Business, South Africa

Migration of Social grant beneficiaries to Postbank commences

The South African Post Office (SAPO) Chief Operating Officer, Lindiwe Kwele, says the migration of grant beneficiaries to Postbank has already commenced.

Kwele on Tuesday said that the South African Social Security Agency (SASSA) has signed off on the new card design for social grant beneficiaries and that after a purchase order is issued to the preferred bidder on Friday, the first batch of two million cards is expected to be delivered on 16 March 2018.

After this, two million cards will be delivered every three weeks until a total order of 10.6 million cards has been delivered by 8 June 2018.

Kwele said this when the SA Post Office briefed the Portfolio Committee on Telecommunications and Postal Services on Tuesday on its readiness to migrate beneficiaries to its new integrated grant payment system.

“The migration of beneficiaries to Postbank accounts has commenced and is being prioritised and monitored weekly,” she said.

The briefing comes after the Inter-Ministerial Committee (IMC) on Social Security, led by Minister in the Presidency Jeff Radebe, announced in December that an agreement was reached between parties in the IMC to pave way for the implementation of a hybrid grant payment model.

Under the new model, SAPO would provide services such as electronic banking services, including the provision of a central holding account and special disbursement accounts, on-boarding of new beneficiaries and the biometric authentication of beneficiaries.

The State-owned entity would also be responsible for the development of the required software solution to replace the incumbent systems as well as provide cash pay points at its outlets.

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