Magwaza axing may end Post Office deal
The former Sassa CEO reached an agreement, while fears rise that way is clear for CPS to gain
The former CEO of the South African Social Security Agency (Sassa), Thokozani Magwaza, who was fired on Monday, sent a formal letter last week to South African Post Office (Sapo) CEO Mark Barnes with an offer of future collaboration between the two organisations on the payment of social grants. Barnes is keen for the Post Office to play a vital role in taking over the social grants system when the contract with Cash Paymaster Services (CPS) expires in 2018, which he said would result in huge savings for the fiscus. The letter set out the requirements and conditions of the collaboration and what Sassa expected of the Post Ofice and its subsidiary, Postbank. Barnes said in an interview on Tuesday that Magwaza’s letter "was essentially an agreement to collaborate towards a solution. We have not signed a contract as such but it was a firm intention supported by National Treasury."It was serious, though not conclusive. But we would regard a letter from an incumbent chief executive as val...
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