Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Namibia tells Starlink to take a hike - again

      Namibia tells Starlink to take a hike – again

      22 June 2026
      Joburg the epicentre of South Africa's tech brain drain

      Joburg the epicentre of South Africa’s tech brain drain

      22 June 2026
      South Africa went cashless - except for the millions who didn't

      South Africa went cashless – except for the millions who didn’t

      22 June 2026
      That drone over your house is almost certainly breaking the law

      That drone over your house is almost certainly breaking the law

      22 June 2026
      DStv Stream to come pre-installed on Samsung TVs across Africa

      DStv Stream to come pre-installed on Samsung TVs across Africa

      22 June 2026
    • World

      SK Hynix ends Samsung’s 26-year reign at the top

      22 June 2026
      Google on the hook for what its AI tells users, court rules

      Google on the hook for what its AI tells users, court rules

      15 June 2026
      How Russians juggle VPNs to outwit the Kremlin

      How Russians juggle VPNs to outwit the Kremlin

      15 June 2026
      Amazon CEO flagged Anthropic AI risks to Washington - Andy Jassy

      Amazon CEO flagged Anthropic AI risks to Washington

      14 June 2026
      Trouble at Xbox

      Trouble at Xbox

      11 June 2026
    • In-depth
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
    • TCS
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E6: ‘A flawless Alfa and a bakkie that divides’

      17 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E5: ‘A Bentley of the bush and a car that swims’

      8 June 2026
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
    • Opinion
      Finish the job Mandela started - Farzam Ehsani

      Finish the job Mandela started

      18 June 2026
      The author, Fanie van Rooyen

      The US just showed it can switch off our AI

      17 June 2026
      The clock is ticking on South African banks' biggest advantage - Pambos Soteriades

      The clock is ticking on South African banks’ biggest advantage

      9 June 2026

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The clock is ticking on South African banks' biggest advantage - Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 June 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Post Office set to sign Sassa payments deal

    Post Office set to sign Sassa payments deal

    By Ray Mahlaka7 September 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Image: Steve Buissinne

    If the embattled South Africa Social Security Agency (Sassa) makes good on its promise, the South African Post Office will be contracted to take over social grant payments from incumbent Cash Paymaster Services (CPS) in the next seven days.

    Sassa told parliament’s standing committee on public accounts (Scopa) that the Post Office will be contracted to distribute social grants by 13 September, according to committee chairman Themba Godi.

    The agency was hauled before Scopa on Tuesday night to give an update to MPs on the process and timeline to phase out CPS’s contract, in line with a constitutional court order.

    By end of March 2018, Sassa must terminate its contract with CPS and have an alternative way to distribute social grants. It appears that by 1 April 2018, the Post Office will be responsible for distributing social grants to more than 10m beneficiaries.

    The Post Office has over 2 000 outlets across the country and operates Post Bank, which has 5.8m clients with savings accounts.

    Godi said the Post Office was supposed to be contracted by 31 August, “but there were delays in technical evaluations and due diligence processes”.

    Although the Post Office, led by CEO Mark Barnes, is being punted as the next paymaster, Godi said it’s not clear whether Sassa intends giving the state-owned entity the entire contract or a portion of it. Barnes was not available to comment at the time of publishing.

    The type of contract to be awarded to the Post Office will be made clear when its technical systems are evaluated for readiness in the coming weeks.

    Barnes has expressed interest in the Post Office taking over the social grant system, which he believes will be a cost-effective measure for the fiscus. The Post Office has over 2 000 outlets across the country and operates Post Bank, which has 5.8m clients with savings accounts.

    Finding a solution

    Although the Post Office has not signed a contract with Sassa, it has an agreement to collaborate with the agency in finding a solution after CPS is phased out. This agreement was supported by national treasury.

    The agreement emerged after former Sassa CEO Thokozani Magwaza was fired by social development minister Bathabile Dlamini in July. Days before Magwaza left Sassa, he sent a formal letter to Barnes detailing the agreement between Sassa and the Post Office.

    Once they are contracted, we need time lines on how they prepare to deploy their systems by at least November

    The Post Office is seen as an interim solution as the long-term plan is for Sassa to takeover the grant system instead of outsourcing this responsibility. Sassa officials have estimated that it will cost R6bn and take five years for the agency to take over social grant payments.

    Godi said the Post Office has to sign a contract before the end of September in order to prepare its systems. “Once they are contracted, we need time lines on how they prepare to deploy their systems by at least November. Some testing and an adequate phasing out period from the CPS contract has to happen.”

    He believes that the Post Office will be the best option to pay social grants as it’s a government institution and the personal data of grant recipients “would be in safer hands”.

    CPS has been accused by civil rights group The Black Sash of using the personal and confidential information of grant recipients to cross-sell financial services products such as funeral policies, prepaid airtime and electricity. This information is at CPS’s disposal by virtue of it being responsible for grant payments.

    • This article was originally published on Moneyweb and is used here with permission
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Bathabile Dlamini Mark Barnes Post Office Sassa Themba Godi top
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSpaceX to launch secret spy craft, weather permitting
    Next Article Nokia 8 Android flagship launched in SA

    Related Posts

    Post Office moves to exit business rescue - but with no funded future

    Post Office moves to exit business rescue – but with no funded future

    18 June 2026
    Anoosh Rooplal

    TCS | Anoosh Rooplal on the Post Office’s last stand

    27 March 2026
    Communications minister Solly Malatsi. Image: DCDT

    Solly Malatsi’s Post Office gamble

    26 March 2026
    Company News
    A smarter way to buy or renew your Red Hat subscriptions - LSD Open

    A smarter way to buy or renew your Red Hat subscriptions

    22 June 2026
    Moving past the pilot: inside the CloudZA and AWS closed-door AI executive roundtable

    CloudZA and AWS chart the road from AI pilots to production

    19 June 2026
    The role of edge infrastructure in South Africa's AI leap - OADC Open Access Data Centres

    The role of edge infrastructure in South Africa’s AI leap

    19 June 2026
    Opinion
    Finish the job Mandela started - Farzam Ehsani

    Finish the job Mandela started

    18 June 2026
    The author, Fanie van Rooyen

    The US just showed it can switch off our AI

    17 June 2026
    The clock is ticking on South African banks' biggest advantage - Pambos Soteriades

    The clock is ticking on South African banks’ biggest advantage

    9 June 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Namibia tells Starlink to take a hike - again

    Namibia tells Starlink to take a hike – again

    22 June 2026
    Joburg the epicentre of South Africa's tech brain drain

    Joburg the epicentre of South Africa’s tech brain drain

    22 June 2026
    South Africa went cashless - except for the millions who didn't

    South Africa went cashless – except for the millions who didn’t

    22 June 2026
    That drone over your house is almost certainly breaking the law

    That drone over your house is almost certainly breaking the law

    22 June 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}