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The deadline for Sassa grant beneficiaries to get the new Postbank Black Card has been announced. Pictures: Gallo Images/ Alet Pretorius and supplied
In a Portfolio Committee on Social Development meeting, Postbank’s CEO faced scrutiny over the social grant card migration process.
Concerns were raised by both the chairperson and committee members about the rollout of new black bank cards.
The migration from South African Social Security Agency (Sassa) gold cards to Postbank black cards has exposed systemic weaknesses in the country’s social security infrastructure, with beneficiaries facing prolonged queues, technical difficulties, and administrative complications.
Chairperson Bridgett Staff Masango highlighted three specific problems old age beneficiaries were experiencing when attempting to access their grants: “Beneficiaries are receiving three error messages,” she explained.
These messages indicate either an incorrect pin, unavailable or limited funds, and some only received partial social grant amounts.
Masango emphasised that these problems were particularly concerning given the previous assurances about the 20 March deadline.
Postbank CEO Nikki Mbengashe provided context for these technical issues.
She claimed older beneficiaries experience PIN problems because their memories are poor. “Sometimes our beneficiaries will go and reset their new PIN and two minutes later, they have forgotten it.”
Mbengashe also revealed an issue involving criminal elements.
“Unfortunately, we experience a scenario where mashonisas [informal lenders] are waiting for beneficiaries,” she explained.
These informal lenders sometimes manipulate the situation by taking cards and PINs, creating additional complications for grant recipients.
ALSO READ: Fake websites and security weaknesses blamed for fraudulent SRD grants
Different provinces present different challenges.
The Eastern Cape, in particular, faces obstacles due to remote areas and poor network connectivity.
“Our biggest challenge in the Eastern Cape is not only the remote areas but also network reliability,” Mbengashe said.
MK party MP Rev Nhlanhla Bernard Gcwabaza described the situation as a crisis.
He emphasised the human cost of these bureaucratic challenges, saying the Postbank presentation did not “show the severity of the crisis”.
Gcwabaza highlighted the difficulties faced by elderly citizens and those in rural areas due to technological barriers.
The committee heard detailed accounts of beneficiaries sleeping overnight in queues, waiting for hours to access their grants, with some sites experiencing complete operational shutdowns due to staff shortages or technical issues.
The West Coast region was cited as a problematic area, with multiple sites reporting non-operational status and insufficient resources to process grant recipients efficiently.
ALSO READ: Sassa grant card switchover leaves beneficiaries sleeping outside, allegedly denied medical care
ANC MP Tshilidzi Munyai praised the bank’s efforts, stating: “They’ve lived up to the commitment that no beneficiary will not receive their grant.”
He based his views on the areas he went to during oversight visits in Soweto and Tembisa.
Meanwhile, DA MP Alexandra Abrahams raised questions about accessibility, particularly for beneficiaries in remote areas.
She asked the bank about transportation costs and verification processes for the cardless withdrawal system.
ALSO READ: Sassa fraudster who collected old age grant jailed
During the briefing the bank said it has made progress with card distribution.
“In 12 days, we managed to issue 334 000 cards,” Mbengashe told the committee.
She said the bank has increased daily card issuance from 10 000 to 26 000, representing a 61% improvement.
“We are very close to a million cards, and we feel quite confident that by the end of this week or early next week, we should be hitting that one million mark.”
However, EFF MP Paulnita Marais criticised the bank and questioned its readiness to distribute the needed cards in less than two weeks.
“You are saying you are happy with your one million, and we are talking about six million to eight million people that must still get their cards,” she said.
Postbank’s CEO remained confident in its ability to deliver Sassa grants after the deadline.
“We are working around the clock to ensure people have access to their funds, even after the March deadline,” Mbengashe assured the committee.
She clarified that sites will remain open beyond the 20 March deadline, with a goal of reducing unissued cards to less than one million by the end of the month.
Mbengashe said they had not distributed more cards due to the lack of roving teams.
“We create teams as and when we need them, responding to emergency situations or areas with high beneficiary volumes.”
ALSO READ: Relief on the cards: Reprieve for millions as Sassa extends ‘chaotic’ gold card switch deadline
The licensing journey for Postbank was cited as a critical issue.
Department of Communications representatives revealed a complex history of legislative obstacles that have hindered the bank’s full operational capabilities.
Significant amendments to financial legislation, including the Postbank Amendment Bill signed by the president, have been crucial in addressing ownership and regulatory challenges.
Postbank’s CEO provided insight into the verification process, explaining a three-tiered authentication method involving physical presence, ID verification, and fingerprint matching.
However, the organisation acknowledged limitations imposed by its current agreement with the Sassa.
These limitations restrict the bank’s ability to provide comprehensive financial services to grant recipients.
The current agreement prevents the implementation of features like debit orders, reward programmes, or expanded banking services.
“The current agreement works against financial inclusion,” the CEO candidly admitted.
The cardless option, initially viewed as a potential solution to reduce queuing and accessibility issues, has been sparingly implemented.
Abrahams challenged the reluctance to fully deploy this alternative, arguing that it could significantly alleviate the pressure on beneficiaries and overwhelmed service points.
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