SASSA’s firm stance: “Your noney is your money”
The South African Social Security Agency (SASSA) has raised the alarm over a surge in unlawful deductions from social grants, often disguised as funeral or insurance policies that beneficiaries never signed up for.
SASSA CEO Themba Matlou minced no words in his warning:
“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. 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 agency has been “inundated with enquiries” from distressed beneficiaries who discovered their grants reduced by deductions for products they never consented to. Many victims believed these companies were working in partnership with SASSA—something Matlou firmly denies.
“Not at any point will SASSA work with funeral schemes and insurance companies as it is not legislated,” he stressed.
What the law actually permits
The Social Assistance Act of 2004 and its regulations are explicit about what is and isn’t allowed. Under Regulation 29, only one type of deduction is legal:
✅ Allowed Deduction:
- One funeral policy only.
- Issued by an insurer registered under the Long-Term Insurance Act.
- Cannot exceed 10% of the total value of the grant.
- The beneficiary must have given explicit consent (in writing, electronically, or otherwise).
❌ Forbidden Deductions:
- Any deduction without full consent.
- Multiple deductions from a single grant.
- Life insurance, credit, loans, or any non-funeral product.
- Any deduction from Child Support, Care Dependency, Foster Child, or Temporary Disability Grants.
Read the full legislation here: SAFLII: Regulations on Social Assistance.
The scale of the problem
Matlou revealed that eight fraud cases have already been recorded in the North West province alone, with three successfully closed and the rest under joint investigation with SAPS and the Hawks.
The crackdown is part of SASSA’s wider anti-fraud strategy, which includes:
- Biometric verification pilots to prevent impersonation fraud.
- Cybersecurity upgrades as part of SASSA’s ICT modernization drive.
- Lifestyle audits for staff to root out internal misconduct.
“Employees need to be trained in ethics and must conduct timely financial disclosures. Routine lifestyle audits are necessary to identify and prevent fraudulent activities,” Matlou said.
What to do if you’re a victim
If you notice an unauthorized deduction from your grant:
- Report to SASSA: Visit your nearest office immediately.
- Dispute via SMS: Send your ID number and the name of the service provider to 34548.
- Cancel Directly: Approach the insurer to demand cancellation.
- Stay Alert: Do not share your details with anyone claiming SASSA partnerships.
Beneficiaries can also contact SASSA’s toll-free line on 0800 60 10 11 or email GrantEnquiries@sassa.gov.za.
Why this matters now
With millions depending on grants as their only source of income, any unlawful deduction amounts to theft from the poor. At a time when households are already squeezed by rising costs despite interest rate cuts and budget revisions to grant increases, fraudulent practices threaten to push families further into poverty.
For those applying, SASSA has also tightened rules for the R370 SRD grant, while verification checks remain ongoing for Old Age Grants. Applicants should familiarize themselves with the updated requirements to avoid delays.
For parents, understanding why Child Support Grants may be delayed is crucial—particularly since no deductions are ever permitted from child-focused grants.
Final word from the CEO
SASSA’s top message is unequivocal: “Your money is your money.”
Illegal deductions not only rob the vulnerable, they undermine trust in South Africa’s entire social protection system. By reporting scams, insisting on consent, and staying informed, beneficiaries can help SASSA protect this lifeline.
For more on how to apply for SASSA grants, visit the official portal.
