Bank in trouble over grants charge

PARLIAMENT’S portfolio committee on social development has thrown its weight behind Social Development Minister Susan Shabangu’s move to take action against Grindrod Bank for deducting R10 bank charges from the accounts of grants beneficiaries.

Grindrod Bank provides banking services for Sassa and was hired by the National Treasury to facilitate cash payments until next month.

Committee chairperson Zoleka Capa said Grindrod had no basis to withdraw the R10 banking fees from recipients, and said it must be held accountable for its actions.

“The Treasury agreed that it is no longer Cash Paymaster Services (CPS) but Grindrod. Grindrod does not have anything to do with that money because it was not discussed with Sassa. They just did it on their own, they just woke up and wanted the R10, times the number (of grant recipients) and got it. I support the actions of the minister,” said Capa.

The department had previously vowed to challenge Grindrod’s new charges to cover the costs of their transactions, following the lapsing of the old terms of the CPS contract on March 31. Earlier this year the Constitutional Court granted Sassa its request to continue with the services of CPS for six months, leaving Grindrod to cover its own bank charges.

In terms of the judgment, the contract between Grindrod and Sassa was to be implemented on the same terms, meaning there was no agreement on the R10 deductions.

DA MP Bridget Masango said the party rejected the R10 charges, which affected “5.4 million beneficiaries, who are among the poorest and vulnerable in our society”.

She said the party would call for a parliamentary inquiry into Sassa.