Dlamini digs in on deductions
Minister appeals court ruling
Social Development Minister Bathabile Dlamini is continuing her battle against Net1 and Grindrod Bank – to stop them deducting from the accounts of social grant beneficiaries.
Dlamini has applied for leave to appeal last month’s judgment by North Gauteng High Court Acting Judge Corrie van der Westhuizen that regulations promulgated by her do not prevent deductions for loan repayments, funeral policies and even airtime by Grindrod Bank, Moneyline Financial Services and Manje Mobile Electronics Payment.
Net1 is the parent company of social grants distributor Cash Paymaster Services (CPS), and also has stakes in Moneyline Financial Services and Manje Mobile Electronics Payment.
Dlamini wants to be granted leave to appeal Van der Westhuizen’s judgment to the Supreme Court of Appeal or a full bench of the high court.
In her application, Dlamini said Van der Westhuizen was incorrect when he found that social grant beneficiaries who hold bank accounts with Grindrod in their own names have a direct client/banker relationship with the bank or any other banking institution.
“The SA Social Security Agency [Sassa] accounts administered by Grindrod constitute special accounts which must not be confused and equated with private bank accounts opened and owned by individual beneficiaries at other commercial banks where social grants may be deposited,” reads Dlamini’s application.
Dlamini said for the purposes of administering and distributing social grants, Grindrod and CPS are organs of state.
She added that in cases where beneficiaries choose banks other than the one contracted by Sassa, they must first seek consent from the agency for the choice to take effect.
The minister insisted that the restrictions in the regulations are meant to protect them against abuse by “predators”.
Dlamini said the complaints were lodged directly with her and Sassa because beneficiaries do not have any relationship with Grindrod.
Grindrod is contracted by CPS to pay social grants beneficiaries, Dlamini said, and these accounts should not be operated like normal bank accounts.
Meanwhile, Dlamini will know today whether she will be joined in her personal capacity and ordered to pay costs of the social grants case finalised by the Constitutional Court in March from her own pocket.