Dear Editor
More than 2 million South African Social Security Agency (SASSA) grant beneficiaries might not be able to receive the grants come October 2025 should the Public Protector’s warning ring true.
The Public Protector investigated allegations of undue delay by SASSA to assume management and control of the payment of social grants to beneficiaries, ineffective implementation of the grant payment system controlled by the South African Post Office, as well as the irregular appointment of the former SASSA CEO, Busisiwe Memela-Khambula.
The report stated that, “The [Master Service Agreement] (MSA) with Postbank is expiring at the end of September 2025, and the extension of the contract seems implausible, in light of the fundamental compliance issues experienced with the Postbank. However, notwithstanding the fact that SASSA is not a designated clearing system participant, it will still be responsible for the management and administration of the payment of social grants in the absence of Postbank.”
This means that SASSA has to either become a designated clearing system participant in the next two months – highly unlikely – or find a new credible service provider. The third option is renewing the MSA with Postbank, an entity that has failed to comply with the South African Reserve Bank (SARB) since December 2021.
SASSA’s inability to appoint a credible grant payment service provider has now jeopardised the SASSA grant payments of 2 169 371 beneficiaries, including recipients of child grants, disability grants, and older persons grants.
The DA has requested that SASSA, Postbank, and SARB account to Parliament as a matter of urgency. South Africans need urgent clarity on how the more than 2 million SASSA grant beneficiaries that are still dependent on Postbank to receive their grants will be paid in October 2025.
We further urge all SASSA grant recipients to switch their grant payment to reputable banks of their choice.
Regards
Alexandra Abrahams MP
DA Deputy Spokesperson on Social Development