Post Office goes after Sassa contract

2017-03-11 08:03
FILE: The SA Post Office was put under administration in November last year after a protracted four-month illegal strike. Picture: Emile Hendricks/Foto24

FILE: The SA Post Office was put under administration in November last year after a protracted four-month illegal strike. Picture: Emile Hendricks/Foto24

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Cape Town - The SA Post Office says it could take over the social grants payment contract from Cash Paymaster Services (CPS) in six months, GroundUp reports.

Attorneys for the Post Office have written to the Black Sash asking to intervene in its case before the Constitutional Court next week.

The Black Sash wants the court to take back oversight of social grant payments to 17 million beneficiaries when the current SA Social Security Agency (Sassa) contract with CPS expires on March 31.

Sassa was to take over the contract before this deadline, has since acknowledged it will not be able to do so and will have to negotiate a new contract with CPS.

The Post Office is hoping to be admitted as an amicus curiae (friend of the court) in the Black Sash application.

In the letter to the Black Sash, the attorneys say the Post Office would like to show the court it has the administrative capacity to take over from CPS. The Post Office would propose a six-month transition period.

Granting the contract to the Post Office, an organ of state, would “be of benefit to the citizens of the country” as a costs-saving to the fiscus.

Social Development Minister Bathabile Dlamini has said she is not opposed to Post Office involvement in the payment system, but that CPS objected. MPs have accused her of favouring CPS over the Post Office.

Sassa CEO Thokozani Magwaza has said the problem is that the Post Office has only 2 567 outlets, mostly in peri-urban areas, while the current system offers 10 000 outlets, mostly in rural areas. 

Read more on:    sassa  |  sapo  |  bathabile dlamini  |  service delivery
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