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Media Statement: SAHRC meets with Social development & on delays of payment to certain grant recipients

27 September 2023

Attention: Editors and Reporters

The South African Human Rights Commission (SAHRC or the Commission) met with the Department of Social Development (DSD) and the South African Social Security Agency (SASSA) on Friday evening, 23 September 2023. Among the issues canvassed were the recent delay in the payment of grants to a large number of pensioners and persons with disabilities. The precise nature of the switching “glitches” experienced by Post Bank, as well as the important matter of whether those switching glitches will impact the next round of social grant payouts.

The following was stated by the two entities:

  • SASSA had experienced no issues in relation to payment into bank accounts of all grant beneficiaries;
  • Only beneficiaries, (pensioners and persons with disability) who held accounts at Post Bank were impacted by the technical glitches experienced by Post Bank;
  • Not all the above-mentioned persons who are Post Bank clients were negatively impacted as the Post Bank payment system had experienced intermittent glitches;
  • Both SASSA and DSD were in liaison with Post Bank whose staff were remedying the situation on a case-by -case basis; and
  • SASSA was legally obliged to pay grants into the bank accounts of grant beneficiaries but cannot be legally responsible for what occurs between banks and their clients who are account holders.

The Commission indicated that while it appreciates that SASSA had in a timely manner, paid grants into the beneficiaries’ bank accounts, it is on the basis that SASSA has a contractual relationship with various banks that beneficiaries approach these banks and open bank accounts. Moreover, the Post Bank is subsidized by government to mitigate any bank charges beneficiaries would otherwise have to pay, thus enabling that bank to be a preferred choice by some beneficiaries. Consequently, the relevant state organs have a moral, if not strictly legal, responsibility to ensure that vulnerable groups who depend on their grants get access to their money, in a reliable manner every month.

 

The Commission will be engaging with Post Bank in order to canvass the matter of outstanding grant payments in relation to the September 2023 payment cycle, and importantly the state of readiness on the part of Post Bank regarding the October 2023 payment cycle.

 

The Commission will continue monitoring the situation and issue further media statements over the next few days.

 

Ends

Issued by the South African Human Rights Commission

Wisani Baloyi – Acting Communications Coordinator Tel: 081 016 8308 This email address is being protected from spambots. You need JavaScript enabled to view it. or Alucia Sekgathume – External Communications Tel: 082 689 2364 This email address is being protected from spambots. You need JavaScript enabled to view it.

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The Human Rights Commission is the national institution established to support constitutional democracy. It is committed to promote respect for, observance of and protection of human rights for everyone without fear or favour.

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