Recent months have seen a disturbing increase in complaints from social grant recipients who discovered unexpected deductions from their monthly payments. These unauthorized removals, often attributed to insurance policies and funeral schemes, have left many beneficiaries confused and financially strained.
Social grant beneficiaries across South Africa are facing a growing threat from unscrupulous financial service providers who are illegally deducting money from their monthly allowances. The South African Social Security Agency has stepped forward with urgent warnings and practical solutions.
The situation \has become so widespread that SASSA offices nationwide report being “inundated” with complaints from affected recipients. Many beneficiaries express shock upon learning that portions of their grants have disappeared, with some initially believing SASSA itself had authorized these partnerships.
SASSA’s Clear Position on Grant Protection!
SASSA CEO Themba Matlou has issued a definitive statement regarding the agency’s stance on grant deductions. His message emphasizes the agency’s commitment to protecting beneficiaries’ rights and clarifies SASSA’s limited role in grant management.
“Your money is your money,” Matlou declared, stressing that qualified beneficiaries have complete ownership of their grants. He confirmed that SASSA lacks both the authority and intention to dictate how recipients utilize their monthly allowances.
Understanding the Legal Framework!
The legal landscape surrounding social grant deductions is strictly regulated under South African law. Regulation 29 of the Social Assistance Act of 2004 establishes clear boundaries for any legitimate deductions from social grants.
According to this regulation, only one deduction per month is permitted, and it cannot exceed 10% of the grant’s total value. Furthermore, such deductions are exclusively allowed for funeral policies with registered insurers and require explicit written or electronic consent from the beneficiary.
Protected Grant Categories!
Certain social grants enjoy additional protection under current legislation. Child-related grants, including the Child Support Grant, Care Dependency Grant, and Foster Child Grant, are completely exempt from funeral policy deductions. The Temporary Disability Grant also falls under this protected category.
Taking Action Against Fraudulent Deductions!
SASSA has established multiple channels for affected beneficiaries to seek assistance and report unauthorized deductions. Recipients who discover suspicious activity should immediately visit their nearest SASSA office to file a formal complaint.
For those specifically dealing with funeral policy deductions, SASSA has introduced a convenient SMS reporting system. Beneficiaries can text their ID number along with the financial service provider’s name to 34548 for immediate assistance.
Direct Resolution Steps!
Beyond reporting to SASSA, affected individuals are encouraged to contact the insurance company directly to cancel unauthorized policies. This dual approach ensures both regulatory oversight and immediate resolution of fraudulent deductions.
The agency emphasizes that legitimate insurance partnerships with SASSA simply don’t exist, making any such deductions inherently suspicious and likely fraudulent.