01/09/2025
SASSA REITERATES THAT THERE WILL BE NO DISRUPTION OF SOCIAL GRANTS
The South African Social Security Agency (SASSA) has noted the misleading article titled “Banks circle R3bn prize as SASSA ends partnership with Postbank” published by City Press on Sunday, 31 August 2025.
The articles suggest that SASSA made this decision deliberately to benefit commercial banks over Postbank, and this is devoid of any truth. The fact of the matter is that the relationship with Postbank is contractual, like any other commercial contract, it contains a termination clause that either party may evoke without when the need arises.
Most importantly, Postbank has approximately 3 million SASSA beneficiaries as account holders, and these have not been taken away from them and they will continue to receive their social grant through Postbank if they wish.
Regulation 23 (a) of the Social Assistance Act affords beneficiary to choose a bank into which they want to receive their grant money.
The CEO Themba Matlou views this article as a deliberate distortion of facts aimed at causing panic amongst SASSA social grant beneficiaries.
“We have consistently stated that the Master Services Agreement that we had with Postbank no longer served any purpose, we therefore had to terminate it. However, this doesn’t mean that we are taking our beneficiaries away from Postbank, they will continue if they are happy with the service”, emphasized Matlou.
In addition, social grants beneficiaries should be treated equally, therefore, it would be discriminatory if SASSA were to continue paying for bank charges for only the social grants beneficiaries who are clients of Postbank whilst those banking with other banks must fend for themselves. Matlou said the special dispensation account under which SASSA subsidized beneficiaries banking with Postbank has been repealed by the
legislation.
“A significant number of beneficiaries have opted to use private banks to receive their grants, to continue subsidizing one group while excluding the rest amounts to unfair discrimination.
Our focus right now is ensuring that all beneficiaries are treated fairly and without bias regardless of which bank they chose, he added”.
SASSA pays each eligible social grant recipients’ grant monthly and remains committed to ensuring that all its eligible grant recipients receive their grants seamlessly without
interruption and cannot prefer any bank over the other, the choice is that of a grant recipient.
ENDS
ISSUED BY THE SOUTH AFRICAN SOCIAL SECURITY AGENCY
For more information, contact SASSA National Spokesperson Mr Paseka Letsatsi on 082 833 9969 or [email protected].
For interview requests: Omphemetse Molopyane [email protected] or 061 473 2984
