Western Cape social development slams decision to suspend Sassa grant ATM withdrawals in December

Western Cape social development has slammed Postbank's decision to suspend ATM withdrawals for SA Agency (Sassa) gold card holders.

Sassa grant beneficiaries using gold cards will not be able to withdraw their funds from ATMs in December. This after Postbank uncovered criminal networks targeting ATMs to access accounts.

Gold card holders have been advised to withdraw their social grant money at any retail outlet nationwide which provides cash back. These include Shoprite, Checkers, Usave, Pick n Pay and Boxer stores.

Social development MEC Sharna Fernandez said the decision to suspend ATM withdrawals was “unacceptable”, especially during the festive season.

“It is supposed to be a time of joy and happiness, yet for many Sassa grant beneficiaries, it has become a nightmare.

“We call on social development minister Lindiwe Zulu to intervene and find a solution to this problem as a matter of urgency,” Fernandez said.

Fernandez said the decision to suspend ATM withdrawals for December instead of fixing a long-running problem was outrageous.

“Beneficiaries using these Sassa gold cards have been asked to withdraw their social grants at retail outlets that provide the cash back functionality. But our office has received numerous complaints from beneficiaries and ward councillors that even this has been a failure.

“It is unfathomable to think that a national agency can fail so dismally time and time again. How was this issue of criminals infiltrating the network only picked up now, after months of technical problems? No time frames have been given to beneficiaries as to when the issue will be resolved, leaving many in limbo,” she said.

Postbank said in a statement last week technical glitches disrupted the smooth withdrawal of social assistance benefits.

“Following extensive investigations, we have uncovered network attacks by criminal elements determined to commit systematic ATM card fraud-related crimes on Postbank payments using sophisticated modus operandi which require further investigation.

“As a mitigating exercise, and in consultation with our partners following the resurgence of these criminal activities at the inception of the December payments, it has become necessary that Postbank suspends Sassa grant withdrawals at ATMs for clients using the Sassa gold cards issued by Postbank,” it said.

Grant recipients can still use the Sassa gold card to make purchases at any place that accepts bank card transactions, as it operates the same as any other bank card.

Postbank assured beneficiaries a dedicated team of professionals, assisted by experienced external experts and law enforcement agencies, had been assigned to deal with the matter.

“Postbank is aware of the impact this change in payment channels will have on social grant beneficiaries and other stakeholders, and we apologise for the inconvenience.

“Social grant beneficiaries are assured the Postbank-issued Sassa gold cards are valid and have not expired. Beneficiaries should not be misled into changing the cards unless they want to on their own accord.”