SASSA faces October meltdown as Postbank contract nears end
The Democratic Alliance (DA) has sounded the alarm over a potential payment crisis that could affect more than 2 million SASSA grant recipients from October 2025, following the imminent expiry of the Postbank payment agreement.
In a statement released at the weekend, Alexandra Abrahams MP, DA Deputy Spokesperson on Social Development, said:
“More than 2 million SASSA grant beneficiaries might not be able to receive the grants come October 2025 should the Public Protector’s warning ring true.”
The DA is demanding that SASSA, Postbank and the South African Reserve Bank (SARB) urgently account to Parliament on the status of the Master Service Agreement (MSA) and provide clarity on future payment plans.
🎧 Listen to Alexandra Abrahams MP’s statement here
What the Public Protector found
A scathing report from the Public Protector, dated 30 June 2025, outlines severe institutional failures, including:
- Undue delays by SASSA to assume full control of the payment system
- Operational issues with the South African Post Office’s grant payment platform
- The irregular appointment of former SASSA CEO Busisiwe Memela-Khambula
The report warns:
“The [Master Service Agreement] (MSA) with Postbank is expiring at the end of September 2025, and the extension of the contract seems implausible, in light of the fundamental compliance issues experienced with the Postbank.”
With SASSA not yet a designated clearing system participant, it will be forced to either:
- Obtain that status in less than three months
- Secure a new compliant service provider
- Or renew with Postbank, which has not complied with SARB regulations since 2021
Who’s at risk?
The collapse could affect 2 169 371 grant recipients, including:
- Older Persons’ Grant beneficiaries
- Disability and Child Support Grant recipients
- Vulnerable households relying on SRD payments
This comes amid other disruptions, such as the July Older Persons Grant delay and SASSA’s sudden deactivation of over 210,000 recipients due to unresolved ID verifications.
“South Africans need urgent clarity on how the more than 2 million SASSA grant beneficiaries that are still dependent on Postbank to receive their grants will be paid in October 2025,” Abrahams stated.
The DA’s demands
The DA has requested an urgent parliamentary inquiry into the issue. In the meantime, it has advised all SASSA recipients to switch their grant payments to private banks:
“We urge all SASSA grant recipients to switch their grant payment to reputable banks of their choice.”
Grant beneficiaries can still receive funds via direct deposit to banks like Capitec, ABSA, FNB, Nedbank or collect at retailers like Pick n Pay, Boxer, Shoprite, Usave, and Checkers.
Corruption fallout: SASSA CEO appointment declared irregular
The Public Protector also exposed the illegal 2019 appointment of SASSA’s now-suspended CEO Busisiwe Memela-Khambula, made by former Minister Susan Shabangu with a bloated salary of R2.65 million — almost R800,000 above the legal maximum.
“This is a blatant abuse of power and a betrayal of South Africa’s poor,” Abrahams said.
Even more shockingly, the report found no Cabinet approval or proper documentation for the inflated salary.
“Instead of correcting this illegality, former Minister Lindiwe Zulu prolonged the wrongdoing by renewing Memela-Khambula’s contract in 2024—despite knowing about the investigation since 2019.”
Memela-Khambula’s contract ended in May 2025 but she remains on full pay despite being suspended by Minister Nokuzola Tolashe in December 2024.
“Minister Tolashe must act decisively. Those responsible must face consequences, and every cent must be recovered,” said Abrahams.
What’s next for beneficiaries?
Beneficiaries are being urged to stay alert and take the following steps:
- Switch to a private bank or update account info at any SASSA office
- Monitor status updates and payment notices at www.sassa.gov.za
- Prepare for possible changes to October 2025 disbursements
đź“Ś For July dates, check the full schedule:
đź”— All 8 confirmed SASSA grant payment dates for July 2025
