This according to Bongani Diako (SASSA spokesperson) who responded to recent media reports that suggested the Post Office may not be able to process social grants payments.

“This information is incorrect. We assure everyone that social grant payments to all the more than 11 million SASSA beneficiaries will not be disrupted,” Diako said.

The beneficiary funds are directly deposited by SASSA into social grants beneficiaries’ accounts every month and SAPO serves as a distribution agent of the grants which are deposited into the Postbank SASSA/SAPO gold card accounts. SASSA/SAPO gold card accounts are opened and managed in accordance with the contract between SASSA and SAPO.

“Social grant beneficiaries have a choice as to where they wish to access the funds. This may be through any bank ATMs, merchant point of sale devices, post offices or at one of the remaining SASSA cash pay points,” Diako explained.

SASSA/SAPO gold card can also be used everywhere where VISA cards are accepted for the purchase of goods, as it is a fully-fledged debit card. There is no requirement for SAPO funds to be utilised to pay grant beneficiaries.

Diako added that additional reports of SAPO considering closing grant payments pay-points, are also inaccurate and misleading.

“There are 1 740 cash pay points through the country which are serviced monthly. They are located in mostly rural areas where there is no national payment infrastructure. SASSA has the sole prerogative to determine these pay points and not SAPO,” he said.

He reiterated that media reports which are based on an internal discussion document expressing the views of an individual and claiming it is losing R60m on the SASSA grants payment contract, are inaccurate.

The R60 million cited in the report actually reflects a cost figure of SAPO that is associated with the grants payments contract and not a loss.

“On the contrary, the SASSA contract presents a necessary revenue stream for SAPO. The point of discussion in that 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 better the financials of the SASSA payments contract,” Diako concluded.

SAPO’s current business turnaround efforts, and pursuit for additional revenue streams, have no bearing on its grant payments relationship with SASSA which is a long-term contract.

More information is available on SASSA’s website