Three-month extended termination notice period for social grants agreement
Social grant payments will proceed, Sassa confirmed, even after the Master Services Agreement with Postbank was terminated.
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The South African Social Security Agency (Sassa) has announced an extension of the termination notice period of its Master Services Agreement (MSA) with Postbank, now spanning an additional three months.
In a statement, Sassa spokesperson Paseka Letsatsi said this is to allow the executive authority time and space to deliberate on various issues from the two entities and give guidance.
This comes after Postbank CEO Nikki Mbengashe, in a statement, announced that the MSA with Sassa remains in place and will continue unchanged until an Inter-Ministerial Committee (IMC) has been constituted and deliberated on the matter. This meant the MSA would not terminate on Tuesday, September 30, 2025.
Mbengashe said that brought 'certainty and assurance to millions of social grant beneficiaries who will continue to use their Postbank black cards and Sassa gold cards with uninterrupted access to their grants and associated banking benefits'.
Mbengashe highlighted that this development provides millions of social grant beneficiaries with certainty and assurance.
She said Postbank is dedicated to protecting beneficiaries’ interests, guaranteeing their ongoing access to social grants.
The North Gauteng High Court, Pretoria, recently sided with Sassa, rejecting Postbank’s urgent bid to prevent the termination of the MSA.
Judge Colleen Collis dismissed Postbank’s urgent application, agreeing with Sassa that the matter did not warrant urgency. The judge further noted that Postbank had been aware, since March 2024, of Sassa’s intention to terminate the MSA.
Cape Times