SASSA beneficiaries face a looming crisis in just 80 days
The Public Protector has warned SASSA beneficiaries still using Postbank that payment contracts will end in September.
The Postbank debacle earlier this year left millions of SASSA beneficiaries stranded.
Without giving a clear reason, authorities instructed beneficiaries using the Postbank Gold card to upgrade to the Black card with just a few weeks’ notice.
Postbank staff failed to manage the overwhelming number of affected beneficiaries, and even after several deadline extensions, millions remained unassisted across the country. Eventually, the department scrapped the card-swap operation entirely.
POSTBANK SASSA BENEFICIARIES HAVE 80 DAYS
Nevertheless, while the card swap is no longer necessary for SASSA beneficiaries, there’s a new payment nightmare looming on the horizon. Now the Public Protector has flagged serious failures by the South African Social Security Agency and Postbank.
Due to ongoing delays and irregular staff appointments, no alternative payment system has been put in place ahead of the end of SASSA’s agreement with the government entity on Tuesday, 30 September 2025. As a result, the Democratic Alliance’s Alexandra Abrahams is urging SASSA beneficiaries still using Postbank to switch to a reputable bank without delay.
MORE THAN TWO-MILLION GRANTS AT RISK
If the Public Protector’s warning rings true, as many as two million SASSA beneficiaries may not be paid from October 2025 onwards. Investigators are probing Postbank for allegedly mismanaging social grants and failing to implement effective grant payment systems. They are also examining the irregular appointment of former SASSA CEO, Busisiwe Memela-Khambula.
In its report, the Public Prosecutor mentioned something that all SASSA beneficiaries still with Postbank should note. “The Master Service Agreement with Postbank is expiring at the end of September 2025. And an extension of the contract seems implausible, in light of the fundamental compliance issues experienced between SASSA and Postbank. Therefore, affected SASSA beneficiaries should find a new credible service provider,” says the report.
CALLED TO ACCOUNT
The DA’s Alexandra Abrahams has urgently called on Parliament to hold SASSA, Postbank, and the South African Reserve Bank accountable. “SASSA’s inability to appoint a credible grant payment service provider has jeopardised the SASSA grant payments of 2 169 371 beneficiaries, including those of Child, Disability and Older Person grants. SASSA beneficiaries require urgent clarity on how their grants will be paid from October 2025 onwards,” concludes Abrahams.