Case No. | Lower Court Judgments | Hearing Date | Judgment Date | Majority Author | Vote | |
CCT 48/13 | North Gauteng High Court, 28 Aug. 2012 SCA, 27 Mar. 2013 |
10 Sep. 2013
Remedy 11 Feb. 2014 |
29 Nov. 2013
Remedy 17 Apr. 2014 |
Froneman J. | Unanimous |
By Duncan Wild and Mzukisi Kota
AllPay Consolidated Investment Holdings (Pty) Ltd (“Allpay“) bid for a tender from the South African Social Security Agency (“SASSA“) to administer the national social grant system worth R10 billion, but the tender was awarded to Cash Paymaster Services (Pty) Ltd (“CPS“). Allpay then challenged the decision in the North Gauteng High Court (“NGHC“) on the basis of alleged flaws in the tender process, including the composition of the Bid Evaluation Committee, the failure of CPS to submit separate provincial bids, and the failure to assess CPS’s BEE partners capacity to perform their obligations. The NGHC accepted Allpay’s challenge, but the SASSA appealed to the Supreme Court of Appeal (“SCA“).
The Constitutional Court unanimously found the tender unlawful, but in view of the potential ramifications requested further submissions on an appropriate remedy.
In a second judgment on remedy the Court, an another unanimous decision authored by Justice Froneman, found that a new tender process should be carried out, but that in the mean itme Cash Paymaster was to continue providing the services in view of the constitutional and contractual obligations to maintain a workable payment system.