Radebe confident new social grant payments deal will be a success

On Sunday, Minister in the Presidency Jeff Radebe announced Sassa and the Post Office had reached an agreement.

FILE: Minister in the Presidency Jeff Radebe. Picture: Christa Eybers/EWN

JOHANNESBURG - Chairperson of the inter-ministerial committee on Social Security Jeff Radebe says he’s confident a new social grants payment deal between South African Social Security Agency (Sassa) and the South African Post Office (Sapo) will be successful.

The committee announced on Sunday that the phasing out of a contract with Cash Paymaster Services (CPS) had started after the grants distribution agreement was reached.

The Constitutional Court declared the previous contract with CPS invalid.

The new model through Sapo will start from 1 April next year.

Radebe says it was a long journey to commit to this deal.

“We’ve already done a mapping of this 10,000 pay points of Sassa and improve Post Office footprint in order to make sure that this process is as scientific as possible but also it must cost less to go government.”

The Post Office CEO Mark Barnes says he’s pleased with the deal.

"I think it’s just a straightforward towards sensible outcomes, if I might put it that way. We’ve got arms of state now coming together, providing a service of the state. To me the logic is compelling. The payment of social grants is not a business, it’s a service."