Postbank’s top brass came under fire from MPs who denounced the entity for its poor planning in preparing millions of South African Social Security Agency (Sassa) beneficiaries to replace their gold cards with the new black cards.
It also emerged that communication of a shortened deadline created a greater sense of urgency which resulted in a high number of Sassa beneficiaries rushing to replace their gold cards, however Postbank’s infrastructure was not adequate to handle the demand.
The Departments of Social Development and Communication and Digital Technologies together with their respective entities, SASSA and Postbank appeared before the Portfolio Committee on Social Development on Tuesday.
They had been hauled before the committee after MPs lamented that extending the deadline of the Sassa card transition without an improved rollout plan would prolong beneficiaries' frustration and panic.
In their presentation, Sassa and Postbank noted Sassa pays over 19 million social grants every month. About 2,9 million beneficiaries who are paid through the Postbank accounts are affected.
“Approximately 550 000 replaced (their cards), with 2.4 million clients still at risk. Initially (it was) very slow response since it was initiated in October 2024 with only 200 000 cards replaced by December. (There was) a significant increase seen towards the end of January to mid February with the numbers more than doubling; however, still not sufficient to meet the deadline.”
Among the reasons behind the low number of beneficiaries who had already transitioned included a poor communication strategy. There was insufficient capacity and the identified sites were not adequate to address the needs in all targeted areas.
The bank targeted infrastructure mainly at urban centres where the bulk of their clients access their funds; but has been slow to activate sites in more peri-urban and rural communities. There were also issues with community hall access. Mobile sites and community outreaches only commenced in February on a small scale.
To deal with these issues, the entities listed a number of measures which included an agreement to introduce special outreach interventions to broaden access once Postbank shares their sites.
“SASSA provided guidance using Socpen system to trace actual beneficiary locations. A comparative analysis of the identified sites versus actual beneficiary residences was conducted resulting in identification of additional sites to be procured. Areas where gaps were identified are prioritised for outreach interventions. Collaboration with local stakeholders for awareness and educational initiatives to ensure mass mobilisation. SASSA will provide two services at these sites.”
Their measures to address long queues included having two Sassa employees assigned per site to assist with managing queues and supporting beneficiaries, and providing expedited services for older individuals and those who are frail.
From February 14, Sassa said its system was also operational from 6am until 7.30pm during the week and weekends included until the month of April.
“All backlogs are to be cleared before Friday, 21 February.”
However all this did not impress MPs, who noted that the elderly were being sent from pillar to post with bad communication, while they were ill and frail, worrying about where their next meal will come from if they don’t receive their social grants.
MK Party MP Sihle Ngubane said: “Grannies were being sent from pillar to post, some being told to collect at Shoprite and Checkers. We are dealing with elders who have other diseases, but they are being sent all over and the message is not clear.”
ActionSA’s Dereleen Elana James said: “I think it is only fair to say this was a poorly executed project from the word go. If I look at the actual versus the plan output since October... Postbank could clearly see they weren't even reaching 10% of their planned beneficiaries. Why was no intervention taken? I was listening to the CEO when she said they continued to communicate on the website and social media. Do we not realise who we are dealing with? We are dealing with the most vulnerable who often don’t have money for data.”
EFF MP Paulnita Marais added: “It was disgusting to see old people standing in queues in wheelchairs and in crutches. I want to know how this (black) card is going to save the Postbank because 80% of the Postbank is closed. They didn’t call in the retrenched workers to come and assist them. There was no communication only when we as members brought this thing up something was done. What are the plans?”
DA MP Alexandra Abrahams said there needs to be an acknowledgement that the planning has failed from Postbank’s side.
“You’ve planned for 50 cards per teller a day. If it's an average of two tellers, that means it's a 100 people you can only service and you know it's a 100 people you can only service yet you have thousands of people commuting and borrowing travelling money to come and stand in a queue. How come there’s not a concurrent booking system?”.
Cape Times