Treasury to smooth the way for Sapo

THE National Treasury will be facilitating meetings between the SA Social Security Agency (Sassa) and the SA Post Office (Sapo) to break an impasse over the taking over of the welfare grants payment system, which is currently run by a private firm.

Briefing a joint meeting of Parliament’s standing committee on public accounts and its portfolio committee on social development yesterday, Treasury director-general Dondo Mohajane said he had facilitated four meetings between Sassa and Sapo officials to try to break the deadlock.

“It is unfortunate that the two parties, in terms of trying to resolve this matter, have not found each other in terms of agreeing on the role that Sapo should play in the grants administration,” Mohajane told MPs.

It emerged that Sassa had not provided reasons to Sapo why the latter seemingly did not qualify to distribute over 17 million social security grants. That information has now been given to Sapo.

Mohajane also confirmed that technical teams from both sides had not met to discuss it. But this, too, would happen now.

“We will from our side bring our partners in the SA Reserve Bank and the Treasury, who understand banking systems, to form a committee that basically will ensure that strict deadlines are adhered to,” Mohajane pointed out.

In addition, Mohajane said they had discovered that at a political level there was no proper guidance to both parties from their respective cabinet ministers.

“This process up to now lacks the firm guidance that is needed from the IMC (interministerial committee), that the two ministers should facilitate the process, at least from a high political directive, which is not happening.”

On Monday, Social Development Minister Bathabile Dlamini announced that Sapo fell short on three of four key functions needed to pay out social grants administration.

However, Post Office chief executive Mark Barnes contradicted Dlamini on Tuesday.