judgment concludes years of litigation over the matter.
The Constitutional Court ordered Cash Paymaster Services (CPS) to pay the South African Social Security Agency (Sassa) R81.3-million. Justice Steven Majiedt delivered the judgment, noting years of litigation and ordering each party to bear its own costs due to mutual accusations of non-cooperation.
The dispute stems from a 2014 ruling that declared Sassa's nationwide payment tender to CPS constitutionally invalid, though CPS continued operations to ensure grant payments. The court found CPS acted as an organ of state, barring it from retaining profits from the unlawful contract.
CPS entered final liquidation on 16 October 2020. A liquidator's report from 23 May 2025 lists assets of about R51-million against proved claims of R779-million, mostly from Sassa, and disputed SARS tax claims of R401-million. Sassa must claim the amount as a concurrent creditor, with low recovery prospects if SARS prevails.
CPS has a separate claim against Sassa for R316.4-million. Lincoln Mali, CEO of Lesaka Technologies (formerly Net1, CPS's parent), welcomed the ruling, stating it brings closure as Lesaka was not party to prior orders and faces no claims from the liquidator.
