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The South African Post Office has assured Sassa grant recipients that their payments will not be affected.
This after the terrible financial situation of the Post Office was exposed in court.
In a statement Saturday, the Post Office said the recipients had nothing to worry about as the grant money did not come from their income.
“The funds for the social grants come from the National Treasury through the department of social development and are not funded by the income of the South African Post Office,” the statement read.
On Monday, the South African Post Office retirement fund lost an offer from the Pretoria High Court to force the Post Office to continue making contributions to the retirement fund despite the difficult financial challenges the institution now faces due to to Covid-19.
Court documents revealed that, at the end of July, the Post Office had 1,416 operational branches of which only 55 were profitable. Postal services revenue for the month was below budget by 49%, primarily as a result of Covid-19 regulations. Bulk mail revenue was down 39% for the month.
“The SA post office experienced a drastic reduction in revenue during the lockdown period and is now looking for ways to improve cash flows,” the post office said.
TimesLIVE
