DA calls for Lindiwe Zulu to ‘come clean’ on Sapo ‘closing Sassa cash paypoints’

In a statement on Sunday, the DA expressed “extreme concern” about media reports indicating that the South African Post Office (Sapo) was in grave financial difficulties and might be forced to close social grant cash distribution points.

City Press reported on Sunday that Sapo was losing at least R60 million a month from paying social grants to beneficiaries, with the high costs reportedly driven by cash-in-transit costs and high security fees to ensure that cash could be safely delivered to cash paypoints.

MP Bridget Masango said she would write to the chairperson of parliament’s portfolio committee on social development requesting that the committee urgently ask Social Development Minister Lindiwe Zulu to look into the situation and report back to parliament.

“Millions of South Africans are reliant on social grants to sustain themselves and their families. Moreover, many social grant recipients in rural areas have no means of accessing their grants other than through the cash distribution points. If Sapo plans on closing some of these cash distribution points, vulnerable grant recipients could be left in the lurch.

“It is thus imperative that Minister Zulu, as the minister responsible for social development, ascertain from the South African Social Security Agency (Sassa) and Sapo what the extent of Sapo’s financial difficulties are and what impact it is likely to have on the distribution of social grants to the most vulnerable South Africans.”

Masango called on Sassa, Sapo and the minister to “come clean” if social grants were indeed at risk.

“If Sapo becomes another failing state-owned entity and is no longer able to fulfil their contractual obligations in this regard, they – together with Sassa and Minister Zulu – will have to put forward urgent contingency measures to ensure that no social grant recipient is left in the lurch.”