THE South African Social Security Agency (Sassa) says it is ready for October when it will make all social grants payments to beneficiaries by itself, in partnership with the South African Post Office (SAPO).
According to a statement, Cash Paymaster Services (CPS) which is a Net1 subsidiary is currently responsible for paying less than 10% of beneficiaries this month and its contract ends at the end of September this year.
“In phasing out CPS at the end of the month, SASSA will be in full compliance with directions of the Constitutional Court and there will be no need to ask for another extension contrary to what sceptics wrongfully predicted,” the statement read.
“With two weeks to go before the September payment cycle is concluded, SASSA has already paid over R6 billion to 92% of its beneficiaries this month, which is a clear sign that government will manage to in-source the service of grant payments from October going forward,” the statement read.
It further stated that transactions have largely taken place at merchants through point of sale (POS) devices and over the counter at post office outlets, while withdrawals from bank ATMs have reduced significantly during this month (only 10%), as compared to August.
“At the moment the bulk of outstanding payments are the ones done in cash at SASSA paypoints which will be finished in record time.”
SASSA said beneficiaries should ensure that by the end of September, they have acquired the new SASSA card because the old one is expiring in September this year.
“The new SASSA card is an improvement of the old card and it does not allow deductions for things such as airtime, loans or prepaid electricity among others. This new card also allows three free cash withdrawals at points of sale, one free withdrawal at the post office per month, free swipes at points of sale and accepted by all ATMs displaying the VISA sign.
“These developments coincide with the recent decision of the Concourt to dismiss the SASSA application for an order declaring the actions of CPS as contempt of court.
“SASSA took this stand after CPS and other Net1 company employees had been reported by community members for disruptive behaviour at its paypoints. “The court did not award any costs. SASSA however accepts the decision of the Concourt and finds comfort in the fact that the CPS contract is coming to an end this month and that a significant number of beneficiaries have managed to acquire the new gold SASSA card,” the statement read.
Beneficiaries who wish to query anything related to their grants can call the SASSA toll free on 0800 60 10 11.
