Sassa reviewing Postbank’s grant payment contract in light of ongoing problems
The South African Social Security Agency (Sassa) says it’s reviewing its contract with Postbank for the payment of grants in the wake of problems that have left scores of beneficiaries in dire straits for over a week.
While Sassa officials told Parliament on Wednesday that the majority of problems had been resolved, MPs say they are still being flooded with complaints that beneficiaries have still not received their money.
Sassa said it would be meeting with Postbank on Wednesday afternoon to resolve the ongoing problems.
Sassa’s grants administrator, Brenton van Vrede, said Postbank’s new payment switch failed to automatically reverse money from declined transactions, back to beneficiaries’ accounts.
Some 500,000 transactions have now had to be manually reversed.
“Some instances there might need to be an investigation because reports may show the money was withdrawn and then they will have to escalate to the retailer or merchant to find out what exactly happened.”
Sassa conceded that communication on the matter had been poor, given that over five million beneficiaries receive their grants from Postbank.
Sassa CEO Busisiwe Memela said the agency didn’t know the bank planned to implement a new payment switch.
“Our intention is not to throw Postbank under the bus because we know at the end of the day, we are accountable for the beneficiaries because they are Sassa beneficiaries.”
Sassa said it had been given the assurance that the outstanding 2,000 cases would be resolved on Wednesday.
-EWN
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