Sassa pensions: Ministers must tackle systemic flaws at Postbank

The responsible ministers must tackle the systemic flaws at Postbank that prevented pensioners from withdrawing their Sassa pensions over the past week and not simply dismiss the current grant payment crisis as a ‘technical glitch’. 

This is according to human rights organisation Black Sash, which has called on the minister of social development, Lindiwe Zulu and communications minister Mondli Gungubele to launch an independent investigation into Postbank’s payment system so that everyone can understand exactly what the technical issues are, how best to resolve these issues and the timeframes needed. These findings must be made public, it said.

The organisation also wants Zulu to explain how beneficiaries will be reimbursed for the transaction failed fees incurred over the last week and address the broader issue of banking fees incurred by beneficiaries who hold commercial bank accounts. Zulu must also finalise and sign the Master Level Agreement (MLA) between Sassa and Postbank.

“Black Sash would like to emphasise that social grants are a fundamental lifeline for millions of beneficiaries that provides for their basic needs, including food, healthcare, shelter and education. Any disruption to receiving their social grants poses the very real threat of life or death,” Rachel Bukasa, Black Sash director, said.

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People still unable to withdraw Sassa pensions

The organisation is still receiving requests for assistance from beneficiaries who are unable to withdraw their grant monies. Bukasa said some received a portion of their grants and some did not receive any money at all.

“Many beneficiaries have been sleeping outside grant sites, unable to pay the taxi fare home. Some pensioners are still walking to and from ATMs, retailers, Sassa offices and Post Office branches daily. The problem appears to have affected mostly pensioners, although we received reports that recipients of child grants and disability grants are also struggling to withdraw money. The issue is widespread and we have been inundated with calls nationwide,” she says.

Bukasa says Black Sash reminds the minister and her department of its constitutional obligation to protect and fulfil the right to social assistance. The South African Social Security Agency (Sassa), which functions under her department, is responsible for administering social grants.

Therefore, Black Sash draws the ministers’ attention to the Sassa Act, the legal framework that governs this function, that provides that Sassa’s mandate is to:

• administer the information necessary to pay social security;
• manage the transfer of funds in a national database of all beneficiaries of social assistance;
• establish a compliance and fraud mechanism to ensure that the integrity of the social security system is maintained;
• promote and protect the human dignity of applicants for and beneficiaries of social security; and
• protect confidential information held by the agency.

ALSO READ: Sassa and Postbank’s payment system failures are deeply problematic, says Black Sash

Department and Sassa failing its constitutional obligation

“The last week demonstrated that the minister, her department and Sassa failed dismally in fulfilling their constitutional obligations,” Bukasa said.  

“It is dismissive of the minister, her department and Sassa to refer to what has happened over the past week as a ‘technical glitch’. What we have witnessed is not new, it is systemic and ongoing since November 2022 when Postbank took over the payment of grants from the South African Post Office.”

She said Black Sash repeatedly warned over the past year that Postbank’s system was not designed to adequately administer the payment of social grants.

“Before partnering with Postbank, the department and Sassa did not do proper due diligence to determine whether Postbank had the capacity, expertise and infrastructure to administer the payment of social grants.”

In addition, Postbank’s technical issues have a devastating financial impact on beneficiaries who incur significant costs that include travel costs and banking fees. Specifically, over the past week, each time a beneficiary attempts to withdraw their grant monies and the transaction fails, they are charged a banking fee. Many attempted to do this multiple times, desperately trying to withdraw their grants.  

“Over the past decade, Black Sash fought tirelessly to protect beneficiaries’ Constitutional right to receive the full cash value of their grants with dignity. What we have witnessed over the past week is a breach of this right. It is simply unacceptable that beneficiaries carry the financial burden of government failure,” Bukasa said.