State-owned Postbank has assured social grant beneficiaries that it will still be exchanging the South African Social Security Agency (Sassa) gold cards for its black cards after the March 20 deadline.
While the embattled bank acknowledged that it does not have time on its side, it said it was doing everything possible to have the Sassa gold cards replaced with Postbank’s black cards.
During an oversight visit by the communications and digital technologies portfolio committee on Thursday, Postbank CEO Nikki Mbengashe stated that they would continue distributing the cards even after the March 20 deadline.
“We will continue to distribute. By the first Tuesday in April, we will be distributing the cards,” Mbengashe said, adding that social grant recipients could use their cards for the March payment run.
Mbengashe further said it was important that the recipients have access to their funds in the Sassa card.
“If you don’t have a black card by the payment run of April, South African Post Office (Sapo) will be the option to get your funds. We don’t want to leave anyone stranded and not to have access to their money. We appreciate how critical this money is for the beneficiaries.”
Mbengashe made her statement days after Social Development Minister Sisisi Tolashe lashed out at Postbank for the problems experienced at the replacement card sites located at retail stores.
Tolashe doubted if the March 20 deadline would be met, saying it was not based on facts.
However, Mbengashe said a lot of concern about the current period was whether grants will be paid to those without Postbank cards.
“We know in the coming cycle, grants will be paid on the current cards,” she said.
Mbengashe also said the replacement of the cards was a condition placed by the South African Reserve Bank on their banking licence.
The Sassa gold cards could no longer be extended after having received at least three extensions previously.
Postbank had planned for the replacement of the Sassa gold cards for a period of six months, but the recipients did not show up in the expected numbers.
“As soon when we communicated the deadline, beneficiaries showed up and it shot up. That became our daily rate within a space of two weeks,” Mbengashe said, adding that the Western Cape was the province with the most challenges.
Mbengashe said they have put in place interventions and that the number of Spar retailers will be increased to those already operating in other shops.
She explained that they could not use the community halls and Sapo branches as they did not meet the security requirements that relate to banking facility compliance.
Portfolio committee chairperson Khusela Sangoni-Diko welcomed the reassurance that all beneficiaries will continue to receive their grants after the March 20 deadline.
“Although we appreciate the 28% progress in a space of two months, swopping 797 497 cards thus far, we believe that the Postbank can still do more, working together with all outstanding beneficiaries,” Sangoni-Diko said.
Meanwhile, the DA in the Western Cape has launched a campaign where its councillors help beneficiaries switch from the old Sassa gold card to Postbank black card or to the bank of their choice.
The party’s social development spokesperson Wendy Kaizer-Philander said there is a lot of fear among recipients, who have not changed their cards, that they will not get their grants.
Kaizer-Philander said they started the initiative where banks were invited to wards to make presentations and beneficiaries make their choice of a banking institution.
The DA said their initiative has helped more than 16 000 people.
