I wonder if the emotion and antipathy towards Cash Paymaster Services (CPS) as service provider for social grants is not causing some suspension of critical thought. It seems that the South African Post Office will become the contractor for grant payments through a negotiated arrangement with the South African Social Security Agency. But where is the price and efficiency check that can only be provided by an open tender process? I recall that when it was last in the mix about a year ago and before the CPS contract was extended, the Post Office’s services were offered at a significant price premium to that offered by CPS and others. At the time, CEO Mark Barnes argued that this did not matter as the cost and money flow would be kept in the government/parastatal family. But surely a cost to the fiscus remains just that, whoever incurs it? If the Post Office has sunk costs in underutilised assets (both people and infrastructure) and a banking licence, surely this should give it competi...
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