Report on the Department of Social Development’s Annual Report,
Financial Statements and Auditor-General’s report 2007/08, presented to the
Portfolio Committee on Social development on 21-22 January 2009, in Parliament.
DISCUSSION
The Department briefed the Committee on three areas of its
Annual Report 2007/08, namely, Institutional Capacity, Comprehensive Social
Security and Welfare Services. Issues raised included the need to interrogate
the reasons regarding problems faced by the Independent Appeals Tribunal and
challenges around the implementation of the means test for social grants and
Integrated Community Development.
Mr Zane
Dangor, Chief Operations Officer presented an overview of the Annual Report and
he among other things mentioned the following:
Human
Resource Management
1)
He indicated that data for the years 2005 and 2006 was included in
the presentation to show the Committee how the Department has managed the issue
of vacancies.
2)
The Department managed to reduce the vacancy rate to 14%. The
Department had implemented the new supply chain management directives
promulgated by the National Treasury.
3)
He outlined at length the key achievements of the Department in
its international obligations function. Focus on this obligation increased
considerably since 1994 with the objective to forge long-term partnerships with
developing countries
Final Audited Expenditure for the 2007/08 Financial Year
Mr
Coceko Pakade, Chief Financial Officer briefed the Committee as follows:
1)
He contextualised the issues related to expenditure in the current
financial year. The Department made key interventions in improving its
performance and this resulted in an unqualified Auditor General report. The
bulk of the budget was transferred to households and the Child Support Grant
was extended.
2)
Since the National Department took over from provinces,
projections had improved significantly, and the Department almost spent all its
budgeted allocation.
3)
He outlined the specific reasons for under spending but they were
mainly related to the Department’s failure to fill vacant posts due to capacity
constraints.
4)
He said that the National Development Agency (NDA) had been trying
to get more money from the fiscus to expand their services, but had been
unsuccessful. The Department was engaging with the NDA to sort out these
matters.
5)
He said that the Department is reviewing the legislation regarding
the Disaster Relief Fund to consolidate this fund. The Department is also
reviewing the proposal to minimise the Board’s involvement in this process, as
in most instances it results in delays. This would ensure quicker response in
providing assistance to the victims of disasters before the area is declared a
disaster area.
6)
He also reported on the Auditor General opinion, which noted that
challenges related to transfer of functions from the provinces to the national
Department resulted in most of the balances not disclosed because the
Department was unable to do so until 2007/08. The Department hopes to reconcile
all the debtors by the end of 2008 as an extension had been obtained from the
Auditor General for disclosure in March 2009.
During the
interaction with the Committee the Department further provided the following
information:
Mr Pakade:
1)
The Department did not have overspending. Where it appeared that
there had been overspending, this merely reflected consulting fees, which had
been budgeted for but not used. The savings do not necessarily mean that the
key deliverables were not achieved.
2)
He indicated that there may have been some projects that had not
been fully executed and implemented. Thus, money had been budgeted for but not
paid to suppliers in the financial year under review. Savings usually occurred
when there was under spending, when a strategy was changed or efficiency gains
were used.
3)
A process of engagement with the Planned Parenthood Association
had been started and a project plan was being developed. In terms of the
regulations, certain protocols had to be met and as a result the process took
longer than anticipated. When the funding could not be sourced, the Department
applied to National Treasury for approval and asked for a rollover. The
application was granted and the Department was allowed to pay this in following
year.
4)
During audit process, Mr Pakade informed the Auditor General that
the Department was in the process of developing a disaster recovery plan, and
therefore it was not yet signed-off and approved.
COMPREHENSIVE SOCIAL SECURITY
Mr
Selwyn Jehoma, Deputy Director-General: Social Security briefed the Committee
as follows:
1)
The Government had adopted a Three Pillar approach to social
security. These are Social Assistance, Social Insurance and voluntary
contributions for benefits outside of Pillars 1 and 2. He outlined the function
of the social assistance and its impact on children, youth and family benefits,
Old Age and Disability, and other social assistance policy Developments. He explained how Social Security Transfers
and Administration are implemented. He also reported that the Department
completed four feasibility studies regarding Social Insurance.
2)
The Department is of the view that Social Relief should be
implemented by provinces. This would enable the national Department to
review progress on this matter and assess how people who were not covered by
the main social assistance grant were coping.
BRIEFING ON THE MEANS TEST
Mr
Thabo Rakoloti, Chief Director: Social Assistance briefed the Committee on the
workings of the Means Test as follows:
1)
The Means Test for Child Support Grants has been increased from
R1100 to R2300 per month. The Department has a formula that automatically
adjusts as the grant value increases. This formula works similarly for the Care
Dependency Grant, Old Age Grant, Disability Grant and the War Veterans Grant.
2)
During 2008 the Department engaged with National Treasury to
universalise Old Age Grant and the approach taken was to ensure that the Means
Test threshold should be gradually increased to allow for greater access to
this grants.
During the interaction with the Committee
the Department further provided the following information:
Mr
Jehoma
1)
The Department conducted a review on the increment of grants and
assess whether it was sufficient to wither erosion as a results of inflation.
He said the Department now has a formula that is self-adjustable in line with
incremental changes to the grant value. Subsequently, the threshold is
adjusted.
2)
The Department has not looked at what the Old Age Grant could or
could not buy as this is still determined by the historical situation of the
country. He raised the concern that at the current value, the Old Age Grant is
close to the minimum wage and might create a disincentive to work.
3)
The issue of universalisation of social security was a political
issue and must be engaged with at a strategic level.
4)
A dedicated programme was launched, which is part of the
Government programme of action to link social assistance to economic activity.
The Department provides social assistance to care givers of children who are in
a Work Fair programme and Welfare to Work programme. For care givers, social
security could link them to work but they could not be expected to provide the
work. The challenge with this approach pertains to ensuring that institutional
arrangements and institutions like that of Labour and Social Assistance work in
collaboration.
5)
Provinces are interpreting the regulations regarding where to
apply for social relief differently. A special meeting with Heads of Department
was held last year and the Procedure Manual was made available. This will
enable any SASSA employee or social worker to be familiar with the regulations.
Any office of SASSA provides social relief of distress.
INDEPENDENT TRIBUNALS FOR SOCIAL ASSISTANCE
APPEALS
Mr
Armstrong Malope, Director, briefed the Committee as follows:
1)
He provided a background to the Appeals process and noted the
inherent delays which have resulted in the backlogs which dated back as far as
2004.
2)
He presented the Appeals Service Delivery Model and the
Establishment Progress processes. He explained the composition of Tribunals,
the current workflow process and the way forward for the phasing in of the
decentralising the system
3)
Large numbers of High Court cases in KwaZulu-Natal (KZN) were due
to disgruntled appellants who were frustrated with the Department and planned
to go to the High Court. The numbers of disgruntled persons were around 3000
and all were scheduled for tribunal sittings.
4)
The question regarding the high numbers of litigation in KZN was
difficult to respond to. This was partly due to the lack of communication
regarding information from appellants. There are a number of attorneys who
specialise in these matters, and the Department commissioned a study to
investigate the matter. The preliminary findings, found that some appellants
were not even aware of these matters being referred to High Courts. The
investigation is still ongoing.
5)
Regarding alternative plans the Director-General was committed to
dealing with at least 35% of the cases before the end of the financial year.
Due to inadequate resources on the ground, there were not in place. The
Department plans to go full scale to enlist panel members in all provinces
During the interaction
with the Committee the Department further provided the following information:
On the
issue of funding, Mr Pakade said that:
1)
Treasury had allocated funding for the establishment of an Appeals
Tribunal, but the question was whether the money was sufficient. The National Treasury
based their argument on two things: firstly, the Department of Social
Development is seeking funding for an extensive structure that could be
decentralised to provinces and regions; and secondly, that the Department is
dealing with a huge backlog.
2)
The Treasury felt that the Department should put more money into
addressing the huge backlog and not into creating a new entity.
3)
Regarding litigation costs and the huge risks involved in this
area, the Department incurred costs due to inefficiencies in administration.
The funds had been initially earmarked for SASSA, however SASSA did not receive
them. For the Department the only risk is when the backlog is not addressed.
There are 52 000 cases that might go the route of appeals with litigation. If appellants
were given clear dates and timeframes for adjudication then there would be a
reduction in potential litigation.
4)
The National Treasury was reluctant to pay for this, and the
Department would have to deal with the reality when faced with it.
Programme Performance Welfare Services
Dr
Maria Mabetoa, Deputy Director-General: Welfare Services presented the
following:
Welfare
Services Transformation
1)
The draft Social Services Professions Bill has been developed.
2)
The Department has drafted the policy on social services and
partnerships with NGO’s in preparation for the development of the legislation
for social services.
Substance
Abuse
1)
The Substance Abuse Bill was approved by the Cabinet and
introduced to Parliament.
2)
The costing of the Bill has been finalised.
3)
Draft minimum Norms and Standards for out-patient centres have
been developed.
Services
to Children
1)
The Children’s Amendment Act 2007 was passed by Parliament in
November 2007 and signed into law in March 2008.
2)
A draft of regulations on the Children’s Amendment Act has been
completed and made ready for publication and comment.
3)
A strategy to address backlogs on foster care as well as
alternative care strategy which includes residential care and adoption services
has been finalised.
4)
The department continuously provides support to provincial
departments in the registration of ECD sites.
5)
The Department conducted training to provincial officials on the
parenting programme and initiated implementation of the programme in some ECD
sites.
Services
to People with Disabilities
1)
A draft implementation strategy on policy on Disability that will
be taken for consultation during 2008/09 has been finalised.
2)
Consultations with provinces on draft rehabilitation guidelines
for persons with disabilities have been finalised.
3)
About 150 officials, both in government and NGO’s, have been
trained on disability policy and minimum standards.
4)
An audit of support services to children with disabilities has
been initiated and a service provider to write a report has been appointed.
Services
to Older Persons
1)
Draft regulations on the Older Persons Act of 2006 have been
developed.
2)
The regulations have been taken for consultation with stakeholders
in nine provinces.
3)
The Act will be ready for implementation by April 2009.
4)
Norms and standards for both Community-Based Care and Support
Services have been aligned with the new legislation.
5)
About 500 older persons and forum members on the charter on the
rights of older persons have been trained.
Families
1)
Training of 140 service providers on the implementation of the
family strategy in all provinces was conducted.
2)
The Department has established one-stop crisis centre for victims
of crime and violence in Mitchell’s Plain in partnership with the UNODC.
3)
Funds were allocated to 26 NGO’s from the Criminal Assets Recovery
Funds to support delivery of victim support services.
Social
Crime Prevention
1)
Secure Care Detention Management System has been rolled-out to
seven provinces and 174 officials have been trained as end-users in 22 facilities.
2)
A customer care excellence training of 164 probation services
officials has been conducted.
3)
About 25 provincial coordinators on minimum norms on diversion
have been trained.
Integrated Community Development
Dr Connie Kganyago presented as follows:
Integrated Community Development had been divided into four
programmes; namely, HIV/AIDS, Community Development, Youth Development and
Non-Profit Organisations.
Programme 3: Social Welfare Services (HIV and AIDS)
1)
The Department of Social Development strengthened its support of
Home/Community-Based Care and support initiatives, by funding of 1 579
Home/Community-Based Care organisations and 617 drop-in centres through
provincial offices.
2)
The Department also ensured that 60% of all funded
Home/Community-Based Care organisations complied with the norms and standards
set by the Department.
3)
The Department provided services and support to 50 887 Child
Headed Households within the Home/Community-Based Care and that it was
estimated that South Africa has 1,5 million maternal orphans.
Programme 4: Community Development,
Non-Governmental Organisations and Youth Development
1)
The Department developed a Partnership with Trade and Industrial
Policy Strategies (TIPS) under the supervision of the Second Economy Strategy in
the Presidency that facilitated the ‘Communities Work Programme’ in the form of
a work guarantee scheme.
2)
It also conducted a Skills Audit of Community Development
Practitioners (CDPs) in all nine provinces.
3)
The skills audit focussed on the geographical location of the CDPs
and their capacity to deliver sustainable community development programmes.
Non-Governmental Organisations
The Department completed and gazetted the Regulations of the
terms and conditions to appoint a technical committee that complied with
Sections 10 and 20 of the Non-Profit Organisations Act that would strengthen
and improve the regulatory framework of non-governmental organisations.
Youth Development
The Department engaged stakeholders on the National Youth
Service in all nine provinces as well as processing sights for the
implementation of the National Youth Service Programme.
CONCERNS AND RECOMMENDATIONS OF THE
COMMITTEE
1)
The Committee felt that the Means Test was not a user friendly
system for customary marriages. It was clarified that a legal union
necessitated a duty of support even for multiple spouses.
2)
The Committee expressed disappointment that provinces were
not implementing social relief of distress programme in a uniform manner, but
were assured that the regulations to inform applications would be provided by
the Department.
3)
The Department’s failure to establish an Inspectorate as provided
under the Social Assistance Act 2004 was a major setback for the Department.
4)
The high numbers of appellants in KwaZulu-Natal was discussed with
a view to remedy the matter.
5)
The Committee noted the high number of children placed under
foster care in South Africa which could be ascribed to the many stumbling
blocks encountered in the permanent placement of children, particularly, in
adoptions.
6)
The Committee noted that there were complaints from people that
many old age homes were in poor condition.
7.
The Committee expresses concern over the use of Social relief for
registration for tertiary studies. The Committee has already addressed a letter
to the Minister of Education requesting it to furnish the Committee with
mechanisms it has put in place to provide financial assistance to assist
students pay for registration fees.
RECOMMENDATIONS
1)
The Committee requests that a list be made showing the Mini Drug
Master Plan reports that provinces submitted.
2)
Substance Abuse should be moved to the Social Crime Prevention
section.
CONSIDERATION
OF THE FINANCIAL STATEMENTS AND THE AUDITOR-GENERAL’S REPORT
The Committee considered the above mentioned reports and is
satisfied with the improvement achieved with management of funds of the
Department and Agencies as reflected on the Auditor General’s report and
decided therefore not to hold separate hearings in that regard.
Report to be considered.