The South African Social Security Agency (Sassa) has called on all beneficiaries who have fallen victim of unlawful deductions by financial service providers to immediately report to its local office for investigation. This follows reports of an upsurge in the number of unlawful deductions of this kind.
Themba Matlou, chief executive officer (CEO) of Sassa, said the agency had been inundated with enquiries from affected beneficiaries, regarding their grant money consistently being deducted by various insurance companies that they have not signed up with.
He said the victims stated that they had been under the impression Sassa was working with these insurance companies.
“Sassa has consistently distanced itself from any insurance company that uses the good name of the agency to achieve its goals,” said Matlou.
He confirmed that these companies had no authority to make any deductions on social grants without consent.
Affected beneficiaries who wish to dispute their signing off on 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. We have the utmost respect for our beneficiaries and the act governing social assistance in the country, and we will never do anything to shortchange our clients.
“Our money is your money. If you qualify for a grant, the money belongs to you and we, as Sassa, have no right nor authority to dictate how you utilise it,” said Matlou.
He said that in line with the regulation of the Social Assistance Act, the agency may allow only one deduction per month, and explained that this deduction must not exceed 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, 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 submit such consent by electronic communication or any other means of communication to the agency.
“It is important to emphasise that funeral deductions are not permitted from child-related grants,” said Matlou.
