Constitutional obligations can ensure private firms serve the public good
The Constitutional Court has the power to change the terms of a private contract upon which the delivery of a socioeconomic right depends, Lwando Xaso writes
The right to have access to social security is a socioeconomic good that one would usually expect to be provided by the state rather than a private company. However, as highlighted by the Constitutional Court in the recent Black Sash Trust v Minister of Social Development, South African Social Security Agency (Sassa) and Others judgment, the country is now "confronted with a situation where the executive arm of government admits that it is not able to fulfil its constitutional and statutory obligations to provide for the social assistance of its people. And, in the deepest and most shaming of ironies, it now seeks to rely on a private corporate entity … to get it out of this predicament." Therefore, due to the state’s complete reliance on Cash Paymaster Services (CPS) for the delivery of a constitutional right, the court viewed CPS as an extension of the state for the delivery of social security, even though CPS’s contract with Sassa was due to expire in a couple of weeks. The court...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.