SHORTLY after a sting operation comprising SASSA security and the South African Police Services (SAPS) led to the arrest of 11 people in Nigel, SASSA has warned that it is illegal to lend money using SASSA cards as collateral.
Three women and seven men aged between 30 to about 50 were surprised in the early hours of the morning at ATM machines and a local merchant store. The arrests followed an intelligence-led investigation into the illegal lending of money using SASSA cards as collateral.
Paseka Letsatsi, in a statement on behalf of SASSA, said the suspects were found in possession of cash, over 900 SASSA cards including PIN’s and two firearms of which the legality was being investigated.
“Other suspects managed to escape in four cars and the police are currently hot on their heels. One luxury car was also impounded during the operation.”
Letsatsi said the modus operandi of the suspects was allegedly to recruit vulnerable social grant recipients to the scheme and to offer them loans provided they surrendered their SASSA cards and PINs.
“This effectively meant that the affected SASSA beneficiaries would have to collect their monthly grants from these money lenders after the repayments are subtracted. These acts are illegal since they fail to comply with every provision of the National Credit Act of 2005. A grant recipient would allegedly be given a loan without the lender even conducting basic tests of affordability and usually result in over-indebtedness.”
She said the practice was against government’s war against poverty and impacted negatively on social grant beneficiaries.
“SASSA applauds the efforts of the team which led to these arrests and particularly the work done by SAPS to ensure that the poor are protected…”
A warning was also issued to SASSA grant beneficiaries not to use their cards to borrow money as this was illegal.
“The public is requested to call the police or contact SASSA on 0800 60 10 11 to report illegal money lending.”
