Post Office 'not yet ready' to pay out grants
Social Development Minister Bathabile Dlamini says the SA Post Office is not ready to take over the grants payment system.
Dlamini was addressing the media at Regent Hotel in East London on Monday.
She said the Post Office needed an integrated payment system, banking services, card production and the provision of cash payment services.
The evaluation of Sapo's ability to perform the required services had been conducted by the Council for Scientific and Industrial Research.
"The outcome of the adjudication process revealed that Sapo can only provide one of the four services - the provision of an integrated payment system," she said.
The bid evaluation process discovered the Post Office could only produce 2.4 million cards a year as opposed to the minimum requirement of 4.2 million cards.
Dlamini said SA Social Security Agency would roll out another procurement process. "Sassa will initiate another procurement process starting on November 3 in order to secure the three services which Sapo is not capable of providing," she said.