SASSA Grants Cannot Be Paid in Cash. In a recent development, the South African Social Security Agency (Sassa) has decided to discontinue cash grant payments at Post Office Branches due to the prohibitive costs associated with this method. As a result, millions of grant beneficiaries are expected to move to more cost-effective and secure methods.
SASSA Grant Beneficiaries
Sassa announced the cessation of cash grant payments at local post office branches surprised grant beneficiaries who had traditionally collected their grants there. Among the grants distributed are the Older Persons pension, Disability pension, War Veterans pension and various others. The decision pertains to the distribution of 19 million permanent grants.
SASSA Phased Transition Plan
Sassa, in collaboration with Postbank, has outlined a phased plan to eliminate all physical cash payment points (CPPs), which will commence in January and conclude by March 31, 2024, with grants being withdrawn in cash from Post Offices. To ensure beneficiaries are not left without viable alternatives, the transition is designed to be implemented sensitively.
SASSA Economic Rationalization Behind the Decision
The decision to discontinue cash grant payments was based on economic considerations, according to Sassa spokesperson Paseka Letsatsi. For example, for administering a child support grant worth R510, Sassa costs approximately R750. The administrative costs associated with distributing lower-value grants, such as child support grants, are considered excessively high. Letsatsi explained that a substantial portion of the grant goes towards covering administrative expenses such as shelter, security, and municipal services.
SASSA Assurances and Viable Alternatives
Letsatsi assured grant beneficiaries that pay points will not close without viable alternatives despite the shift away from cash payments. Even after the transition, Sassa intends to continue engaging with beneficiaries, promoting transactions at various outlets like Shoprite, Checkers, and Boxer, and reinforcing the functionality of gold cards. In this approach, payments will be continuous in an efficient, safe, secure, reliable, and convenient manner.
SASSA Safety Concerns and Future Outlook
Besides economic concerns, Sassa stressed the importance of safety when transporting large amounts of cash for grant payments. The organization emphasizes the need for a more secure and modernized approach to grant distribution, describing it as a breeding ground for cash-in-transit heists.
Conclusion
Sassa’s decision to cease cash grant payments at Post Office Branches reflects a strategic move towards economic rationalization and enhanced security. The phased transition plan and assurances of viable alternatives underscore the organization commitment to ensuring the continued and efficient distribution of grants to beneficiaries.
