COSATU says SASSA's move to private banks will impact grant beneficiaries

CAPE TOWN - Trade union federation Congress of South African Trade Unions (COSATU) said that it is "extremely dismayed" by South African Social Security Agency (SASSA) announcement that it intends to end  Postbank's participation in processing social grant payments in favour of private banks.

Spokesperson Matthew Parks said it is equally disappointing that the SASSA decision undermines extensive interventions to try stabilise and rebuild Postbank.

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

He said that, 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”.

COSATU is now urging SASSA to reconsider its decision to phase out Postbank to provide social grant payments.

'COSATU urges the South African Social Security Agency to reconsider its rushed phasing out of the Postbank as a service provider for social grant payments. We are extremely dismayed by SASSSA's announcement of intent to end Postbank's participation in processing social grant payments to millions of recipients that have no private banks. This bewildering move will see affected social grant recipients charged R10 per R1,000 withdrawal, while Postbank is reported not to deduct such fees," said Parks.