Stokvels: How to safeguard payouts

The South African Police offers timely advice to stokvel clubs ahead of the festive season, so they do not lose their hard-earned money to criminals.

“Stokvel-related robberies and thefts are most prevalent this time of the year and we urge stokvel clubs to be pro-active and adopt reasonable measures to safeguard their money,” said Colonel Thembeka Mbhele of the SAPS KZN media centre.

Instead of withdrawing large amounts of cash from the banks to pay out money to members, they should rather transfer the money into their members’ bank accounts. Those members who do not have bank accounts should be encouraged to open them. Clubs that have to pay cash to their members, a practise which is inadvisable, should ensure they have a secure venue with adequate safety measures in place when dividing and paying members their share of the year’s savings.

Stokvel clubs can also request their local police to patrol the vicinity of the venue where they are to make payments to their members, as this will deter criminal elements.

Members of stokvel clubs should be vigilant and take precautions to safeguard their money when making withdrawals at the ATMs.

They should not withdraw large amounts of money, especially after hours when the streets are quiet and criminals are likely to be lurking around. Rather use the ATMs at shopping malls during business hours when it is safer or where there are security officials on duty.