The South African Post Office (SAPO) may no longer distribute social grants, impacting millions who depend on its branches. This forms part of Business Rescue practitioner's plans for SAPO aims to address its financial crisis.
SAPO is not in a healthy financial position with costs consistently exceeding 200% of revenue since 2022. Employee costs alone make up 150% of revenue which necessitates the need for urgent restructuring.
SAPO is presently financially distressed and is unable to honour its financial obligations as and when they fall due. The BRPs were appointed on 10 July 2023.
The plan proposed by the practitioners included reducing the workforce by around 6,000 employees and phasing out unproductive revenue streams, including Over Counter (‘OTC’) payment services, which encompass SASSA and cash pay points (‘CPP”) payments.
If their plan is adopted, it could eliminate social grant payments at SAPO. The Business Rescue Plan faces a vote by creditors on 7 December 2023, requiring a 75% majority for adoption as per the Companies Act, 2008.
The South African Social Security Agency (SASSA) has more than 18 million grant beneficiaries. They benefit from the Older Persons pension grant, Disability grant, War Veterans grant, Care Dependency grant, Foster Child grant, Child Support grant, Child Support grant Top-Up and Grant-in-aid.
Many of these grant beneficiaries collect their monthly grant payments from a Post Office branch. If the plan is adopted, grant beneficiaries will be required to collect their grant payments from alternate sources.
Where To Collect Sassa Grants
Sassa grants offer alternative distribution methods, such as direct deposits into bank accounts, providing beneficiaries with flexible access to funds.
Retail outlets like Pick n Pay, Shoprite, Boxer, Usave, and Checkers also distribute grants.
Mobile cash pay points offer another option with limited flexibility, allowing fund collection during specific hours in the payment cycle.