Over 65,000 South African Social Security Agency (SASSA) beneficiaries have been temporarily transferred to FNB following the freezing of Ithala's operations about two weeks ago. As a result, these grant recipients were unable to access their funds.
SASSA has partnered with FNB to open interim accounts for the affected beneficiaries. The agency has given them three months to provide details of their preferred bank accounts. The majority of those impacted reside in KwaZulu-Natal (KZN), with smaller numbers in Mpumalanga, the Eastern Cape, Gauteng, the Free State, North West, and the Western Cape.
During a media briefing on Tuesday, KZN Premier Thami Ntuli expressed surprise at the transfer of Ithala’s client database to other banks. “I am not aware of SASSA's decision to work with FNB for Ithala’s clients. I will follow up on this matter,” he said.
Economic Development MEC Musa Zondi raised concerns about the situation, revealing that account holders have been unable to transact since Thursday. He criticized the inability to access funds, calling it an illegal act, as the money belongs to the beneficiaries, not Ithala or the bank. “That money does not belong to the bank, and people’s money is being kept away from them,” Zondi said.
Meanwhile, Ithala is preparing for a legal battle on Thursday in an attempt to avoid provisional liquidation, a move deemed urgent by the Prudential Authority to protect the funds of over 200,000 depositors.