Threat to social-grant payouts

In an attempt to avert chaos in the payment of social grants, the CEO of the SA Social Security Agency, Virginia Petersen, will meet representatives of Shoprite, which has threatened to end the social grant payment service at its supermarkets.

Social Development Minister Bathabile Dlamini said last year that more than 15.3million people benefited from government grants.

Cash Payment Services distributes the money on behalf of the agency.

On February 19, Carel Goosen, deputy MD of Shoprite Checkers, asked Dlamini for a meeting to discuss changing grant payment days to alleviate congestion at stores.

The money is available from the first of the month.

Goosen said people braved "wind, sun or rain" and queue from 6am. Some "pass out due to fatigue".

Beneficiaries use a card to withdraw from tills at stores such as Shoprite and from mobile pay points operated by Cash Payment Services. The service is free.

Goosen said payouts "cause a burden on our stores" but a "mutually beneficial solution" could be reached.

"With the ever-increasing traffic in our stores, we now find ourselves in a position in which we are neglecting our customers."

Goosen said that, since April, 10million grant payments had been made at Shoprite stores and R5.6-million had been distributed.

"We are aware of other institutions cancelling the grant-payout service," he said.

"Unfortunately, we too will have to consider terminating the service if there are not material changes to the current payout dates."

Yesterday, Frank Earl, a Social Security Agency manager, said a meeting had been set up with the retailer.

"We are not aware of any agreements that have been cancelled," said Earl.

But a spokesman for Cash Payment Services said Checkers had cancelled its contract for grant payments. He said 605 Shoprite stores offered the service at their tills.