How Retailers Have Been Exploiting SASSA Beneficiaries?

Postbank, the financial institution entrusted with the distribution of social grants in South Africa, is actively engaged in safeguarding the welfare of grant recipients by taking measures to prevent exploitation by retail establishments.

Recent reports have highlighted cases where some retailers have exploited beneficiaries who opted to withdraw their grants at retail stores instead of Post Office branches.

Nikki Mbengashe, the CEO of Postbank, provided a comprehensive briefing to the Parliament’s Committee on Communications and Digital Technologies, emphasizing the bank’s commitment to closely scrutinizing its agreements with retailers.

She pointed out that they are actively collaborating with the five major retailers, which are Boxer, Pick n Pay, Spar, Shoprite, and Usave, to ensure that grant beneficiaries have access to convenient withdrawal options.

Furthermore, Mbengashe acknowledged the importance of managing this relationship to prevent any form of exploitation on the part of the retailers. Reports have emerged of certain retailers compelling beneficiaries to make purchases in order to access their grant funds. 

In response, Mbengashe stated, “We are aware that there may be instances of exploitation in certain areas, and we are currently reviewing our agreements with retailers to establish clear guidelines.”

Many beneficiaries have turned to retailers for withdrawals due to the recurring technical issues, long queues, and inadequate service experienced at Post Office branches.

In September 2025, over 600,000 beneficiaries experienced delays in grant payments due to glitches in Postbank’s systems.

In KwaZulu-Natal, beneficiaries were recently advised to use retailers and ATMs due to disruptions at Post Office branches.

Despite these challenges, Mbengashe assured the public that progress is being made to enhance the overall experience for customers. She acknowledged that certain cash pay points in remote areas still require improvement, and customers sometimes face unfavorable conditions.

However, Postbank is actively working to channel beneficiaries to more convenient options wherever possible.

Mbengashe revealed that Postbank currently boasts approximately 10 million active customer accounts, a remarkable achievement that typically takes commercial banks years to attain. 

Additionally, she addressed allegations of corruption within the institution. Audits revealed that millions were paid to Postbank service providers without valid contracts and proper procurement processes. 

In response, she stated, “The business has taken action by dismissing five employees, initiating six disciplinary processes, witnessing four voluntary resignations, suspending two individuals, and continuing with ongoing investigations. The voluntary resignations signify the emergence of a culture of accountability within the bank.“

Earlier, the entire board and chairperson of Postbank preemptively resigned in an attempt to evade accountability, a move that government officials deemed unlawful.

In summary, while Postbank continues to grapple with service-related issues, the bank’s commitment to preventing beneficiary exploitation remains unwavering. Mbengashe emphasized that Postbank is actively reviewing retailer agreements, and the recent dismissals demonstrate the institution’s dedication to instilling a culture of accountability. It is imperative that the bank streamline grant distribution and protect beneficiaries from exploitation.