PLANS FOR NEW SYSTEM
Post Office to aid Sassa in social grants payments, MPs told
Sapo is eager to be involved in the payment of social grants to expand its business operations and utilise its extensive branch infrastructure
The South African Post Office (Sapo) will be involved in a "build, operate and transfer" arrangement with the South African Social Security Agency (Sassa) in preparation for the agency taking over the payment of social grants from the current service provider Cash Paymaster Services (CPS). The Constitutional Court has extended the unlawful contract of Net 1 subsidiary CPS for a year to the end of March 2018, when Sassa has to have created an alternative means of paying the more than R140bn in social grants annually to about 17-million beneficiaries. Sapo is eager to be involved in the payment of social grants to expand its business operations and utilise its extensive branch infrastructure. Sapo has the ability to provide Sassa with full access to the National Payment System through its Postbank division, which could provide grant recipients with access to all ATMs, retailers and point of sale purchases. Postbank already has established payment channels, has experience as a payment ...
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