Nikki Mbengashe reassures millions of South African grant recipients about social security agreements

Millions of South African social grant recipients can breathe a sigh of relief after the Master Services Agreement (MSA) Postbank has with the South African Social Security Agency (SASSA) will remain in place.

Nikki Mbengashe, the CEO of Postbank, made the announcement after an Inter-Ministerial Committee (IMC) took the decision on Tuesday evening, which would be roundly welcomed by many whose daily lives depended on the grants.

The MSA, was due to expire on September 30, which became a matter of anxiety for grant recipients.

The millions receiving grants, were able to access the funds via Postbank's black cards and SASSA's gold cards.

However, while Mbengashe's statement offers a measure of reassurance, not all stakeholders were convinced. Songezo Zibi, chairperson of the Standing Committee on Public Accounts (SCOPA), dismissed her assurances, calling for urgent action from the IMC.

“The IMC needs to make decisions immediately on the matter and pass its recommendations to cabinet for approval. This month-to-month situation is not sustainable,” Zibi stated emphatically.

These developments come in the wake of an urgent application that Postbank filed with the High Court of South Africa's Gauteng Division, seeking to protect beneficiaries from the fallout of the MSA's potential cancellation.

Regrettably, the court dismissed this application, deeming it not urgent enough, leaving Postbank anxious about the ramifications for millions of vulnerable beneficiaries.

In light of the court’s ruling, Mbengashe expressed Postbank’s disappointment, reiterating the institution’s commitment to protecting the interests of South Africa’s most vulnerable populations. “As a state-owned bank, it is our mandate to serve, protect, and advance the interests of our most vulnerable citizens,” she asserted, pledging that grant payments would continue without interruption.

The court hearing, presided over by Judge Colleen Collis, cited Postbank's awareness of SASSA's intent to terminate the MSA as early as March 2024 as a determining factor for its dismissal of the application.

This uncertainty regarding the MSA has persisted since SASSA made its intentions known in December 2023, signalling a potential six-month transition period for the termination of the agreement, while Postbank sought an extended 18-month phase-out period that effectively pushed the end date to 30 September 2025.

Amidst ongoing discussions, SASSA has argued for the MSA's obsolescence, citing the closure of numerous cash pay points as a critical factor influencing the future landscape of social grant distributions in South Africa.

DAILY NEWS