The REAL reason behind the SASSA grant payment DEBACLE

For the people who need a SASSA grant payment to make ends meet each month, it will be of little consolation, but the real reason for ongoing payment hiccups has come to light.

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It all has to do with a legal dispute between a former outside software provider, Electronic Connection, that handles SASSA grant payments and Postbank, reports Ground Up. In a media briefing today by the Minister of Social Development, Lindiwe Zulu, and the Minister of Communications and Digital Technologies, Mondli Gungubele, they provided more information about the ongoing SASSA grant payment debacle.

SASSA GRANT PAYMENT ISSUES

The real reason behind them is due to a software provider that is no longer involved with Postbank. The migration of data from the old to new supplier is causing problems. Postbank says its challenges with this former service provider dates back to 2018.

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Those South Africans who suffered due to the SASSA grant payment issues last week can take solace in the fact that three Postbank board members resigned in the aftermath. It is understood that 35% of SASSA grant payment recipients, approximately 6.3-million people, receive money into their SASSA/Postbank cards through this ‘payment switch’ software.

OTHER SIDE OF THE STORY

Ground Up contends that Electronic Connect have been at loggerheads with Postbank, threatening to suspend the service, unless outstanding invoices were settled. Allegedly, Postbank owed the software provider R1.9-million for May and R1.7-million for June.

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However, it’s not as simple as all that. In the Ground up report, Postbank said it did acknowledge its debts but could not pay them due ongoing investigations into Postbank. “The National Treasury did not approve the agreement between the two companies because it did not comply with public procurement protocols,” says the Ground Up.

HURRIED COURT INTERDICT

The High Court granted an urgent order a few days later and Postbank settled its invoices with the supplier. However, the most recent SASSA grant payment hiccup on Monday 4 September 2023 left 500 000 grant recipients, many of them old-age pensioners, unable to access their money on SASSA/Postbank cards.

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And more than a week later, many grant beneficiaries are still unable to receive their money. This has forced thousands of destitute South Africans to take loans to cover essentials foods.

What next for Postbank and SASSA grant payments? Do you think they will survive beyond 2024? Have you been impacted by these glitches? Be sure to share your thoughts with our audience in the comments section below. Send an email to info@thesouthafrican.com.

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