Latest news with #socialgrants
The Herald
7 days ago
- Politics
- The Herald
Surge in number of Sassa beneficiaries cut off without explanation — Black Sash raises concern amid reviews
Black Sash argued that communication is not sufficient, especially for people in rural areas. 'We reject the notion that SMSs and bulk communication are sufficient or effective. 'Black Sash has consistently called Sassa out on its poor communication strategy and bulk communication in a short time does not address the issue of beneficiaries not receiving their grants within a reasonable time in a way that Sassa can constitute adequate notice confirming that the beneficiary has been informed. It is the state's duty to provide reliable, direct and accessible communication and not to shift the blame onto those who are most excluded from formal systems.' The organisation called on Sassa to ensure fairness, transparency and dignity during the review process. It urged Sassa to pause the review process until effective, community-based communication strategies are in place. 'Black Sash does not oppose fair and lawful grant reviews. But a review process that results in confusion, exclusion and hunger without due process is not a review. 'While we appreciate the attempt to explain the legal framework and rationale behind the reviews, the reality for grant recipients on the ground tells a far more troubling story, one that cannot be brushed aside by semantics, administrative language or internal justifications. 'Social grants are not just a bureaucratic process, they are a lifeline, a constitutional right and a matter of life and dignity for millions. We urge Sassa to act swiftly and justly.' TimesLIVE
The Herald
08-07-2025
- Business
- The Herald
No social grants suspended: Sassa
The South African Social Security Agency (Sassa) has dismissed claims that it has suspended social grants, clarifying that recent delays in payments are linked to an ongoing eligibility review targeting beneficiaries suspected of having undeclared income. The agency said the review is not a punitive measure to deliberately exclude any deserving beneficiary, but is intended to ensure continued eligibility and prevent misuse of public funds. Sassa CEO Themba Matlou said the agency was undertaking the social grants review process to ensure grants are paid to eligible beneficiaries and fraudulent elements are rooted out. 'The review of social grants helps identify beneficiaries who may no longer qualify due to changes in financial, medical or legal circumstances and serves as a confirmation of life or existence, ensuring that grants are not paid out to deceased individuals or those who have relocated without updating their records. More importantly, reviews allow Sassa to detect and prevent cases where individuals continue receiving grants despite being listed on payroll systems of other entities (public or private),' said Matlou. Matlou stressed that in terms of the social assistance legislative framework, beneficiaries are legally required to fully disclose all sources of income during their initial application. They are also obligated to inform Sassa of any changes to their financial circumstances after their application has been approved. Failure to comply with these requirements constitutes a violation of the social assistance legislation and may result in corrective action. He added that efforts are under way to capacitate all Sassa local offices to ensure they are able to handle the large volumes of people flocking into the offices for various services including those coming in for a review. The agency has urged beneficiaries affected by the grants review to visit their nearest Sassa office. Matlou said if a beneficiary is bedridden or unable to visit a Sassa office, a procurator may be appointed to represent them. To arrange this, beneficiaries are encouraged to contact their local office for assistance with the appointment process. TimesLIVE
News24
24-06-2025
- Business
- News24
Treasury's Sassa corruption prevention steps come ‘at the cost of humanity'
Parliamentarians have been inundated with frantic messages from social grant beneficiaries who cannot verify their grant status – a new requirement imposed by National Treasury to root out corruption. The corruption-busting steps imposed on the SA Social Security Agency (Sassa) have a negative impact on many grant recipients, most of whom are elderly citizens living in rural areas. Of significant concern is the in-person verification process of recipients. Chairperson of the Portfolio Committee on Social Development Bridget Masango said the Treasury has attached strict new conditions to the allocation of funds to Sassa. 'National Treasury has attached strict new conditions to the allocation of funds to Sassa. These include quarterly reporting on suspended, cancelled or reviewed grants, income verification, including database cross-checks with the SA Revenue Services, National Student Financial Aid Scheme, the Unemployment Insurance Fund and Home Affairs as well as biometric authentication for beneficiaries flagged as suspicious. 'Treasury argues these steps are essential to combat fraud and ensure value for money and failure to comply by Sassa may result in grant funding being withheld, a deeply concerning possibility for millions who rely on this support,' Masango said. She said the concern is not because they oppose fraud prevention, but because the current implementation is causing delays, confusion and deep distress among beneficiaries. Masango said: 'The requirement for in-person verification is disproportionately impacting rural communities and elderly caregivers who simply cannot afford to travel. Transport costs can reach up to R150 or more, an unaffordable amount for some beneficiaries. 'We are being flooded with WhatsApp messages, SMSs, and emails from desperate individuals who are unable to verify themselves. People are being excluded from the system and all of this in the name of saving money. Sassa has defended the verification process as necessary,' Masango said. Furthermore, Masango said, Sassa argues the requirements prevent fraud and ensures 'accurate targeting'. 'They have reminded beneficiaries of their duty to report changes in financial circumstances. That may be valid, but it must be balanced with accessibility and fairness. To ensure accountability, Sassa will now submit quarterly reports directly to the parliamentary committee, in addition to National Treasury. This will allow Parliament to play a proactive oversight role, especially after lessons learned during the card replacement crisis,' she said. According to Masango, no cost-saving measure should come at the expense of basic dignity or leave the poor out in the cold. 'The committee acknowledges the R1.6 billion increase in the 2025/26 grant allocation, intended to fund above-inflation increases. We also note Sassa's intensifying efforts to fight fraud, such as the rollout of biometric systems, a new tender to assist with identity verification and digital upgrades, including office WiFi, self-service kiosks, and action against fake Sassa websites. We are of the view, National Treasury must balance fiscal prudence with social justice,' Masango said. READ | Second income trouble: SASSA identifies 210 000 possible 'double-dippers' She also said the social grant system is not just a financial mechanism, but a lifeline for many poor families. 'Let us not forget the people behind the statistics, the grandmother raising orphans, the young person living with a disability, the unemployed breadwinner trying to survive. We must protect the integrity of the system, yes, but never at the cost of humanity,' she said. Meanwhile, Masango also expressed deep concern at South Africa's drug and substance abuse problem. 'Our children are drinking liquor. Our schools are not safe. Our rural communities are forgotten. Institutions such as the Central Drug Authority (CDA), meant to fight this crisis are underfunded and unsupported. 'It is thus gravely concerning to the committee that the CDA remains dependent on the Department of Social Development for finances, undermining its ability to operate independently across government,' she said.
Mail & Guardian
22-06-2025
- Business
- Mail & Guardian
Loan company exploited social grant beneficiaries, high court rules
The high court in Johannesburg has ruled against JDG Trading. Illustration: Lisa Nelson The high court in Johannesburg has declared that it is unreasonable to offer social grant beneficiaries insurance for disability and retrenchment if they are already disabled or unemployed. An insurance product offered by credit provider JDG Trading included cover for disability and retrenchment. But disabled and unemployed clients, mostly social grant beneficiaries, would never be able to make a claim for disability or retrenchment. The court ruled recently that this exploited social grant beneficiaries who took out loans from JDG Trading and infringed on their constitutional right to social assistance. JDG Trading offers loans to social grant beneficiaries for household goods and furniture. Customers are required to insure the loans, and can purchase insurance from JDG Trading directly or another provider. Because JDG Trading's insurance bundle included cover for disability and retrenchment, and many of its clients are already disabled or unemployed, the National Credit Regulator took JDG to the National Credit Tribunal, arguing that the insurance policy was unreasonable and against the National Credit Act. The National Credit Tribunal ruled in favour of JDG and the regulator — whose mandate is to promote and support the development of a fair, transparent, competitive, sustainable, responsible, efficient and effective consumer credit market — then took the matter to the high court. The regulator argued in court that by offering cover for retrenchment and disability to unemployed or disabled people, JDG made customers assume a risk that was unreasonable. JDG was using these customers, who could not fully benefit from the policy, to subsidise others who could, the regulator argued. Rights group Black Sash, represented by the Centre for Applied Legal Studies, joined as a friend of the court. It argued that the insurance policy particularly affected social grant beneficiaries and therefore infringed on the constitutional right of access to social security and social assistance. Black Sash submitted expert evidence from an actuary to demonstrate the impact on customers. But JDG Trading argued that its policy was not unreasonable because consumers were not obliged to sign up for its insurance and were free to obtain the insurance elsewhere. JDG Trading argued that the regulator and Black Sash had taken a 'paternalistic approach' and failed to provide any evidence of consumers who misunderstood the policy's provisions at the time they signed up or had been deceived. It said its product was affordable and convenient, thereby enabling greater access to credit. Johannesburg high court judges Shaida Mohamed and Khashane Manamela agreed with Black Sash and the regulator that the policy was unreasonable. The consumers in this case belonged to a marginalised group who are dependent on social grants for their existence, the judges said. Because the insurance policy was offered to the consumer at the point of sale it was unlikely they had time to consider it properly. JDG Trading had conceded that this class of consumers could never have made use of the policy and therefore it was clear they were cross-subsidising younger consumers who could benefit from the policy. Pensioners would not knowingly sign up for a disadvantageous policy, the judges said. There was no option to exclude the disability or retrenchment cover from the bundle. By placing an unfair burden on a vulnerable segment of society, the insurance product was at odds with the goals of the National Credit Act, which aimed to make credit more accessible and combat inequitable and discriminatory practices to this end, the court said. The appeal was therefore upheld with each party to pay their own costs. This story was first published by .
Russia Today
28-05-2025
- Business
- Russia Today
Over 25 million South Africans rely on social grants
The latest General Household Survey (GHS) released by Statistics South Africa has revealed that a staggering 25.4 million South Africans, or 40.1% of the population rely on social grants for survival. The GHS shows that 50.4% of all households in the country receive at least one form of social grant, making grants the second most important source of income after salaries. In some of South Africa's poorest provinces, more households depend on grants than on salaries. 'A larger percentage of households received grants compared to salaries as a source of income in five provinces: Eastern Cape (65.6% versus 49.0%), Free State (64.2% versus 54.6%), Limpopo (62.9% versus 50.4%), Northern Cape (64.0% versus 60.5%) and Mpumalanga (59.1% versus 56.8%),' Stats SA reported. In response to the rising numbers, Evashnee Naidoo from Black Sash said: 'The increase in poverty, unemployment and inequality increases month-on-month in South Africa due to poor economic growth and limited to no employment opportunities, particularly for those aged 18–59. As we know, the highest rate of unemployment is for the age group 18–35, where the government has also failed to provide an adequate social security safety net to protect and cushion individuals adequately from birth to death.' With the government adopting austerity budgeting, Naidoo warned that 'spending on social spending is decreasing at an alarming rate. Black Sash calls on the government to end austerity budgeting and rather prioritise social spending so that it firms people living in South Africa and allows economic growth to flourish in communities,' she said. Naidoo said access to grants also remained an issue. 'Access to pay channels, as well as government institutions for recourse are particular challenges in the administration of grants, particularly in peri-urban and rural areas, where beneficiaries are shunted from pillar to post.' Black Sash said it would continue to call for permanent Basic Income Support for those aged 18–59 years. 'This would ensure dignity to our people and provide a secured source of income to individuals and households,' Naidoo published by IOL
