The South African Social Security Agency (Sassa) has raised concerns about what it describes as growing exploitation of social grant beneficiaries after reports of unauthorised deductions from grants and the illegal sale of queue positions at its offices.
Sassa’s Gauteng region said it is alarmed by allegations that beneficiaries are being misled into signing documents that result in policy deductions from their grants without informed consent. It cited a widely circulated video in which an elderly beneficiary claimed she had been deceived into completing paperwork linked to such deductions.
Sassa said the reports point to the exploitation of vulnerable beneficiaries and risk undermining confidence in the social assistance system. It stressed it does not partner with insurance or funeral companies to enrol beneficiaries into financial products without their knowledge.
The agency said it continues to receive complaints from beneficiaries reporting unexplained deductions, often linked to insurance or funeral service providers. Under regulation 29 of the Social Assistance Act, only one deduction — limited to 10% of a grant — is permitted for a funeral policy, and only where the beneficiary has given explicit consent. No deductions are allowed on child-related grants.
The warning comes amid broader concern about the scale of deductions from social grants. Recent reporting indicates funeral policy premiums alone account for more than R165m a month in deductions from more than 1-million beneficiaries, underscoring the extent of the system and the risks of abuse where consent processes are weak.
Sassa has urged beneficiaries to report suspected unauthorised deductions at local offices or via its dispute mechanisms and to avoid signing documents without full clarity. It also reiterated that it does not conduct door-to-door operations.
The agency also condemned the illegal practice of selling queue positions at its offices, describing it as unlawful and exploitative. The practice disproportionately affects elderly people and persons with disabilities who rely on social assistance.
Sassa CEO Themba Matlou said the agency would act against those involved, including any officials found to have enabled such conduct. He described the practice as a “serious exploitation” of vulnerable beneficiaries and warned that it creates the impression of institutional complicity if left unchecked.
The agency said it would strengthen security at its offices and work with law enforcement to address the issue. It also acknowledged that service delivery challenges, including long queues, have contributed to conditions in which such practices have emerged.
Matlou said Sassa is working to improve operational efficiency and queue management systems, including expanding digital services such as its self-service online platform and eLife certification system to reduce the need for in-person visits.
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