Cape Town – Social Development Minister Nokuzola Tolashe has raised concerns that the termination of the contract between the South African Social Security Agency (SASSA) and Postbank could negatively impact grant beneficiaries.
The warning comes after SASSA officially ended its agreement with Postbank by invoking the termination clause stipulated within the contract.
According to the SABC, Tolashe appealed to the South African Reserve Bank to monitor the move from the Sassa gold card to the new post office’s black card.
“And we are really appealing to the Reserve Bank to put up their strategy so that we do not get involved in that. Because they have more than once indicated that it’s Sassa’s responsibility where there are financial implications. I accept that Chair … that it’s a lot of work.
“However, I really want to emphasise that the Reserve Bank can play its game more sharply than it is. That’s my humble plea, Chair. So that in what they are saying it’s in the pipeline, it’s been tough … it’s being processed,” says Tolashe
SASSA released a statement firmly reassuring the public that there will be no disruption to social grants and that beneficiaries can continue receiving them through Postbank.
[MEDIA STATEMENT] SASSA reiterates that there will be no disruption of social grants@The_DSD @nda_rsa pic.twitter.com/fwAVDt154w
— SASSA (@OfficialSASSA) September 1, 2025
“Most importantly, Postbank has approximately 3 million SASSA beneficiaries as account holders, and these have not been taken away from them and they will continue to receive their social grant through Postbank if they wish.
“Regulation 23 (a) of the Social Assistance Act affords beneficiary to choose a bank into which they want to receive their grant money”, said SASSA.
SASSA noted a misleading article titled “Banks circle R$bn prize as Sassa ends partnership with Postbank”, which the CEO Themba Matlou, dismissed as a deliberate distortion of facts aimed as causing panic amongst SASSA beneficiaries.
Sassa’s decision to terminate its partnership with Postbank hands private sector banks a windfall on fees for distributing R3 billion, as grant beneficiaries will now face charges. @City_Press pic.twitter.com/LFtZHzRkBb
— Fred Khumalo (@FredKhumalo) August 30, 2025
“We have consistently stated that the Master Services Agreement that we had with Postbank no longer served any purpose, we therefore had to terminate it.
“However, this doesn’t mean that we are taking our beneficiaries away from Postbank, they will continue if they are happy with the service”, said Matlou.
SASSA has clarified that its decision stems from a commitment to equitable treatment for all grant recipients.
“A significant number of beneficiaries have opted to use private banks to receive their grants, to continue subsidizing one group while excluding the rest amounts to unfair discrimination.
“Our focus right now is ensuring that all beneficiaries are treated fairly and without bias regardless of which bank they chose,” said Matlou.
SASSA reaffirms that its paramount commitment is to the seamless and uninterrupted payment of all social grants. The agency remains strictly neutral and does not endorse or prefer any bank over another.
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Compiled by Anda Tolibadi
