Latest news with #KaraboMagagane
IOL News
29-05-2025
- Business
- IOL News
Are SASSA beneficiaries losing money by switching to personal bank accounts?
A growing number of SASSA beneficiaries are opting to receive their grants through personal bank accounts. Image: Nokuthula Mbatha/ Independent Newspapers. The North West Legislature's Portfolio Committee on Health and Social Development has raised serious concerns over the growing trend of social grant beneficiaries opting to receive their payments through personal bank accounts, a move that could be costing them a portion of their much-needed support. During an oversight meeting held with the South African Social Security Agency (SASSA) and the Department of Social Development, Committee members were briefed on the migration from the traditional SASSA Gold Cards to the newly introduced Postbank Black Cards. The migration was prompted by a South African Reserve Bank (SARB) directive following a security breach involving the Gold Cards. However, it emerged that SARB has now suspended the migration process indefinitely. Beneficiaries are currently permitted to continue using their existing SASSA Gold Cards beyond the original May 31 deadline, a shift the Committee believes must be communicated to avoid panic and confusion. "People were rushing to switch cards, some even under pressure. Now, they need clarity and reassurance that their current cards are still functional. You need to ensure that this is communicated widely,' urged Committee Chairperson, Hon. Karabo Magagane. The Committee expressed deep concern over SASSA's revelation that 43,945 grant recipients have chosen to bypass both the SASSA Gold Card and the Postbank Black Card systems, instead opting for direct bank payments. While this may offer perceived convenience, the Committee fears that the associated transaction fees at commercial banks are quietly eroding the actual value of the grants. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 'These beneficiaries may not realise that they are losing money to transaction fees and service charges, funds that are meant to support their most basic needs,' Hon. Magagane cautioned. Further compounding the financial strain, Committee members highlighted the informal deductions being imposed by some local retailers. Local tuck shops reportedly charge R10 for every R100 withdrawn, a surcharge that further reduces the amount of money recipients receive. 'This completely defeats the purpose of a social grant. A grant is supposed to alleviate poverty, not get eaten up by unnecessary charges,' one member stated. The Committee also slammed the limited number of Postbank conversion sites in the North West. Currently, only 12 sites are operational across the province, a situation described as 'grossly inadequate,' particularly for elderly beneficiaries living in remote areas. "Many of our elderly citizens live far from these centres and are not in a position to travel long distances just to access a card. This could be a driving factor behind the shift to personal bank accounts," said Hon. Magagane. In response to the pressing challenges, the Committee pledged to intensify its engagement with SASSA and Postbank, the two State-Owned Entities tasked with grant disbursement, to push for more accessible service points, better communication, and increased public awareness. "We are committed to ensuring that no beneficiary is left behind. We will push for ongoing awareness campaigns, improved accessibility, and sustained outreach efforts so that every grant recipient understands their options and the implications of each," Hon. Magagane said. The Committee is expected to reconvene in the coming weeks to assess progress and implementation of the proposed solutions. IOL News Get your news on the go, click here to join the IOL News WhatsApp channel.
The Citizen
28-05-2025
- Business
- The Citizen
Sassa recipients warned: Grant money at risk as thousands switch to personal bank accounts
The committee warned that Sassa beneficiaries are seeing their grant values shrink due to rising bank fees. Thousands of social grant recipients in the North West are abandoning their South African Social Security Agency (Sassa) cards in favour of personal bank accounts. This comes as the portfolio committee on Health and Social Development in the North West Legislature raised alarm over the financial impact of bank service fees on vulnerable citizens. During an oversight meeting with the Sassa and the Department of Social Development, the committee said that choosing personal bank accounts could unintentionally 'diminish the value of their grants'. 'These beneficiaries may not realise that they are losing money to transaction fees and service charges, funds that are meant to support their most basic needs,' said committee chairperson Karabo Magagane. Thousands opt for banks amid card confusion Sassa beneficiaries currently can choose to have their grants paid directly into their personal bank accounts or access them via the Sassa-linked Postbank card. Sassa reported that 43 945 beneficiaries in the province have switched to receiving their monthly payments through private bank accounts, rather than using the Sassa gold cards or the newer Postbank black cards. The migration to Postbank black cards followed a security breach affecting the gold cards, prompting the South African Reserve Bank (SARB) to initiate the card transition process. While the initial deadline for the switch was 31 May 2025, that cut-off has now been scrapped, allowing beneficiaries to use either option. 'People were rushing to switch cards, some even under pressure. Now, they need clarity and reassurance that their current cards are still functional. You need to ensure that this is communicated widely,' Magagane urged officials. ALSO READ: Sassa CEO's multimillion-rand package revealed amid suspension and grant hikes Accessibility challenges and extra costs The committee also expressed frustration over the limited number of Postbank conversion sites in the province, with only 12 currently operational. According to Magagane, many elderly citizens are forced to travel long distances to reach these centres, which could be influencing the trend towards private bank accounts. 'Many of our elderly citizens live far from these centres […] this could be a driving factor behind the shift to personal bank accounts,' she said. In addition to official bank charges, informal fees are also taking a toll. The committee heard that some spaza shops charge R10 per cash withdrawal, further reducing the net amount received by grant recipients. 'This completely defeats the purpose of a social grant. A grant is supposed to alleviate poverty, not get eaten up by unnecessary charges,' said one committee member. ALSO READ: Sassa grants are being paid from next week: Here's when and how much you'll receive Ongoing engagement promised In response to the concerns, the committee committed to working closely with Sassa and Postbank to ensure beneficiaries are well-informed and supported. 'We are committed to ensuring that no beneficiary is left behind. We will push for ongoing awareness campaigns, improved accessibility, and sustained outreach efforts so that every grant recipient understands their options and the implications of each,' Magagane said. The committee is expected to reconvene in the coming weeks to evaluate progress and review plans to address the issues raised. NOW READ: More than 200 000 will experience Sassa grant delays — here's why
