SASSA automated grant verification system faces legal challenge

The South African Social Security Agency (SASSA) is facing legal scrutiny over its automated verification system used to determine eligibility for the R370 Social Relief of Distress (SRD) grant. The system, which cross-checks data from banks, the South African Revenue Service (SARS), and credit bureaus, has been criticized for failing to distinguish between regular income and one-off deposits.

Legal experts from the Centre for Applied Legal Studies (CLAS) argue that the algorithm treats all bank account transactions—including loans from relatives, funeral policy payouts, gifts, and stokvel contributions—as taxable income. This lack of nuance reportedly prevents millions of eligible citizens from accessing support. While approximately 15 million people may qualify for the grant, only about eight million are currently being serviced.

The matter has reached the Supreme Court of Appeal (SCA) following a Gauteng High Court ruling that found certain SRD regulations unconstitutional. Advocates argue that the fully automated process violates constitutional rights to social security, equality, and dignity, particularly in a country reliant on informal financial networks. While critics are not calling for the removal of automated checks, they are demanding the implementation of human reviews to allow applicants to explain specific transactions.