COSATU urges SASSA to reconsider decision to phase out Postbank as social grant payment provider

CAPE TOWN - The Congress of South African Trade Unions (COSATU) has urged the South African Social Security Agency (SASSA) to reconsider its decision to phase out Postbank to provide social grant payments.

COSATU said the decision to move away from Postbank was “rash” and would see social grant recipients charged up to R10 for withdrawals for the first time with the entry of private banks in the space.

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COSATU parliamentary coordinator, Matthew Parks, said SASSA’s move violated government’s mandate to support the bank’s role as a state bank to support the most vulnerable.

Parks said the federation was "extremely dismayed" bySASSA’s announcement that they intend to end Postbank’s participation in processing social grant payments in favour of private banks.

Parks said it’s equally disappointing that SASSA’s decision undermined extensive interventions to try to stabilise and rebuild the Postbank.

He said with social grant recipients receiving so little and the cost of living continuously rising, they should be protected from fee deductions "to fund the profit margins of private banks".

"This bewildering move will see affected social grant recipients charged R10 per R1,000 withdrawal, whilst the Postbank is reported not to deduct such fees."

Parks said COSATU would be seeking an urgent meeting with the ministries for social development and communications and digital technologies, as well as SASSA on the development.