Minister of Finance Ericah Shafudah says that NamPost was awarded the tender of distributing grants as a result of the public entity to public entity procurement strategy.
This was her response to IPC MP Lilian Lutuhezi, who sought clarity on how the ministry came to the decision.
President Netumbo Nandi-Ndaitwah last year announced that the old-age pension grant would be increased incrementally to N$3,000 per month, meaning the amount would rise in stages over a period of time rather than through a single immediate adjustment.
Social grant beneficiaries at Tsumkwe and surrounding villages have expressed dissatisfaction about the slow process of Nampost payments.
Nampost took over from Epupa Investment in October last year, and beneficiaries want that company to do their pay-outs.
NamPost has announced additional supplementary payout dates for children's cash grants, following a request from the beneficiaries.
The supplementary payout dates run from Friday until Saturday.
The Minister of Information and Communication Technology, Emma Theofelus, is asking for social grant beneficiaries to remain patient while NamPost is processing their payments.
The minister visited the Nampost branch at Divundu, Kavango East.
With NamPost to officially taking over the distribution of social grants from 1st October, concerns have been raised about whether the Ministry of Finance will make provision for the beneficiaries residing in remote areas without them having to travel long distances.
Finance Minister Ericah Shafudah has urged NamPost, the new distributor of social grants, to consider absorbing employees affected by the termination of Epupa Investment Technology’s contract.
The Namibian government spends around N$7 billion yearly on social grants, with old-age pensions accounting for nearly half of the total.
Michael Humavindu, the Executive Director in the Ministry of Finance, cautions that raising the pension to a mere N$2,000 could push the bill close to N$9 billion.
NamPost will ensure comfort and safety for senior citizens during the rollout of the social grants come 1st October, when it takes over from Epupa Investment Technology.
The Omuthiya constituency office hosted a community information sharing day to update residents on upcoming changes to social grant distribution.
