Katlego Sekhu
- The Department of Social Development has assured that social grants will not be disrupted when SASSA’s contract with Postbank ends.
- Over three million beneficiaries who rely on Postbank will continue receiving payments directly into their bank accounts.
- Measures are being planned for rural communities, including communication through African language stations and mobile banking trucks to improve access.
Social Development Minister Sisisi Tolashe has moved to allay fears in Parliament, assuring that social grants will not be disrupted when SASSA’s contract with Postbank ends on 30 September.
MPs raised concerns about oversight and possible panic among the three million beneficiaries who use Postbank. However, SASSA has emphasised that the bank remains fully licensed and that payments will continue as normal.
Point of View with Phemelo unpacked the matter with the Chairperson of the Portfolio Committee on Social Development, Bridget Masango.
She explained that because grants are paid directly into bank accounts, there will be no disruption to payments when the contract ends. Masango added that there is comfort in knowing that the glitches previously experienced by beneficiaries are unlikely to occur after 30 September.
“There is no new service provider. Every effort has been made to ensure that funds are paid into bank accounts. We are getting closer to SASSA fulfilling its mandate, which is to pay and manage grants,” she said.
Masango further clarified that service providers have always acted as intermediaries between SASSA and grant recipients, but now the banks themselves fulfil that role. As a result, all grant recipients are receiving their money through bank accounts.
She also highlighted that specific measures are being put in place for people in remote and rural areas. “
We were given statistics showing the reach of African language stations into remote areas, and these will be used to communicate with people in languages they understand, ensuring they know what steps to take.”
Still, the challenge remains of how beneficiaries in these areas will physically access banks to withdraw their money.
Masango noted that the Reserve Bank representatives have assured Parliament that discussions are underway to deploy mobile banking trucks to outlying areas.
“This will make sure services reach people where they are, without forcing them to spend part of their small grants on travel. We are hopeful these measures will be implemented soon,” she said.
Listen to the Point of View podcast to hear the full discussion.
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