'Post Bank able to take over grant payments in 2018'

The Telecommunications Minister says it’s now up to the SA Social Security Agency to decide whether to enter into a partnership.

FILE: Telecommunications Minister Siyabonga Cwele. Picture: GCIS.

PARLIAMENT - Telecommunications Minister Siyabonga Cwele says he has full confidence that the Post Bank will be able to take over the payment of social grants in 2018.

He says it’s now up to the SA Social Security Agency (Sassa) to decide whether to enter into a partnership.

Briefing the media ahead of his budget vote debate in Parliament on Wednesday, Cwele said the Post Bank, with over five million account holders, was growing from strength to strength.

Sassa has less than a year to take over the payment of social grants by order of the Constitutional Court.

This week the Post Bank met with Sassa to demonstrate its abilities to do the job.

Although not a requirement to pay out grants, Cwele says he hopes the Reserve Bank will grant the Post Bank a license to be able to lend money before the end of the year.

“The Post Bank is a very well managed and cushioned company, even within the troubled South African Post Office group of companies which we are trying to turn around now.”

The Post Bank plans to submit all its compliance documents for a banking license by 3 July.

(Edited by Zamangwane Shange)