Post Office liquidation: Sassa says beneficiaries will get their grants

Despite the South African Post Office (Sapo) facing liquidation, South African Social Security Agency (Sassa) spokesperson Paseka Letsatsi has assured beneficiaries they will still receive their grants.

South African Social Security Agency (Sassa) spokesperson Paseka Letsatsi has assured beneficiaries will get what is due to them without any distress.
Image: South African Government via Twitter

Sapo was placed under provisional liquidation on February 9 after a court application by a creditor owed for rent. Business Day said in the Post Office’s most recent financial statements for 2021/2022 to end-March 2022, it owed more than R4.4bn to creditors and its debt exceeded its assets by R4bn.

Letsatsi  told Jacaranda FM a contingency plan would be put in place to ensure beneficiaries get their grants.

“Currently we have not yet put it into practice but there is an engagement between us and the Post Office. The COO of Sassa and the Post Office are supposed to meet this afternoon to iron out some of the hiccups.

“We will make sure that beneficiaries get what is due to them without any distress,” said Letsatsi.

Speaking to TimesLIVE last week, Sapo spokesperson Suzie Khumalo declined to comment on whether the liquidation would affect the payment of grants or the distribution of chronic medication for government clinic patients.

“The Post Office will issue a statement this week. Also note that the Post Office continues to trade as normal,” she said.

Communications minister Mondli Gungubele said the provisional liquidation of Sapo was a serious concern.

He requested that the board and management of Sapo provide him with a detailed account of the circumstances that led to the development, the steps taken by the board to address the issue and the measures Sapo intends to implement to resolve the situation promptly.

“Sapo is a crucial government service platform which caters to millions of citizens and cannot afford to cease its operations. The department and Sapo must work diligently to ensure that the Post Office transforms into an independent and profitable business entity for the benefit of citizens,” he said in a statement.

The minister assured the public steps will be taken to ensure continuous provision of social services, timely grant payments, an efficient workforce and harmonious negotiations with Sapo’s creditors to secure a favourable outcome.