The South African Social Security Agency (SASSA) says it is ready for the October payment cycle where all social grant payments will be made by the agency, in partnership with the South African Post Office (SAPO).
The contract for Cash Paymaster Services (CPS), which ends at the end of September 2018, is a Net1 subsidiary which is currently responsible for paying less than 10% of beneficiaries this month.
SASSA spokesperson, Paseka Letsatsi, said that in phasing out CPS at the end of the month, SASSA will be in full compliance with directions of the Constitutional Court and there will be no need to ask for another extension, contrary to what sceptics wrongfully predicted.
R6 billion paid to beneficiaries
Letsatsi said with 18 days to go before the September payment cycle is concluded, SASSA has already paid over R6 billion to 92% of its beneficiaries this month, noting that this is a clear sign that government will manage to insource the service of grant payments from October going forward.
Transactions have largely taken place at merchants through Point of Sale (POS) devices and over the counter at post office outlets. Withdrawals from bank Automated Teller Machines (ATMs) have reduced significantly during this month (only 10%), as compared to August. At the moment the bulk of outstanding payments are the ones done in cash at SASSA paypoints, which will be finished in record time, Letsatsi said.
Get your new SASSA card by end of September
Beneficiaries are reminded to ensure that they have acquired the new SASSA card, as the old one expires in September 2018.
The new SASSA card is an improvement of the old card and it does not allow deductions for things such as airtime, loans or prepaid electricity, among others.
The new card also allows three free cash withdrawals at points of sale, one free withdrawal at the post office per month, free swipes at points of sale and it is accepted by all ATMs displaying the VISA sign.
Letsatsi said these developments coincide with the Constitutional Court’s decision to dismiss SASSA’s application for an order declaring the actions of CPS as contempt of court.
SASSA took this stand after CPS and other Net1 company employees had been reported by community members for disruptive behaviour at its paypoints.
The court did not award any costs. SASSA however, accepts the decision of the ConCourt and finds comfort in the fact that the CPS contract is coming to an end this month, and that a significant number of beneficiaries have managed to acquire the new gold SASSA card, Letsatsi said.
Source: South African Government News Agency