SASSA Updates Parliament on Social Grants

Department of Social Development

The South African Social Security Agency (SASSA) has, in conjunction with the South African Post Office (SAPO), declared a “significant state of readiness” for the SAPO to start paying social grants.

In a statement, the two entities assured South Africans that social grants will be paid from 1 April 2018.

“The relationship between SASSA and SAPO to ensure the smooth implementation of the public sector-led hybrid grants payment model has evolved positively.”

According to SASSA, support is still required in terms of the payment of cash.

“It is for this reason that SASSA brought a limited application to the Constitutional Court with the intention of asking the court to suspend the invalidity declaration of its contract with CPS for six months.”

This would allow for the CPS infrastructure to continue to be used to make cash payments until September 2018 for approximately 26% of beneficiaries.

A payment contractor for cash payments is to be announced soon.

A ruling from the constitutional court on the further suspension of the invalidity declaration of SASSA’s contract with CPS is pending.

Discussions with commercial banks are also underway to set up a low-cost account for social grants beneficiaries that receive money in personal bank accounts.

It was also announced that SAPO will “commence with the phasing in of processes to ensure that the payment of social grants takes place without interruption as from 1 April 2018 as per service agreement between the two entities.”

The old SASSA card may also continue to be used until 30 September 2018.

Meanwhile, the social development department recently provided a progress report to parliament on the scheduled payment of social grants on 1 April 2018.

Feedback was provided on, inter alia, SASSA insourcing, summary per bank of direct payment transfers, direct payment transfers, biometric enrolment, migration to banks, cash payment services and SAPO readiness.

Sabinet Cape Town Office