SASSA Warns Against Unlawful Deductions as Beneficiaries Face Insurance Scams

The South African Social Security Agency (SASSA) has issued a stark warning about what it describes as unlawful deductions being made from social grants by financial service providers, following a surge in complaints from beneficiaries across the country.

In a media statement released recently, SASSA revealed that it has been “inundated with enquiries” from grant recipients who report that their monthly payments are being consistently reduced by various insurance companies without their consent.

Many affected beneficiaries believe SASSA is collaborating with these companies to facilitate the deductions, a claim the agency has categorically denied.

SASSA CEO Themba Matlou moved to clarify the agency’s position, emphasizing that the organization has “no authority to make any deductions on social grants without the consent of the beneficiaries.”

“We have utmost respect for our beneficiaries and the Act governing social assistance in the country, and we will never do anything to shortchange our clients,” Matlou stated. “Your money is your money. If you qualify for a grant, the money belongs to you, and as SASSA we have no right, nor authority to dictate how you utilize it.”

The CEO has gone on record to stress that SASSA will not partner with funeral schemes and insurance companies, as such arrangements are not legislated. The agency is urging all beneficiaries who encounter these unauthorized deductions to be vigilant and report such incidents.

The warning comes as vulnerable South Africans who depend on social grants find themselves targeted by what appears to be predatory financial practices. Social grants serve as a crucial lifeline for millions of South Africans, making any unauthorized deductions particularly concerning for both recipients and the government agency responsible for their distribution.

SASSA has consistently distanced itself from any insurance company attempting to use the agency’s reputation to legitimize their operations and achieve their commercial objectives.

The agency’s statement suggests that the problem has reached significant proportions, with the volume of complaints prompting this public clarification of SASSA’s policies and warning to beneficiaries about potential scams.