Zulu says Postbank has got its house in order over grants

Minister of Social Development Lindiwe Zulu said they have resolved the issue of grant payments. Picture: Jacques Naude/African News Agency (ANA)

Minister of Social Development Lindiwe Zulu said they have resolved the issue of grant payments. Picture: Jacques Naude/African News Agency (ANA)

Published Oct 20, 2023

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Minister of Social Development Lindiwe Zulu has assured Parliament that Postbank will be able to pay social grants without any glitches.

This was after Postbank strengthened their infrastructure to allow their system to take in large volumes of transactions.

Zulu said the new system was tested and was compliant with regulations.

The South African Social Security Agency (Sassa) came under fire a few weeks ago after thousands of elderly grant recipients failed to receive their payments on time.

Postbank CEO Nikki Mbengashe had said there were several factors that caused glitches, but this was now resolved.

Mbengashe had said part of the reason was that the South African Reserve Bank (SARB) had asked them to upgrade their system in compliance with the law.

When this was done, it had an impact on their operations.

Zulu, who was replying to a written parliamentary question from IFP MP Liezl van der Merwe, said all payments were processed in September and October.

They were not expecting any further glitches, as their systems were now fixed.

“All September payments to social grant recipients were made. Postbank has assured the department that they have implemented the following measures in relation to the October social grant payment preparations: Enhanced monitoring mechanisms to track the payment process in real-time. Strengthened their technical infrastructure to handle higher transaction volumes, ensuring swift and uninterrupted disbursements. Engaged specialists for a comprehensive review of their system and to continuously rectify any vulnerabilities,” said Zulu.

“The new payment system was tested in accordance with acceptable industry system testing protocols, including Component Integration Testing, System Integration Testing and Industry Testing prior to system go-live,” she said.

The Department of Social Development had said the glitches had only affected 600,000 people who receive their grants at Postbank.

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