Families and communities in South Africa are being urged to protect elderly social grant beneficiaries from financial abuse. KwaMpumuza Ward 1 councillor Khulekani Msomi issued the warning during a financial literacy training session for social grant beneficiaries in Pietermaritzburg. The training session was attended by elderly grant recipients, foster care grant beneficiaries, and recipients of the Social Relief of Distress (SRD) grant. Msomi expressed concern over pensioners being targeted by bogus financial institutions and unauthorised debit orders.
Several elderly residents have reported that money is being deducted from their grants for financial products they did not knowingly sign up for. Msomi said some pensioners had complained about deductions for policies they did not recognise, while others had money taken from their accounts for services including airtime. He urged relatives to take a more active role in helping elderly family members understand financial products before they sign documents or provide their banking details.
Msomi's office has received several complaints from pensioners who believe they are being financially abused. He encouraged pensioners who are experiencing such issues to approach his office for assistance. Msomi added that his office works with the South African Social Security Agency (Sassa) and the Department of Social Development to address these concerns.
The warning comes after reports of thousands of social grant beneficiaries being left with less money after allegedly being duped into signing up for financial products. Some beneficiaries only discovered they had been signed up for debit orders when less money than expected was paid into their bank accounts. Sassa has reported that thousands of beneficiaries have approached its offices to change their banking details after discovering deductions they did not recognise.
Sassa chief executive officer Themba Matlou warned that bogus financial institutions are increasingly targeting vulnerable pensioners and other social grant beneficiaries. Matlou distanced Sassa from the deductions, saying the agency's systems do not allow its officials to make such deductions. He emphasised that Sassa's name should not be associated with people who are not employed by the agency or authorised to operate on its behalf.
The issue of unauthorised grant deductions has become widespread, with many beneficiaries alleging that they were approached by people claiming to be associated with Sassa. Sassa has urged beneficiaries to be cautious and to verify the authenticity of any financial products or services before signing up. The agency has also encouraged beneficiaries to report any suspicious activity to its offices.
Msomi and Sassa are working together to educate beneficiaries about financial literacy and to prevent further financial abuse. Key initiatives include providing training sessions and raising awareness about the risks of bogus financial institutions.
Key points
- KwaMpumuza Ward 1 councillor Khulekani Msomi urges families to assist elderly social grant beneficiaries in understanding financial products.
- Sassa reports thousands of beneficiaries have approached its offices to change banking details due to unauthorised deductions.
- Bogus financial institutions are increasingly targeting vulnerable pensioners and other social grant beneficiaries.
