Why banks are avoiding Sassa contracts

Most of the four largest banks opted not to participate in the South African Social Security Agency’s (Sassa’s) last-ditch attempt to appoint someone to distribute social grants to 17 million recipients after being put off by agency requirements.

The new tender was meant to replace incumbent Cash Paymaster Services (CPS)‚ whose contract with Sassa was ruled invalid in the Constitutional Court three years ago.

This means the agency will have its work cut out finding a replacement if the court declines an extension of the CPS contract.

Sassa issued a “request for information” in December 2016 that closed on January 24.

At least two major banks — First National Bank (FNB) and Nedbank — considered the request‚ which proposed breaking up the agency’s service-level agreement with Net 1 UEPS’s CPS into six agreements.

These agreements encompassed producing and distributing beneficiary cards‚ issuing them‚ bank account management‚ “card acquiring”‚ cash distribution through “biometrically enabled paypoints” and providing proof of life through biometric systems.

Full story at BusinessLIVE