The company responsible for paying social grants in cash has admitted to blocking South African Social Security Agency (Sassa) officials from entering some pay points.
But it says these incidents have been isolated and done for security reasons.
Cash Paymaster Services (CPS) has been criticised in an expert panel report to the Constitutional Court that it is interfering in the duties of Sassa and the Post Office.
Sassa is racing against the clock to issue new cards to grant beneficiaries before its cash payment contract with CPS ends in September.
CPS says Sassa failed to make prior arrangements to enter its pay points and it has an obligation to beneficiaries and staff, to maintain tight security.
It’s also defended the marketing of its Easy Pay Card at these pay points, which the panel of expert’s report says is confusing beneficiaries, many of whom believe this is the new Sassa card.
Around three million grant beneficiaries have opened these accounts.
CPS says it has a mandate from Sassa to transfer the grants of 2.3 million beneficiaries into Easy Pay accounts.
CPS says Sassa has always been aware that the termination of its contract would mean that beneficiaries would have to pay bank charges for accounts held with Grindrod Bank.
It says it believes the R10 monthly charge is in line with the services being offered.