Postbank's MSA termination won't disrupt social grants, says Sassa

WHILE Sassa welcomed the North Gauteng High Court dismissal of Postbank’s urgent application to halt the termination of a crucial Master Services Agreement (MSA), Postbank has warned that the ruling could have serious implications for the livelihoods of millions relying on social grants.

Judge Colleen Collis dismissed Postbank’s urgent application, citing a lack of urgency. The judge noted that Postbank had been aware of Sassa’s intent to terminate the MSA since March 2024.

Sassa CEO Themba Matlou said the judgment confirmed Sassa’s long-held position that the termination of the MSA will not affect or interrupt social grant payments to beneficiaries who receive their grants via Postbank.

“We are happy with the judgment, and we would like to once more emphasise that all the eligible grant beneficiaries with accounts at Postbank will continue receiving their grants. According to Regulations 23 (a) of the Social Assistance Act, beneficiaries are paid their social grants into the account of their choice. In this instance, those with Postbank will continue to receive their grants, and the termination of the MSA has no bearing on that,” Matlou said. 

Matlou said the Agency is also ramping up efforts to enhance the integrity of the social grants system's administration and payment processes.

“All the decisions that we take are in the best interest of our beneficiaries, and we do this to safeguard the rights of social grant beneficiaries as best as we can. We also want to enable an environment where clients can freely choose how they access their grants,” Matlou said.

Postbank CEO Nikki Mbengashe expressed concern regarding the court’s ruling, saying that it offers insufficient relief to the millions of social grant beneficiaries whose livelihoods and rights will be impacted by the termination of the MSA. This termination, she noted, was central to the relief sought through the application.

“The application has been struck off the roll as the judge did not consider it urgent, and we respect the ruling, as Postbank always upholds the law,” Mbengashe said. 

“However, Postbank maintains that the protection of beneficiaries remains a critical issue that was not fully addressed. In line with Postbank’s mandate, a state-owned bank – to serve, protect and advance the interests of the most vulnerable in our society – we believe that this obligation has not yet been given due consideration. Without urgent intervention to safeguard beneficiaries’ rights before September 30, 2025, Postbank is of the view that the constitutional rights of millions of beneficiaries are at risk of being infringed upon.” 

Mbengashe said Postbank remains committed to its mandate of grant payments.

“We assure the public and all social grant beneficiaries paid with our black cards and Sassa gold cards that no beneficiary will go unpaid. All payments to beneficiaries will continue timeously and still be accessible through the retailers and ATMs for all the upcoming grant payment cycles,” Mbengashe said.