Post Office denies 'bleeding' R60m through Sassa grants
Updated | By Nokukhanya N Mntambo
The South African Post Office has denied claims that it is losing R60 million a month through the distribution of South African Social Security Agency (Sassa) grants.
This comes after media reports on the weekend claiming that the Post Office could no longer afford to operate some of the cash pay points across the country and would be shutting down a number of the facilities.
In a joint statement, the two organisations disputed these claims, saying the R60 million is an operational cost.
Acting CEO Ivumile Nongogo says the national postal service is not “bleeding” cash, as reported.
"The Sassa project is a nationwide project. We are moving a lot of cash into Post Office branches and cash payment points and all these need to be secured with cash-in-transit vehicles, guarding and all those other security arrangement.
"What the document was noting was that as Sapo our cost increased to R60 million but that means is not a problem because this is a cost that is actually incurred to generate revenue and we are generating revenue from the Sassa contract."
Media Statement: SASSA and Post Office provide assurance that social grants will continue to be paid #SASSACARES@PostofficeSa @GCISMedia @GovernmentZA @The_DSD pic.twitter.com/LIDYHuTRlM
— SASSA (@OfficialSASSA) February 17, 2020
Nongogo admits that security issues remain a concern.
"It is a huge, complex exercise to pay grants every month and to secure the cash that is flowing into the various branches.
"We are working with Saps (South African Police Services) and other intelligent agencies and we are starting to close those gaps," he adds.
Nongogo further allayed fears that the Sapo would terminate its agreement with the agency, saying that grants would continue to be paid out on time.
Sassa administers social grants to millions of people on a monthly basis.
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