The Minister of Social Development, Ms Bathabile Dlamini, and the Chief Executive Officer (CEO) of the South African Social Security Agency (SASSA), Ms Virginia Petersen, met with Dr Serge Belamant who is the CEO of CPS and the Chairperson of the Net1 Group, on 15 of October 2013 at SASSA Head Office in Pretoria.
The meeting was held to discuss the allegations of deductions for micro loans and airtime that are effected on beneficiaries' social grants. The deductions are in certain instanced alleged to be effected without the beneficiaries' consent or authorisation.
The Minister demanded that Dr Belamant should instruct the Net1 Group to cease from loading micro loans on the SASSA payment card and also the selling of airtime to social grant beneficiaries, especially to old age grant beneficiaries.
The Minister also demanded that the Net1 Holdings cease to provide micro loans through its Net1 micro lending business to social grant beneficiaries using the SASSA payment card.
Minister Dlamini also instructed CPS to ensure that micro lenders and vendors including those within the Net-1 Group are not allowed within the perimeters of all social grant pay points within the country to sell their products to social grants beneficiaries.
Dr Belamant, has responded in writing on 16 October 2013 in his capacity as the CEO of CPS that "CPS does not offer any products of whatsoever nature to grant beneficiaries" and also that CPS is an independent legal entity which forms part of the Net1 Group which consist of 44 companies. He also stated that:
"CPS has no jurisdiction over any other company (including other companies in the Net1 group) and cannot prescribe to such companies how they should conduct their business. The provision of loans and airtime products to grant beneficiaries are not outlawed and provided these companies comply with applicable legislation, including the National Credit Act, they are at liberty to pursue these business avenues".
There are other companies within the Net1 Group which are financial services providers that offer financial products (insurance, loans, and airtime) to the public.
The Department of Social Development and SASSA will however explore other avenues in their efforts to put an end to the real or perceived exploitation of the social grant beneficiaries.
SASSA is urging grant beneficiaries not to respond to any text messages offering to buy airtime. SASSA also urges beneficiaries not to enter into loan agreements with micro lenders because repayments will be deducted from their SASSA accounts should they sign these agreements.
Social grant beneficiaries who wish to dispute any deductions on their accounts should call 0800 60 01 60 (toll-free) and these will be reversed in line with the rules of the National Payment System.
Media enquiries:
Lumka Oliphant
Cell: 083 484 8067
Email: lumkao@dsd.gov.za
