Sassa working to minimise cash pay points

It says that it has identified over 2,000 pay points that it can do away with and where the Post Office can takeover.

Picture: Supplied

CAPE TOWN – The South African Social Security Agency (Sassa) is trying to minimise cash payouts.

It wants to slash the number of pay points at which beneficiaries can receive their grants in cash and to reduce the number of beneficiaries who receive their grants in this way.

The agency is now under intense pressure to appoint a new service provider by the end of September to make cash payments, after new Social Development Minister Susan Shabangu put a stop to the tender process in the wake of legal challenges.

Sassa says that over the next year, it wants to reduce its cash pay points by at least 20%.

It says it’s identified over 2,000 pay points that it can do away with and where the Post Office can takeover.

Briefing Parliament’s Social Development Committee on its annual performance plan, Sassa executive manager Rapaahle Ramokgopa told MPs that the agency plans to appoint 45 merchants where the Post Office has no presence.

“Those that are not fully utilised will have to close. Those that are required, we will have to take services there, either by Sapo or by any institution that has the infrastructure to do so.”

Currently 2.5 million recipients receive their grants in cash, but Sassa says it wants to reduce this number by at least 40% by transferring beneficiaries to the Post Bank.