National Development Agency Annual Report & SA Social Security Agency Half-Year Progress Report
Social Development
08 November 2006
Meeting Summary
A summary of this committee meeting is not yet available.
Meeting report
SOCIAL DEVELOPMENT PORTFOLIO COMMITTEE
8 November 2006
NATIONAL DEVELOPMENT AGENCY 2005/6 ANNUAL REPORT & SA SOCIAL SECURITY
AGENCY HALF-YEAR PROGRESS REPORT
Chairperson: Ms T S Tshivhase (ANC)
Documents handed out:
National Development
Agency (NDA). Presentation to the Portfolio Committee
National
Development Agency (NDA). Annual Report, 2005/6.
National Development
Agency (NDA). Profile
National Development Agency (NDA). Strategy
South African Social Security Agency (SASSA). Half-Year
Progress Report: Presentation
SUMMARY
The Committee met with the National Development Agency, the South African
Social Security Agency, and the Department of Social Development to receive
presentations on the former’s 2005/6 Annual Report and the latter’s Half Year
Progress Report. Questions raised included the National Development Agency’s
efficiency in supporting social development projects, late detection of fraud,
how performance bonuses had been awarded without performance contracts, whether
legislation relevant to the Agency’s establishment was satisfactory, and why
the Agency had not prioritised disability issues. Members were broadly
supportive and appreciative of the South African Social Security Agency’s
achievements and efforts in its first six months of existence, but expressed
concern over security at payment points in rural areas.
MINUTES
National Development Agency (NDA) Presentation
Mr Godfrey Mokate (Chief Executive Officer) emphasised that the NDA’s main
focus was the eradication of poverty. According to the Human Sciences Research
Council (HSRC) since 1996 there had been little change in the proportion of the
population living in poverty – approximately 57% of the population (26 million
individuals) in 2001. KwaZulu-Natal had the highest share of the poverty gap
(22.5%) and the Eastern Cape the second (18.2%). The NDA faced this problem in
common with other government agencies.
This was just the overview of the NDA as an organisation, which had
offices in all the nine provinces. Each province was divided geographically.
The focus of the Minister and also the Chairperson of the Board had been that
the NDA should have a strategic importance in the context of the country with
the aim to halve poverty by 2014 in terms of the Millennium Development Goals.
The NDA had also focussed on organisational transformation, building its
institutional capacity to deliver on its mandate. Performance reporting was
very important for the organisation in terms of its relationship to the public,
to the political authority, and to the people that it served.
With regard to the historical legacy, there had been an established negative
perception of the NDA, on the part of the political authority, and among the
stakeholders, the public, the people served, and among Members of Parliament,
the Political Authority and the public and the people that the NDA served.
Ministerial intervention in October 2003 and forensic investigation had led to
the suspension of the previous Chief Executive Officer. None of the previous
Chief Executive Officers (CEOs) had served their full term of office. A new
board was appointed on 5 December 2004. When the current CEO, Mr Mokate, was
appointed on 1 June 2005, an analysis revealed a previous lack of common
strategic direction and leadership, lack of management systems and performance
culture, a backlog of unresolved labour relations cases including those of the
previous CEO, weak and inadequate systems of monitoring and evaluating
contracts and project management, problems in procurement systems and
delegation of authority, a huge backlog in payments to funded projects, lack of
an updated database of Non-Governmental Organisations (NGOs) and Community-Based
Organisations (CBOs) as prescribed in the NDA Act (Act No. 108 of 1998, as
amended), weak reporting and document management systems, low levels of
appropriate skills and competencies throughout the organisation to achieve its
goals, weak administrative systems, non-alignment between organisational
structure, people and strategy, weak corporate governance systems and capacity,
no clear programme of capacity building for CBOs and NGOs as mandated by the
NDA Act, and no updated strategically aligned approved organisational
structure. It was important for Parliament to be aware of these issues in
discussion of the NDA Act.
Given all these problems, it had been decided to focus on the transformation of
the organisation and developing a new, widely canvassed five year strategic
plan to give proper direction with an emphasised theme of unlocking potential.
The NDA has performed successfully in the year under review as measured against
agreed performance targets whilst operating under the difficult circumstances
of transformation. One of the NDA’s biggest problems had been lack of strategic
direction. There had been a strategy that had been signed by the Minister, but
the context of that strategy was that it was just for administrative purposes,
but there had never been an overall strategy based on the needs of the
stakeholders and public served. It took a lot of time and resources to develop
the new strategy. A business process review was important in order to focus on
the internal processes: an organisational readiness assessment was a major
feature of this review. In order to give the NDA a better sense of direction,
from the onset, the NDA asked itself how its performance would be
assessed. Moreover, communications with
stakeholders, with the state, with the provinces and with parliamentarians were
reviewed.
At the beginning of the financial year, NDA had 84 unpaid project payments
totalling about R28 million. NDA focussed on eliminating that backlog because
it was vital to restore the confidence of the stakeholders in the organisation.
This was also setting the pace for other organisations in the future. In
improving corporate governance compliance, the NDA had achieved much in that
regard in establishing competencies in internal organisation. Included in this was the establishment of a
very strong internal audit committee. An aligned and integrated human resources
strategy was developed. A capacity-building plan had been implemented. Much of
the NDA’s work was in serving poor communities, which was a high-risk business,
so there was focus on that. Information Technology (IT) was very important in
the NDA’s business: the disbursement of funds was IT based. In going forward,
the NDA wanted to use technology as a mechanism to reach the individual members
of the community served. If NDA were to rely only on the offices that it had in
the provinces, it would not have the resources to serve the public without
employing more staff, thus IT had become very important. In establishing a
framework of governance and processes, NDA had approved 104 projects valued at
R68.7 million, to benefit more than 70 000 people directly and 278 000 people
indirectly. NDA had disbursed approximately R62 million of grant money for
projects. Significantly, the NDA had
achieved over 85% of its targets in terms of the CEO’s performance agreement
with the Board. When measured against the original strategy, over 60% of
targets had been achieved.
Ms N Antonis, Human Resources (HR) Executive, added that the main reasons why
the NDA had not achieved all its targets included insufficient capacity in
terms of human resources. When discussing the new strategy, it was realised
that its human resources were vital to the NDA’s future. To give an
understanding of the progress achieved, it was necessary to examine some of the
challenges. In July 2003 the NDA had not had a defined human resources
strategy. This meant that things had happened on an ad hoc basis. There
had been no clear understanding of the organisation’s direction. There had been
inadequate human resources information systems and processes. The NDA at the
time and until fairly recently had a qualified audit opinion on poor personnel
and payroll administration. The NDA had
never complied with requirements for employment equity, and had not even paid
occupational health insurance for its staff. No performance standards were set
or applied to employees. Whether they performed well or not made no difference
to their remuneration.
Staff structure had been poorly aligned and very few positions had
appropriately designed and documented job descriptions. No training and staff
development plan had existed. A large number of Commission for Conciliation,
Mediation and Arbitration (CCMA) cases were pending. The provident fund had
lost an unacceptable percentage of its value.
The strategy that the NDA has adopted has been to build its human
capacity. The current situation was that all issues listed above had been
addressed with the audit opinion having been successfully removed over the
period under review with only a few housekeeping matters being mentioned.
Definite progress had been achieved, in particular with regard to the matters
that had occasioned adverse audit opinion. The NDA’s organisation and structure
had been successfully redesigned. An inventory had been taken of human resource
capital, and competency assessments had been performed throughout the
organisation. People at the end of the service chain were never going to
receive quality service unless performance was driven. Hence a performance
management system had been implemented with appropriate standards and criteria,
with performance measured against those standards. Now every employee’s
performance, from the lowest to that of the CEO, had been directly linked to
the strategy.
Mr Mokate introduced the abstract of financial performance and the report of
the Auditor-General.
Mr M Mofokeng, Chief Financial Officer, dealt with financial performance in
greater detail and the report of the Auditor-General. The context of the
Auditor-General’s adverse findings was fraud, which NDA had detected and taken
measures to correct, including dismissal of a junior accounts clerk, who was
currently in jail pending a bail application. Forensic auditors had been
appointed in 2003 and had produced an interim report.
Mr Mokate referred to the question addressed in Parliament to the Minister on
whether the NDA had paid bonuses to staff, and, given the NDA’s negative press,
on what basis had bonuses been paid. The Minister had replied, on the basis of
information provided by the NDA, that bonuses had been paid.
A key strategy had been to conduct an internal audit of all the units of the
organisation. It was in the normal yearly audit of the organisation that the
NDA discovered the anomalies that had led to the NDA’s contacting the
Auditor-General to conduct a forensic audit. As a result, it had been
discovered that the NDA had been defrauded to the extent of R8.8 million since
November 2004. Mr Mokate had received the final report, which confirmed that
there had been theft and fraud, on Monday, 6 November 2006. The report had still to be considered by the
Board and by the Minister. NDA had taken action based on the initial
information received; the suspect was dismissed and has been charged with fraud
and theft. On Friday, 3 November 2006 she was denied bail. NDA was working to
recover the money stolen and to implement any other conclusions of the forensic
audit report as soon as the Minister and Chairperson of the Board proceeded
with implementation.
For the future it was expected that the current strategy would prevent a
recurrence. NDA would focus on proper oversight. Parliament or any interested party would be
able to call for an evaluation of NDA’s progress towards achieving its new
strategic goals. These goals were clustered under organisational
transformation, partnering for development, resource mobilisation for poverty
eradication, community empowerment for sustainable development, and
communication of credible and relevant researched development information.
Furthermore, the NDA had set itself macro indicators. These addressed the high
level, externally focused objectives that would be achieved through
implementation of the NDA’s strategic goals as defined in the Organisation
Scorecard. The macro indicators and associated strategic goals were improved
coordination of resource allocation for poverty eradication, partnering for
development, resource mobilisation for poverty eradication, improved economic
opportunities and social empowerment for communities in NDA targeted
localities, community empowerment for sustainable development, improved
capacity of targeted Civil Society Organisations (CSOs) in relation to service
delivery, increased influence in development policy as it related to poverty
eradication, and communication of credible and relevant researched development
information. This formed a contract between the state, the government and the
NDA.
Discussion
Mr M Waters (DA) asked for clarification about the documents given to the Committee.
Mr Mokate said that the contents of the presentation, and the hard copy version
that the Members had been given, was based on the Annual Report.
The Chairperson said that there were people in the meeting who could not read
from the screen, and that it was therefore necessary for speakers to read out
what was displayed.
Advocate T M Masutha (ANC) requested that a copy of the exact text exhibited on
the screen should always be provided to Members to facilitate their
deliberations. Not providing such documentation confused Members and thereby
frustrated them in the task of oversight with which they had been entrusted. He
considered it “a constitutional issue”.
Mr Mokate explained that the item on bonuses had not been included in the
hardcopy version of the presentation to avoid making it too long, but he took
note of Advocate Masutha’s request. He referred Members to the Annual Report
itself.
Ms H Weber (DA) asked on what basis performance bonuses had been paid in 2003,
which had not been a very productive year.
She asked further, given that the NDA was very important in job creation
and giving people a sense of “self-worth”, if there were any kind of audit as
to the NDA’s most successful projects and their outcome, in particular in rural
areas with a view to prevent fraud at the point of delivery. It was fortunate
that the culprit in the fraud case had been put in jail, but the fraud should
have been detected earlier.
Mr Waters asked for a specific date when the Board, the Minister and Parliament
would see the forensic audit report. He asked further how the NDA had awarded
bonuses without performance contracts, and who had made the decisions, and why
the 2004/5 financial year had apparently been omitted from the presentation. The NDA said that its income for that year
had been R172 million. The NDA had spent
R55 million on direct funding of projects, and R3 million on project support.
Staff costs had been R33 million, and administration costs had been R31
million. It puzzled Mr Waters that it had cost R64 million to staff and
administer projects on which R55 million had been spent in direct funding and
seemed to him “a very inefficient way of spending money.” The NDA’s running
costs were more than was spent to help poor communities. Furthermore, the NDA’s
net surplus had increased from R14 million in 2005 to R48 million in 2006. This
represented money that the NDA had been unable to spend, in spite of the huge
challenges that South Africa faced. It surprised him that the NDA had not been
able to find enough projects to support by utilising these unspent funds. He
asked whether there might be better ways of funding such projects and that
maybe the NDA “should be scrapped”. Perhaps the Department of Social
Development (DSD) itself should administer such projects rather than have a
separate bureaucracy and an organisation that was under perpetual restructuring
despite its having been established only in the year 2000.
Ms H I Bogopane-Zulu (ANC) appreciated the balance scorecard and empowering the
Committee thereby. But, as Mr Waters implied, restructuring could not be
continued forever and it was necessary to give the Committee a commitment to
dates as to when the process would be completed. Also she asked for comment
from the NDA on whether the NDA Act was assisting the NDA in its activities and
whether the legislation was satisfactory. “Something was definitely wrong.” The
CEO’s emphasis on IT, which entailed “data integrity”, was commendable in
facilitating project management. The NDA needed to develop measures to test the
validity of data provided by field workers. With reference to the budget,
capacity building needed to be addressed in order to relieve poverty. “Elite”
projects tended to be given priority, but other worthy projects needed to be
given attention by the NDA. More needed to be said about the fraud prevention
strategy. The needs of members of the community with disabilities needed to be
urgently addressed by the NDA. This included the need for documents in Braille,
in large print, or the use of sign language interpreters. Disability and
poverty “were married”. No more excuses could be accepted for not addressing
this issue. Employment of disabled people should be increased, not least within
the NDA itself.
Ms
X C Makasi (ANC) asked about the mechanism for awarding bonuses and who
specifically benefited from the work of the NDA.
Mr B M Solo (ANC) said it was unfortunate that the NDA had undergone a
turbulent period without stable leadership. He wanted to hear more about NDA’s
compliance with legislation. He wished to emphasise the matter of capacity
building. The NDA’s clients were among “the poorest of the poor”, and had been
especially deprived of education beyond the third standard of education.
Ms
Bogopane-Zulu further asked the NDA to simplify its application form which was
too complicated – “like writing an exam”, if it was serious in its efforts to
alleviate poverty. Moreover, its guidelines should be available in languages
other than English. Poor people were the most seriously affected by illiteracy
and related problems.
Mr Waters asked further about the Auditor-General’s Report on controls over
poverty eradication and projects, project write-backs, and write-back of trade
creditors. He asked specifically what had happened with regard to those points
since the Report had been published.
Ms Bogopane-Zulu asked how the NDA was going to measure and monitor projects
before allocating funds.
Mr Mokate responded that he had counted a total of twenty questions. He would
first respond to those questions which related to the subject of whether it was
necessary to retain the NDA or not, the challenges envisaged with regard to the
NDA legislation, and also the forensic audit report. Also he would respond to
the question on bonuses and the involvement of the Board in deciding to whom
bonuses should be payable. Ms Antonis would respond to questions relating to
disability. The questions relating directly to projects, such as
sustainability, would be answered by Mr R Mogano, Projects Director. The questions related to risk would be
answered by Ms H Mansour, the Director for Internal Audit. The questions
related to finance and to capacity would be answered by Mr Mofokeng.
Mr Mokate did not want his answer to the question as to whether the NDA was “a
basket-case”, as inferred, to be taken as a determination; it should rather be
taken as an opinion. It was his “own considered opinion, from his own
professional background”, in the light of his study of both developed and
developing countries and the institutional mechanisms that existed between
state and society in various countries, that South Africa was “a trendsetter”
in establishing an agency such as the NDA. It was his view that the NDA was “a
good organisation”. Other countries were asking for advice on establishing
comparable bodies, even the United Kingdom.
South Africa had the greatest inequalities in the world. Thus an
institutional mechanism was needed. Co-ordination between departments and
agencies was essential, and NDA had a key role in providing such co-ordination
at the point of service delivery. The NDA “operated at the ground level”. On
this basis Mr Mokate advocated the continued existence of the NDA. There was an
inherent tension and challenges with regard to the composition of the Board of
the NDA that needed to be addressed in relation to the NDA Act, but, with the
permission of the Chairperson, he preferred to address that matter separately
on another occasion.
The operational costs were indeed high, but he envisaged a reduction of those
costs in the future. Much work had been performed in reducing internal costs.
The NDA’s new business plan, using IT and developing skills, would lead to
reduced operational costs.
Ms Antonis said that Mr Waters’ assumption that NDA had been continually
restructuring was incorrect. The February 2006 new structure was based on a
review of organisational strategy. Restructuring was now complete, with a staff
complement of 87 and vacancies in 11 strategic positions, including provincial
managers in each province. Bonuses paid
in May 2003 had been for the 2002/3 financial year and were not performance
bonuses. There had been no performance contracts in operation in that year. All
employees had been given bonuses that year. No bonuses were paid in 2003/4 or
for 2004/5. Bonuses were paid in 2005/6 because performance had to be rewarded
in order to inculcate the values of a performance-based culture; they were
based on measurable criteria. Ms Antonis
gave details of how the bonuses were awarded. In the current year, individual
performance had been measured. In subsequent years, team performance and
organisational performance would be measured in addition to individual
performance in the determination of bonuses. The Board alone approved bonuses
and salary increases. It had to be acknowledged that NDA had not been
successful in regard to disability issues. Traditional recruitment mechanisms
had not realised satisfactory results in that regard.
Mr Mofokeng r said that it was proposed to split the income statement to
represent the amount spent on capacity building. A cost reduction strategy was
being developed. A register of projects was being compiled to ensure that all
documentation was complete, with the use of scanning technology to create
backup images of documentation.
Mr Mogano said that it was important to look at staffing costs in relation to
the actual period for which the NDA was committed to a project. Moreover, the
staffing costs were directly attributable to the actual staffing of projects
and were not essentially a cost additional to funding the projects. The NDA’s
process for accessing funding was stringent. The NDA had recently approved
projects nationwide to the level of R21 million in support of capacity
building. These would be launched on 27 November 2006, and would involve 15 or
so organisations around the country. The NDA was sensitive to the issue of
income-generating projects: these had much higher prospects of sustainability,
though to define it only in financial terms was misleading. It had to be
redefined in a wider context. The issue of assets, especially their disposal,
was complex.
Ms H Mansour, Chief Audit Executive / Director of Internal Audit, said that a
risk manager had been appointed.
Ms Bogopane-Zulu said that she appreciated the responses of Mr Mokate and his
reluctance to discuss the challenges with regard to the legislative framework
concerning the NDA, but the Committee needed to hear more, because it was the
Committee’s responsibility to call for amendments to legislation if required,
and said that she needed to meet with the Minister regarding disability issues,
since every agency and department produced excuses for not acting. The
Department of Social Development should be expected to take a leading role.
“Real jobs” should be open to the disabled, not just low-level jobs.
The Chairperson said that all should be concerned with disability.
Mr D Willcox, Company Secretary, NDA, said that the 2003 forensic audit report
was about to be deliberated upon by the NDA Board at its 30 November 2006
meeting. The second forensic report had just been completed and handed to Mr
Mokate on Monday, 6 November 2006 and would be presented to the Board at the
same meeting on 30 November 2006. Thereafter the Board would meet with the
Minister to decide when the report should be released to the public. It was
anticipated that both reports would be released during the first session of
Parliament in 2007.
The Chairperson thanked Mr Mokate and his colleagues for their presentation.
South African Social Security Agency (SASSA) Presentation
Mr F Makiwane, Chief Executive Officer, introduced his colleagues and
explained that his presentation was a progress report on the first six months
of the South African Social Security Agency (SASSA)’s existence. The size of the delegation reflected the seriousness
with which SASSA viewed the social security programme, which was essentially
Government’s biggest poverty alleviation programme. As the Committee had already been informed,
SASSA had not yet produced an annual report, since it had been created in April
2006. SASSA therefore at this time was presenting to the Committee a half-year
progress report. The presentation was to be viewed in relation to a progress
report that had already been sent to the Committee. It would indicate the
priorities that the Agency had set for itself in regard to the establishment
and putting into operation of the Agency and measures to improve service
delivery. The Agency’s strategic plan and budget would be explained. The Agency
had set for itself six strategic priorities. The first was to improve the
Agency’s service delivery quality, including, in particular, the turnaround
time for processing of applications for grants, the development and
implementation of the service delivery model, and basically answering the question
of what the Agency should do differently from what the provinces had been doing
in terms of grant delivery. Implementing priority norms and standards would
also be described. The norms and standards had already been circulated and the
Committee was aware of them. Also the number of beneficiaries served by the
Agency would be mentioned and how growth in numbers could be projected, along
with the dynamics of the growth in beneficiary numbers. The implementation of
the Customer Charter would be described. These were the main elements of the
presentation.
The next area was organisational capacity. Some staff had been transferred from
other departments and agencies on establishment of the Agency. The head office
and the regional offices had had to be created. So recruitment of staff had
been a key priority of the agency. Implementation of human resource policies
had become very important, as had been the establishment of a change management
culture in the organisation, and the establishment of a staff-training
programme to ensure that they were well capacitated to deliver quality services
to beneficiaries. The next strategic
priority dealt with improvement of payment services to beneficiaries. There were problems related to the
infrastructure that the Agency had inherited, especially with regard to the
safety and security of service delivery points. Fourthly, grant-processing
integrity had to be addressed. The Auditor-General had alluded in this regard
to data quality. There was a need also to standardise business processes. There
were two issues of core importance: financial matters and prevention of
fraud.
The first key programme issue was the customer management programme. The first
issue that had been finalised was the Customer Charter. This embraced such
matters as customer or beneficiary expectations of the Agency, aspects of
behaviour and interaction between staff of the Agency and customers, and the
Agency’s expectations of customers themselves. The Agency hoped that the
document would ensure transparency and accountability.
The second issue that had been finalised was the issue of the grant application
process, which the Agency had standardised across the country. Several
strategies had been implemented to improve the turnaround time. A pilot project
had indicated that a turnaround time of three days was a reasonable target.
The third issue was that of unclaimed benefits and cross-boundary transfers.
Some policies had been drafted, and more information could be provided to
Members if required.
The next issue was the “lost file syndrome”.
The national database of needy learners had been finalised to facilitate
beneficiaries’ access to other government services that could be of help to
them. The last element was the customer relationship strategy.
Much progress had been made towards improvement of infrastructure. It was hoped
that help-desk officials could be provided at all pay points who could assess
beneficiaries as to their eligibility for other government services. Mobile
offices had been procured to facilitate access to rural areas. These were being
piloted in two regions. Next financial year it was hoped to extend these mobile
offices to all provinces. Twenty mobile offices would be delivered this
month. A monitoring report programme
had been initiated to ensure compliance by third party contractors.
With regard to business integration, eight of nine regional offices, together
with some district and local offices, had been moved to offices separate from
the Department of Social Development.
The grant administration function had been capacitated with transfer of
more than 6 000 staff from provincial offices.
Support function policies, procedures and delegations were being rolled
out to regions. Grant administration policies, procedures and delegations had
been implemented with clear reporting and accountability.
With regard to business partnerships, costing of policies and grant and
beneficiary projections through macroeconomic and micro-simulation modelling
techniques had been implemented.
Verification of grant projections had been completed. The Agency had met
with various institutions to assess where they could support and assist the
Agency in promoting service delivery.
Among trends in beneficiaries, child support grants were the main cost driver.
The total number of beneficiaries was 11.5 million. KwaZulu-Natal had the
highest annual growth rate over the review period – 22.3%, with the North West
second at 20.5%, Mpumalanga third at 15.4% and the Eastern Cape fourth at
14.7%.
With regard to the management of human capital, recruitment policy and
delegations had been finalised by the end of September 2006. 60% of identified
critical posts had been filled. An approved organisational structure was
currently under review to ensure alignment with the service delivery model.
Most contract workers transferred from the Department of Social Development had
now been absorbed into the Agency as permanent staff members. Labour relations
and collective bargaining forums were being established. Training and
development interventions had commenced. 645 employees were studying social
security, which was no longer a field of sheltered employment for the
incompetent. A skills audit was underway. Human capital management (HCM)
policies, training interventions focusing on core functions, were in the
development stage. Performance contracts had been signed by 80% of Senior
Management Staff (SMS), and by 54% of staff on levels 1-12. The Essential
Services Committee had designated SASSA as an essential service; therefore, the
law forbade strikes by employees.
In regard to legal services, a draft litigation strategy had been developed.
Consultation with relevant stakeholders was currently underway. Ad hoc
assistance and structural assistance had been provided to regional offices.
With regard to information and communications technology (ICT), critical
business systems (BAS, PERSAL, LOGIS, and SOCPEN) had been put into operation.
ICT support services had been provided through a State Information Technology
Agency (SITA) business agreement, while tenders were being finalised on the
open market. Loopholes in the SOCPEN
system were being closed, as required by the previous audit. The SASSA website,
www.sassa.org.za , was now in operation.
A SASSA intranet had been established. A Home Bases electronic document
management system had been acquired. ICT governance structures and standard
policies had been developed.
With regard to the communications, marketing and change management programme, a
three-year communication strategy and plan had been developed. An internal
communication plan had been developed including a regional alignment process.
An interim brand had been finalised and introduced. A corporate identity standardisation
process had been concluded. A national switchboard had been established. A call
centre establishment project was to be transferred from the Department of
Social Development. The Agency had put in place guidelines for handling
complaints. The Minister, however, handled appeals.
The Agency had a fully developed finance department. All the necessary
compliance measures had been implemented. In the finance and supply chain
management programme, all budgets were being transferred from provincial Social
Development offices to the Agency. A detailed budgeting template had been
created and implemented.
In the audit and risk management programme, the Agency had appointed a chief
internal auditor and professional staff, developed audit and risk management
policies, established monitoring and evaluation processes, built partnerships
with other data sources and other institutions, appointed a Special
Investigating Unit (SIU) for three years to assist with investigations, and had
suspended, as of the end of September 2006, 15 982 government employees who had
been receiving grants, and received over 43 000 cases for investigation through
a fraud hotline with a 24 hours a day number.
In conclusion, the process of establishing SASSA was proceeding well within expectations
presented in the strategic plan. SASSA had assumed full responsibility and
accountability for the administration and payment of social grants across all
nine provinces. The following issues posed challenges and risks for the agency:
transfer of contracts and associated budgets from provincial and national
Departments of Social Development to the Agency; and the current state of
litigation and magnitude of liability in respect of cost orders granted against
the Agency.
Discussion
Ms Bogopane-Zulu objected strongly at the beginning of the presentation
to the way presenting teams were introduced at meetings, which were confusing,
especially to Committee Members and visitors with visual disabilities. She said
that identification would be facilitated if speakers announced their identities
clearly when they began their contributions to the meeting. She stressed that members of presenting teams
had voices.
Ms Weber supported Ms Bogopane-Zulu’s objection. It was a valid suggestion that
it was helpful to be able to associate speakers’ names directly with their
voices.
The Chairperson concurred and noted the matter for attention at the next
meeting.
Ms Bogopane-Zulu appreciated that the progress report itself had been sent to
Members by email, but remarked that Members of Parliament had to pay for their
own stationery.
Mr Makiwane said that this was an example of “public-private partnerships” and
sharing of resources.
Mr Waters complimented Mr Makiwane on his presentation and said that he had been
very impressed with what he had seen on a visit to SASSA within the previous
three months. He asked for clarity on whether it had been 15 982 employees who
had been suspended or the same number of grants that had been suspended, and,
following a robbery by armed men, had all service points been provided with
proper security?
Ms Bogopane-Zulu said that SASSA’s website needed to be kept accessible and up
to date. However, she had serious concerns about the Agency’s operations in the
Eastern Cape, including the attitudes of staff.
Advocate Masutha was worried about the issue of litigation and hoped that SASSA
would not be overwhelmed by a multitude of lawsuits.
Mr Solo said that he shared the sentiments of his colleagues and praised the
overall efforts of SASSA. There needed to be co-operation from local government
to provide adequate facilities for SASSA operations at the point of service
delivery.
Ms C I Ludwabe (ANC) asked if the police could accompany vehicles carrying
pension money to improve security, especially in villages, where there were no
telephones.
Ms Makasi congratulated SASSA for its co-operation with the Committee, but
payment through banks was not an option in the rural areas.
Ms Bogopane-Zulu said that local halls should be rehabilitated to provide a
local resource and at the same time they could be used for SASSA to disburse
payments.
Mr Makiwane replied that SASSA had a working relationship with the police to
protect payment points, though police resources was heavily stretched,
especially in rural areas. Fraudulent Identity Documents (IDs) were
referred to the Department of Home Affairs. If Home Affairs passed the ID, then
SASSA had no option but to pay the beneficiary. Partnership with other
government departments was very important to SASSA. The Agency appreciated the
Committee’s observations and suggestions in its efforts to become a world-class
organisation. He agreed with Advocate Masutha that SASSA needed to learn from the
experiences of other social service institutions in dealing with litigation.
The Unemployment Insurance Fund (UIF) also faced litigation issues.
SASSA was reviewing its system of payments through some 6 000 payment points
throughout the country and comparing its practices with those of other nations in
order to improve security from the viewpoint of the Agency and its
beneficiaries. Contracted service providers had to be very strictly managed to
prevent abuse of beneficiaries. It was essential that contracted service
providers be obligated to pay to the beneficiary the exact amount stipulated by
the Agency. To this end, the Deputy Director General of the Department was
studying ways and means of better contract management. The mobile offices, equipped with online
computer facilities, had been introduced to expedite processing of the many
deserving cases that SASSA had found in the rural areas that had never
previously received social grants because of lack of processing facilities.
Staff had to be educated to internalise the values of the Batho Pele Change
Management Programme; the Agency was addressing this. A skills audit had been
undertaken. A proactive strategy had been adopted to respond to the issue of
litigation.
Ms Bogopane-Zulu said that the NDA could share its expertise in human resources
with the SASSA. Indeed, all agencies whose objective was to alleviate poverty
should share their experiences.
Mr Zane Dangor, Chief Operations Officer, DSD (Department of Social
Development) added that the Department had the view that its role in relation to
the NDA and the SASSA was not just one of oversight, but also to work in
partnership with them and to provide strategic support.
The Chairperson thanked Mr Makiwane and colleagues for their presentation and
responses.
The meeting was adjourned.
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