Pretoria: The South African Social Security Agency (SASSA) has expressed concern following an upsurge in what appears to be unlawful deductions by financial service providers targeting social grants beneficiaries.
According to South African Government News Agency, the agency reported receiving numerous enquiries from beneficiaries who claim their grant money is being deducted by various insurance companies without their consent. Many beneficiaries mistakenly believe SASSA is collaborating with these companies.
SASSA has consistently dissociated itself from any insurance company that misuses its reputable name to further their own agendas. The agency’s CEO, Themba Matlou, emphasized that SASSA lacks the authority to make deductions from social grants without the explicit consent of the beneficiaries. Matlou stated, “We have utmost respect for our beneficiaries and the Act governing social assistance in the country and we will never do anything to shortchange our clients. Your money is your money, if you qualify for a grant, the money belongs to you and as SASSA we have no right, nor authority to dictate how you utilise it.”
The CEO urged those affected to report unlawful deductions to their nearest SASSA office for investigation. Beneficiaries who contest having signed up for a funeral policy with these financial services providers are advised to dispute the deduction by sending an SMS to 34548 with their ID number and the financial services provider’s name. Additionally, they should visit the insurer to cancel the policy.
SASSA highlighted that under Regulation 29 of the Social Assistance Act of 2004, only one deduction per month, not exceeding 10% of the grant’s value, is permitted for a funeral policy, provided the beneficiary consents via electronic or other means of communication. Funeral deductions are strictly prohibited from child-related grants, such as the Child Support Grant, Care Dependency Grant, or the Foster Child Grant. The Temporary Disability Grant is also excluded from funeral deductions.