Are SASSA beneficiaries losing money by switching to personal bank accounts?
Image: Nokuthula Mbatha/ Independent Newspapers.
The North West Legislature's Portfolio Committee on Health and Social Development has raised serious concerns over the growing trend of social grant beneficiaries opting to receive their payments through personal bank accounts, a move that could be costing them a portion of their much-needed support.
During an oversight meeting held with the South African Social Security Agency (SASSA) and the Department of Social Development, Committee members were briefed on the migration from the traditional SASSA Gold Cards to the newly introduced Postbank Black Cards.
The migration was prompted by a South African Reserve Bank (SARB) directive following a security breach involving the Gold Cards.
However, it emerged that SARB has now suspended the migration process indefinitely. Beneficiaries are currently permitted to continue using their existing SASSA Gold Cards beyond the original May 31 deadline, a shift the Committee believes must be communicated to avoid panic and confusion.
"People were rushing to switch cards, some even under pressure. Now, they need clarity and reassurance that their current cards are still functional. You need to ensure that this is communicated widely,' urged Committee Chairperson, Hon. Karabo Magagane.
The Committee expressed deep concern over SASSA's revelation that 43,945 grant recipients have chosen to bypass both the SASSA Gold Card and the Postbank Black Card systems, instead opting for direct bank payments.
While this may offer perceived convenience, the Committee fears that the associated transaction fees at commercial banks are quietly eroding the actual value of the grants.
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'These beneficiaries may not realise that they are losing money to transaction fees and service charges, funds that are meant to support their most basic needs,' Hon. Magagane cautioned.
Further compounding the financial strain, Committee members highlighted the informal deductions being imposed by some local retailers.
Local tuck shops reportedly charge R10 for every R100 withdrawn, a surcharge that further reduces the amount of money recipients receive.
'This completely defeats the purpose of a social grant. A grant is supposed to alleviate poverty, not get eaten up by unnecessary charges,' one member stated.
The Committee also slammed the limited number of Postbank conversion sites in the North West.
Currently, only 12 sites are operational across the province, a situation described as 'grossly inadequate,' particularly for elderly beneficiaries living in remote areas.
"Many of our elderly citizens live far from these centres and are not in a position to travel long distances just to access a card. This could be a driving factor behind the shift to personal bank accounts," said Hon. Magagane.
In response to the pressing challenges, the Committee pledged to intensify its engagement with SASSA and Postbank, the two State-Owned Entities tasked with grant disbursement, to push for more accessible service points, better communication, and increased public awareness.
"We are committed to ensuring that no beneficiary is left behind. We will push for ongoing awareness campaigns, improved accessibility, and sustained outreach efforts so that every grant recipient understands their options and the implications of each," Hon. Magagane said.
The Committee is expected to reconvene in the coming weeks to assess progress and implementation of the proposed solutions.
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