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S. Africa investigates using ATMs for government payments

May 22, 2002

PRETORIA, South Africa -- South Africa's Department of Justice and Constitutional Development has researched a method in which alimony payments paid to divorced women could become available at ATMs installed at magistrates courts throughout the country.

According to a report on allAfrica.com, the ATM option is one of a number of alternatives researched by the department over the last six months. The department will ask for proposals from various vendors as part of its plan to improve the management of money it holds in trust, according to the report.

To make it easier for those people with minimal literacy, the department suggested that some ATMs could be equipped with a biometric device such as a fingerprint reader, making it unnecessary to key in a PIN.

Such a system could also be used to allow payment of traffic fines and other transactions, according to the report.

The department's chief financial officer, Alan Mackenzie, said discussions were underway with several banks and other institutions that had been involved in formulating conceptual solutions.

"What it means in essence is that the justice department may hand over its entire cash management system to a bank with the manpower, financial system and expertise to handle it and they would manage multiple pay in and pay out points including many of the current cash halls at courts," Mackenzie said.

Such a system would help alleviate poverty in rural areas, he said.

"At present, a divorced woman in a deep rural area has to travel to the nearest court to request payment of maintenance due to her. Depending on how far away she is from the court, she could incur significant transport charges. It is often necessary for a second visit to collect the check that must be discounted, at a significant cost, at a local store," he said.


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