The South African Social Security Agency (Sassa) has raised concern about the surge in “unlawful” deductions by financial services providers, such as insurance companies and funeral schemes, targeting grant beneficiaries.
The agency said it has been receiving complaints from beneficiaries who have had money deducted using Sassa's name without permission.
Sassa CEO Themba Matlou said the agency does not work with financial service providers and has no authority to make deductions without the consent of the beneficiaries.
“We have respect for our beneficiaries and the act governing social assistance and we will never do anything to short change our clients,” he said.
“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 use it.”
He urged beneficiaries who have fallen victim to visit the Sassa local office to report the matter for investigation.
“Alternatively, clients who dispute signing a funeral policy with the financial services provider are advised to dispute the deduction by sending an SMS to 34548 with their identity number and the financial services provider's name. They should also visit the insurer or the services provider to cancel the policy.”
According to the Social Assistance Act, the agency only allows one deduction per month of no more than 10% of the grant for a funeral policy issued by an insurer registered under the Long-term Insurance Act to be made directly from a social grant.
Funeral deductions are not permitted from child-related grants such as the child support grant, care dependency grant or foster child grant. Temporary grants are also excluded, the agency said.
“The regulation says the beneficiary of the social grant must consent to such deduction by electronic communication or any other means of communication and has submitted such consent by electronic communication or any other means of communication to the agency.”
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