Banks in dark on grant payments
Without the banks Sassa will be obliged to continue using Cash Paymaster Services, which has a court ruling against it
The Banking Association of SA (Basa) says it is unaware of any recent developments involving the banks and the South African Social Security Agency (Sassa) about the distribution of social grants after March 2017. FNB, Absa, Standard Bank and Nedbank have confirmed there have been no discussions with Sassa or the Department of Social Development. Without the banks, which are needed to help develop a new Sassa card and payment platform, Sassa will be obliged to continue using Cash Paymaster Services, a subsidiary of JSE-listed Net1-UEPS, for several months after the deadline at the end of March. In April 2014, the Constitutional Court declared the CPS contract invalid and ordered the tender process be rerun. The declaration was suspended to give Sassa the opportunity to develop an alternative plan.
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