The South African Social Security Agency says it will be opening a criminal case against Grindrod Bank and the Cash Paymaster Services for failing to stop illegal deductions made on social grants.
Last month SASSA‚ the agency which administers social grants‚ was called to brief members of the standing committee on social development in parliament about illegal deductions on SASSA grants‚ which started happening in 2012.
The briefing revealed beneficiaries lodged 10‚262 disputes over deductions from their SASSA accounts between April 2015 and March 2016.
“The amended law prohibits deductions from social grants. The only exception is a deduction for a funeral policy‚ provided SASSA is requested to authorise‚ “said the agency in a statement.
Dianne Dunkerley‚ manager for grants policy support at SASSA‚ said the disputes varied from people who had taken up the airtime advance service but wanted to have it stopped‚ to those who claimed to have no knowledge about the service.
Other complaints included bank withdrawal charges‚ with 6‚224 disputes lodged‚ and prepaid electricity at 1‚251 disputes.