Net1 subsidiary squares off against Sassa today
The battle by companies to profit from social grants rages on with another round of court action, this time between Sassa and another Net1 subsidiary, which will be heard today. According to a Mail & Guardian Online report, the Net 1 subsidiary, Moneyline Financial Services, is asking the Gauteng High Court (Pretoria) to compel Sassa to accept the consent forms – confirming bank accounts into which the social grants should be paid – of beneficiaries through Cash Paymaster Services (CPS).
Moneyline, the sister company to CPS, has asked the court for an interdict prohibiting Sassa from stopping the payment of social grants into Easy Pay Everywhere (EPE) accounts, which are administered by Moneyline.
The NET1 subsidiary’s director, Nunthakumarin Pillay, says in his affidavit that hundreds of thousands of social grant beneficiaries had opted to receive their social assistance in EPE accounts, which are held with Grindrod Bank, but Sassa officials have failed to process the forms.
This has led the agency to move beneficiaries to bank accounts with the South African Post Office. But Sassa’s acting CEO, Abraham Mahlangu, argues that Moneyline is only bringing the application out of its own financial interest and does not care about the beneficiaries.
Mahlangu has also argued that CPS was meant to protect the information of beneficiaries – even from its own sister company – and that Moneyline’s use of this information is in breach of that agreement.
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