Sassa ‘heist’: Nanda Pillay says cash-in-boot allegations are ‘inaccurate’ and ‘defamatory’

The former COO at Cash Paymaster Services (CPS) Nanda Pillay, accused of ferrying bags stuffed with millions of rand in cash in the boot of his car, has disputed the allegations, saying they are “inaccurate” and “defamatory”.

CPS, a subsidiary Net1, was the company previously used to pay social grants.

Explosive allegations emerged earlier this month about how millions of rands in cash meant for social welfare grants allegedly changed hands in an underground parking lot at the CPS office in Rosebank, Johannesburg. The money was then put in the boots of cars.

Cash put in boots of cars

The shocking claim was revealed in an affidavit deposed by a former senior security officer at Fidelity Services Group (FSG), according to The Sunday Times.

FSG was the company appointed to secure the movement of money from depots and banks to social grant pay points nationwide.

In his affidavit, the FSG officer disclosed how he and his colleagues collected and delivered cash to Pillay, who was COO of CPS at the time. They described how the cash was put in the boots of two vehicles — one of them being Pillay’s BMW.

The alleged movement of the cash in private vehicles and lack of paperwork raises suspicions that the money was being stolen to benefit individuals who worked for CPS or were linked to the company in other ways.

ALSO READ: Fidelity responds to Sassa millions ‘heist’ in underground car park

Affidavit

In a letter to The Citizen, Pillay said the allegations – based on an affidavit supposedly submitted to the Zondo commission – were written by a former employee of Fidelity and shared with him after the publication of the Sunday Times article. Pillay said the allegations are riddled with “errors and inaccuracies”.

“Contrary to what was stated, I was never the COO of CPS or Net1 during the referenced period, nor did I possess any signing powers or authorisation to release, draw, or access any cash.

“This can be confirmed by the CFO at that time. It is preposterous to consider that I had the ability to walk into a bank and demand cash and it would be honoured,” Pillay said.

Accusations

Pillay vehemently denied the accusations made in the affidavit (dated 26 May 2020).

“CPS never conducted banking with Absa for the payment or distribution of social grants, and CPS did not use Absa as a banking partner.

“Furthermore, daily reconciliation processes performed internally by three independent departments and by external parties such as the banks, security companies and Sassa accurately accounted for all cash movements and can be verified by the Department of Social Development in different provinces, and Sassa thereafter, as well as the liquidators of CPS who are in possession of the monthly reconciliation files sent by CPS,” Pillay added.

“It is difficult to reconcile the logistics of how the security officer carried large volumes of cash, as alleged in the affidavit, in three or four tog bags – and how someone would be able to sit on the back seat of a car surrounded by two security guards on top of these bags. It is absurd.”

ALSO READ: Sassa millions ‘heist’ in Rosebank underground car park

Pillay also disputed claims about storing money in the back of a car.

“Considering that the business of CPS was primarily the distribution of cash to social grant beneficiaries amounting to billions of rands a month, security was of paramount importance. Accordingly, cash deliveries to various CPS operations centres, including head office, and to the various payment points around the country were frequent, using armoured vehicles, unmarked vehicles, helicopters, etc as necessary.     

“This was to ensure that the beneficiaries received their grants on the day of payout,” Pillay said.

Investigations  

Pillay added that CPS underwent three investigations regarding their relationship with Sassa, all of which found no grounds for prosecution or penalties.

“The allegations made in the press about corruption between CPS and Sassa were dismissed by all three levels of the higher courts in South Africa, with costs, and were thoroughly investigated by the Hawks, the US Federal Bureau of Investigation, and the US Securities and Exchange Commission.

“There were strict protocols for the social grant payouts, and there is far more information that can support my response. However, for the interim, it is important to point out that this information contained in the affidavit which forms the basis of the article, is totally inaccurate and defamatory,” Pillay said.  

Fidelity response

FSG in a written statement to The Citizen failed to address the explosive allegations revealed by its former security officer.

“We cannot comment directly on any of these specific allegations, but we can confirm Fidelity provided services to CPS to move and secure cash, including the daily movement of cash at depots, pay sites, offices, branches, and ATMs.

“We confirm we complied with all Reserve Bank regulations and processes. We welcome any further investigation into these allegations and will cooperate fully with the relevant authorities,” FSG said.

CPS was one of three companies the South African Social Security Agency (Sassa) appointed to pay social grants in cash at pay points across the country. FSG was appointed to transport and secure all the cash.

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