Unauthorised grant deductions cause for concern
Since the introduction of the Sassa card, complaints have been received from a myriad of social grant beneficiaries about deductions that they had not authorised
POLOKWANE – It is open season for crooks who rip off pensioners and steal their grant money – and the South African Social Security Agency (Sassa) is not in a position to determine which deductions are authorised by pensioners and which are not.
Since the introduction of the Sassa card, complaints have been received from a myriad of social grant beneficiaries about deductions that they had not authorised.
Sassa’s provincial spokesperson, Zwannda Kutama, confirmed they receive complaints about all kinds of unlawful deductions.
“We encourage social grant beneficiaries who have complaints relating to unlawful deductions to visit their nearest Sassa offices with proof, as well as a signed affidavit to confirm that, so that we can assist them in stopping the deductions,” he said.
He noted that Regulation 26a of the Social Assistance Act allows registered policy service providers to not deduct more than 10% to total grant paid to a beneficiary and as such only one policy can be allowed, “note that in the future as per amended regulation, no deduction will be allowed from a grant recipient moving forward’.
The agency says it is tightening all screws by reviewing its policy regarding funeral policy deductions on child support grants.
Sassa says its research has shown that such deductions may not be in the best interest of the child.
A moratorium has been put on practises such as funeral policy deductions from child support grants.
The moratorium has insurance companies up in arms with more than R10 billion paid out in social grants each month, recipients have become a lucrative niche market for businesses.
But the Department of Social Development is reviewing the impact of deductions on those receiving child support grants – it’s trying to determine whether they are really in the best interests of the child. One of the companies challenging the restriction and is taking the case to the Constitutional Court, Cash Paymaster Services (CPS) has been instructed to remove debit order facilities from Sassa-branded cards.
The department says the law was crafted to assist the elderly but insurance companies found a profitable loophole.
Insurance companies started selling funeral insurance for children, who actually have a very low risk of dying.
