Closure of Cash Pay Points at Post Offices in South Africa
SASSA beneficiaries cannot withdraw cash due to the closure of Cash Pay Points (CPPs) at post office branches in cities and towns in February 2024 because Postbank has started the closure of CPPs for SASSA social grants recipients in the first phase. The reason is that the outlets bear losses; according to Postbank, every outlet that has 50 beneficiaries can touch the break-even point. With over 50 beneficiaries, CPPs could survive.
In the wake of that closure, the Postbank’s decision to shut down such outlets suffered losses. On the other hand, The Black Sash, civil society organizations harshly criticized the African National Congress (ANC) regarding the closure of cash pay points of post banks without giving any prior notice to the recipients of the SASSA grants.
In response, Bongani Diako, Spokesperson for Postbank, responded that the closure of the Cash Pay Points (CPPs) notice was publicized in December 2023. Postbank has confirmed the closure of several branches as of February 2024 based on that notice.
Confirmed Closure of Cash Pay Points Branches
SASSA understands the hindrance of the clients that is created due to the closure of Cash Pay Points (CPPs). Hence, they confirmed that 870 CPPs at Post Offices will be shut down until April 2024.
Post Offices Stop Payments – Contradiction in Official Statements
Meanwhile, the civil society organization Black Sash further criticized the closure of Cash Pay Points for beneficiaries who are vulnerable to travel to alternative payment points to receive grants. In response, in December 2023, the South African Social Security Agency (SASSA) and Postbank representative said the decision to close CPPs was initially made in 2018, and they told Black Sash’s criticism is unwarranted.
The SASSA representative further said that the number of people receiving money through CPPs is only 2 per cent. Hence, a large portion which is 98% will not be affected, as they already use various National Payment System (NPS) channels, such as cash withdrawals from retailers like Boxer, Pick N’ Pay, Spar, Usave, Checkers, & ATMs.
Black Sash said hundreds of beneficiaries wait for their numbers in inclement weather in front of the main post office in Pietermaritzburg Moketsi Mamane to collect their SASSA grants. The waiting of clients indicates that the government data is not accurate. But still, they don’t know where they will get their grant now; they don’t have extra travel expenses to go to other NPS channels.
Post office branches are a reliable and convenient option for withdrawing funds, especially for the elderly, disabled, and women. Using ATMs can be difficult for vulnerable individuals who may not be literate. In response, Diako mentioned that SASSA & Postbank will launch a nationwide campaign through various channels such as social media, radio announcements, and community engagements to provide all the details regarding the closure of Cash Pay Points at Post Offices.
News Spread Out
SASSA manages 19 million clients by disbursing the grants. The clients of the grants are speard out across the country, Diako said. He asserted that Postbank knows the sensitivity of the matter because the clients of SASSA are older people, disabled persons, and children who are seekers to fetch grants near their houses. Diako said they are very curious mainly these three significant grants: The Disability Grant, Older Person, and Child Support Grants. The Postbank representative said in an official statement that there is a misconception regarding the closure of Cash Pay Points because CPPs are still operated in provinces and SASSA grants are disbursed. Additionally, SASSA clients can also get help with the issuance of New SASSA Gold Cards.
Reason of Closure of Cash Pay Points
Once, South African Post Offices was a valuable asset, but now the outfit is paralyzed by gigantic losses. Due to inefficiency and unsustainability, the organization lost R6 billion in the last three years. They tried to alleviate the losses to recover the outfit’s appalling condition, but all in vain. So, as a result, they decided to close Cash Pay Points at Post Offices to cut down on expenses.
Closure in Mkhondo due to Ritual
Besides, sometimes closure will be accidental; SASSA deals with it in unfavourable circumstances. In Mkhondo, the three men were caught in CCTV footage doing sacrament in the office of SASSA. In the wake of this ritual, the South African Social Security Agency shut down the Mkhondo SASSA Office. The SASSA announced the office will be shut down for three weeks. In the initial inquiry, the SASSA grant administrator & the local office manager were found doing suspicious activities.
The Department of Social Development will conduct a complete investigation into the involvement of these individuals and the three men in the CCTV cameras. The very next day, after rituals, the employees found needles scattered around the office, which made employees more threatened. So, the employees demand complete security & investigation of the incident.
Contact SASSA for Assistance
The closure of Cash Pay Points (CPPs) at post office branches in cities and towns in South Africa will begin in February 2024. It will affect beneficiaries of the South African Social Security Agency (SASSA). The closure is initiated in the first phase. Postbank spokesperson Bongani Diako confirmed the closure of several branches in December 2023. SASSA and Postbank have confirmed that 870 CPPs will be closed until April 2024.
This closure is facing harsh criticism from civil society organization Black Sash. However, Postbank asserted that the closure of Cash Pay Points was initially announced in 2018. The number of people receiving money through CPPs is only 2%, so the Postbank representative asked if criticism is just a political act because a large portion of the population, 98%, will not be affected as they already use various National Payment System (NPS) channels.
Post office branches are a reliable and convenient option for withdrawing funds, especially for the elderly, disabled, and women. SASSA manages 19 million clients, including older people, disabled persons, and children seeking grants near their houses. Postbank didn’t want to close, but the losses of R6 billion have reached in the last three years. To facilitate recipients, Postbank has launched a nationwide campaign to provide details about the closure of Cash Pay Points.
Frequently Asked Questions
What are the Cash Pay Points of Post Bank?
Post bank opens their outlets known as Cash Pay Points in Post offices in South Africa across the country to facilitate the grant beneficiaries of the South African Social Security Agency (SASSA).
What is a pay point in SASSA?
Pay Points are the outlets from SASSA that disburse grants to recipients. These pay points could be from Post Bank, Boxer, Pick N’ Pay, Spar, Usave, Checkers, or ATMs.
What is Post Bank SASSA?
Post Bank is a retail public finance bank in South Africa that collaborates with SASSA to dolling out the grants.
Are they discontinuing the SASSA cards?
No, it’s fake news. There is no official announcement from Post Bank that they are going to disconnect the SASSA Gold Card.
What is SAPOs SASSA?
SAPOs stand for South African Post Office, and SASSA is South African Social Security Agency. SASSA pays their beneficiaries grants through mostly Post Offices branches.
What is the closure of Cash Pay Points?
SASSA announced last year that they have concerns about closing Cash Pay Points. They are going to start closing Cash Pay Points in April 2024.
