SASSA confirms termination of Postbank contract

THE South African Social Security Agency (SASSA) has confirmed it will not renew its Master Service Agreement (MSA) with Postbank, which is set to expire on September 30.

- HOPE NTANZI

This decision raises questions about the impact on grant payments for over 2 million beneficiaries who currently use Postbank accounts.

DA Member of Parliament (MP) Alexandra Abrahams submitted a parliamentary question to the Minister of Social Development, Nokuzola Tolashe, seeking clarity on the reasons behind SASSA's decision, plans to mitigate any negative impact on beneficiaries, and whether a new payment service provider has been appointed to handle grant payments from October 1.

In her parliamentary reply, Tolashe stated that SASSA had “decided to exercise the exit clause of the Master Service Agreement (MSA) with Postbank due to operational reasons and changes within the payment environment.”