Who can forget the Postbank debacle that left millions of SASSA beneficiaries floundering earlier this year? For no clear reason, SASSA beneficiaries using the Postbank Gold card were told to upgrade to the Black card with only a few weeks’ warning.
However, not even Postbank staff were able to handle the number of affected SASSA beneficiaries. And even after several deadline extensions, with millions still unassisted countrywide, the department pulled the plug on the Postbank card-swap debacle.
POSTBANK SASSA BENEFICIARIES HAVE 80 DAYS
Nevertheless, while the card swap is no longer necessary for SASSA beneficiaries, there’s a new payment nightmare looming on the horizon. Now the Public Protector has flagged serious failures by the South African Social Security Agency and Postbank.
Unending delays and irregular staff appointments, there is now no payment alternative in place when SASSA’s arrangement with the government entity ends on Tuesday 30 September 2025. As such, the Democratic Alliance’s (DA’s) Alexandra Abrahams is urging any SASSA beneficiaries still with Postbank to switch to another reputable bank as soon as possible.
MORE THAN TWO-MILLION GRANTS AT RISK
If the Public Protector’s warning rings true, as many as two-million SASSA beneficiaries may not be paid from October 2025 onwards. Investigations into Postbank include allegations of mismanagement of social grants and ineffective implementation of the grant payment systems. Likewise, it is looking into the irregular appointment of former SASSA CEO, Busisiwe Memela-Khambula.
In its report, the Public Prosecutor mentioned something that all SASSA beneficiaries still with Postbank should note. “The Master Service Agreement with Postbank is expiring at the end of September 2025. And an extension of the contract seems implausible, in light of the fundamental compliance issues experienced between SASSA and Postbank. Therefore, affected SASSA beneficiaries should find a new credible service provider,” says the report.
CALLED TO ACCOUNT
Furthermore, the DA’s Alexandra Abrahams has requested that SASSA, Postbank, and the South African Reserve Bank be held to account in Parliament as a matter of urgency. “SASSA’s inability to appoint a credible grant payment service provider has jeopardised the SASSA grant payments of 2 169 371 beneficiaries, including those of Child, Disability and Older Person grants. SASSA beneficiaries require urgent clarity on how their grants will be paid from October 2025 onwards,” concludes Abrahams.
ARE YOU WITH POSTBANK AND HAVE YOU CHANGED PROVIDERS YET?
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