Unlawful social grant deductions steep the vulnerable in poverty

ALBERTON- The Human Rights association, Black Sash, has been investigating fraudulent social grant debits since 2011, and in 2013 launched a campaign to draw attention to the crisis.

In the latest Black Sash press release, Ms Ratula Beukman says that approximately 15 million people receive social grants and many of these people have become targets of “commercially motivated and unscrupulous credit by financial service providers who use confidential personal information, entrusted to our government.”

She adds that “thousands of beneficiaries are experiencing increased hardship and now struggle to pay for food, rent, transport and other basic needs due to these deductions, seriously compromising human dignity.

”Social Development Minister Bathabile Dlamini threatened Cash Paymaster Services, who distribute the grant money, with court action if it failed to sign a service-level agreement within 14 working days. Service providers have been able to access personal information from the database controlled by CPS, and the agreement would serve to stop third-party deductions from grant payments.

Net1 has also been under investigation by the US Securities and Exchange Commission and the Department of Justice’s Criminal Division to determine whether there was bribery involved in the R10 billion contract with SASSA.

CEO Serge Belamant, adds the company has “cooperated fully” with the US Department of Justice, and provided it with all the information it required some time ago. “It is up to them to decide what the next steps, if any, will be.”

And though the wheel is slowly turning, many are still victims of unlawful deductions, steeping them in poverty.

If you are having difficulties with deductions from your grant, please contact the Black Sash Helpline on 072 66 33 739 or email help@blacksash.org.za