SASSA settles for SAPO
12 December 2017
Like a knight in shining armour, Minister in the Presidency and Head of the Inter-Ministerial Committee (IMC), Jeff Radebe, announced on Sunday 10 December that a landmark deal had been signed between SASSA and the South African Post Office (SAPO), bringing years of court battles and political wrangling to a close.
With three months to go before the expiration of a Constitutional Court order declaring the contract with CPS invalid, Minister Radebe stepped into the breach and pressed parties closer to a deal. This would see a “hybrid” model implemented to ensure a seamless process of grant distribution come 1 April 2018. While SAPO will assume key elements of the payment process, the private sector, including the formal banking sector, will play an additive and supplementary role to ensure grant beneficiaries are not prejudiced. In his news briefing, Minister Radebe was at pains to emphasise the role of the “second economy”, including general merchants, corner shops, spaza shops, village banks, and cooperatives in the townships and rural areas as payment points for social grants.
The proposal to go hybrid is not a new one, former DG of the Department of Social Development, Zane Dangor, and the former CEO of SASSA, advocated this self-same strategy and were shut down and sent packing, literally, while Minster of Social Development, Bathabile Dlamini, lives to see another day in the Zuma Cabinet. This has raised the ire of many in the country who have decried the exit/firing of able public servants while less than credible politicians remain in their posts.
Minister Bathabile Dlamini, coupled with SASSA’s acting CEO, demonstrated a stubborn resistance to enabling an inter-governmental approach to grant distributions by SAPO in favour of maintaining the status quo, despite the order of the Constitutional Court, raising questions about their motivation.