The South African Social Security Agency (SASSA) warns beneficiaries about rising illegal deductions by financial service providers and clarifies that it has no link to such companies.
The South African Social Security Agency (SASSA) has expressed deep concern over a rise in unlawful deductions from social grant beneficiaries’ payments by certain financial service providers.
According to the agency, it has been inundated with complaints from beneficiaries reporting that money is being deducted from their grants for insurance policies they never signed up for.
Many of the affected recipients believe these companies are linked to SASSA – a claim the agency has firmly denied.
“We have utmost respect for our beneficiaries and the Act governing social assistance in the country, and we will never do anything to short-change our clients,” said SASSA CEO Themba Matlou.
“Your money is your money. If you qualify for a grant, it belongs to you, and SASSA has no right or authority to dictate how you use it.”
How to report illegal deductions
Matlou urged victims to report any unlawful deductions to their nearest SASSA office for investigation.
Beneficiaries who dispute signing a funeral policy can also send an SMS to 34548 with their ID number and the financial service provider’s name.
You can also visit the insurer or service provider directly to cancel the policy.
What the law says
Under Regulation 29 of the Social Assistance Act of 2004, SASSA can only allow one deduction per month for a funeral policy, not exceeding 10% of the grant amount. The beneficiary must consent in writing or via electronic communication.
However, funeral policy deductions are prohibited from child-related grants, including the Child Support Grant, Care Dependency Grant, and Foster Child Grant, as well as the Temporary Disability Grant.
SASSA emphasised that it does not partner with insurance companies to make deductions from grants and will continue to work to protect beneficiaries from unlawful practices.