JOHANNESBURG – Social Development Minister Bathabile Dlamini revealed on Monday that a deal for the Post Office to issue South African Social Security Agency (Sassa) grants is off.
She made the comments while addressing the media in East London in the Eastern Cape.
This comes amid fresh warnings, with experts sounding the alarm over Sassa's lack of preparation as they try to prevent another potential crisis like the one the country saw last year.
The agency has just under five months to bring all potential service providers on board before phasing out CPS, as ordered by an earlier Constitutional Court ruling.
But Sassa on Monday revealed the South African Post Office won't be able to provide all services.
SAPO can only produce 2,4 million cards per annum as opposed to the min requirement of 4.2 million cards per annum stipulated on RFP— SASSA (@OfficialSASSA) October 30, 2017
Outcome of adjudication process revealed SAPO can only provide one of four services; namely provision of an intergrated payment system— SASSA (@OfficialSASSA) October 30, 2017
Dlamini says Postbank does not have a fully-fledged banking licence, which means this could impact recipients due to limited banking services.
SAPO infrastructure consists of approx 2700 points of services of which more than 500 are agencies within retail stores— SASSA (@OfficialSASSA) October 30, 2017