SASSA beneficiaries moved to FNB amid Ithala liquidation

SASSA beneficiaries moved to FNB amid Ithala liquidation

Over 65,000 SASSA beneficiaries affected by Ithala's pending provisional liquidation have been temporarily transferred to FNB. 

SASSA
DSD

The grant recipients could not access their money when Ithala's operations were frozen about two weeks ago.

 

The South African Social Security Agency issued a statement to say that it has teamed up with FNB to open accounts for these beneficiaries in the interim.

 

They have been given three months to provide the agency with their preferred bank's details.

 

The majority of the affected grant recipients are in KZN, with a smaller number in Mpumalanga, the Eastern Cape, Gauteng, the Free State, North West and the Western Cape.

 READ: KZN premier raises Ithala liquidation with Ramaphosa

During a media briefing on Tuesday, KZN Premier Thami Ntuli said they were not aware that Ithala's client database was being transferred to other banking institutions.

 

"I am not aware of SASSA decision to work with the FNB for the clients of Ithala, who are maybe beneficiaries SASSA.

 

"I am not aware of this matter, but I will follow up on it,” said Ntuli.

 

Economic Development MEC Musa Zondi said account holders have not been able to transact since Thursday.

 

"Since Thursday, that has been said if you have a card, if you have an account, you can't take out, you can't do anything.

 

"That is the thing that is worrisome because suddenly it actually commits a crime because that money does not belong to the bank. It does not belong to Ithala.

 

"So now, what is happening, people’s money are kept away from them. I will venture to say to say illegal because that money there is no agreement for the owners of that money not to access that money,” said Zondi.

 

Ithala is preparing for a legal battle on Thursday to avoid liquidation, which the Prudential Authority has deemed urgent to protect the funds of over 200,000 depositors.


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