Social grants will be paid says SASSA
They denied claims that the Post Office has lost R60-million owing to the SASSA payment contract
THE South African Social Security Agency (SASSA) and South African Post Office (SAPO) have assured beneficiaries that grants will continue to be paid out every month.
They denied claims that the Post Office has lost R60-million owing to the SASSA payment contract.
SASSA said there is no requirement for Post Office funds to be utilised to pay beneficiaries.
‘We assure everyone social grant payments will not be disrupted.
‘Funds are deposited directly into beneficiaries’ accounts every month by SASSA, and SAPO only serves as a distribution agent.
‘Social grant beneficiaries have a choice as to where they wish to access their funds. This may be through any bank ATM, merchant point of sale devices, post offices or at one of the remaining SASSA cash pay points,’ said SASSA spokesperson, Kgomoco Diseko.
The Post Office denied there are plans to close cash pay points and that it was losing millions on the contract.
‘There are 1 740 cash pay points throughout the country, located mostly in rural areas where there is no national payment infrastructure. SASSA has the sole prerogative to determine these pay points and not SAPO,’ said SAPO spokesperson Bongani Diako.
‘The R60-million cited in the report actually reflects a cost figure of SAPO associated with the grants payments contract, and not a loss. On the contrary, the SASSA contract presents a revenue stream for SAPO.
‘The point of discussion in the document which has obviously been reported out of context, was in relation to the manner in which SAPO is able to structure a number of its cost fundamentals to improve the financial arrangements of the SASSA payments contract.
‘SAPO’s current business turnaround efforts and pursuit for additional revenue streams, have no bearing on its grant payment relationship with SASSA, which is a long-term contract,’ Diako said.
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