Cash Paymaster Services Presentation
The Minister
Department of Welfare and Population Development
PRETORIA
Dear Minister
CASH PAYMASTER SERVICES REPORT ON SOCPEN ISSUES
It is with appreciation that CPS submits the following report in respect of SOCPEN issues for your perusal. CPS has 10 years experience in the payment of Social Grants in SA. CPS operates in six Provinces and is paying in excess of 1,2 million social grant beneficiaries on a monthly basis. This, in short, to prove that CPS is in a position to assist with the identification and also the resolving of issues related to social grant payments.
SOCPEN HISTORY
The SOCPEN pension administration system was developed, implemented and maintained by the former Provincial Administration of Transvaal (PTA) during 1987. This system administered and paid pensions only for a certain population group. During 1994, a decision was taken by all provincials’ Welfare Departments to amalgamate the then 14- pension payment and administration systems into one system. At that time it was decided to make use of already existing SOCPEN system. This process started in 1994 and was completed during 1996.
The functionality on SOCPEN had to be changed to accommodate the different payment methods contractors such as the Post Office, CPS and Allpay. What must be understood is the fact that the SOCPEN system was developed to handle only two payment methods namely cash and bank payments to approximately 700 000 beneficiaries.
On completion of the amalgamation process the various provinces had to start with a "CLEAN –UP" process called RE- REGISTRATION. The purpose of this exercise was to clean up the static data on the system which was incomplete as well as to obtain a valid 13- digit RSA ID number for each beneficiary.
PROBLEMS AT PROVINCIAL LEVEL
The amalgamated process obviously brought about its own problems, which also had impact on the administration of social grants as well as the inputs onto the SOCPEN database.
Due to the fact that problems impacted on CPS’s performance and the service rendered to the client as well as to the beneficiaries CPS appointed a Database Supervisor, who on a regular basis liase with the Provincial Government’s Computer, Finance and Welfare Departments, to ensure that problems experienced are resolved.
In this process the various Provincial Governments are assisted to identify problem areas and are assisted to rectify the problems in respect of for instance incomplete or incorrect data which needs to be updated or changed on SOCPEN.
The incorrect or incomplete data and other problem areas can create opportunities for fraudulent activities and / or delays in the payments process, which therefore needs immediate attention.
SOCPEN LIMITATIONS
For SOCPEN to complete the processing and updating of payment information timeously, SOCPEN introduced cut- off dates for payments in the Provinces, to allow sufficient time for SOCPEN to process data. However, this arrangement has negative implications on service delivery for the Provincial Governments, the beneficiaries and to limit the number of beneficiaries to 1000 per day per pay point the contractor has to deploy more equipment and resources which is only used for half the month.
Due to the fact that SOCPEN does not have real time access to Home Affairs deceased beneficiaries remain on the system for a period before SOCPEN is updated. The result being over payments should money be paid into a bank account or if a procurator collects the money.
In short the SOCPEN system cannot handle the data processing which is required by all the users. It is more than 10 years old and is a system which has been patched to such an extent that it could fall over in the future.
PAYMENT PROBLEMS
The cut-off schedules determined by SOCPEN limits the service rendered in most Provinces to the first 13 – 14 days of the month.
The key to the data of each beneficiary on the system is an ID number, due to the number of ID documents a beneficiary could have multiple ID numbers. The re –registration process should eliminate this problem but the process is slow and updating of the information on SOCPEN is time consuming. It might be a better option to make use of unique numbers for each beneficiary instead of using only the ID number.
SOCPEN does not always adhere to the linkage specifications when sending information to CPS, which result in CPS having to reject information received from SOCPEN. This means that double effort has to be put in by all concerned to get the information timeously for payment.
SOCPEN is not a financial management system, although it is responsible for the management of all social grants payment information. This fact specifically impacts on the generating of payment information especially if a beneficiary did not collect payment during a specific month.
The confirmation of the biometric enrolment of beneficiaries onto the CPS payment system is not always updated timeously on SOCPEN with the following results:
DATABASE MANAGEMENT PROBLEMS
If any changes need to be brought into the system SOCPEN experience problems, for instance, it can take up to six months to register a new contractor. The implementation of a new contractor on SOCPEN needs to be hard coded. For instance CPS "KZN" requested the registration of a new contractor code 5 months ago without any response from SOCPEN to date.
The system will only generate management information on request and then only weeks after the receipt of the request.
Problems with implementation of enhancement on functions to i.e. capture or approve and change beneficiary information on the system is experienced due to the system being patched and not being able to cope with any enhancements, resulting in over or under payments.
CPS is forced to conform to SOCPEN cut-off schedule and deliver reconciliation files before 16:00 on cut – off day month end three. The payment files received from SOCPEN should be available to CPS on the following Monday morning at 08:00. SOCPEN hardly ever meets this deadline which impacts on CPS’s processing time to enable CPS to have their payment files loaded onto the vehicles timeously.
If a beneficiary request a transfer from another payment contractor within a province to CPS, CPS does not receive a static change record to pen an account for the beneficiary therefore no payment is activated on the CPS system. On instruction CPS is then forced to pay said beneficiary outside the system, which could result in fraudulent activities.
GENERAL PROBLEMS
PROPOSED SOLUTION
SOCPEN has served its purpose it has already exceeded its normal system life cycle of 10 years. Due to all the quick fix development done on existing programmes SOCPEN could grind to a stop without warning. It is clear from experience that the SOCPEN system still contains incomplete and wrong information. The purpose of the re- registration process was to cleanup and update incomplete records, which is still in process.
New technology (hardware and software) exist and should be explored as part of the re-engineering process started by the Request for Information (RFI). To develop and implement a complete re-engineered system could take -+ 3 – 5 years. It is however
clear that the SOCPEN system cannot "wait" for the re-engineering of the total Welfare environment. It is suggested that a new social grant administration system be developed without any further delay. With all the development tools available today development of a new SOCPEN system can be done in a shorter timeframe if proper planning of the new system is done.
When planning the new pension payment and administration system the following should be taken into consideration:
Furthermore CPS strongly suggest that a one day Workshop be held between the following role players:
The purpose of this workshop would be to focus on a specific vision and solution for the future and to determine what has already been done within the Department during the past years and incorporating this future solution.
CPS wishes to confirm that we have the knowledge, experience and capacity to be part of this process.
Kind regards
MAZWI YAKO
Executive Director
Appendix 2:
AIMS AND OBJECTIVES OF CPS BY ADOPTING THE BATHO PELE PRINCIPLES
By adopting the principles of Batho Pele, Cash Paymaster Services once again shows its unwavering commitment to the partnership it shares with the democratic Government of South Africa. CPS shares the government’s vision of putting the PEOPLE of this lovely country, FIRST. It also has a vision to be a leader in the payment of social grants by fully adopting and applying the principles.
CPS aims at implementing the envisaged norms and standards proposed by Government. The application of the norms and standards by CPS will be the most visible contribution it will make in restoring the lost dignity & respect that society used to give to our elders. South Africa’s rebirth which is part of Africa’s rebirth will be characterized, among other things, by the rebirth of ubuntu.
CPS’s adherence to and implementation of the Batho Pele principles will help to enhance the partnership that exists between itself and government and communities it is serving. Our practising of these noble principles will help cement our ties with our stakeholders like pensioner committees, non- governmental organisations (NGO’s), community based organisations (CBO’s), local government councillors, traditional leaders and community radio stations.
Let the year 2001 be the year where as a country we bring back to our elders what is rightfully theirs, i.e. their dignity and respect.
Signed_______________________
CASH PAYMASTER SERVICES ADOPTS THE BATHO PELE PRINCIPLES
BACKGROUND
The Batho Pele Principles were conceptualised and introduced for implementation by the democratically elected government of the Republic of South Africa.
In Government, specifically, these principles were introduced by the Department of Public Service and Administration (DPSA) under the political leadership of Dr. Z. S. Skweyiya. In 1997 the principles were launched throughout South Africa. Dr. Skweyiya is now the National Minister of the Department of Social Development. Before the year 2001 this Department was known as the Department of Social Welfare & Population Development. The change in name is a clear indication of the shift in emphasis in the work of the Department.
Dr. Skweyiya’s Ministry and Department insist on the application of the principles by both the Public Service (for which the principles are meant) and those who provide service for the Department e.g. Cash Paymaster Services (PTY) Ltd.
Batho Pele is a Sesotho adage or phrase that means " People First." Government seems to be saying that ‘ Government is Government because it puts the needs and wishes of its people first". The eight Batho Pele principles set out transformation priorities as they are meant to transform the Public Service. These are therefore transformation principles that form an integral part of the transformation process taking place in South Africa today. To abide by what the Principles are calling for CPS will be also carving its own participation in the transformation process.
The White Paper on the Transformation of the Public Service was published on the 24 November 1995, and in it there is this assertion; "A guiding principle of the public service will be that of the service to the people." By introducing the eight Batho Pele principles, Government is trying to make service delivery a priority.
2. INTRODUCTION
As a private company, which provides service for the Department of Social Development, CPS has adopted the Batho Pele Principles. The latter therefore form part and parcel of CPS policy, and because of that adherence to the principles by both management and staff is an imperative.
It is an obvious fact that CPS owes its existence from Government. To us therefore Government’ satisfaction about the service we provide remains a priority.
For us to stay in business we need to continuously improve the quality of our service. It is for this reason that CPS welcomes the introduction of the norms and standards which to CPS are a business ‘franchise’ in the provision of the service for the payment of social grants.
The continuous improvement of the quality and equity of our service can only be achieved if we pay particular attention to the following: -
BATHO PELE PRINCIPLES (8)
The BATHO PELE PRINCIPLES AND VALUES
It was mentioned earlier in this document that Batho Pele is a Sesotho phrase meaning "People first
".On the 01 October 1997, the public service embarked on a Batho Pele campaign aimed at improving service delivery, to the public, and from then Government started a journey – a journey to transform the public service. As managers and staff of CPS we are expected to start our own journey in order to join the race already begun by government. We are expected to determine our own pace according to the situation of CPS whilst staying within the rules.
There are eight (8) Batho Pele Principles as listed in the White Paper on the Transformation of the Public Service:
Customers/citizens should be consulted about the level and quality of service they receive, and wherever possible, should be given a choice on the services that they are offered.
(ii) Service Standards
Customers/citizens should be told what level and quality of public services they will receive so that they are aware of what to expect.
(iii) Access
All customers/citizens should have equal access to the services to which they are entitled.
(iv) Courtesy
Customers/ citizens should be treated with courtesy and consideration.
(v) Information
Customers /citizens should be given full, accurate information about the public services they are entitled to receive.
(vi) Openness and Transparency
Customers/ citizens should be told how national and provincial departments are run, how much they cost, and who is in charge.
(vii) Redress
If the promised standards of service is not delivered, citizens/customers should be offered an apology, a full explanation and a speedy response when complaints are made, beneficiaries should receive a sympathetic, positive response.
(viii) Value for Money
Public services should be provided economically and efficiently in order to give citizens best possible value for money.
Generally speaking these are principles that demand the following: -
PUTTING THE PRINCIPLES IN INTO PRACTICE
Firstly, we need to translate into CPS’ actual daily activities the eight (8) Batho Pele Principles.
The Principles need to find expression and interpretation in CPS’ actual activities as it pays out the social grants at pay points.
We owe it to ourselves as managers and staff of CPS to see to it that CPS stays in business because by so doing we will be assured to provide, not only for us but also for our families:- the basic needs and a better future.
Our livelihood, our survival as members of CPS squarely rests with our ability to improve our quality of service. We can effectively do that if and only if we live the Batho Pele principles.
We now need to examine the principles one by one. Before we do that, we will preceed such an examination by, firstly, giving our company’s mission statement around which all our policies & activities are aimed.
MISSION STATEMENT:
Cash Paymaster Services (PTY) LTD is to be the leading mobile payment service in Southern Africa, earning sustainable profits, through outstanding customer service, innovation & professionalism, achieved by well motivated and committed team who are proud of what we are, what we do & how we do it.
A few days before his Budget Vote Speech on the 03 April, 2001 the National Minister Dr Z Skweyiya presented to social grant service providers the following norms and standards;
The above norms and standards have since been added onto, and it is Government’s plan to codify the norms and standards.
The first Principle is
Customers / citizens should be consulted about the level and the quality of services they receive and wherever possible, should be given a choice about the services that are offered.
This principle as it is also the case with others is related to other principles e.g. information. As you are consulting you are also sharing information.
CPS must assist as Government in letting the general public know about the norms and standards. These are norms and standards that Government together with service providers must adhere to.
In whatever we intend doing concerning our service we need to consult with our client and stakeholders before we actually undertake to do that. Who is CPS’s client and who are our stakeholders?
The provincial departments with whom we have signed Service Level Agreements are our clients. As a company we wish to extend such an understanding to include beneficiaries of social grants. That is to say as beneficiaries of social grants they are our customers. Because of their existence we are able to be in business. The branch manager and the Assistant Director are expected to consult on a number of decisions aimed at improving the kind of service we are providing.
In all the levels up to the national level we expect to enjoy good relations with government so that we CONSULT, and that CONSULTATION becomes a norm in our dealings.
The importance of pensioner committees, amongst other things, lies in the fact that through these committees we can consult, we can communicate any relevant information we want to relay and we can get to know about what is being said about CPS, good or bad.
There are a number of NGO’s and CBO’s that are found in provinces and nationally who are dealing with issues pertaining to the elderly, the disabled, and children. Because these organisations are involved within the welfare sector what we do as CPS is constantly under their watchful eye. We need to know that they are watching us and because of that we need to constantly keep in touch with them.
We need to consult with them on any issues that involve our beneficiaries and which we feel they need to know about or they need to advise on.
The vast majority of the beneficiaries we are dealing with are people who are in rural areas, and who are still under traditional leadership. Apart from that the chief or headman is the one that, now and again, visit Home Affairs offices or Department of Social Development offices to see if those who had applied for ID’s do get them, and whether applications for social grants have been granted or not.
We therefore need to work with the traditional leaders.
Perhaps from time to time we need to attend the lekgotla’s or imbizo to challenge the community to openly critisize CPS as an establishment or evaluate us as individual staff members. These forums we can not use only to consult but also pass
relevant information, and to also measure ourselves on our service standards.
This is emphasized, more by the principle of imbizo, as explained by the President of South Africa, which means listening to the ordinary people themselves on how the government could speed up change for the better.
History has shown that welfare issues feature prominently in Election Manifesto’s of political parties. In the South African situation we have also seen that even those who aspire to be local government councillors have a propensity to make what is happening at pay points their electioneering campaign issue.
We therefore need to consult with politicians. We need to be visible at their constituency offices, provincial legislatures, and the National Assembly. We need not only be visible to them alone, they also need to know what we are doing and how do we go about doing what we are doing. We therefore need to be open to them and be transparent as we need to do to all other people.
This is a group of people and institutions that we need to consult, work with and keep in touch.
Community radio stations are relatively a new phenomenon in the South African history. As their name connotes they are, in deed, community radio stations because they communicate issues to the relevant communities.
As a company that deals with the community we therefore need to have links with the community radio stations.
(ii) SERVICE STANDARDS
Customers/citizens should be told what level and quality of services they receive so that they are aware of what to expect.
This principle is now covered by the norms & standards which Government aims to codify.
If it has not agreed, CPS needs to agree on the introduction of the card payment system at pay points. The card payment system is primarily aimed at reducing the long queues that you find during the first two days of the payment cycle. According to this system different sets of cards according to different colours are given to the beneficiaries.
In the cards it will be made clear in print that those who carry the red cards, for example, will be only served between 08h00-10h00 as opposed to those who carry green as they will be attended to between 10h00- 12h00. To reinforce what is written on the cards verbal announcements will also be made.
This practice is in line with our agreement with government that the maximum period of time for a beneficiary at the pay point to be attended to will be two hours only. We further propose that these standards be written in bold print and be made visible for all to see. Actually we would marvel at a situation where at all our pay points we could start our day’s work with a short prayer with the beneficiaries, and thereafter read the service standards or make any relevant announcements that need to be made.
(iii) ACCESS
All customers /citizens should have access to the services to which they are entitled to.
In CPS’ experience it has now become a reality that the pensioner who suddenly falls sick a few days before the payment day either family members or the pensioner himself or herself insist on he/she being transported to collect the grant. In instances of this nature the pensioner usually passes away. These are not many cases or cases that are frequent, but because human life is lost unnecessarily, CPS needs to show concern by working towards stopping this occurrence.
Branch managers working with social workers from the Department need to work together in finding ways of knowing about the state of health of the pensioners, and working on paying these where they are lying sick whether in hospital or at homes.
An important aspect of ‘access’ in CPS’ experience is the question of what happens during the process an application is made to the Department; the time it takes to process the application. This raises the question of importance of the role the help desk has to play here. It is a known fact that government officials who fail in their work, and taking advantage of the ignorance suffered by beneficiaries, unscrupulously put the blame on CPS. This situation unnecessarily and unfairly tarnishes the image of CPS as a service provider.
Branch managers must make sure that wheelchairs are available at pay points so as to help those who cannot walk or find difficulty in walking to have access to the paystations where they need to be paid.
(iv) COURTESY
Customers/citizens shall be treated with courtesy and consideration.
Even for CPS members the concept of courtesy goes much wider than asking staff to give a polite smile and to say ‘please’ and ‘thank you’ though these are certainly required. It requires service providers to put themselves in the shoes of the beneficiary and to treat them with as much dignity and respect as they would like to receive themselves.
At a pay point in the North West province a story of discourteous and inconsiderate behaviour by CPS staff members was told. Without being decent enough and respectful of the beneficiaries by telling them that the machinery was broken CPS members took out parcels of food and started eating in the presence of the starving pensioners who had come to collect their grants in order to be able to buy food.
To be courteous and considerate is a morally acceptable way of life, that is UBUNTU! As human beings first, and as CPS members who have adopted the Batho Pele
Principles we are all called upon to be always courteous and considerate to everybody.
This equally applies to our relations to one another as members of staff and as managers to our subordinates. As a company we need to get rid of any negative behaviour that might jeopardise our relations and thereby adversely affect our service delivery & dent the image of the company.
(v) INFORMATION
Customers/citizens should be given full, accurate information about the services they are entitled to.
No one can over emphasize the importance of information. Our beneficiaries and our stakeholders deserve the right to be informed about everything we intend to do, and about what we are doing. We are obligated to our beneficiaries and stakeholders to provide them with full and accurate information.
(vi) OPENNESS AND TRANSPARENCY
Customers/ citizens should be told how national and provincial departments are run, how much they cost, and who is in charge.
According to the situation of CPS this principle means that the beneficiaries and stakeholders need to know who is the branch manager, who are team leaders and who is who in the depot and doing what.
This goes on to mean that when there are cases of theft, fraud and corruption by members of staff our partners have to be informed so that we are not seen to be hiding or covering something or somebody.
When we are open and transparent we open avenues for building of confidence and trust between ourselves and the beneficiaries and the stakeholders. The key aspect of this is that our stakeholders should know more about the way we run our business.
(vii) REDRESS
If the promised standard of service is not delivered, customers /citizens should be offered an apology, a full explanation and a speedy and effective remedy:
And when complaints are made, customers/citizens should receive a sympathetic, positive response.
The capacity and willingness to take action when things go wrong, is the necessary counterpart of the standard setting process. The key to the Batho Pele Redress principle lies in being able to identify quickly and accurately when services are falling below the promised standard and having procedures in place to remedy the situation.
In CPS situation it means that whenever a paystation breaks down a back-up needs to be readily available. If a situation cannot be remedied and thereby service delivery is affected CPS must accept to be punished. For example, if the payment process is affected through CPS’ omission or commission and an agreed upon period of time within which, to remedy the situation elapses CPS becomes liable to provide food to those who were particularly entitled to a service during that particular period of time.
Complaints made should not be interpreted or construed as grumbling or time consuming irritation. The first steps, therefore are to acknowledge that all dissatisfaction, expressed in writing or verbally, is an indication that the beneficiary or the stakeholder does not consider that the promised standard of service is being delivered; and then to establish ways of measuring all expressions of dissatisfaction.
CPS must therefore always strive to eliminate any chances for complaints, and when these do occur to immediately remedy the situation by correcting the wrong.
(viii) VALUE FOR MONEY
Service should be provided economically and effectively in order to give citizens the best possible value for money.
This principle is much more relevant to CPS as it is profit driven. It always makes sense that if you eliminate wastefulness, you cut down on costs, you do make profit. One of the key aims of Batho Pele will therefore be to search for ways to simplify procedures and eliminate waste and inefficiency.
HIGHLIGHTS
Does it really make sense that when looking back at the track record and the history of CPS, we should start panicking and be anxious when tenders are advertised and existing contracts expire? What is it that we are not doing right? We need to focus on finding innovative solutions to our technological needs and we need to improve in our service delivery.
We know that there is a view out there or should we say that there is an emerging school of thought that wants to portray CPS as a monopoly in this market. Currently CPS pays in four provinces when it used to pay in six provinces. Its ambition then was to pay in all nine provinces. That ambition continues to drive CPS even today.
CONCLUSION
Batho Pele principles are therefore aimed at promoting UBUNTU and the image of the company as well. Can we all therefore go and make use of these principles in our places of work, to our beneficiaries, colleagues and partners in business, so as to improve the quality of our service and be able to achieve our goals.