Troubles with Postbank SASSA Contract Review and Ongoing Grant Payment Issues

Troubles with Postbank SASSA Contract Review and Ongoing Grant Payment Issues.The South African Social Security Agency (Sassa) is actively reevaluating its contract with Postbank, the entity responsible for disbursing grants. This decision comes in light of persistent challenges that have left numerous beneficiaries in dire straits for more than a week.

Troubles with Postbank SASSA Contract Review and Ongoing Grant Payment Issues

Although Sassa officials reported to Parliament that they have largely resolved the majority of these issues, members of Parliament continue to receive a flood of complaints from beneficiaries who have yet to receive their funds. Sassa is taking proactive measures to engage with Postbank on this matter, with a meeting scheduled for Wednesday afternoon in hopes of finding solutions to the ongoing problems.

Root of the Problem

Brenton van Vrede, Sassa’s grants administrator, identified a critical issue with Postbank’s new payment switch. It has failed to automatically reverse funds from declined transactions back to beneficiaries’ accounts. This predicament has necessitated the manual reversal of approximately 500,000 transactions.

In certain cases, investigations may be required to trace money that appeared to be withdrawn, potentially involving engagement with retailers or merchants to determine the exact circumstances.

Lack of Communication

Sassa has acknowledged its shortcomings in communication throughout this ordeal, given that over five million beneficiaries rely on Postbank for their grants.

CEO Busisiwe Memela expressed that the agency was unaware of Postbank’s plans to implement a new payment switch. She emphasized that their intention is not to blame Postbank but to recognize their accountability to the beneficiaries who depend on Sassa’s support.

Resolving Outstanding Cases

Sassa has received assurances that the remaining 2,000 outstanding cases will be resolved by Wednesday, aiming to alleviate the distress of affected beneficiaries.