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Sassa, Postbank clash over ‘fees debt’

Social security agency says long-standing contract between entities is unfair due to payment of service charges

1 min read
The South African Social Security Agency and Postbank are embroiled in a tense dispute over the cancellation of a long-standing agreement that made Postbank Sassa’s primary disburser of grants.
The South African Social Security Agency and Postbank are embroiled in a tense dispute over the cancellation of a long-standing agreement that made Postbank Sassa’s primary disburser of grants.Picture: Modiegi Mashamaite (Edit)

The South African Social Security Agency (Sassa) and Postbank are embroiled in a tense dispute over the cancellation of a long-standing agreement that made Postbank Sassa’s primary disburser of grants.

This comes after Postbank last week threatened Sassa with a lawyers’ letter over an outstanding R116m debt Sassa owes it, which the agency refuses to pay.

Sassa has cited concerns raised by the auditor-general (AG) over the legal standing of the agreement. It has also questioned the legality of a special dispensation given to Postbank to disburse Sassa grants, given that the same opportunity has not been granted to other major banks.

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