Johannesburg - The South African Social Security Agency (Sassa) has assured social grants recipients that they will get their pension and child support grants despite the contract with Cash Paymaster Services ending on September 30.
The CPS contract was extended for six months following a Constitutional Court ruling.
Sassa spokesperson Paseka Letsatsi said the social security agency is ready for the October payment cycle in which all social grant payments to beneficiaries will be made by itself in partnership with the South African Post Office (Sapo).
"Cash Paymaster Services (CPS), which is a Net1 subsidiary, is currently responsible for paying less than 10% of beneficiaries this month and its contract ends at the end of September 2018.
"In phasing out CPS at the end of the month, SASSA will be in full compliance with directions of the Constitutional Court and there will be no need to ask for another extension contrary to what sceptics wrongfully predicted," Letsatsi said.
He said with (18) eighteen days to go before the September payment cycle is concluded, Sassa has already paid over six billion rands to 92% of its beneficiaries this month.
Letsatsi said this was a clear sign that government would manage to insource the service of grant payments from October going forward.
"Transactions have largely taken place at merchants through Point of Sale (POS) devices and over the counter at post office outlets. Withdrawals from bank ATMs have reduced significantly during this month (only 10%), as compared to August.
"At the moment the bulk of outstanding payments are done in cash at Sassa pay points which will be finished in record time," Letsatsi.
He said beneficiaries should ensure that they have acquired the new Sassa card because the old one is expiring at the end of September.
"The new Sassa card is an improvement of the old card and it does not allow deductions for things such as airtime, loans or prepaid electricity among others. This new card also allows 3 free cash withdrawals at points of sale, one free withdrawal at the post office per month, free swipes at points of sale and is accepted by all ATMs displaying the Visa sign," he said