Grant beneficiaries to cough up R10 in bank charges if they use Sassa cards

The banking charges are because of the continued use of Grindrod Bank without a contract in place until the Post Office is ready to take over.

FILE: Picture: Supplied.

CAPE TOWN - Social grants beneficiaries who receive their money using a South Africa Social Security Agency (Sassa) banking card will have to cough up R10 in bank charges from 1 April.

This has been revealed by the Social Security Agency in Parliament on Wednesday, which is providing an update about the institutionalisation of grants from April.

On Friday, the Constitutional Court granted a six-month extension to Cash Paymaster Services to disburse grants in cash.

But Sassa says awarding a new contract for cash payments is already in jeopardy.

It says it’s negotiating with Treasury and the Social Development Department to subsidise banking charges for the 5.4 million people who receive their money using Sassa cards. But for now, beneficiaries will have to carry the burden.

The banking charges are because of the continued use of Grindrod Bank without a contract in place until the Post Office is ready to take over.

Parliamentarians across the board have not received the news well.

Chairperson Zoleka Capa said: “They [beneficiaries] are not supposed to suffer as they’re not responsible for our mess up.”

Meanwhile, Sassa has already received an objection to its bid evaluation process to award a new cash payment tender.

G4S has sent the agency a lawyer’s letter calling for the process to be halted.

(Edited by Zamangwane Shange)