SASSA warns social grant beneficiaries of unlawful deductions

The South African Social Security Agency (SASSA) has raised an alarm over a spike in alleged unlawful deductions by financial service providers targeting social grant beneficiaries.

According to the agency, it has been inundated with complaints from beneficiaries claiming that portions of their grants are being taken by insurance companies they never signed up for, with some believing SASSA is in partnership with these firms.

SASSA CEO Themba Matlou stressed that the agency has no authority to deduct money from grants without the beneficiary’s consent.

“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 utilize it,” he said.

Matlou emphasised that SASSA does not work with funeral schemes or insurance companies, as such partnerships are “not legislated”.

He urged all victims to report the matter immediately at their nearest SASSA office.

Beneficiaries disputing funeral policy deductions can also send an SMS to 34548 with their ID number and the name of the financial service provider. They are further advised to visit the insurer directly to cancel the policy.

SASSA cited Regulation 29 of the Social Assistance Act of 2004, which permits only one deduction per month, not exceeding 10% of the value of a beneficiary’s social grant, for a funeral policy with a registered insurer, and only with the beneficiary’s written or electronic consent.

The agency stressed that funeral deductions are not allowed from child-related grants such as the Child Support Grant, Care Dependency Grant, or Foster Child Grant, nor from the Temporary Disability Grant.

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