Sassa ‘has no option’ but court action over illegal deductions

Grindrod Bank is now seeking clarity on new social grant regulations, which make certain deductions unlawful.

FILE: Several protesters are gathered outside St George’s Cathedral in Cape Town on Thursday 15 October 2015. They are calling for action, claiming they have been short changed by grants administrator Cash Payment Services. Picture: Natalie Malgas/EWN.

JOHANNESBURG - The South African Social Security Agency (Sassa) says it has no other option but to take Grindrod Bank and Cash Paymaster Services (CPS) to court for allegedly making illegal deductions from the bank accounts of beneficiaries.

Grindrod Bank is now seeking legal clarity on new social grant regulations, which make certain deductions unlawful.

The new law was announced by The Social Development Department last month.

Sassa's manager for grants policy support, Dianne Dunkerley, says, "There has been much media coverage about people who are walking away with maybe R20 of their old-age pensions and we tried a number of ways to try and address this."

She says, "The amended regulation went on to say that if our beneficiaries are paid through a method determined by us, then there won't be no deductions of no nature."