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Dlamini confirms no deal reached with Sapo over grant payments

Social Development Minister Bathabile Dlamini confirmed that the Post Office has rejected an offer made last week for the Post Bank to provide a payment system to disburse grants.

FILE: Social Development Minister Bathabile Dlamini. Picture: Cindy Archillies/EWN

CAPE TOWN - Parliament has heard that no agreement has been reached with the Post Office to pay social grants next year.

Social Development Minister Bathabile Dlamini is appearing before a joint meeting of Parliament's Standing Committee on Public Accounts and Social Development this morning.

She’s confirmed that the Post Office has rejected an offer made last week for the Post Bank to provide a payment system to disburse grants.

Instead, the Post Office says it wants to revert to a previous offer of which the details are not known made by former South African Social Security Agency chief executive Thokozani Magwaza.

Post Office chief executive Mark Barnes says that misconceptions have been created about the capabilities of the Post Bank.

“There was a debate about our financial capability. I have said before that the Post Bank, which is insulated from the economics of the Post Office group, has got a net asset value of R3 billion.”

Barnes is also briefing Members of Parliament this morning on the issue.

[WATCH LIVE] Bathabile Dlamini faces MPs over grant payments