Constitutional Court protects children's rights in tender dispute
On 29 November 2013 the Constitutional Court delivered judgment in a tender dispute case, in which Allpay Consolidated Investment Holdings (Pty) Ltd argued that there had been irregularities in the manner in which Cash Paymaster services (Pty) Ltd were awarded a tender to administer social grants in South Africa. The South African Social Security Agency (SASSA) awarded Cash Paymasters Services the tender worth R10 billion.
The Constitutional Court held that the decision to award the tender to Cash Paymasters was constitutionally invalid, becuase SASSA did not give due regard to black economic empowerment in procurment and issued a Bidders' Notice that was vague and uncertain leading to procedural unfairness.
The Court however did not set aside the tender because of the serious disruptions that would be caused to the payment of social grants. The Court instead suspended the declaration of invalidity until a further hearing on 11 February 2014 where a just and equitable remedy will be determined.
The Court has invited all the parties, including the Centre for Child Law, to submit further information for the hearing. The Centre was part of the case because of a concern by the likelihood of disruptions of the payments of grants affecting children, such as the child care grant, the foster child grant and the care dependency grant.
For more information see the link below:
Constitutional Court Judgment