AGE IN ACTION

SUBMISSION ON SOCIAL ASSISTANCE BILL AND SOCIAL SECURITY AGENCY BILL

This submission contains the following sections:

  1. Introduction page 1
  2. The Social Assistance Bill page 2
  3. Proposed amendments to the Social Assistance Bill page 6
  4. The Social Security Agency Bill page 7

1. INTRODUCTION

The history of problems with the payment of social pensions to older persons dates back to the time when only a minority of the population benefited, through the period when the amount of the pension depended on a person’s race and up to the unification of the different grants systems under the Social Assistance Act of 1992, promulgated in 1996. There is also a history of autocratic administration and disregard for human rights. Throughout the past seventy-seven years there have been widespread discrepancies and abuse in the administration of social pensions and other government grants.

Two million older persons receive the Old Age pension and coverage is estimated as nearly 100% by the Intergovernmental Fiscal Review, but many individuals continue to slip through the net as they do not have IDs or because their IDs contain wrong birth dates. The Old Age pension represents the single largest share of expenditure on social grants when compared with the 900,000 recipients of the Disability Grant and the 2.5 million children under seven who benefit from the Child Support Grant. On its own it accounts for the sum of R8.5 billion per annum. There is general agreement that the Old Age grant is one of the main arms of the anti-poverty strategy and research shows that households which include pensioners are significantly less poor than households without pensioners.

In view of the large number of people receiving grants and the contribution grants make to the relief of poverty, it is important that the system of access and delivery should be as efficient as possible, that human rights are respected and that abuse, discomfort and inconvenience are minimized.

The determination of the present government to address the problems associated with the delivery of social assistance is not in doubt. In 1996 the Committee for the Restructuring of Social Security was set up in response to the crisis in social grants. It pointed to the need for national standards and guidelines on outsourcing , the need to shift from cash payments to bank accounts and the need for improved customer service and better delivery to rural areas. In 1998 a Public Service Commission investigation called for a client charter, inspections , better management of service providers and penalties.

In 2000 the Ministerial Committee appointed to investigate elder abuse held public hearings in all provinces which were attended by thousands of older persons. The report states:

"The loudest cry to reach the Committee concerned the treatment pensioners receive at pay-points. Most still queue for hours every month, at the mercy of the elements, without water or toilets. Many are ill-treated by officials, some of whom are alleged to take money. The outsourcing of pension payments has not resulted in an improved service."

In its report the Committee drew attention to the following problems:

  1. The suspension of pensions under Operation Clean-up;
  2. Long delays in processing pension applications including lack of coordination with Home Affairs and unfunded mandates to provinces;
  3. The non-availability of social relief grants,
  4. Direct deductions from pensions;
  5. The wide-spread demand for higher pensions;
  6. The operation of the means test and restriction on earnings
  7. Abuse by procurators.

However, there is concern that the drafters of the Social Assistance Bill paid insufficient attention to addressing the poor service being delivered by the State and were more concerned with protecting the State from abuse. The question which the Portfolio Committee for Social Development must address is: Do these Bills address the discrepancies and abuse to beneficiaries which are well known and have been pointed out by official investigations since 1996?

2. SOCIAL ASSISTANCE BILL

 

Page 3 CHAPTER 1: DEFINITIONS, APPLICATION AND OBJECTS

Page 5 Objects of Act

Norms and Standards (3(d)):

One of the objects of this Bill is to ensure that uniform norms and standards are set for the delivery of social assistance. However, nowhere does the Bill state what these norms and standards will cover. Currently there are huge variations in service delivery both between and within provinces in terms of services at pay-points, waiting times, location of pay-points etc. And the periodic review of pensions causes severe stress to old age pensioners many of whom do not receive notice. Presumably the Regulations under the Act will set minimum standards on these and other matters. But the detail of what will be covered by the Regulations is not spelt out in Section 36. Considerable work has been done in many of these areas by the Department of Social Development and the Act should state explicitly what the Regulations will cover. The current Bill is even less comprehensive than the 1992 Act in this respect.

Page 5

CHAPTER 2 SOCIAL ASSISTANCE

Social relief of distress:

This grant was introduced in the 1992 Act but was only available in some provinces and for a limited period . However, it has provided invaluable relief to destitute families including applicants waiting for social grants. It has been dropped from this Bill, meaning that no interim measures will be in place while applicants are waiting for their grants. Is it to be replaced by other measures? Are food parcels intended to replace it? If so, what are the criteria for qualifying for a food parcel? If not, this could be challenged in the Constitutional Court as the removal of a right to relief could be seen as retrogressive and contrary to the progressive realization of "access to appropriate social security for those who are unable to support themselves" (The Constitution 27 ©).

Page 7 Grant-in-aid (12)

This grant was paid in respect of 12,279 persons in 2002/2003. It should be more accessible and is currently mainly claimed by family members many of whom do not live with the older or disabled person or offer him or her any service. This grant should be accessible to the primary care-giver for an older person. In many areas no allowances are available for the care of house-bound or terminally ill patients. If the carer was attached to a registered welfare organization this could ensure that an adequate service was rendered. As an additional safeguard, the medical certificate required when applying for this grant should identify the carer.

Financial awards to Welfare Organisations (13)

This section is substantially the same as Section 5 in the 1992 Act. It does not address the following issues:

  1. The lack of uniformity in subsidy levels and common criteria for subsidies within provinces;
  2. Subsidies bear no relation to the costs of caring or otherwise providing services to older persons in particular and are not index linked;
  3. Subsidies do not address the continuing wide historical disparities between services in different communities;
  4. In some provinces subsidies are monitored in a grudging and bullying manner with little recognition for the efforts of welfare organizations.

Welfare organizations such as Age in Action would like to see a closer partnership between government and welfare organisations so that this kind of issue can addressed constructively and to the benefit of all parties, in particular the poorest of the poor.

Page 7

CHAPTER 3 ADMINISTRATION OF SOCIAL ASSISTANCE

Appointment of Procurator (15(1))

The Bill makes no provision for the protection of the beneficiary from procurators who abuse their position, yet this is a serious problem for many house-bound beneficiaries.

In a submission to the Ministerial Committee in 2000 the Black Sash suggested that criteria for procurators should be prescribed in regulations. Such criteria should include that the person be over 18 years of age, have no criminal record, have an independent relationship to the beneficiary i.e. the beneficiary is not indebted to him or her, and that the person’s livelihood does not involve money-lending or alcohol sales. They also proposed that witnesses testify to the agreement between the beneficiary and the procurator and that the arrangement be reviewed at regular intervals. An additional safeguards would be a person may not act as a procurator for more than a limited number of beneficiaries. Such conditions should be part of the prescribed requirements mentioned in this section of the Bill but not referred to in the Regulations.

There is also a concern about clause 15(2) which states that if the older or disabled person is unable to complete a power of attorney ( i.e. is not of sound mind ) the administrator may appoint a person to receive the pension on his or her behalf, provided they comply with the prescribed conditions. Again, such conditions are not spelt out. We propose that the term "deputy" be used for such persons and that this be included in the definitions.

Page 8

Misuse of social assistance (19)

This section provides for steps to be taken against those who "misuse" a grant and lumps together beneficiary, procurator, primary care giver and applicant. There is no requirement for the administrator to investigate such allegations nor for appeals against the suspension of grants. In addition the administrator has complete discretion to appoint another person to receive the grant under conditions he or she may determine. Again, we propose such other persons be named "deputies" and included in the definitions.

Restriction on transfer of rights and payments of social assistance (20):

Section 20(3) states that the beneficiary must receive the full amount of a grant before an administrator may make deductions in respect of that amount. This is weaker than the provision in the 1992 Act, presumably in order to make it possible for direct deductions to be made towards insurance including funeral policies.

However, the Bill gives the Agency unlimited powers to make deductions, no safeguards appear to be in place to prevent fraudulent deductions and beneficiaries have no recourse should this happen.

In several provinces direct deductions are being abused by the contractors in the following ways: premiums are increased without notice, double deductions are made and signatures on policies are forged. The Regulations should lay down that only registered insurance companies qualify for direct deductions and only one such deduction per beneficiary can be made.

Page 9

CHAPTER 4 FUNCTIONS OF THE DIRECTOR GENERAL

This Chapter should spell out the functions of the Director General in much more detail and should include the following:

One of the principal obstacles to accessing social grants occurs at the inter-face with other Departments such as Health (assessment of disability, hospital patients inability to access grants), Home Affairs (mistaken birth dates, lack of documentation, the cost of IDs, delays in issuing IDs, poor access to offices) and Safety and Security (lack of security at pay points, poor treatment of elderly complainants). This Bill does not address this. It could, for instance, include a clause along the lines of clause 20(2)(f) of the National Health Bill which obliges the Director General to "participate in intersectoral and inter departmental collaboration."

Page 10

CHAPTER 5 INSPECTORATE FOR SOCIAL ASSISTANCE

Poor standards of delivery led to the Chikane Committee calling for inspections in 1996. Of the 1625 recorded complaints received by the Ministerial Committee in 2000, 985 or 60% of complaints related to pensions or other grants. Currently there are cases of the Department demanding substantial refunds from beneficiaries who are permanently disabled.

However, the Inspectorate envisaged in this Bill is not concerned with helping the beneficiary. Although it is responsible for "audits on compliance with regulations" (28 (1)(d)) this does not appear to include checks on conditions at pay points, for example, but on individuals suspected of abusing the system. The "entry, search and seize" clauses make it appear a kind of alternative Scorpions . Such steps seem excessively draconian for dealing with the individual claimant who may have made a "fraudulent" application out of a desperate need for an income. In the Eastern Cape, for example, mothers unable to trace the fathers of a child take the name from the grave of a recently deceased man, obtain the death certificate and use this to apply for a child support grant. Surely the response to such misdemeanors should be to relax the present criteria for qualification , as has been done with the child support grant.

In addition , if the Minister is employing an Agency to render a better service , why does there also need to be an inspectorate at additional cost to the taxpayer? Could its functions not be carried out by other bodies such as the Auditor General, National Prosecuting Authority, Parliament or by the Department itself? .

 

  1. PROPOSED AMENDMENTS TO SOCIAL ASSISTANCE BILL

Definitions

Page 4

New "deputy" means a person appointed by the Director General to administer a grant if a beneficiary is unable to complete a power of attorney. Such deputy may be a social worker or a member of staff of a welfare organization.

"primary care giver" be amended as follows: "means a person older than 16 years, whether or not related to the child or disabled or older person , who takes responsibility for meeting the daily care needs of that child or disabled or older person."

Application and Implementation of Act

Page 7

New 12A Social Relief of distress :

A person is eligible for a social relief of distress grant if he or she:

    1. is destitute and without any means of support
    2. has applied for another grant and is awaiting approval

Appointment of procurator

Page 7

15. (2) be amended as follows: In the case of a person with a disability or an older person who is unable to complete a power of attorney, an administrator may nominate a deputy to receive the grant on the beneficiary’s behalf if the person so nominated satisfies the prescribed conditions

Financial awards to welfare organizations and persons

13. This section needs to be completely redrafted, in consultation with welfare organizations as it should lay the basis for resolving the current stalemate in financing policy in the Department.

Misuse of social assistance

Page 8

Section 19. should be amended as follows: "If a beneficiary, procurator, primary care giver or applicant is reported to have misused a grant, an administrator shall:

  1. investigate such an allegation
  2. suspend payment of the grant
  3. appoint a deputy to receive the grant on behalf of the beneficiary….

The beneficiary, procurator, primary care giver or applicant shall have the right to appeal to the Director General against such action

Restrictions on transfer of rights and payments of social assistance

Page 8

New 20(5) Deductions shall only be made on the written authority of the beneficiary

(6) Deductions shall only be made to the credit of registered public companies and no more than one such deduction shall be made per beneficiary.

Functions of the Director General

Page 9

24 (b) should be amended as follows: advise the Minister on the establishment and implementation of uniform norms and standards for service delivery which should cover the following:

    1. conditions at pay-points including services to beneficiaries, help desks etc;
    2. the location of paypoints
    3. maximum waiting times for grant applications and payments
    4. reviews and suspensions of grants
    5. terms and contracts for outsourcing of grant payments
    6. agreements with banks for receipt and payment of grants

New: The following sub-sections should be added to Section 24:

(g) Oversee the Agency in respect of financial accountability and service delivery

(h) Participate in inter-sectoral and inter-departmental coordination

Inspectorate for Social Assistance

Page 10

It is proposed that Chapter 5 be removed from the Bill as it duplicates the powers of other bodies and is excessively costly and bureaucratic.

Regulations

Page 14

36(1)© be amended to read: uniform norms and standards for service delivery including:

    1. conditions at and location of pay-points
    2. contract terms for outsourcing of grant payments including penalties for non-compliance
    3. agreements with banks for receipt and payment of social grants
    4. requirements for the appointment of procurators and deputies

36(2) The following sub-sections be added:

  1. the review, suspension and reinstatement of grants
  2. the refund of under payments and arrears

 

4. THE SOCIAL SECURITY AGENCY BILL

This Bill aims to establish the SA Social Security Agency to replace the present system which is administered by national and provincial departments of social development.

Age in Action supports in principle the formation of a single authority for the following reasons:

  1. It will establish uniformity where currently diversity exists not only between provinces but even within provinces with respect of information, quality of service and accessibility.
  2. It will be easier for beneficiaries who move between provinces to get their grants transferred.
  3. There will be a dedicated staff who should be better trained and equipped to provide an improved service than is presently the case

However concerns about the Bill include the following:

  1. The public in general and beneficiaries in particular do not have adequate protection or avenues to lodge complaints in order to ensure that issues of poor service are addressed;
  2. The Chief Executive Officer is responsible only to the Minister – the Department has no powers to oversee the Agency ;
  3. There is no provision for and timeframes for the handover or interim measures. This could lead to considerable dislocation and to suffering for beneficiaries.