A panel of experts overseeing the transition of the grant payment system between Sassa and Sapo says it’s concerned beneficiaries could end up paying more to access their money.
There are also allegations that the post office could end up profiting more from paying social grants than its controversial predecessor, Cash Paymaster Services (CPS).
CEO of the SA Post Office Mark Barnes clarified how the system has been built and how it will benefit the beneficiaries and the state in the long run.
This is not a government expense, it's an investment into a continuing system. Whatever profitability that arises out of this deal for the post office, the government will decide at its discretion what to do with any or all such profits.— Mark Barns, CEO of the SA Post Office
Those get invested into government rather than the private sector and in the case of the previous arrangements it was worse than that. Not only did the cash flow out of the fiscus into the private sector, it went offshore.— Mark Barns, CEO of the SA Post Office
We have improved the beneficiary services and lowered costs, built an asset instead of a dependency and generated the money which goes back into the fiscus to improve the system rather than out of the fiscus as an expense.— Mark Barns, CEO of the SA Post Office
To hear the rest of the conversation with Mark Barns, listen below: