Next month is the deadline to phase out CPS which deemed invalid by the Constitutional Court in March 2017.
According to a report, Sassa’s next deadline is March 18, 2018, which the agency will transfer the personal data of Sassa beneficiaries to the Post Office. The transferring includes enrolling the beneficiaries biometric data, producing new cards that they will use to collect their social grants and integrating the Post Office’s branches in South Africa with Sassa pay points.
The Post Office already operates Post Bank which has 5,8 million clients with savings accounts. According to the signed service agreement, the Post Office will not have absolute rights to distribute social grants. Under the agreement, the Post Office will offer banking services through their branches for social grant payments, for the next six years, until 2023.
CEO of the Post Office, Max Barnes, had earlier said that its offering would be affordable for fiscus. Sassa pays CPS R14,42 per social grant recipient including vat and the Post Office has proposed charge of R12,41 including vat for its branch services.
