Sassa and the government should listen to Mark Barnes when he says the Post Office can run the payout of grants. He is a seasoned financial services professional; he was a very senior banking professional at Standard Bank, so he understand dealing with high numbers of customers and transactions. He is not an ANC cadre, someone in a position of power purely relying on others for information. Mark knows what he is talking about.
It is disingenuous for Dlamini to say that the Post Office cannot manage the payout of grants because they only have 2500 outlets, whereas CPS has 10000 outlets. The truth of the matter is that CPS never had these outlets to begin with, in fact nobody has this number of outlets and would need to invest / partner. The big banks only have a maximum of 900-odd branches each and about 6000 ATMs. So no bank can on their own take on the payment of grants – they need to partner.
Barnes is right in that the government needs to use its internal capabilities to deliver grants if it can, before outsourcing this function to the private sector. Apart from using the Post Office outlets, Barnes could partner with various parties to deliver grants: the banks to leverage their ATMs, banks to leverage products like cash vouchers, stores like Pick n Pay who are always keen to move their cash out of the tills.
Giving the Post Office this responsibility will also assist us in saving the Post Office – it would allow them to become relevant again, help maintain Post Office branches and keep the postal system operational. It’s simply put, a win-win for the Government and the Post Office.