Lifting lid on loan sharks who keep elderly’s Sassa cards

A COMMUNITY is lifting the lid on loan sharks who are holding South African Social Security Agency (Sassa) cards as collateral while their elderly clients suffer, living from hand to mouth.

Sassa has since warned that any illegal money lender found in possession of Sassa cards will be arrested.

Ralph Bouwers, CEO of the Guardians of the National Treasure, which runs 25 soup kitchens, soccer, chess, soccer and other extra-mural activities, including a club for the elderly, has begun a pilot project with two elderly women who owe loan sharks thousands of rand.

One of the women has since been able to repay her debt in less than three months.

Bouwers said it was heartbreaking, watching families suffer while pensioners’ grants were being held hostage by loan sharks.

“Some charge R40 on a R100 (loan) and others R100 on a R100 (loan),” said Bouwers. “These elderly people and their families need to eat. We find there are drug dens which also act as loan sharks, as well as selling alcohol.

“These elderly people find themselves in debt because they are from very poor families and often they have to make debt upon debt. But the problem is that this causes a ripple effect; a cycle where it affects the youth in that household who have nothing to eat.

“I have a woman who has paid her debt. She owed over R3 000 and one month she gave her whole Sassa grant of R1 900 and in three months she is clear.

“(But) their Sassa cards are being kept by these loan sharks and interest is being charged. Where are the authorities, where is the control?”

A 62-year-old woman who met with her team was in a flood of tears, often going to bed without a meal.

“I owe R2 500 and my Sassa card is still with the loan shark,” she said.

“They charge me R40 (interest) on a R100 loan. I do not have my card which means I am unable to buy food for my family.”

Another 61-year-old woman said she was left with only R400 after a loan was made via a loan shark following the death of her husband.

“I am living in a one bedroom and have to pay R200 rent there. I am left with R200 for food. I survive by standing in the food queues.”

Sassa spokesperson Shivani Wahab said they were aware of the ongoing issue of loan sharks and anyone caught in possession of a recipient’s card would be arrested.

Spokesperson for the Department of Social Development, Esther Lewis, said their office was encouraging beneficiaries to report these loan sharks to authorities.