Social Development Minister Bathabile Dlamini. File image

CAPE TOWN - Social Development Minister Bathabile Dlamini said on Monday that a proposed agreement whereby the Post Office (Sapo) would issue South African Social Security Agency (Sassa) grants will not take place.

Sapo can only produce 2.4 million cards per annum as opposed to a minimum requirement of 4.2 million cards per year. 

Dlamini made this announcement at a media briefing in East London.

A number of experts believe the reason for this is the lack of preparation by Sassa to curb another crisis that we saw earlier in the year.

The Constitutional Court court ruled that Sassa had five months to bring all service providers on board before phasing out CPS.

It has now been revealed that the South African Post Office will not be able to deliver all services. 

The minister also said that Postbank does not have a banking licence, limiting their banking services.