MINMEC ADDRESSES CONCERNS OVER SOCIAL GRANTS

By Precious Mupenzi

• The South African Social Security Agency (SASSA) pays over 19 million social grants monthly, with approximately 2.9 million beneficiaries receiving payments through Postbank accounts.
• Acting CEO Themba Matlou delivered this information during an update on the ongoing Postbank card transition process to a meeting of the minister and MECs for social development.
• “SASSA is committed to working closely with the Department of Social Development’s provincial offices to ensure that every beneficiary, regardless of location, can access the social assistance they depend on,” Matlou said.

At the second minister and MECs (MinMEC) meeting held in Cape Town today, 21 February 2025, South African Social Security Agency (SASSA) Acting CEO Themba Matlou provided an update on the Postbank card transition process, emphasising the agency’s commitment to ensuring uninterrupted access to social grants. 

“SASSA pays over 19 million social grants every month, with approximately 2.9 million beneficiaries receiving payments through Postbank accounts. It remains our priority to ensure that every recipient has uninterrupted access to their funds,” Matlou said. 

He acknowledged past challenges with the SASSA Postbank card, including fraud and irregularities that prompted the South African Reserve Bank to launch a forensic investigation in 2019.

As a result, a variation order was issued in October 2019, requiring Postbank to implement security measures to mitigate fraud risks. The order, which has been extended multiple times, is set to expire at the end of March 2025. 

According to Section 23 (1) of the Social Assistance Act, SASSA is required to pay social grants directly into a bank account of the beneficiary or the institution where the beneficiary resides.

However, this is subject to certain conditions.

“Beneficiaries must provide consent for such payments through electronic communication or any other means and submit the required ‘Method of Payment Forms’ to the agency. In cases where a beneficiary is unable to submit the necessary consent, alternative arrangements will be made to ensure continued access to their grants,” Matlou explained.

He offered assurance that SASSA remains committed to ensuring that no beneficiary is left without access to their grants, particularly as the Postbank card transition progresses.

“While it is the responsibility of Postbank to meet its banking regulatory requirements, SASSA will continue to support the process to ensure that beneficiaries can access their grants without difficulty,” Matlou said. 

One of the key concerns raised in the meeting was insufficient infrastructure in rural areas, where many beneficiaries struggle to access payment points.

The limited presence of Postbank in rural communities, challenges with using community halls as service sites, and the slow rollout of mobile payment units have left many without easy access to their grants. 

To address these issues, provincial MECs committed to working closely with SASSA to expand accessibility and improve service delivery. They emphasised the need for SASSA’s presence in rural areas ensuring that no beneficiary is left behind. 

The meeting emphasised the importance of collaboration between SASSA and the Department of Social Development’s provincial offices in enhancing grant accessibility, particularly in underserved areas.

Matlou acknowledged the concerns raised by the public, members of the portfolio committee, and MinMEC members regarding service gaps, particularly in rural communities.

He outlined measures to strengthen SASSA’s reach, including the co-location and sharing of office infrastructure, expanding Social Relief of Distress assessments, and intensifying the Integrated Community Registration Outreach Programme to reach remote areas.

Additional efforts will focus on stakeholder engagements through intergovernmental relations, improving foster care placements and reviews, and ensuring Child Support Grant top-up training for social workers.

Matlou committed to enhancing data-sharing on school uniforms to prevent duplication and ensure efficient resource allocation.

“We recognise the urgent need to strengthen our presence where it matters most,” Matlou said.

“SASSA is committed to working closely with the Department of Social Development’s provincial offices to ensure that every beneficiary, regardless of location, can access the social assistance they depend on.”

With the Postbank card replacement process underway, SASSA and the provincial governments will continue working together to eliminate barriers, expand infrastructure in rural areas, and strengthen outreach efforts to ensure seamless service delivery for all social grant beneficiaries.