Social grants payments deadlock as Postbank fights with Sassa

Postbank says Sassa decision to extend notice period undermines President Ramaphosa directive

- BANELE GININDZA

LAST week, Sassa announced a three-month extension to the notice period for the termination of the MSA with Postbank, saying the move would provide "time and space" for the executive authority to deliberate on issues between the two entities and offer guidance.

(TRACEY ADAMS Independent Newspapers)

THE South African Postbank has taken issue with the South African Social Security Agency (Sassa) over what it describes as a unilateral decision to extend their Master Service Agreement (MSA) by three months, arguing that the matter should instead be determined by a Ministerial Inter-Governmental Committee (IMC) directed by President Cyril Ramaphosa.

Last week, Sassa announced a three-month extension to the notice period for the termination of the MSA with Postbank, saying the move would provide “time and space” for the executive authority to deliberate on issues between the two entities and offer guidance.

However, Postbank maintains that the decision undermines a presidential directive made after a high-level meeting between the parties and the Presidency, where it was agreed that an IMC would be established to resolve the dispute.

In a statement last week, Postbank said the existing agreement should remain in force until the IMC is formally constituted and has deliberated on the matter.