ANCWL rejects proposal for banks to pay out grants

File: Social Development Minister Bathabile Dlamini has stressed that exorbitant banking fees will deprive beneficiaries of their full social grant. Photo: Flickr/GovernmentZA

JOHANNESBURG – The ANC Women’s League (ANCWL) has rejected any proposal that the payment of social grants be outsourced to one of the major commercial banks.

With the Southern African Social Security Agency (Sassa) contract with with Cash Paymaster Services (CPS) is to expire at the end of March, the banks and the Post Office have been proposed as an alternative.

In 2014, the Constitutional Court ruled that the tender awarded to CPS by Sassa was unlawful.

READ: Sassa to file court papers on grant payment crisis on Thursday

The unanimous judgment by the highest court in the land declared the contract invalid and ordered that the tender process be rerun.

It said CPS had to continue to carry out its obligation to pay welfare grants, and that Sassa must decide on the proposed final solution.

READ: Social grant payments in jeopardy

The ANCWL stressed that a state bank should be established as a long-term solution to transform the financial sector.

“The major commercial banks in South Africa have proven their untrustworthiness and greediness through various unethical behaviour, which, among others, has been reported by the Competition Commission,” the league said in a statement.

“It is the ANCWL's view that transformation of the financial sector cannot be postponed any further. Outsourcing the payments for Sassa grants to any of the major commercial banks in South Africa will be against the call for radical transformation of the financial sector.

“The ANCWL calls for the ANC-led government to establish the state bank as a long-term solution to transform the financial sector. [This] will in turn dismantle the monopolisation of the financial sector. The ANC-led government must also support establishment of wholly black-owned banks with no less than 50 percent women ownership.”

READ: Sassa wants to extend illegal service provider for another year

Social Development Minister Bathabile Dlamini and Sassa have insisted that sticking with CPS is the only way to carry out social grant payments from April until a new service provider is appointed.


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