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

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

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

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Competition regulation for a growing and inclusive economy

ADVERTORIAL: The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.


6 myths about male cancer

It is important to be aware of the most prevalent cancer diseases amongst men in our country.


You won't want to miss...

Who are the highest paid models of 2017?
10 gorgeous plus-sized models who aren't Ashley Graham
WATCH: Pornhub is giving users free access to premium content these holidays
5 top leg exercises for men
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.