Pearl Bengu, CEO of the South African Social Security Agency (Sassa) has slammed Net1 subsidiary Cash Paymaster Services (CPS) for abusing its strategic position to push Net1’s loan business. "Invariably the interest [on the loans] is exorbitant and the loan disproportionate to the capacity of the borrower’s financial power," Bengu told the Constitutional Court. She said CPS’s position allowed it to procure payment directly from the social grants. The Sassa CEO was responding to CPS’s application that it be allowed to participate in the tender for the distribution of cash to a portion of the 10.7-million social grant beneficiaries after the current invalid contract is terminated. Sassa issued the tender in December but prohibited CPS from participating. CPS lodged its application with the court on February 12. This is one of two matters relating to social grants the court is hearing. In a different but related matter on February 6, Sassa applied to the court for an extension of the ...

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