Cape Argus

Dlamini ordered to break deadlock

CSIR found Sapo competent to deliver grants

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THE SA Social Security Agency (Sassa) and the SA Post Office (Sapo) will return to the negotiatin­g table after significan­t pressure from MPs.

MPs in Parliament’s standing committee on public accounts (Scopa) and the portfolio committee on social developmen­t are fed up that the two parties have not reached an agreement over the payment of social grants, just five months before the contract of the current service provider Cash Paymaster Services, a private firm, runs out.

“We are hoping from your side that Sassa and Sapo come back with an agreement,” Scopa chairperso­n Themba Godi said, after getting Social Developmen­t Minister Bathabile Dlamini and Telecommun­ications and Postal Services Minister Siyabonga Cwele to instruct their officials to break the deadlock.

On Monday, Dlamini said Sapo could not take over the payment of social grants to around 17 million South Africans as it fell short on three of four key functions to do so. These included that it could not print the required 4.2 million beneficiar­y cards per annum that were required, or vouch for a sub-contractor who would do so and that it could not provide a full-scale banking service that includes a disburseme­nt account linked to a card with biometric verificati­on data, and assure that cards were compliant with all ATMs.

This was strongly disputed by Sapo chief executive Mark Barnes, who told MPs that Sapo was more than ready to start disbursing grants through Sapo and its fully-fledged Post Bank.

“We don’t need to register as a merchant bank. The receipt of social grants is predominan­tly a one-way transactio­n,” Barnes pointed out.

He said the CSIR had conducted an independen­t assessment of Sapo, testing them against 218 performanc­e categories.

“There were only eight where the CSIR report said requiremen­ts weren’t met. I went to a government school and 97% was a pass, not a fail, and that’s what we achieved according to the CSIR evaluation,” said Barnes.

 ?? PICTURE: TRACEY ADAMS/ANA ?? ‘DRAGGING HER FEET’: Social Developmen­t Minister Bathabile Dlamini, left, during discussion on whether Sapo would be able to distribute grants. Sapo’s boss said it was up to the task, despite Dlamini hedging.
PICTURE: TRACEY ADAMS/ANA ‘DRAGGING HER FEET’: Social Developmen­t Minister Bathabile Dlamini, left, during discussion on whether Sapo would be able to distribute grants. Sapo’s boss said it was up to the task, despite Dlamini hedging.

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