04 July 2001
The South African Communist Party (SACP) is extremely concerned at the undignified and inhumane manner in which we, as a country, continue to treat older persons in particular those pensioners who receive state welfare grants. According to the lead article in the Sowetan newspaper of today, more than 400 000 pensioners throughout the country were left stranded yesterday without receiving their state welfare grant from their bank accounts. According to the article, many of the pensioners did not even receive any explanation on why their state welfare grants were not deposited in their bank accounts. This information has since been confirmed with the Department of Social Development.
This incident confirms the endemic inefficiencies in the outsourced pension payout system, which denies millions of pensioners throughout the country timely payments, dignity and respect. Adding to the indignity is the fact that the majority of African pensioners still have to wake up early to stand in long, unsheltered and unsafe queues in order to get their pensions. Only a small percentage of pensioners receive their grants either through private bank accounts or through the state-owned Postbank.
Part of the reason the majority of pensioners do not use banks for their pensions is the exorbitant interest and other bank charges levied by all South African banks whose only interest is to maximise profits without any regard for social development. For this reason, the SACP calls on government to ensure that all recipients of state welfare grants are exempt from all bank charges.
The SACP also calls for a complete overhaul of the state pension payout system which must, amongst other things, include a review of the outsourced pension payout system to private companies with the intention to consolidate the state-owned Postbank as the main pay-point for state pensions.
CONTACT
Mazibuko Kanyiso Jara (surname Jara)
Department of Media, Information and Publicity South African Communist Party
Tel: 011 339 3621
Fax: 011 339 4244
Cell: 083 651 0271
Email: sacp1@wn.apc.org