SASSA Warns Against Unlawful Deductions from Social Grants by Insurance Companies
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. In a statement on Thursday, the agency said it has been inundated with enquiries from its beneficiaries, stating that their grant money is consistently being deducted by various insurance companies that they have not signed up for, believing that the agency is working with these companies.
SASSA has consistently distanced itself from any insurance company that uses its good name to achieve its goals. The agency’s CEO, Themba Matlou, has reiterated that he will not attend the said meeting as requested. “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 victims to report unlawful deductions to their nearest SASSA office for investigation. Alternatively, clients who dispute signing a funeral policy with the financial services provider are advised to immediately 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 financial services provider to cancel the policy. In line with Regulation 29 of Social Assistance Act of 2004, the Agency said it may allow only one deduction per month not exceeding 10% of the value of the beneficiary’s social grant for a funeral policy issued by an insurer registered under the Long-term Insurance Act, 1998 (Act No. 52 of 1998) to be made directly from a social grant. 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. The agency further emphasised that funeral deductions are not permitted from child-related grants, such as the Child Support Grant, Care Dependency Grant, or the Foster Child Grant. Similarly, the Temporary Disability Grant, is excluded from funeral deductions altogether.
SASSA’s Response to Rising Complaints on Unauthorised Deductions
SASSA has seen a big jump in calls and visits from people who get social grants, all worried about money being taken out without their say-so. Many think the agency has deals with these insurance firms, but SASSA says that is not true. The problem often shows up right after grant payments, with small amounts gone for things like funeral cover that folks never agreed to. This leaves many older people and families short on cash for basics like food and rent.
Themba Matlou, the head of SASSA, spoke out strongly against these acts. He said the agency cares deeply for those it helps and follows the law strictly. Matlou made it clear that no one at SASSA can touch grant money without clear okay from the person getting it. He called on everyone hit by this to speak up, so the team can look into it and stop the wrongdoers.
In past years, groups like Black Sash have fought hard against such takings, even going to court to protect grant getters. They say these firms trick people or use old info to start deductions without fresh agreement. SASSA now works closer with watchdogs to catch and fine those breaking rules.
Steps for Beneficiaries to Report and Stop Unlawful Deductions
If you spot money gone from your grant that you did not agree to, act fast. Go to your closest SASSA office with your ID and bank slips showing the takings. The staff will start a probe and help get your cash back if it was wrong.
You can also send a quick text to 34548 with your ID number and the name of the firm taking the money. This kicks off a dispute that can halt the takings right away. Then, head to the insurance place or call them to end any policy you did not want. Keep records of all talks and papers to show what happened.
SASSA warns that scams like Ubuntu Life use their name and logo to fool people into paying for fake help. Never share your card or PIN with strangers, and check your balance often. If something looks off, tell SASSA straight away to stay safe.
Legal Rules on Deductions from Social Grants
The law is clear on what can come out of grants. Under Regulation 26A of the Social Assistance Act, only one take-out each month is okay, and it can be no more than 10% of the grant. This must be for a funeral policy from a firm signed up under the Long-term Insurance Act. You have to say yes to it, and send that yes to SASSA by text, email, or other way.
No takings at all from grants for kids, like Child Support, Care Dependency, or Foster Child. The short-term help for those who cannot work due to health also stays full, with nothing taken out. These rules came after big fights in court to stop firms from grabbing money from the poor.
Back in 2016, new changes banned fresh takings from child grants, but let old ones keep going if they fit the rules. Groups pushed hard for this to guard families who need every cent. SASSA checks these takings now and then to make sure they follow the law.
Past Issues and Ongoing Efforts to Protect Grant Recipients
This is not new trouble for SASSA. Over the years, many have lost cash to wrong takings, leading to court wins that made rules tighter. In 2018, folks stepped up their battle, asking judges to force the state to shield them better. Firms like Sanlam had to defend their ways, saying they only take if people agree, but many said they never did.
A big win came when courts said no more takings from child help, calling it a step to care for the weak in society. SASSA set up teams to look into complaints and work with banks to stop bad acts. They also teach people about their rights through talks and ads.
Today, with more scams online and by phone, SASSA runs drives to warn folks. Matlou and his team go to places like Mpumalanga to hear straight from people and fix things fast. The goal is to keep grants safe, so they help as meant to, lifting families out of hard times.
As grant days come, like older folks’ pay this week, check your money and speak up if something is wrong. SASSA stands ready to help, making sure your grant stays yours.
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