Department moves to protect the elderly against loan sharks

The Eastern Cape Department of Social Development and Special Programmes MEC, Dr Pemmy Majodina recently played host to the Minister of Social Development, Ms Bathabile Dlamini, Deputy Minister, Ms Maria Ntuli and MECs from other provinces for a MINMEC meeting held in East London.

High on the agenda of the MINMEC were issues relating to the protection of older persons and other vulnerable sectors of the society. Minister Dlamini announced at a media briefing held on the sidelines of the meeting, plans by the department to introduce a funeral scheme that will benefit older persons, effectively protecting them from fly-by-night funeral schemes and loan sharks.

“We want to ensure that our people are guaranteed funeral benefits therefore ensuring that they are buried in a dignified manner,” said Minister Dlamini.
 
The Minister said the move is part of an Integrated Social Security Plan that government is looking at to significantly improve the lives of those falling through the poverty pockets. The South African Social Security Agency (SASSA) mandated by government to administer and pay-out social grants to deserving beneficiaries has detected that more than 500 beneficiaries receiving grants via the banks have their monies deducted by various funeral schemes.
 
The Minister also said that the department is looking at enhancing regulations with regards to financial institutions or loan sharks that are praying on the vulnerability of the social grant beneficiaries. The department has noticed that many beneficiaries have their identity document and bank cards confiscated by the loan sharks to ensure repayment of loan amounts. “This has resulted in many of our people being unable to vote during the last election,” said MEC Majodina. “It is uncalled for, for financial institutions to go and take money from older persons and leave them with nothing.”

Due to the rifeness of this practice, it is reported that SASSA officials have had to act as policeman to curb these tendencies.

Minister Dlamini also announced that SASSA is exploring new models of paying grants, ensuring that they fully take charge of their mandate regarding the payment of grants which has since the establishment of the agency been performed by external service providers. This new model is expected to be piloted during the 4th year of the current government administration.
 
To improve the pay-point facilities, Deputy Minister Ntuli said that plans are in place to identify 20 pay-points and offices that do not conform to the set standards and roll-out a service improvement plan. Some of the pay points that will benefit from this exercise are those that have been recently identified by the National Portfolio Committee on Social Development as being in a bad state.

The Deputy Minister said that the department will work with the available human and financial resource and see how best these can be utilised in building communities.

Source: Eastern Cape Department of Social Development and Special Programmes