11 July 2018

South Africa: Net1 Is 'Cheating' Social Grant Beneficiaries, Charges Social Development Minister Susan Shabangu

Photo: Nompendulo Ngubane/GroundUp
Some social grant beneficiaries struggled to access their money as post office workers continued their strike over wages.
analysis

Net1 companies providing social grants are deceiving beneficiaries to maintain their market share, Social Development Minister Susan Shabangu said on Tuesday, as Sassa continues to implement the new system of paying cash grants.

Social Development Minister Susan Shabangu was almost one hour late for the press briefing she was hosting with the National Education, Health and Allied Workers Union (Nehawu) on Tuesday.

When she arrived, she had harsh words for Net1 companies, whose subsidiaries include the outgoing provider of cash grants, Cash Paymaster Services (CPS), and a number of subsidiaries offering financial products to grant recipients.

"I think they are trying to extend their scope because the intention is not to go away," said Shabangu on the Net1 companies.

In 2014, the Constitutional Court said CPS's contract with the South African Social Security Agency (Sassa) was invalid and after years of delays Sassa is now working with the SA Post Office (SAPO) to implement a new system of paying cash grants.

She said Net1 companies were "not being honest" to grant recipients.

"They're, like, cheating them," she said, reiterating Sassa's complaint that Net1 is trying to market its green EasyPay Everywhere card...

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