Minister rules out Post Office for grants payouts

Social Development Minister Bathabile Dlamini says the South African Post Office (Sapo) is not ready to take over the South African grants payment system.

Dlamini was addressing the media at a media briefing at the Regent Hotel in East London on Monday morning.

 She said Sassa required from Sapo as a potential service provider

- Provision of an integrated payment system

- Banking Services

- Card Body production; and

- Provision of cash payment services

The evaluation of Sapo’s ability to perform the required services was conducted by the Centre for Scientific and Industrial Research (CSIR).

“The outcome of the adjudication process revealed that Sapo can only provide one of the four services‚ namely the provision of an integrated payment system‚” said Dlamini.

 On the requirement to provide card body production and distribution‚ the bid evaluation process discovered that Sapo can only produce 2.4 million cards per annum as opposed to the minimum requirement of 4.2 million cards per annum.

 Dlamini said that Sassa would roll out another procurement process.

 “Sassa will initiate another procurement process starting on 3 November 2017 in order to secure the three services which Sapo is not capable of providing‚” she said.