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Net1 subsidiary Cash Paymaster Services (CPS) is likely to play a role in the distribution of social grants for several months after its contract expires in March 2018, according to the services agreement between the South African Social Security Agency (Sassa) and the South African Post Office. The agreement, seen by Business Day, envisages a "phased migration" period during which CPS will hand over its responsibilities gradually to the Post Office by September 30. Sassa and the Post Office signed the five-year agreement earlier in December to ensure social grants continue to be paid to beneficiaries after Sassa’s arrangement with CPS expires on March 31 2018. According to the agreement, the deal with the Post Office will cost R2.25bn in the first year, which is similar to the amount CPS had proposed earlier in 2017. CPS told the Constitutional Court in March that its pro-posed fee to distribute social grants over two years was R4.7bn, or R2.35bn a year. Sassa’s deal with the Post ...

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