NATIONAL NEWS - The South African Post Office (Sapo) told Parliament's portfolio committee on telecommunications and postal services that the migration of grant beneficiaries to Postbank has already commenced.

The briefing comes after the inter-ministerial committee (IMC) on social security, led by Minister in the Presidency Jeff Radebe, announced in December that an agreement had been reached between parties in the IMC to pave way for the implementation of a hybrid grant payment model.

Lindiwe Kwele, Sapo's chief operating officer, confirmed on Tuesday 13 February that the South African Social Security Agency (Sassa) has signed off on the new card design for social grant beneficiaries. 

Upon the issuing of a purchase order, the first batch of two million cards is expected to be delivered in mid-March.

After this, two million cards will be delivered every three weeks until a total order of 10,6-million cards has been delivered by 8 June.

Under the new model, the post office will provide services such as electronic banking services, including the provision of a central holding account and special disbursement accounts, on-boarding of new beneficiaries and the biometric authentication of beneficiaries. 

The state-owned entity would also be responsible for the development of the required software to replace the incumbent systems and provide cash pay points at its outlets.

"Sapo has the capacity to deliver on its mandate or obligations. Sapo and Postbank do have the necessary funding to implement the project. 

"An aggressive communications and marketing campaign in partnership with the Government Communication and Information System is underway," said Kwele.

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