Question NW559 to the Minister of Social Development

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28 March 2023 - NW559

Profile picture: Masango, Ms B

Masango, Ms B to ask the Minister of Social Development

________________________________________ NATIONAL ASSEMBLY QUESTION NUMBER: 559 DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 03 MARCH 2023 INTERNAL QUESTION PAPER NUMBER: 6 - 2022 559.Ms B S Masango (DA) to ask the Minister of Social Development: [112] [Question submitted for oral reply now placed for written reply because it is in excess of quota (Rule 137(8))]: (a) What exercise was taken to come up with the list of merchants from which beneficiaries of SA Social Security Agency grants could withdraw their money and (b) who were part of the negotiations that determined that grant beneficiaries have to buy from those specified merchants NW614E REPLY: SASSA pays social grants into client’s bank accounts and where clients do not have bank accounts, SASSA refers such clients to the Postbank, who opens bank accounts for them. These clients are given a SASSA branded card; however, this card is a fully functional bank card backed by a bank account. This card is a VISA card which can be used at any merchant that accepts VISA cards. No negotiations were held to determine, or limit where beneficiaries can purchase goods. SASSA gives beneficiaries as much choice as possible, hence the Agency request clients to supply their bank details for payments, or to open a Postbank account if they do not have a bank account. This enables clients to access the same National Payment System used by everyone when buying goods and services. No client is limited or compelled in any way to purchase goods from specific merchants. Clients are free to use their cards to purchase from any merchant of their choice.

Reply:

a) SASSA pays social grants into client’s bank accounts and where clients do not have bank accounts, SASSA refers such clients to the Postbank, who opens bank accounts for them. These clients are given a SASSA branded card; however, this card is a fully functional bank card backed by a bank account.

This card is a VISA card which can be used at any merchant that accepts VISA cards.

b) No negotiations were held to determine, or limit where beneficiaries can purchase goods. SASSA gives beneficiaries as much choice as possible, hence the Agency request clients to supply their bank details for payments, or to open a Postbank account if they do not have a bank account. This enables clients to access the same National Payment System used by everyone when buying goods and services. No client is limited or compelled in any way to purchase goods from specific merchants. Clients are free to use their cards to purchase from any merchant of their choice.

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