- SASSA Clarifies Contract Termination with Postbank: SASSA explained that ending their contract with Postbank was a standard procedure with a termination clause, and it was not meant to harm beneficiaries, who can still use Postbank accounts if they choose to.
- Beneficiaries’ Rights Maintained Despite Contract End: Under Regulation 23(a) of the Social Assistance Act, each beneficiary retains the right to select their preferred banking institution, ensuring continued access to grants through their chosen bank.
- Disputed Claims of Beneficiary Disadvantage: SASSA dismissed reports suggesting the termination was to benefit commercial banks, emphasizing that the decision was administrative and not intended to create obstacles for aid recipients.
The South African Social Security Agency (SASSA) has dismissed claims that social grant payments will be disrupted following the termination of its contract with Postbank. This comes after City Press published a report on 31 August suggesting that SASSA deliberately ended the partnership to benefit commercial banks.
SASSA clarified that its agreement with Postbank was a standard contract containing a termination clause, and the decision was not intended to disadvantage beneficiaries. Currently, around 3 million beneficiaries use Postbank accounts, and they will continue to receive their grants through the bank should they wish. Regulation 23(a) of the Social Assistance Act guarantees every beneficiary the right to choose their preferred bank.
CEO Themba Matlou said the City Press article distorted facts and risked creating panic among beneficiaries. He stressed that the contract no longer served its purpose, but this does not remove beneficiaries from Postbank.
Matlou further explained that continuing to cover bank charges for Postbank clients only would be discriminatory, as many beneficiaries now use private banks. The special dispensation account that subsidized Postbank clients has been repealed by legislation.
