It took dozens of intense meetings - some going till past midnight at the Union Buildings - for the Post Office and the SA Social Security Agency (Sassa) to finally reach an agreement.

SA Post Office CEO Mark Barnes told Sowetan yesterday that the agreement, announced on Sunday by Minister in the Presidency Jeff Radebe, meant a crucial capacity would be built within the state.

"My contention has always been that the paying of social grants is a government service, not a business," Barnes said.

The payment of social grants had been subject to a Constitutional Court case by the Black Sash, which wanted the highest court in the land to exercise oversight over the process to find a new social grants payment provider.

Social Development Minister Bathabile Dlamini came under fire for failing to have a service provider ready on March 31 when the contract with Cash Paymaster Services (CPS) ended.

Dlamini had stated that the Post Office had no capacity to issue Sassa grants.

Barnes, however, said the paying of grants was "not complicated" and the Post Office was ready to take over from April. "This is not complicated, it's just a big thing with big numbers ... it's not something with intellectual property we have to understand."

Barnes said they anticipated about one million recipients will "migrate naturally" to receive payments from the Post Office counters. "All choices will still be there but as we modernise, technology is going to change how people access or spend money."

Barnes said about 2.8million recipients already receive their social grants through cash pay-points at community halls and centres, especially in rural areas.

He said the hybrid model would take into consideration that technology changes fast but they would be offering grant recipients various choices of receiving their social grants.

Black Sash Gauteng regional manager Thandiwe Zulu welcomed the agreement. "We would have liked every grant beneficiary to be re-registered so that the South African Post Office could be held responsible for any malpractice that may occur.