SASSA Paying Grants Without Using Contractor through Paymaster General Account

SASSA has successfully paid over 2 million beneficiaries who receive their grants from commercial banks. This was done today through their Paymaster General account which was opened recently. This move is a giant step taken towards SASSA ultimately paying all beneficiaries using any type of electronic payment method. It is part of fully complying with orders of the Constitutional Court and phasing out CPS, the current service provider.

As from the 1st of March 2018, SASSA will also do direct transfers to about 5.7 million beneficiaries who use the SASSA card. This will bring about 80% of payment transactions under the control of SASSA by the end of March 2018.02.01

By April, the only beneficiaries whose payments won’t be falling under SASSA’s direct control will be the ones paid in cash at SASSA paypoints. SASSA has already gone to the market for the cash payment category by way of advertising a tender. This represents just under 3 million beneficiaries.

Till recently, the legislated life insurance premium deductions of 700 000 beneficiary accounts were deducted through a third party contractor. SASSA in in the process of completing the take-over of this responsibility from CPS, who was managing these on SASSA’s behalf.

SASSA is currently negotiating with the banking industry in order to develop a low cost banking account which will be subsidized by SASSA so that beneficiaries get the full value of their grants without paying bank charges. Such an account will not allow electronic debits and is intended to protect beneficiaries from unauthorised debits which have been a problem in the past.

The current SASSA card is still valid and will only expire at the end of the year; by which time the new SASSA/SAPO card shall have been introduced. SASSA has gone on a countrywide awareness campaign to inform beneficiaries with these developments and to eliminate fake messages which tell beneficiaries to switch to some questionable new cards. The public is reminded to contact 0800601011 in case they need more clarity.