The Congress of South African Trade Unions (COSATU) urges the South African Social Security Agency (SASSA) to reconsider its rash phasing out of the Postbank as a service provider for social grant payments. The Federation is extremely dismayed by SASSA’s announcement that they intend to end the Postbank’s participation in processing social grant payments to millions of recipients in favour of private banks.
This bewildering move will see affected social grant recipients charged R10 per R1000 withdrawal whilst the Postbank is reported not to deduct such fees. When social grant recipients receive so little and the cost of living is continuously rising, they should be protected from fee deductions to fund the profit margins of private banks. SASSA needs to negotiate with all bank providers to waive such fees for social grant recipients.
SASSA’s move violates government’s mandate to support the Postbank’s role as a state bank aimed at supporting the most poor and marginalised members of society. It is equally disappointing that SASSA’s decision undermines extensive interventions to stabilise, rebuild and grow the Postbank, including amending the Postbank Act to meet the requirements of banking legislation and overhauling its governance and IT systems.
If the Postbank is to be placed on a sustainable path and to fulfill its legislative mandate then government, in particular SASSA, need to provide it the space and support to do so. Similarly, when 27 million social grant recipients are struggling to make ends meet, then they should be protected from being fleeced of their little funds by banks and their overpaid CEOs.
COSATU will be seeking urgent engagements with the Ministries for Social Development and Communications and Digital Technologies as well as SASSA on this deeply concerning development.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687Email: matthew@cosatu.org.za
