Sapo to play key role paying grants

THE SA Post Office (Sapo) would play a major role in the distribution of social grants with around 7 million beneficiaries receiving their government money via a new payout system by September, Parliament’s portfolio committee on social development heard yesterday.

The race to replace Cash Paymaster Services (CPS) as the payout vehicle was on, the SA Social Security Agency (Sassa) said, in line with the implementation of the ruling of the Constitutional Court.

Sassa executive manager Rapaahle Ramokgopa told the committee more than 7 million Sassa beneficiaries would be moved to the new model which places Sapo as a dominant player.

“The guiding principles for the next five-month plan is that we want to eliminate CPS fully by September.

Cash payments will be reduced drastically. Beneficiaries who stay in areas where there is developed cash payment infrastructure will be migrated to electronic forms of payments,” said Ramokgopa.

Sassa plans to migrate all beneficiaries to the new Sapo card through the card-swop programme by August.

Ramokgopa said priority would be given to beneficiaries receiving grants at paypoints.

There are about 2 million grant recipients receiving their grants at cash paypoints, merchants and CPS ATMs.

“Our new payment model is premised on Sapo as the dominant player, but we are engaging with commercial banks and retailers such as secondary players THURSDAY JUNE 07 2018 in the value chain.

They have all agreed that they want to participate, we have given them agreements to sign so that they can start the service,” said Ramokgopa.

With the new card system, beneficiaries will be able to get their grants at Sapo outlets, ATMs, retail merchants and numerous point-of-sale devices.

Sassa says it aims to swop 7.9 million cards by the end of August and it has swopped 63 248 beneficiaries from the old Grindrod card.

The committee also raised concerns relating misinformation about pay points and social grant cards communicated to beneficiaries, allegedly by CPS officials.

Committee acting chairperson Sibongile Tsoleli said Sassa should look into the allegations and take legal action.

“Yesterday I received a message, what CPS is doing is charging the old people R65 to get a card. It might happen that this is not the only case of CPS doing this to beneficiaries. It is wrong to charge beneficiaries,” said Tsoleli.

SASSA SAYS IT AIMS TO SWOP 7.9 MILLION CARDS BY THE END OF AUGUST