1. Report on the Study Tour by the Portfolio Committee on Social Development to Australia (07-11 August 2006), dated 25 October 2006:
Having undertaken a study tour to Australia on social security related matters on 07-11 August 2006, the Portfolio Committee on Social Development reports:
1. Background In the year 2003, the Portfolio Committee on Social Development was tasked to legislate for the establishment of the new South African Social Security Agency (SASSA), which would over time assume the responsibility of payment and administration of social grants. The establishment of SASSA was necessitated by the severe weaknesses in the management and administration of social grants often resulting in a failure on the part of government to ensure that those entitled to the benefit were provided with the best possible service. This continued to lead to ongoing litigation and substantial negative publicity in the press.
SASSA is a Cabinet-endorsed focused and specialized institution that is meant to take responsibility for the management and delivery of social grants. Its strategic intent is to facilitate improvement in the quality of services provided to beneficiaries and ensure that the minimum standards operate countrywide, for consistent and predictable service delivery. This, it is hoped will lead to efficiency gains which will manifest themselves in the reduction in the cost of service delivery as well as the drastic minimization of fraud associated with social grant administration and payment. The establishment of the Agency will have far reaching implications, requiring expert management of people, structures and processes.
Subsequent to passing the SASSA legislation in 2003, our committee could, sadly, not effectively interact with the provincial and local government stakeholders on some of the unfolding developments leading up to the establishment of such an Agency as it was hamstrung by the work on the recently finalized Children and Older Persons’ Bill in the years 2004 and 2005 (first half). Given the breathing space at its disposal at the moment resulting from the conclusion of the committee’s legislative work in June 2005 and also as a gesture of its commitment to wanting to contribute towards ensuring that transition from the old to a new grant administration dispensation takes place as envisaged, the Committee adopted a proactive approach and visited the province of North West on 01-05 August 2005.
The visit was in sync with our Committee’s oversight role. It was intricately linked to our Committee’s mission of reviewing, developing and monitoring the implementation of appropriate legislation that responds to the social development needs of the people and that assists in reducing poverty and social exclusion, and ensuring public participation. Also ensuring that the policies and social development services implemented by Government are focused on comprehensive protection against vulnerability and on strengthening the social fabric.
Prior and subsequent to the visit to North West our committee had facilitated a number of interactions with officials from the social security branch in the national Department of Social Development and South African Social Security Agency on such pertinent issues as the reporting mechanism of SASSA to Parliament, SASSA’s Business Plan as well progress made and challenges currently experienced with regard to its rollout plan and its general transitional arrangements; update on the Human Resource issues one of which was the issue of the transfer of staff and assets. Having been to provinces and also interacted with SASSA officials, the committee then took stock of its own capacity to exercise effective oversight over SASSA and arrived at a conclusion that its ability and skill to exercise effective oversight over SASSA could be better strengthened and sharpened if it could, among other things, visit, among other institutions, Centrelink in Australia and look at what they have to offer at operational and policy level. Moreover, to explore the systems that Australia has in place in governing how institutions like Centrelink interface and account to the Australian Parliament and the inherent challenges characterizing this relationship. The committee’s view was that whatever experiential knowledge it gathered during its study tour in Australia, it would use it to strengthen its oversight arm in its relationship with the recently established South African Social Security Agency.
2. Delegation
- Tshivhase, Ms T.J (Chairperson and delegation leader)
- Direko, Ms W.I ( MP)
- Masutha, Mr M.T (MP)
- Waters, Mr M. : (MP)
- Fukula, Mr M (Committee Secretary)
3. Summary
Committee’s delegation led by Mrs TJ Tshivhase undertook a fruitful study tour to Australia, on 07-11 August 2006. The delegation had Canberra, the capital town of Australia as its base. It met and interacted with various Australian stakeholders connected to, in one way or another, social security system, ranging from Members of Parliament to various state Agencies’ officials. Furthermore, it visited a Centrelink Customer Service Centre in Belconnen, to have a first-hand experience of how this front line office was dealing with social security clients or customers, as they are known in Australia. This proved to be quite a useful site visit.
Some interesting innovations and devices caught the eye of our delegation. One of those is Centrepay, a free direct bill-paying service offered to customers receiving money from Centrelink. The other one was the Child Support Scheme administered by the Child Support Agency. The Child Support Scheme was introduced in the late 1980s to address the problem that, following separation, most non-resident parents (mostly fathers) were providing little, if any, financial support to their children, even where court orders had been made, with consequent high levels of child poverty and high costs to the public purse.
Another useful innovation that could be explored further was the access card, which is touted as a major breakthrough in the efforts to ensure different data interface and thus guarantee data integrity. This card will be used as a single form of identification for accessing, among other things, health as well as the social security services.
Below is a list of some of the activities from our delegation’s itinerary:
Meeting: Department of Families, Community Services and Indigenous Affairs (FACSIA)
Visit to Belconnen Centrelink Customer Service Centre
Visit to Centrelink National Support Office: Meeting with Deputy CEO, CIO John Wadeson
Meeting with Chair and Members of the Standing Committee on Family and Human Services
Meeting with the Chair and members of the Senate Finance and Public Accounts Committee
Meeting: Ms Annette Ellis MP, Deputy Chair of the Australian - South Africa, Parliamentary group Meeting; Child Support Agency
4. PURPOSE OF THE OVERSIGHT VISIT
To explore how Centrelink ‘s operational systems
To look at what oversight responsibility Parliament in Australia has over its centralized social security agency similar to our South African Social Security Agency (SASSA).
To see how the centralized social security agency relates to Parliament in Australia.
To interact with Members of Parliament in Australia on the future political, social and economic as well as strategic thinking in respect of its centralized social security agency.
To look at challenges facing Australia’s centralized social security agency.
Lessons from Australia for South Africa
5. Meeting with FACSIA – Monday, 07 August 2006
Delegation met with representatives from the Department of Families, Community Services and Indigenous Affairs (FACSIA). The purpose was mainly to check the kind of a relationship FACSIA has with the Centrelink. FACSIA was established in October 2004 to improve the development, delivery and coordination of Australian Government social and health-related services. It brings together six agencies, the Child Support Agency, Commonwealth Rehabilitation Services (Australia), Centrelink, the Health Insurance Commission, Australian Hearing and Health Services Australia.
FACSIA is responsible for a wide range of programs and services for individuals, families and communities, including social support for seniors, people with disabilities, carers, youth and women. In addition, it has responsibility for childcare, housing and Indigenous affairs.
FACSIA is the Australian government's principal source of advice on social policy issues. It is however not the sole custodian of this function. It shares it with other government and non-government organisations. Although It develops the social security policy, It is however not responsible for overseeing the actual day-to-day administration of the social security system in Australia. In its interaction with the FACSIA representatives, our delegation was told of an interesting future policy innovative in the form of an access card. It is touted as a major breakthrough in the efforts to ensure data interface and thus guarantee data integrity. This card will be used as a single form of identification for accessing, among other things, health as well as the social security services.
Our delegation heard that there were few cases of fraud or corruption from officials working within the FaCSIA. 6. Meeting with Centrelink officials – Tuesday, 08 August 2006
Delegation met with Mr John Wadeson, Deputy CEO and Chief Information Officer from Centrelink’s National Support Office. The crux of our delegation’s meeting with Mr Wadeson dwelled more on what Centrelink was all about including the services it is offering.
6.1 Background information on Centrelink
Centrelink is a service provider to over 6.4 customers, including retired people, families, sole parents, people looking for work, people with a short-term incapacity, people with a disability, students, young people, indigenous people and people from diverse cultural and linguistic backgrounds.
Its vision is reportedly to make positive difference to Australian individuals, families and communities particularly during transitional periods in their lives.
It has one government directed outcome, which is ‘effective delivery of Australian services to eligible customers. This outcome is to be supported by the output ‘efficient delivery of services to eligible customers.
Centrelink generates its revenue through Business Partnership Agreements or similar arrangements with client agencies. Funds are appropriated to the policy agencies and paid to Centrelink in return for specified services.
Centrelink delivers services on behalf of about 25 client agencies. These cover a wide range of outputs in the form of products and services.
It seeks to build a stronger community by:
Simplifying access to government services by providing a single entry point;
Providing innovative and personalized services, opportunities and support that are culturally appropriate, during key life events.
Maintaining a high level of customer service, while ensuring strong accountability to stakeholders; and
Building quality relationships with our stakeholders to continually improve the social well being of Australian society.
6.2 Centrelink’s business at a glance
It has about 6, 5 million customers.
It has over 1000 service delivery points nationally.
It administers over 63 billion Australian dollars in program payments annually.
It receives about 28 million phone calls annually.
It sends approximately 90, 6 million letters to customers annually.
Grant payments are made fortnightly into a bank account. Those in rural areas, get a cheque payment.
6.3 Centrelink’s Information Technology environment
25000 staff users all connected to the same Centrelink system.
About 1, 9 million customers registered for self-service online or telephone service.
Interactive voice response facility in all Centrelink call centres.
6.4 Centrelink’s current focus Improved and innovative customer service applications for face-to-face and online customer channels.
Infrastructure enhancements to support expanded service requirements.
Better linking and collaboration with other government and businesses.
Welfare-to-work
6.5 Reporting of employment income and customer death
Verification of employment income is done in conjunction with the Tax Office.
When a customer dies, the relevant department notifies Centrelink automatically.
6.6 Interesting Centrelink’s self-service transaction innovation - Centrepay This is a free direct bill-paying service offered to customers receiving money from Centrelink. Grant beneficiaries can through Centrepay choose to pay bills by having a regular amount deducted from your Centrelink payment.
Centrepay is voluntary. Customers who choose to use Centrepay benefit from its convenience and security, knowing that their payments are under control. Instead of having large bills every month or quarter customers’ bills are paid in manageable amounts from the customers’ grant payment, making it easier for them to budget Centrelink, however, has to approve the institution to which the money is paid. It also has the right to curb the advance payment.
Centrepay does not charge a customer any fee to deduct the money from his/her payment, unlike other methods available for paying bills. However, the organization or person to which Centrepay sends the deduction is charged a fee.
Because the service is voluntary, a beneficiary can manage, suspend or cancel the deduction at any time.
7. Visit to Belconnen Centrelink Customer Service Centre – Tuesday, 08 August 2006 Our delegation visited the Belconnen Centrelink Customer Service Centre. This is a frontline office catering for day-to-day needs of Centrelink clients.
The Centre is equipped with, among other things, the following interesting resources:
A job-search machine with a data base of all jobs available in Australia. The job search is free service.
A free public telephone line for job enquiries.
Social workers on hand.
Job capacity assessors – looking at people’s needs and doing job placements.
Customer Relations Line for customers with problems.
Queue management system.
8. Meeting with the Chairperson and members of the Senate Standing Committee on Finance and Public Administration – Thursday, 10 August 2006.
Delegation met with this committee with the same the view as with other committees it met to, among other things, look at how, formally, it relates with Centrelink, if there is any formalized relationship between two.
The Standing Committee on Finance and Public Administration is a committee that falls within the purview of the Senate House where the ruling government majority has reportedly no control. The Finance and Public Administration portfolio coverage includes Parliamentary Departments, Prime Minister and Cabinet, Finance and Public Administration and Human Services.
The committee, our delegation was told, does oversee Centrelink as part of broader oversight role over government administration. It looks mainly at service delivery aspect of welfare as opposed to policy. It therefore has no role in setting the guidelines or regulations for Centrelink operations.
The committee listed the following as commonly reported problems with Centrelink:
Problems with Centrelink operational policies
How Centrelink arrives at decisions – people do not know the basis upon which decisions are made.
Misplacement and misuse of evidence by Centrelink officials.
Rudeness of Centrelink officials.
Reported abuse of clients by Centrelink officials.
Overpayment and the expectation to have the money paid back. Some clients find it difficult to cope with this. 9. Meeting with the Standing Committee on Family and Human Services, Wednesday, 09 August 2006 The standing committee on Family and Human Services is one of thirteen general-purpose investigatory committees established by the House of Representatives of the Parliament of Australia.
In summary, the role of the Standing Committee on Family and Human Services is to carry out inquiries into matters referred to it by the House of Representatives or a Minister of the Commonwealth Government.
Our delegation heard that this committee does not have a direct oversight role over Centrelink. It however has an indirect oversight role through consideration of annual reports of different government and agencies like Centrelink that have to be tabled in Parliament. If there is any concerning matter involving Centrelink, it could thus call the latter to account. Constituency Offices also serve as a platform for an indirect oversight exercise by Members of Parliament, by following up on issues raised by people in the communities they service, our delegation was told. 10. Meeting with officials from the Child Support Agency (CSA), Friday, 11 August 2006. The CSA is a government institution, integrated within Centrelink that operates as part of the Department of Family and Community Services. It is responsible for managing programs and delivering child support services through the Child Support Scheme. Because it is not part of the social security system, it therefore does not guarantee payment. The CSA only passes on money collected from the contact parent. It therefore does not have funds of its own to pay residence parent.
11. Child Support Scheme
The Child Support Scheme was introduced in the late 1980s to address the problem that, following separation, most non-resident parents (mostly fathers) were providing little, if any, financial support to their children, even where court orders had been made, with consequent high levels of child poverty and high costs to the public purse.
It came about as a result of the recognition that the system in which child maintenance was dealt with through the courts on a case-by-case basis had failed. Court orders were unrealistically low and difficult to predict. They also took little or no account of the rising costs of living. Furthermore, they were all too often ignored.
Almost two-thirds of non-custodial parents failed to meet their obligations to their children. To enforce a court order was considered time-consuming, expensive and frequently unproductive for the custodial parent. Many non-custodial parents to ignore successive court orders and seemed to regard supporting their children optional. Not only did the children suffer, but also increasing numbers of children were being supported by the tax paying rather than by their parents with whom the responsibility properly lay. Escalating welfare bill and growing numbers of children living at the poverty level prompted the government to act. The Child Support Scheme was introduced to overcome the problems.
The fundamental shift brought about by the Scheme was that the registration of a child support liability with the Child Support Scheme converts "a personal obligation into a debt owed to the Australian government collected by the Child Support Agency. Through the elimination of the need for private enforcement action, the Scheme sought to improve the working relationship between parents by reducing the stress and fear often associated with bargaining over money. It also sought to offer a degree of predictability and certainty about payments with respect to amount, regularity, and the timing of payments.
Central to the Scheme is the administrative assessment of child support liability via the application of the child support formula. This formula is expressed as a percentage of the non-resident parent’s gross taxable income (after a self support component has been deducted) and is based on the number of dependent children under the daily care of the other parent – with provision for special circumstances. The Scheme removed the need for parents to have recourse to court-based discretionary assessment, which typically produced low child maintenance amounts that did not adjust for Inflation.
The following mechanisms are used against fathers that renege on their maintenance:
Have their tax monies intercepted.
Have garnishing orders on their salaries – NB. Garnishing orders do not require a court action.
Money is deducted from their bank accounts.
They are denied permission to travel abroad. RECOMMENDATIONS
The Portfolio Committee on Social Development recommends that:
The Committee commends Parliament for having allowed it to undertake the study tour to Australia. It is however of the view that as it is expected to oversee SASSA; an entity that has a budget of about R55 billion, which is somewhat unique in South Africa, another bigger delegation or two including a researcher should be allowed to undertake similar study tours to other countries with a similar socio-economic profile as South Africa. This, it believes, will assist immensely in capacitating and orientating its membership about the critical aspects relating to expert management of people, structures and processes in the Agency. The fact that the rollout of SASSA is currently underway and the committee is expected to effectively oversee it requires that Parliament provides the committee with adequate financial resources to undertake such trips as a matter of urgency.
Report to be considered.
2. Report on the Study Tour by the Portfolio Committee on Social Development to the South African Social Security Agency’s (SASSA) Head-Office, Pretoria (Gauteng); and the regional offices in the Eastern Cape (East London and Port Elizabeth) and Northern Cape (Kimberley) provinces (21-24 August 2006), dated 25 October 2006:
Having undertaken an oversight visit to the South African Social Security Agency’s Head-Office in Pretoria; and regional offices in the Eastern Cape, and Northern Cape provinces on 21-24 August 2006, the Portfolio Committee on Social Development reports:
1. Background In the year 2003, the Portfolio Committee on Social Development was tasked to legislate for the establishment of the new South African Social Security Agency (SASSA), which would over time assume the responsibility of payment and administration of social grants. The establishment of SASSA was necessitated by the severe weaknesses in the management and administration of social grants often resulting in a failure on the part of government to ensure that those entitled to the benefit were provided with the best possible service. This continued to lead to ongoing litigation and substantial negative publicity in the press.
SASSA is a Cabinet-endorsed focused and specialized institution that is meant to take responsibility for the management and delivery of social grants. Its strategic intent is to facilitate improvement in the quality of services provided to beneficiaries and ensure that the minimum standards operate countrywide, for consistent and predictable service delivery. This, it is hoped will lead to efficiency gains which will manifest themselves in the reduction in the cost of service delivery as well as the drastic minimization of fraud associated with social grant administration and payment. The establishment of the Agency will have far reaching implications, requiring expert management of people, structures and processes.
Subsequent to passing the SASSA legislation in 2003, our committee could, sadly, not effectively interact with the provincial and local government stakeholders on some of the unfolding developments leading up to the establishment of such an Agency as it was hamstrung by the work on the recently finalized Children and Older Persons’ Bill in the years 2004 and 2005 (first half). Given the breathing space at its disposal at the moment resulting from the conclusion of the committee’s legislative work in June 2005 and also as a gesture of its commitment to wanting to contribute towards ensuring that transition from the old to a new grant administration dispensation takes place as envisaged, the Committee adopted a proactive approach and visited the province of North West on 01-05 August 2005.
The visit was in sync with our Committee’s oversight role. It was intricately linked to our Committee’s mission of reviewing, developing and monitoring the implementation of appropriate legislation that responds to the social development needs of the people and that assists in reducing poverty and social exclusion, and ensuring public participation. And also ensuring that the policies and social development services implemented by Government are focused on comprehensive protection against vulnerability and on strengthening the social fabric.
Prior and subsequent to the visit to North West our committee had facilitated a number of interactions with officials from the social security branch in the national Department of Social Development and South African Social Security Agency on such pertinent issues as the reporting mechanism of SASSA to Parliament, SASSA’s Business Plan as well progress made and challenges currently experienced with regard to its rollout plan and its general transitional arrangements; update on the Human Resource issues one of which was the issue of the transfer of staff and assets. Having been to provinces and also interacted with SASSA officials, the committee then took stock of its own capacity to exercise effective oversight over SASSA and arrived at a conclusion that its ability and skill to exercise effective oversight over SASSA could be better strengthened and sharpened if it could, among other things, visit, among other institutions, Centrelink in Australia, an agency around which SASSA is modeled. This view was also strongly echoed in the Committee’s strategic planning workshop, recently held at Gordon’s Bay in May 2006.
Empowered with invaluable information derived from its visit to Centrelink and interaction with some of the key stakeholders in the area of social security in Australia, the committee again turned its attention to oversight work over SASSA. This translated into an oversight to SASSA’s Head-Office; and the regional offices in the Eastern Cape, and Northern Cape provinces on 21-24 August 2006 focusing mainly on the progress made with regard to the broader SASSA roll-out process and the aligned service delivery improvement initiatives.
Significantly, the visit came against the backdrop of a mention by President Thabo Mbeki in his State of the Nation Address early this, of an eminent establishment of SASSA by 01 April 2006. This was further reinforced by an announcement by Minister Dr Z Skweyiya while delivering his Budget Vote 18 Speech on 28 March 2006 in the National Assembly, Parliament to the effect that the first phase of the establishment of the national social security agency was on track for completion by 31 March 2006. And that as formalized in a MinMec meeting with the MECs for Social Development in the provinces on 27 March 2006, the agency would initially take over social assistance payments in Gauteng, the Western Cape and the Northern Cape provinces, with the process being completed for other provinces by March 2007. And lastly, him stating that the Department of Social Development had already entered into contractual agreements with provinces to ensure the seamless transfer of staff and the uninterrupted provision of service.
2. Delegation
Tshivhase, Ms T J (Leaderof the delegation)
Bogopane-Zulu, Ms H I - MP
Direko, Ms I W - MP
Gumede, Ms MM - MP
Mr LPM Nzimande - MP
Masutha, Mr M T – MP
Morwamoche, Mr KW - MP
Sibanyoni, Mr JB - MP
Solo, Mr B - MP
Waters, Mr M - MP
Weber, Ms H - MP
Dudley, Ms C - MP
Rajbally, Ms S – MP Mr MC Fukula – Committee Secretary Mr F Abrahams - Researcher Mr F Holliday – Assistant to Mr Nzimande Mr A Kakaza – Committee Assistant Mr Bogopane-Zulu – Assistant to Mrs. Bogopane-Zul
3. PURPOSE OF THE OVERSIGHT VISIT
To generally follow up on the progress SASSA has possibly made in the following key interim matters:
Stabilizing head office organizational structure and recruit people with requisite skills
Efforts to assume full accountability for operation of the SOCPEN System.
Recruitment of requisite skills and people in regional offices, particularly finance staff.
Completing the ring-fencing process in collaboration with provincial departments.
Completing the ring-fencing process in collaboration with provincial departments
Assess the conditions at pay points and systems currently in place following SASSA’s establishment.
To familiarize itself with the challenges facing the SASSA roll-out process
4. Reported progress made on SASSA’s broader roll-out process.
4.1. 1 Summary Taking the cue from the spirited and confident account given by Mr Makiwane, the CEO of SASSA, the prevailing mood at SASSA Head-Office and the regions visited, one can safely conclude, was generally one of cautious optimism. Remarkable strides have reportedly been made in facilitating the shift of grant administration from the provincial Departments of Social Development to SASSA with most of the pertinent transitional matters positively dealt with. SASSA has to a commendable degree managed to fulfil its mandate of stabilizing its head and regional offices’ organizational structures and recruit people with requisite skills, particularly finance staff, which do not move over from provincial departments.
The process of putting up the essential Information Technology, Human Resource and physical infrastructural networks has also unfolded fairly smoothly without any reported disruptions to the mechanism and system of grant payments. SASSA has, as a matter of example, now assumed full control and the inherent accountability for operation of the SOCPEN system.
The much talked-about possible stalemate surrounding the process of transferring the ring-fenced staff from the Department of Social Development to SASSA was apparently avoided, very much to everybody’s relief.
Notwithstanding the good picture created, SASSA has also given very frank and clear report about the lingering and worrisome challenges it is still battling in the areas, among others, of fraud prevention, litigation, equity plans (employing disabled people) and service delivery improvements.
4.1. 2 Integrating the provincial Social Assistance functions into SASSA
Our delegation was told that, as part of facilitating a smooth integration of the provincial social assistance functions into SASSA a Service Agreement (Agency Agreement) had been signed between the national; provincial departments and SASSA. Underpinning this Service Agreement was said to be a provision for continued corporate services (finance, human resources, information technology and communications) support to SASSA by the provincial departments of social development.
The Service Agreement is expected to remain in place until regional offices of SASSA have sufficiently built and acquired the essential and critical capacities to operate as independent entities.
As alluded to by Minister Skweyiya, in his Budget Vote speech on 28 March 2006, our delegation was informed that the Gauteng, Western Cape and Northern Cape provinces constitute a group of provinces prioritized to, with the support by teams comprising staff from the SASSA national office, SASSA regional offices and the Provincial Departments of Social Development, be trend-setters in taking full responsibilities for the social assistance functions in their respective regions. Our delegation learned that project plans covering detailed steps on the acquisition of critical staff, appropriate facilities, and the corporate services competencies necessary for effective organization have also been developed for the rest of the unprioritized provinces.
It was revealed that the Western Cape, Northern Cape, North West, Free State and Eastern Cape were already housed in separate buildings with the Gauteng and Limpopo expected to move in to separate buildings only by August and September 2006 respectively. All the regional offices, even those that are in the process of still securing alternative facilities have separate office facilities to those of the Provincial Departments of Social Development. It is envisaged that the provinces will have been reconstituted as functional SASSA regions by the end of December 2006.
From the onset of April 2006, about 6246 personnel consisting of both senior managers and low ranked staff have been transferred from the provincial and national Departments of Social Development to the Agency. Of these transferred staff, approximately 135 were from the national Department of Social Development, with the highest numbers coming the Eastern Cape (1372), and from KwaZulu-Natal (1128). The lowest numbers of transferees came from the Northern Cape region (206).
All the transferred staff were reportedly furnished with transfer letters in consistence with the terms of the agreement reached within the Collective Bargaining Council between the Agency, Department of Social Development and the Labour Unions. The Agency records reportedly show that all transferred employees have confirmed their transfer by signing the letters that acknowledge their acceptance to be transferred.
4.1. 3 Operationalising the SASSA national office
The head office is said to be fully operational with a Chief Executive Officer at the helm propped by the Executive Managers. Senior managers in areas critical to building the strategic and operational capacity of SASSA have also been filled. The appointments of key and critical personnel is said to stand to date at 160 people.
The Agency’s finance unit, headed by a permanent Chief Financial Officer is reportedly sufficiently capacitated with qualified and experienced personnel both in the senior as well as lower ranked technical level to transact, manage, and administer revenue and expenditure processes, procedures and the overall accounts of SASSA. This complemented by the government systems such as the Basic Accounting System (BAS); the salaries processing system (PERSAL) and the procurement system (LOGIS), provides for better control over funds and cash flow.
The Agency is also capacitated with an active Tender Committee comprising membership stretching to the Departments of Justice and Constitutional Development and Social Development as well as the National Treasury. The committee regularly meets to consider, review and approve service provider proposals from different branches. This branch of the Head-Office is fairly capacitated with the nucleus IT personnel supporting critical business and IT processes.
A business agreement involving SASSA and SITA has reportedly been concluded, which will see the latter continuing to provide Information and Communication Technology Support Services and maintenance of the Agency’s critical systems, such as SOCPEN, whilst it is finalising its Information and Communication Technology Strategy that will enhance fraud mitigation process where the leakages in the SOCPEN and fraud detection and prevention are addressed.
The funds flow process for the payment of grants, between National Department of Social Development, SASSA and the provinces has been finalized, our delegation was told.
Corporate governance arrangements, policies and procedures and delegations of Authority and accounting policies are reportedly also in place.
A communication strategy is said to have been developed and is in the process of being rolled out.
An analysis of current status of litigation has reportedly been completed and a litigation strategy to deal with both the backlog cases and possible future has been developed.
4.2. Service delivery improvement initiatives
4.2.1 Applications Turnaround Improvement
SASSA has reportedly completed a pilot project in three offices in the Western Cape, Eastern Cape and Mpumalanga regions and achieved an average of between 1 and 3 days turnaround in these offices. SASSA will now investigate a full implementation of these business processes in all regions, monitor the turn around time and address any challenges, which might arise.
4.2.2 Enhanced Payment Model
A national grant payment model has reportedly been developed which will ensure uniform processes across SASSA in all regions. The model is said to being developed in consultation with other stakeholders such as National Treasury and will be published with a view to implement before the end of 2006/07 Financial year. Added to that are efforts to improve on the current status quo where only less than 20% beneficiaries are receiving their grant payments through the banks. SASSA has thus reportedly signed a draft Memorandum of Understanding with the Banking Association of South Africa to encourage more grant beneficiaries to receive their grant payments via the banks.
4.2.3 Optimal Service Delivery Infrastructure Network
As a way of seeking to address the challenge of sub-standard conditions in most paypoints and service offices, SASSA is said to have developed an optimal service delivery infrastructure network to support service delivery through the optimal provision of access points or applications and the payments of social grants. A review has been completed on the current distribution of service points and an optimization of locations of district and service offices are underway. SASSA revealed that it was currently in discussion with the Department of Public Works on a possible comprehensive rollout of service office throughout the country.
4.2.4 Improved Access to Services in Rural Areas
SASSA is reportedly in a process of procuring about 40 mobile service units equipped with essential material to complement efforts to enhance levels of service delivery in the deep rural areas. A tender is said to have already been issued for the procurement of mobile units with the evaluation and implementation of the tender only expected during the 2006/2007 financial year.
4.2.5 Anti-fraud measures to improve the integrity of social grant administration
The Agency is vigorously dealing with the inherent SOCPEN problems such as illegitimate beneficiaries by looking at things that lead to corruption of the database.
The Agency has reportedly a full-fledged fraud unit, complemented by among other things a fraud hotline through which fraud linked to grant administration and payment could be reported. Received fraud tip-offs are reportedly handed over to the Special Investigation Unit (SIU) for indepth investigation.
5. Report on the regional roll-out process focussing on the visited Eastern Cape and Northern Cape regions. 5.1 EC REGION
5.1.1 Summary
The Eastern Cape region does not form of the group of 3 prioritized provinces. It was only chosen to serve as a benchmark of outlaying regions in terms of what preparatory processes are in place for a later roll-out. As was the case with the SASSA Head-Office the mood at the regional level in the Eastern Cape was generally upbeat underpinned with a strong and manifest sense of everything-is-under-control confidence. This strong sense of confidence permeated even into those areas where there were reported challenges such as litigation and syndicated grant fraud particularly around the Port Elizabeth and Queenstown areas. Concerns raised by MEC Ms Xasa around the general accountability issues between SASSA and the Department of Social Development could not obscure the upbeat mood either.
The region’s confidence is predicated on the many positive achievements it reports to have made since 01 April 2006. These include several best practices such as the Management Information System, Medical Assessment and Vendor Management Units. And moreover the fact that the Agency in this region is totally separated from the Department of Social Development at regional level and is also functionally separate at lower level in terms of core service function.
5.1.2 Human Capital
It was reported that the Region has a function human capital management system. Of the 1400 Social Security personnel transferred to SASSA in the region as from 01 April 2006, we were told that 900 were on short-term contracts. Of the 57 critical posts advertised to date, 52 were reportedly filled with women constituting 90 per cent thereof.
The task of recruitment of critical staff was cited as a time-consuming challenge.
5.1.3. Financial management
The region was very in line with the Head-Office report fully functional in the area of financial management equipped, among other things, with BAS and Procure-to-pay systems. Evidence thereof is borne by the fact the region has successfully completed its first Annual Financial Statement and a financial audit for 2005/06.
Challenges were reported in respect of commitments carried over from 2005/06 fiscal year; utilisation of the Department of Social Development Bank Accounts for transfer of payments, as well as the actual division of ring-fenced assets and liabilities.
5.1.4. Infrastructure
The regional office is reportedly fully established and operational as from 01 April 2006. At service office level, we were informed that SASSA was still sharing offices with the provincial Department of Social Development. A national tender for 7 district offices independent from the Department of Social Development is to have been approved and due advertisement.
Prioritization of procurement for area and service office levels coupled with poor conditions in some service offices was highlighted as a critical challenge.
5.1.5. Legal services
The regional office has an established legal services unit located in the Corporate Services Division. Its sternest challenge is reportedly to provide clarity on who, between SASSA and the Department of Social Development, is responsible for litigation cases that were filed before and after 01 April 2006.
5.1.6. Grant administration
The roll-out of the enhanced Management Information System (MIS) in the Nelson Mandela Metro has been touted as a long required panacea to reduce the region’s turnaround time in grant application and thus improve levels of customer satisfaction. The system is a computerised resource mechanism that hosts grant applicants’ files and is able to track movements of files and eradicate any possibility of missing files, which has been a source of many litigation actions.
The regional office has an established and functional Medical Assessment Unit, which is credited improving the quality of disability and care dependent assessments. The Unit reportedly has 15 doctors, 2 for each district who do quality control of disability applications focussing on technical issues.
After encountering problems with contracted payment companies, the office has seen wisdom in establishing its own functional Vendor Management Unit beefed with monitors who visit paypoints randomly to check on the happenings there.
The office also boasts a functional beneficiary maintenance unit and a centralised registry.
The issue of poor infrastructure (poor office and road conditions) in outlying areas continues to be a hindering challenge for the region. The reliance on the other stakeholders such as the Departments of Home Affairs (IDs); Health (medical assessments) and Justice (foster-care matters) is reported to be a concerning challenge. The fact that there is currently no clear policy on appeals is also cited as a challenge to the efforts of improving grant administration.
5.1.7.Fraud prevention programme
In the face of sophisticated and highly organized grant fraudsters; the Agency has reportedly had to put strict control measures to effectively outsmart the fraudsters. The control measures include the introduction of pre-numbered application forms as well as the Management Information System, which also functions as a tracking tool. If there is a missing document, the MIS does not allow the system to move.
As a way of reigning in on fraudulent child support grant, the Agency and its Compliance Unit is sharing notes with the Department of Education and conducting random checking of whether the children listed for child support grant are indeed in existence. There is also a task team made up of SASSA and Department of Home Affairs officials dealing with the challenge of fraudulent birth certificates. The Port Elizabeth (PE) area was singled out as the hotspot for fraudulent grant activities, with an unacceptably high number of disability grants in the Eastern Cape region. Alcoholics and drug addicts were reportedly receiving permanent disability grants. Linked to this high number of disability grants was a syndicate operating in the PE area, which was colluding with Department of Health officials who were selling it TB cards to be used in fraudulent grant applications. The syndicate was arrested in 2004 and convicted in 2005. A Nigerian doctor implicated in fraudulent grant activities has reportedly been arrested. His case was expected to come before the courts during the last week of August 2006. The arrest of the Nigerian doctor led to the arrest of the Department of Social Development who was working with a syndicate operating around the Queenstown area. The Department of Social Development has reportedly been found guilty and jailed for seventeen years.
A scam involving another syndicate operating around the Port Elizabeth area, working with officials from the Department of Home Affairs who were producing fraudulent was also reportedly uncovered. Department of Social Development officials working with the syndicate have been identified. This syndicate case was also expected to be heard during the last week of August 2006.
About 3109 government employees illegally receiving social grants have reportedly been identified. Their grant payments have been stopped and their case has been referred to the South African Police Services for criminal prosecution.175 Municipality employees accessing social grants illegally have also been identified and their case is reportedly being dealt with by the Scorpions. SASSA’s Compliance Unit is dealing with a case involving 14252 civil pensioners accessing social grants. SASSA has also arrested 2 attorneys in the Queenstown area who filed for litigation against the Agency without the knowledge of affected grant beneficiaries.
6. Northern Cape Region
6.1. Summary
The Northern Cape region is one of the group of 3 regions prioritized to implement the process of establishing and operationalising SASSA. The information provided by the Regional Office clearly suggests that the Agency establishment and operationalisation process in the region is not yet fully realised. Although it reportedly has all the financial policies in place, the Regional Office still does not have its own finance and information technology support services. It still sources the latter from the provincial Department of Social Development, courtesy of the Service Agreement signed between SASSA and the Department of Social Development. Only by the end of October 2006 is the Regional Office expected to be fully capacitated.
The highlight of the Regional Office, very much like the Eastern Cape is its hosting of the MIS which will replace the manual records management process with an electronic system.
The Agency is accommodated in its own separate premises, called SASSA House, based in Kimberley. 20 new officials have reportedly been appointed in the HR, SCM, Finance, ICT and Executive office and the rest of the critical vacancies are reportedly expected to be filled by mid-October 2006.
Whilst the Agency operates independently at regional level, at district and local service office level, it still shares the operational costs with the provincial Department of Social Development. Among the highlighted positive developments in this region, has been the cordial working relationship between the Agency and the provincial Department of Social Development.
6.2 Service delivery improvement initiatives.
6.2.1. IT and Communication systems
The regional service improvement initiatives boast the Management Information System, which is seen as critical in reducing litigation chances through implementing an organised registry that is electronically managed through the system and thus averting the scourge of missing files. Its other advantages are recorded as its ability to standardize the registry processes; help create a centralised registry; ensure efficient file tracking, track user performance and effect adherence to norms and standards. The Region has also unveiled a regional initiative called the Trans African Technology System (TAT). TAT is a grant management system to support risk management, data interrogation and detect fraud. It is a pre-screening system before processing grant applications onto SOCPEN and also to generate ineligible cases for investigation. Complementing these two initiatives is about 30 telephone interpreting facilities installed in service offices throughout the Northern Cape region. These facilities cater for all the regional languages.
6.2.2. Grant application turn-around time
The region is reportedly compliant with the 21-day national norm for approval of applications despite the challenge of vast distances between offices and is currently working on a new service delivery model, otherwise called "same day approval" project. The latter is at the moment being piloted at only the fully resourced district offices and the rollout is expected to cover all areas depending on the pace of infrastructure improvement. Since the rollout of the project, about 2287 same day approvals have reportedly been finalised.
6.2.3. Status of pay points
The bulk of the 240 active pay points serviced by Cash Paymaster Services (CPS) throughout the Northern Cape region is said to be complying with the national norms and standards for pay points such as water availability, wheel chair ramps and first aid kits. All pay points reportedly have fully fledged helpdesks and finish payment operations before 12h00. Supporting this is reportedly a contingent of about 710 strong and trained volunteers organized in volunteer committees spread throughout the different pay points. It is important to note that our delegation could not verify this kind of information as there were no active pay points making payments during our visit. We were informed that paydays are only from the first to the tenth day of the month.
The exploitation of beneficiaries by merchants who are reportedly forcing them to buy at their shops where food prices are allegedly inflated is cited as a disturbing challenge facing the installation of smart card machines in the region.
6.2.4. Grant administration
Data cleaning initiatives have reportedly culminated into a regional initiative to review all expired temporary disability grants. Affected beneficiaries are reportedly informed of their eminent grant payment termination in advance by 3 months. Statistics indicates that for the month of June 2006, about 880 grants had been reviewed. Data cleaning initiatives have also exposed about 14818 cases of invalid identity numbers. About 99, 5% of these cases have reportedly been sorted, with the remaining linked to duplicate identity numbers being rectified with the Department of Home Affairs.
RECOMMENDATIONS
The Portfolio Committee on Social Development recommends that:
The South African Social Security Agency (SASSA) be commended for the efforts that have gone into ensuring that the transfer of the social assistance function from the Department of Social Development proceed smoothly.
SASSA reports to Parliament with regard to the establishment of its own premises in those provinces where this had not happened at the time of the oversight visit, and that it reports on this matter before the end of 2006.
SASSA reports to Parliament with regard to the pilot projects for the speedy assessment, verification and approval of grant applications.
SASSA reports to Parliament on measures put in place in each of the regions to ensure that persons with disability are assisted in applying for social assistance. Such a report should, inter alia, reflect on the accessibility of SASSA offices, possible strategies to ensure the availability of sign language interpreters, the availability of information and application forms in Braille, and general skills levels among staff with regard to the needs of persons with disabilities
SASSA reports to Parliament on steps taken to ensure that it complies with the requirements of the Employment Equity Act as it relates to the employment of persons with disabilities.
SASSA reports to Parliament on measures taken against any of its personnel implicated in, or found guilty of fraudulent activities in relation to social grants.
SASSA reports to Parliament on the progress made with regard to paying grants into bank accounts, as well as challenges experienced in this regard.
The Committee further recommends that:
The Department of Social Development brief it on the policy challenges with regard to the relationship between access to disability grants and access to antiretroviral treatment.
The Department of Social Development brief it with regard to the manner in which it monitors SASSA, and what reporting mechanisms it envisages to utilise when reporting on this matter to Parliament.
The Department of Social Development brief it on progress made with regard to implementing an appeals mechanism in relation to unsuccessful applications.