, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
Please also note that the author of this document will not be responsible for any plagiarism you
commit.
QUESTION 1
1. There is a crisis in the provision of social grants due to an invalid tender. The matter goes to
court, and the court gives its order. Examine the following four items in the court order. Name
each remedy used, and briefly explain why the Court chose to use each of them. (In other words,
briefly explain the necessity/benefit of each remedy.)
1.1. The Contract for the payment of social grants between the South African Social Security
Agency (SASSA) and Cash Paymaster Services (Pty) Ltd (Cash Paymaster) dated 3 February
2012 is declared invalid.
The court’s decision to declare the contract between SASSA and Cash Paymaster Services (Pty) Ltd
invalid is an example of the remedy of declaration of invalidity. This remedy ensures that unlawful
contracts do not remain in force, reinforcing the principles of legality and fairness in public
procurement (AllPay Consolidated Investment Holdings (Pty) Ltd v Chief Executive Officer,
SASSA 2014 (1) SA 604 (CC)). By invalidating the contract, the court upholds constitutional
principles and ensures compliance with procurement regulations (Bolton 2007). Furthermore, this
remedy prevents unjust enrichment, ensuring that a private entity does not unfairly benefit from an
unlawful agreement while safeguarding public funds (Currie & De Waal 2013).
1.2. This declaration is suspended for twelve months, to allow SASSA to complete a new tender
process as per item (1.3) below.
The suspension of the declaration of invalidity for twelve months is an example of the remedy of
suspension of invalidity. This remedy prevents the immediate disruption of social grant payments,
ensuring that beneficiaries continue to receive financial support (AllPay Consolidated Investment
Holdings (Pty) Ltd v CEO, SASSA 2014). By allowing SASSA time to conduct a lawful and
transparent procurement process, the court balances legal compliance with the practical need to
maintain essential services (Bolton 2007). This also avoids a governance crisis by ensuring
continuity in service delivery while the new tender process is finalized, upholding the constitutional
right to social security (Currie & De Waal 2013).
1.3. SASSA must initiate a new tender process for the payment of social grants within 30 days of
this order.
The requirement for SASSA to initiate a new tender process within 30 days is an example of the
remedy of mandamus, which compels a government body to perform its legal duty. This remedy
ensures that the procurement process for social grant payments proceeds without unnecessary delay,
reducing the risk of further legal complications (Bolton 2007). By setting a strict timeline, the court
prevents inefficiency and ensures that SASSA takes immediate action to rectify the unlawful contract,
ultimately protecting the interests of grant beneficiaries (Currie & De Waal 2013).
Please also note that the author of this document will not be responsible for any plagiarism you
commit.
QUESTION 1
1. There is a crisis in the provision of social grants due to an invalid tender. The matter goes to
court, and the court gives its order. Examine the following four items in the court order. Name
each remedy used, and briefly explain why the Court chose to use each of them. (In other words,
briefly explain the necessity/benefit of each remedy.)
1.1. The Contract for the payment of social grants between the South African Social Security
Agency (SASSA) and Cash Paymaster Services (Pty) Ltd (Cash Paymaster) dated 3 February
2012 is declared invalid.
The court’s decision to declare the contract between SASSA and Cash Paymaster Services (Pty) Ltd
invalid is an example of the remedy of declaration of invalidity. This remedy ensures that unlawful
contracts do not remain in force, reinforcing the principles of legality and fairness in public
procurement (AllPay Consolidated Investment Holdings (Pty) Ltd v Chief Executive Officer,
SASSA 2014 (1) SA 604 (CC)). By invalidating the contract, the court upholds constitutional
principles and ensures compliance with procurement regulations (Bolton 2007). Furthermore, this
remedy prevents unjust enrichment, ensuring that a private entity does not unfairly benefit from an
unlawful agreement while safeguarding public funds (Currie & De Waal 2013).
1.2. This declaration is suspended for twelve months, to allow SASSA to complete a new tender
process as per item (1.3) below.
The suspension of the declaration of invalidity for twelve months is an example of the remedy of
suspension of invalidity. This remedy prevents the immediate disruption of social grant payments,
ensuring that beneficiaries continue to receive financial support (AllPay Consolidated Investment
Holdings (Pty) Ltd v CEO, SASSA 2014). By allowing SASSA time to conduct a lawful and
transparent procurement process, the court balances legal compliance with the practical need to
maintain essential services (Bolton 2007). This also avoids a governance crisis by ensuring
continuity in service delivery while the new tender process is finalized, upholding the constitutional
right to social security (Currie & De Waal 2013).
1.3. SASSA must initiate a new tender process for the payment of social grants within 30 days of
this order.
The requirement for SASSA to initiate a new tender process within 30 days is an example of the
remedy of mandamus, which compels a government body to perform its legal duty. This remedy
ensures that the procurement process for social grant payments proceeds without unnecessary delay,
reducing the risk of further legal complications (Bolton 2007). By setting a strict timeline, the court
prevents inefficiency and ensures that SASSA takes immediate action to rectify the unlawful contract,
ultimately protecting the interests of grant beneficiaries (Currie & De Waal 2013).
