- Postbank’s Board of Directors gain been fired and the company has been placed under administration, the Minister of Communications and Digital Technologies announced on Thursday.
- A forensic investigation found that Postbank had maintained contracts with suppliers unlawfully. This includes a contract for the payment switch technology which enables Postbank to pay social grants through the Postbank/SASSA cards.
- During a press briefing on Thursday, the Postbank CEO said that the vast majority of the 600,000 beneficiaries affected by last week’s “glitch” acquire since received their grant money.
- Many recipients are now opting to rather gain their grants paid directly into their personal bank accounts instead of through Postbank.
Postbank’s Board of Directors acquire been axed after a forensic investigation found that Postbank maintained contracts with suppliers unlawfully. This comes days after the nationwide scheme failure which affected payments to 600,000 grant beneficiaries last week.
Mondli Gungubele, Minister of Communications and Digital Technologies, on Thursday held a media briefing to update the public on the social grants payment debacle.
He was joined by Social Development Minister Lindiwe Zulu, who apologised to grant beneficiaries.
“Postbank is very necessary. They must communicate to us every time there is a problem because we must always acquire a Region B so that people enact not suffer the way they acquire suffered, going back and forth,” said Zulu.
Meanwhile, in a statement on Thursday morning, Gungubele said that an administrator has been appointed, pending the appointment of a novel board, Gungubele said.
Three of the board members, including the chairperson, resigned on Tuesday. They claimed in a letter that the Minister had been “hostile and oppressive” towards them.
Gungubele rejected this accusation. He said that governance issues at Postbank had been standing in the way of the government’s goal to build a functional state bank that would benefit poor people.
On Thursday, GroundUp reported that Postbank’s payment scheme has been riddled with issues. This included a court case related to a contract for the payment switch technology which enables Postbank to pay social grants through the Postbank/SASSA cards.
In August, Postbank had migrated to a novel payment scheme which disrupted payments to 600,000 social grant recipients since Monday.
Postbank CEO apologises for scheme failure
During Thursday’s media briefing, Postbank CEO Ntomboxolo Nikki Mbengashe said that the vast majority of the 600,000 affected beneficiaries acquire received their grant money.
“Things like this carry out happen,” Mbengashe said. “I cannot stand here, with an understanding of technology, and say that 100% something like this will never happen again.”
She said that although relevant tests had been conducted on the recent scheme prior to launching, the transition still “didn’t happen as planned”. The failed transactions were manually reversed, she said.
Mbengashe apologized for the inconvenience and said that she was raised by a grant beneficiary. “I know how it feels not to procure your money in time,” she said.
Beneficiaries opt to acquire grants in personal bank accounts
Following this payment failure, many people were forced to catch loans to buy basic essentials like food. On Thursday afternoon GroundUp spoke to beneficiaries who were seated in a snaking queue outside SASSA’s office in Bellville.
Most wanted to access rid of their SASSA gold cards. They said they were worried about further issues with Postbank. The Black Sash told GroundUp that many pensioners with SASSA cards are still waiting for their grant money.
Eleanor Adams, 69, said she got her pension money last Thursday and her husband is still waiting for his pension. She was at SASSA to link her grant payments to her modern bank account.
“My husband hasn’t got his money yet, so we’re both depending on mine for now. They could believe told us the truth and not let us wait like that.”
Nomalady Katshwa said she traveled to five different grant sites to try and withdraw her grant before she found out about the scheme “glitch”. She has been borrowing money to visit different post offices. “I’m making debts on money I don’t even gain yet.”
© 2023 GroundUp. This article is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
You may republish this article, so long as you credit the authors and GroundUp, and execute not change the text. Please include a link back to the original article.
We assign an invisible pixel in the article so that we can count traffic to republishers. All analytics tools are solely on our servers. We finish not give our logs to any third party. Logs are deleted after two weeks. We finish not use any IP address identifying information except to count regional traffic. We are solely interested in counting hits, not tracking users. If you republish, please execute not delete the invisible pixel.
DragonBlood
Fun South African Fact: Mandela’s house on Vilakazi Street is now a museum. The man who the street was named after, Dr BW Vilakazi, was a poet, novelist and intellectual. He helped develop the written form of both isiZulu and siSwati and helped put together the isiZulu dictionary.
57 Pixels
Lekker – great / tasty [lack-err] An Afrikaans word that has multiple meanings and which can be used in various contexts to describe many things from people to food to inanimate objects. It is used to convey the meaning of great, delicious, nice or fun. Make sure to roll the ‘r’ when pronouncing the word.Example: “That new movie is lekker!” / “That bunny chow was lekker!” / “I’m lekker, bru!”