Cash Paymaster Services may have to return R1bn profit
Constitutional Court also ruled CPS was not allowed to profit from the social grants contract
Cash Paymaster Services (CPS) may have to hand back R1bn in profit it is estimated to have made from the social grants contract over the past five years once the Constitutional Court receives and scrutinises CPS’s audited statements for the period at the end of April. When the court extended the invalidity of the CPS contract in 2013, it also ruled that the company was not allowed to profit from the contract. The firm was ordered to file within 30 days of the contract ending an audited statement of the expenses incurred, the income received as well as the net profit earned. Analysts estimate that CPS made about R1bn profit over the five-year period of the contract. However, the court will only know at the end of April whether it can enforce this ruling. If CPS has distributed this profit to its parent company, Net1, in the form of a dividend, it may not have the funds to hand over to the court. In its latest ruling on the South African Social Security Agency (Sassa) debacle last wee...
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