COSATU Slams SASSA Plan To Drop Postbank In Favour Of Private Banks

The Congress of South African Trade Unions (COSATU) has expressed strong opposition to the South African Social Security Agency’s (SASSA) announcement that it will phase out Postbank’s role in paying social grants.

Spokesperson Matthew Parks said the federation was “extremely dismayed” by the move, calling it a blow to millions of vulnerable citizens who rely on the system.

Impact on Social Grant Beneficiaries

According to COSATU, the decision threatens to place additional financial pressure on social grant recipients who already struggle with the rising cost of living.

“With social grant recipients receiving so little and the cost of living continuously rising, they should be protected from fee deductions to fund the profit margins of private banks,” said Parks.

Currently, Postbank does not charge withdrawal fees. However, COSATU warns that shifting to private banks could see grant recipients paying as much as R10 per R1,000 withdrawn.

Call for SASSA to Reconsider

COSATU is urging SASSA to reverse its decision, arguing that it undermines ongoing efforts to stabilise and rebuild Postbank.

“COSATU urges the South African Social Security Agency to reconsider its rushed phasing out of the Postbank as a service provider for social grant payments. This bewildering move will see affected social grant recipients charged unnecessarily, while Postbank is reported not to deduct such fees,” Parks stated.

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The federation has pledged to continue fighting the move, saying it will not stand by while beneficiaries are forced to pay more for access to their grants.

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