, MSL5901 ASSIGNMENT 1 ANSWERS - DUE DATE: 13 MAY 2026
1. Introduction
The administration of social grants in South Africa constitutes a critical mechanism through
which the state fulfils its constitutional obligation to realise socio-economic rights. The crisis
arising from the invalid contract between the South African Social Security Agency (SASSA)
and Cash Paymaster Services (CPS) prompted unprecedented judicial intervention. The
Constitutional Court judgments in Black Sash Trust v Minister of Social Development and
Others and South African Social Security Agency v Minister of Social Development and
others demonstrate the Court’s willingness to craft innovative remedies to avert a
humanitarian disaster.
This essay critically evaluates the Court’s intervention, its constitutional significance, and the
implications of suspending the consequences of unlawful conduct.
2. Background to the Social Grants Crisis
South Africa’s social grants system is one of the largest in the developing world and is
central to the realisation of the right to social security under section 27(1)(c) of the
Constitution.1 The crisis originated when the contract between SASSA and CPS was declared
invalid due to irregular procurement processes that violated constitutional principles of
fairness, transparency, and competitiveness.2
Despite this declaration, SASSA failed to develop an alternative system to ensure the
continued distribution of grants. This failure created a risk that millions of beneficiaries
would be left without essential financial support, thereby threatening their dignity and
1
Constitution of the Republic of South Africa, 1996, s 27(1)(c).
2
AllPay Consolidated Investment Holdings v SASSA 2014 (4) SA 179 (CC).
1. Introduction
The administration of social grants in South Africa constitutes a critical mechanism through
which the state fulfils its constitutional obligation to realise socio-economic rights. The crisis
arising from the invalid contract between the South African Social Security Agency (SASSA)
and Cash Paymaster Services (CPS) prompted unprecedented judicial intervention. The
Constitutional Court judgments in Black Sash Trust v Minister of Social Development and
Others and South African Social Security Agency v Minister of Social Development and
others demonstrate the Court’s willingness to craft innovative remedies to avert a
humanitarian disaster.
This essay critically evaluates the Court’s intervention, its constitutional significance, and the
implications of suspending the consequences of unlawful conduct.
2. Background to the Social Grants Crisis
South Africa’s social grants system is one of the largest in the developing world and is
central to the realisation of the right to social security under section 27(1)(c) of the
Constitution.1 The crisis originated when the contract between SASSA and CPS was declared
invalid due to irregular procurement processes that violated constitutional principles of
fairness, transparency, and competitiveness.2
Despite this declaration, SASSA failed to develop an alternative system to ensure the
continued distribution of grants. This failure created a risk that millions of beneficiaries
would be left without essential financial support, thereby threatening their dignity and
1
Constitution of the Republic of South Africa, 1996, s 27(1)(c).
2
AllPay Consolidated Investment Holdings v SASSA 2014 (4) SA 179 (CC).
