Grant distribution negotiations with Sapo still hanging after Magwaza's exit

CEO of South African Post (Sapo) Mark Barnes says he welcomes the appointment of the new interim CEO of South African Social Security Agency (Sassa), Pearl Bhengu.

Bhengu was Sassa's KwaZulu-Natal regional executive manager.

The post office has been in negotiations with the former Sassa CEO Thokozani Magwaza about using its banking infrastructure to distribute grants to 17 million social grant beneficiaries when the contract with Net1 ends.

Barnes says since the booting of Magwaza he hasn't heard anything from Sassa, saying the new CEO should be given a chance to settle in.

He says he heard media reports that the Minister of Social Development Bathabile Dlamini has endorsed and is in support of the approach to work with Sapo to distribute grants.

Read: Post Office's Mark Barnes disappointed at Magwaza's departure from Sassa

I am encouraged by the possibilities of two state organs working together...

Mark Barnes, CEO of SA Post Office

Barnes acknowledges that South Africa might have lost hope in the Post Office due to years of bad experiences but says it is time it's put to the test again.

He says the post office has extraordinary under utilised banking transaction capacity and infrastructure that needs to be put to good use.

We would like to see the financial independence of the state because that releases capital for things that need urgent attention.

Mark Barnes, CEO of SA Post Office

To hear more of this interview, listen below:

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