SA’s new social grant payment system unveiled

Sassa and SA Post Office finally reach agreement

OFF with the old, on with the new. The SA Social Security Agency (Sassa) and the SA Post Office have reached a landmark agreement to usher in a new social grant payment system that will see beneficiaries receiving their grants from banks‚ various merchants and even spaza shops.

The agreement was finalised on November 17 and the services agreement was entered into on Tuesday – just in time for submission to the Constitutional Court on Friday.

The contract Sassa has with Cash Paymaster Services was declared invalid by the Constitutional Court but the court extended its validity to April 1 2018. The new system‚ the Hybrid Model‚ will kick in on this date.

Unveiling the plan in Pretoria yesterday‚ Minister in the Presidency responsible for monitoring and evaluation Jeff Radebe‚ said the agreement gave effect to the phasing in of Sapo and the Postbank as a service provider and one of the key channels through which grants will be paid.

He said the new plan made provision for four key channels through which grants can be paid:

● Commercial bank accounts of beneficiaries’ choice; ● Large retail stores; ● The Postbank of Sapo at its outlets; and

● A second tier of merchants including village banks‚ general dealers‚ small retail outlets‚ spaza shops and cooperatives that are legally registered, South Africanowned and operated.

“This will be done essentially through the insourcing of grant payments in a phased way. One of the primary objectives of this phasing is to fundamentally reduce payments for security‚ efficiency and cost saving‚” he said.