Election of Chairperson; DSD, SASSA & NDA Annual Performance Plan 2024/25; with Minister

Meeting report

Election of Chairperson of the Portfolio Committee on Social Development

Ms B Masango (DA) was elected as the Chairperson of the Portfolio Committee on Social Development. She felt deeply honoured to be elected.

The adoption of the agenda was accepted by Mr T Munyai (ANC), seconded by Ms N Nkosi (ANC).

Chairperson's opening remarks

The Chairperson greeted Ms Sisisi Tolashe, Minister of Social Development, and acknowledged the apology of the Deputy Minister. After reviewing the mandate from the Department of Social Development (DSD), she found it significant that the DSD emphasised integrity and humility. She noted, however, that these qualities were absent in their last public hearings under the Sixth Administration. By promising integrity and humility in their mandate, the DSD had set high expectations for the Committee's work over the next five years.

Minister's opening remarks

Minister Tolashe greeted everyone present and expressed her pleasure at presenting the Department's annual performance plan (APP) and the budget following her appointment. She congratulated the Chairperson and pledged her commitment, respect, and timely responses. Having been a backbencher in previous years, she acknowledged the frustrations the Committee had faced, and committed to not subjecting the Committee to such experiences. She assured everyone in the room that they would be allowed to fulfil their respective responsibilities.

The social development portfolio included the National Department of Social Development, the South African Social Security Agency (SASSA), and the National Development Agency (NDA). The Minister expressed appreciation for the work done by the former Minister and Deputy Minister of Social Development. The APPs presented today were transitional, aiming to conclude the work of the 2023/24 term and introduce the work for the 2024/25 term. These plans would reflect that the ministry's priorities were aligned with those of the Government of National Unity (GNU). The portfolio's work brings hope, support, and sustenance to many households and communities, serving as the heartbeat of the GNU. The Department’s mandate, derived from the constitution and chapter 11 of the National Development Plan (NDP), included providing care and support services to vulnerable groups. The Department's services were also essential during disasters, such as the COVID-19 pandemic and floods.

South Africa faced challenges including poverty, unemployment, inequality, and a lack of community capacity for self-development. The rise in social ills, gender-based violence (GBV), substance abuse, and teenage pregnancy further increased the demand for the Department’s services. The Department was aware of the service delivery challenges it was about to inherit, including grant access issues. The Department promised improved communication of solutions to grant beneficiaries. These APPs demonstrated the Department’s commitment to enhancing the quality of life for the people. Despite being underfunded, the Department remained expected to deliver on its mandate to the vulnerable and hungry. To ensure the Department's swift progress, managerial positions would be filled quickly, and additional funding would be sought for the employment of social services professionals.

Department of Social Development Annual Performance Plan

Details of the Department's annual performance plans are provided in the attached presentation.

Discussion

Mr Munyai emphasised that the Committee's purpose was to facilitate engagement or debate on the mini plenary budget due the following week. He underlined the importance of a clear separation of powers between the executive, the judiciary and the Committee, to ensure that the Committee did not feel compelled to micromanage the executives.

Ms N Tafeni (EFF) said that the former Minister of Social Development had introduced the basic income grant. What did SASSA think the impact of budget cuts would be on the basic income grant considering the impact the cut already had on implementing the Social Relief of Distress (SRD) grant? How many entities were there in social development? Did the NDA have mechanisms in place to ease the work pressure following the reported issues of human resource shortages in their organisation?

Ms P Marais (EFF) questioned the Department about any programmes they might have in place to address budget cuts and the issue of over 3 000 unemployed social workers. She also inquired why the disaster in KwaZulu-Natal (KZN) had not been addressed, despite implementing a disaster fund during the Sixth Administration.

She highlighted the lack of proactive measures to prevent long-term effects of social issues such as drug abuse and alcoholism, which ultimately force the government to spend more money. She provided an example of individuals who became mentally ill due to drug use and then relied on government grants for the rest of their lives. She expressed concern that issues were not being addressed, and each year, the Committee received the same complaints.

She cited the example of older people’s grants being paid on the 7^th of the month, which was considered too late. Another example was the annual registration of new non-profit organisations (NPOs) despite continuous budget cuts. She also noted that the DSD was not prioritising the prevention and awareness of HIV/AIDS as it had in the past. She suggested that these issues could be addressed more effectively if the Department removed red tape obstacles.

Ms A Abrahams (DA) observed that the set targets had been reduced, and wanted to know if this was due to budget cuts. She inquired about the Victim Support Services Bill, which had faced criticism upon its first introduction, and asked if the format of the bill had been changed. She also questioned whether other bills from the last administration were being considered by the Seventh Administration.

She raised concerns about the impact of budget cuts on NPOs and their beneficiaries, asking if there was a plan in place to address this, and whether it included the NDA. She also requested that Committee Members be provided with a contact list of officials, Members of Executive Councils (MECs), Directors-General (DGs), and other relevant personnel so that when the public emailed them they could forward these emails to the appropriate contacts.

Ms S Frenchman (NCC) asked if the Committee would be notified of the completed (or not) policies and if they would be allowed to provide input.

Mr F Mfiki (MK) expressed his concerns about the Department's plans for addressing drug addiction and HIV/AIDS cases. He criticised the Department's approach, questioning how they could effectively help when, on the one hand, they warned that "HIV/AIDS kills," but on the other hand, they seemed to encourage pregnancy by offering incentives.

Mr L Shangase (MK) inquired about the Department's efforts to improve the living conditions of the poorest individuals in villages, where people still shared dirty water with animals even after 30 years of democracy. He asked how the DSD planned to monitor and ensure easy access to the basic income grant (BIG). He also questioned whether the Expanded Public Works Programme (EPWP) belonged to the government or the ruling party, noting that some individuals had been denied access to the programme due to their political affiliation.

Mr Munyai requested clarification on the "Bill" being discussed. He then addressed the issue of alcohol abuse, which he perceived as a source of destabilisation. He commented that while alcohol-producing multinational companies may not accept responsibility, mechanisms should be put in place to restrict alcohol access. He also suggested that some non-governmental organisations (NGOs) should be audited by the DSD, as they were funded by the Foreign Intelligence Agency (FIA) to destabilise the country, its policies, and its leadership.

Ms Marais pleaded with the Minister to rethink the issue of "baby savers" -- an alternative to unsafe baby abandonment -- which had been banned due to legal complications.

Minister's response

Minister Tolashe reminded the Committee of their constitutional responsibility, emphasising that they could not pick and choose which social development issues were most important, even if they believed certain policies might encourage early pregnancy. Regardless of the circumstances of a child's birth, it was the DSD’s responsibility to help.

The Chairperson then decided that all presentations should be completed before addressing the questions raised and before proceeding to the next round of questions.

South African Social Security Agency Annual Performance Plann

Details of SASSA's annual performance plans are provided in the attached presentation.

National Development Agency Annual Performance Plan

Ms Nozabelo Ruth Bhengu, Chairperson of the NDA, provided an overview of the entity, its accomplishments, and future initiatives. It had been established under Act 108 of 1998, with a mandate to eradicate poverty and address its root causes. These causes stemmed from historical legislation such as the 1913 Land Act and the 1950 Group Areas Act, which excluded and suppressed certain citizens from participating in the economy as owners of the  means of production.

Today's presentation was a transitional strategic plan based on the adoption of a turnaround strategy developed in June 2023, which focused on the NDA's impact on poverty. The NDA had therefore revisited the Land Act to provide a better interpretation and was now presenting on the existing skills versus the required skills. There were key vacancies on the board. The chief executive officer (CEO) had been appointed in November 2023, but the process was paused due to elections and the possibility of a new Minister. The chief financial officer (CFO) had been suspended, and the matter was referred to the Commission for Conciliation, Mediation and Arbitration (CCMA). The board comprised six members, who were stakeholders, and five from government departments. Two Departments -- Cooperative Governance and Traditional Affairs (CoGTA) and Public Works and Infrastructure (DPWI) -- still needed to appoint their members.

(Details of the NDA's annual performance plans are provided in the attached presentation.)

Ms Bhengu concluded the presentation by emphasising that the Agency's role would focus on coordination, drawing a parallel to the Department of Sport, Arts and Culture's (DSAC's) coordination during the 2010 Soccer World Cup, which she had chaired as part of the Portfolio Committee. Reflecting on that experience, she recalled the scepticism due to the small budget, yet successful coordination had made it feasible. The NDA now aimed to assume a similar coordination role in poverty eradication efforts nationwide.

She underscored that poverty eradication was a collective responsibility of the entire country, not solely the NDA's. She cited the Department of Higher Education and Training (DHET) as an example, highlighting how equipping youth with skills could contribute significantly to poverty alleviation efforts.

Discussion

Mr Munyai expressed scepticism about the Committee's focus on questions regarding transitional mandates aimed at concluding the work of the Sixth Administration. He emphasised that the real work would begin after the budget, once the key priorities of the Seventh Administration were clearly outlined for the current ministry. Only then, he argued, could the Committee effectively carry out legislative oversight.

Addressing Committee Members who had inquired about policy changes, he clarified that President Ramaphosa had emphasised that there was going to be policy consistency and continuity even during the Seventh Administration of the GNU.

The Chairperson acknowledged Mr Munyai’s comments and clarity, but said she felt that Members should be allowed to ask questions of clarity so that as they proceeded to prepare their speeches, they would be clear on issues.

Ms Tafeni noted a discrepancy between the estimates of national expenditure (ENE) and the APP presentation, which recorded R212 million, while the NDA recorded R214 million for the same financial year, and requested clarification on this inconsistency. She also inquired about the number of publications the NDA planned to produce in the current year.

Regarding implementing the electronic monitoring and evaluation (M&E) system for the social development sector, she questioned why the DSD selected only two provinces for this initiative.

She then highlighted a concerning issue in the human settlements sector, where individuals who were clearly physically disabled and registered for disability grants with the DSD were reportedly being denied housing. These disabled individuals were being asked to provide written proof of their disability, despite their disabilities being visibly apparent. She emphasised the importance of addressing this significant challenge faced by the Committee and the DSD.

Ms Marais requested that the Minister provide the Committee with monthly updates on vacancies, including proof of qualifications for those appointed. She raised concerns about child and orphan grants automatically ceasing at age 18, noting that some children had not completed their schooling by then. She criticised the lack of communication between different government departments, which was disadvantaging citizens.

She confronted the DSD regarding their contract with PostBank, despite prior warnings from the Committee. Addressing the NDA, she inquired about the timeframe and systems in place for poverty eradication, particularly through community enterprises. She expressed concern that too much of the budget appeared to have been allocated to employees and research.

Turning to DSD, Ms Marais raised issues of EPWP workers allegedly being exploited and paid below the minimum wage, and sought clarification on the matter. Finally, she questioned the DSD about the consequences for individuals caught misusing the Department's funds, asking how many had been fired or jailed, versus those who had simply been transferred to different departments.

Ms Frenchman asked SASSA about the inclusion of underprivileged non-South African citizens in the budget, and whether this had had a negative impact. She sought clarification on whether there were solutions in place to address any negative impacts on the budget caused by this inclusion.

Ms Abrahams asked the NDA about their plans to either restart the process of appointing a new CEO, or to continue with the CEO appointed under the previous ministry. She sought clarification on whether the NDA, designated solely for administration, should include line items such as the R6 million grant funding from DSD. If not, she questioned why the DSD had continued to allocate this amount to the NDA over the years.

She then raised concerns about the feasibility of community-owned enterprises in rural, urban and informal settlements already grappling with challenges like food security, GBV and crime. She criticised what she perceived as a shift away from supporting NGOs and NPOs struggling for DSD funding towards areas better suited for the Department of Small Business Development (DSBD).

Ms Abrahams also questioned the selective enforcement of clauses and Acts governing the NDA's operations. She inquired whether the NDA had secured donations, and whether the targets for community enterprises were realistically achievable.

DSD Response

Minister Tolashe underscored her priorities regarding the filling of vacancies within the Department, and committed to completing this process within 100 days and ensuring communication about each appointment, as requested by Ms Abrahams.

Mr Peter Netshipale, Acting Director-General, DSD, outlined the Department's structure, which included SASSA, the NDA, and other provincial bodies such as the Council for Social Services Professionals (CSSP) and the Central Drug Authority (CDA), which coordinates efforts on alcohol and substance abuse.

Regarding legislation, he explained that the NPO Bill had been drafted in response to the General Laws Amendment (GLA) Act, and covered matters previously addressed in the NPO Act. The GLA Act specifically regulated the appointment of NPO board members and empowered the DSD to conduct risk assessments for NPOs vulnerable to money laundering and terrorism financing.

Addressing funding challenges, he noted that the budget cuts did not significantly impact NPOs, but issues had arisen from provincial fund reallocations affecting NPOs in those regions. The DSD was addressing delays in Gauteng due to administrative failures in paying NPOs promptly.

Mr Netshipale highlighted that service delivery issues were not solely the responsibility of the Department, emphasising the need for collaboration. Currently, there are approximately 290 registered NPOs, with funding needs increasing as registrations grow. The Department planned to engage businesses to support local NPOs financially.

To improve payment efficiency, systems developed in the Eastern Cape and Western Cape were aiding in ensuring timely NPO payments, and efforts were underway to implement similar systems in other provinces.

Ms Siza Mogangwe, Acting Deputy Director-General (DDG): Welfare Services, DSD, acknowledged the pervasive issues of alcohol and drug abuse, and stressed the need for decisive action. She emphasised that no single department could tackle these issues alone -- collaboration among all mandated departments was essential. The DSD had developed an integrated policy focused on prevention rather than response, although its finalisation had been delayed by the elections.

Regarding alcohol regulation, she noted that the Department of Trade and Industry (DTI) was responsible for amending the Liquor Act, while the DSD addressed illicit drugs directly. There had been ongoing collaboration with the DTI on alcohol-related matters, including developing a bill currently pending Cabinet approval amid discussions between the two Departments.

She said that legislation addressing GBV and victim support services (VSS) had been finalised and submitted to the National Economic Development and Labour Council (NEDLAC) for review, and would soon be brought to Cabinet for approval. The protection of older persons remained a priority, with legislative revisions aimed at strengthening the DSD’s authority to intervene in abuse cases. Stakeholders such as traditional leaders were being engaged to raise community awareness, particularly addressing misconceptions about illnesses like Alzheimer's Disease that had led to fatal accusations of witchcraft against older persons.

In the realm of adoption, Ms Mogangwe highlighted amendments made to the Children's Act aimed at streamlining and making the adoption process more accessible, eliminating previous privatisation, high costs, and lengthy timelines.

On the HIV/AIDS front, the DSD continued to implement over ten programmes across all nine provinces focused on social behaviour change, complemented by partnerships with the United States government, specifically targeting orphaned and vulnerable children, and youth care.

Regarding unemployed social workers, she mentioned efforts to secure additional funding from National Treasury and potential development partners in the private sector, aiming to address the shortage of social services professionals.

Ms Brenda Sibeko, DDG: Social Services, DSD, addressed concerns about basic income grants amid budget cuts. She clarified that it was now referred to as "basic income support," instead of a grant, as it targeted individuals aged 19 to 59 who currently did not receive any social assistance. This was the only group excluded from existing social support programmes.

The Department was advocating for government to institutionalise the SRD grant into a permanent support mechanism aimed at vulnerable adults in this age bracket. To fund this basic income support, it planned to propose continuing the discontinued R370 grant, and would present this proposal to Cabinet within the year. However, amending the Social Assistance Act would be necessary once the proposal was approved, which Ms Sibeko acknowledged would be a lengthy process.

The eligibility criteria and the amount of basic income support would depend on the budget allocation from National Treasury.

Mr Thabani Buthelezi, Deputy Director-General (DDG): Strategy and Organisation Transformation, DSD, reiterated that the APP reflected the conclusion of the Sixth Administration's work, which explained why some targets had already been achieved and were not included. He emphasised that the APP did not fully capture the breadth of the DSD's activities, noting that its daily operations were detailed in its operations plan.

Regarding the EPWP, he addressed concerns about politicisation, explaining that the recruitment of EPWP workers was conducted locally where projects were based, with the DSD providing guidelines rather than direct recruitment. He acknowledged that the politicisation of the EPWP was common, like other government-provided services.

He clarified that the implementation of the M&E programme in only two provinces was due to the advanced nature of the system and readiness issues in other provinces. He stressed the importance of gradually rolling out the system to ensure effectiveness and understanding before expanding further.

Adv Nkosinathi Dladla, Acting DDG: Corporate Services, DSD, said that the current APP included only three bills due to its transitional nature. He assured the Committee that all bills, regulations and policies fell under the DSD's regulatory oversight, with updates on progress put aside for future reporting.

Regarding social sector partnerships (SSPs), Adv Dladla informed the Committee that a strategy had been approved by Cabinet in February, and the DSD was currently engaged in stakeholder communications to implement it effectively.

SASSA's responses

Mr Brenton van Vrede, Executive Manager: Grants Administration, SASSA, explained that social grants were typically disbursed in the first few days of each month, starting with old age grants. This timing allowed banks to ensure that automatic teller machines (ATMs) were stocked with sufficient funds after the month-end rush. To prevent payments to deceased beneficiaries, a proposal has been made to shift social grant payments to the second week of the month. This adjustment would give SASSA a week to cross-check records with Home Affairs for the previous month.

Regarding child support grants (CSGs) ending at 18 years old, he clarified that this was stipulated by current legislation. However, foster care grants could be extended to age 21 if a social worker confirmed the child was still in school. He noted that refugees with permanent citizenship status were eligible for grants, while asylum seekers qualified for the COVID SRD grant. The financial impact of these allowances was minimal, given the small number of asylum seekers and refugees compared to South African beneficiaries of these grants.

Ms Busisiwe Memela-Khambula, CEO, SASSA, acknowledged Ms Marais's concerns, admitting that they should have heeded the Committee's warnings about the PostBank. She informed the Committee that SASSA had discontinued its collaboration with the PostBank.

Ms Sibeko told the Committee that efforts to extend the CSG to age 21 had been attempted many times, but budget constraints had hindered this. As an alternative, SASSA encouraged children over 18 who no longer qualified for the CSG to apply for the SRD grant.

Ms Eva Malatji, Senior Manager: Fraud and Corruption, SASSA, highlighted the establishment of the Fusion Centre, comprising the National Prosecuting Authority (NPA), the South African Police Service (SAPS), and led by the Financial Intelligence Centre (FIC). This committee actively monitored fraud cases within SASSA. To date, 763 cases have been identified, with 333 referred to the NPA, resulting in dismissals where funds were recovered. There had been 13 convictions, while 55 cases were pending court decisions. She assured the Committee of ongoing efforts to prevent fraud.

NDA's response

Mr Solomon Shingange, Acting CFO, NDA, said there were no budget discrepancies. The total of R214 million comprised the R212 million allocated by National Treasury, supplemented by projected interest income from funds held in bank accounts.

Ms Susan Khumalo, Chief Operations Officer (COO). NDA, clarified that they favoured cooperatives over NPOs, because cooperatives could comprehensively address community development needs. Unlike NPOs specialising in specific issues like GBV, community-owned enterprises could encompass a wide range of interventions to benefit all community members. This approach not only facilitated skills transfers within the community, but also fostered social cohesion through collaborative community efforts.

Mr Bongani Magongo, Acting CEO, NDA, responded that their research initiatives were not aimed at a specific number of publications, but were rather focused on targeted topics that support lobbying efforts and influencing policy. He mentioned that a report evaluating district-level work for the District Development Model (DDM) had been completed and would be shared with the Committee and published on their website.

He explained that the NDA Act predated the Public Finance Management Act (PFMA), and initially lacked a framework for public financing. Section 10 of the NDA Act had subsequently been added to outline four funding sources:

• parliamentary appropriations;
• donor funds;
• NDA reserves; and
• other acquired funds.

The emphasis on this clause clarified how funds from external sources were managed by the NDA.

Ms Bhengu, NDA Chairperson, clarified that the NDA would not restart the process of appointing a new CEO, and said the Minister had been presented with a recommended candidate. Regarding community service organisations (CSOs), she emphasised that the NDA's mandate was to collaborate with CSOs in addressing poverty and its root causes, not necessarily to fund them directly. She told the Committee and Ms Marais that the NDA did not pity itself despite budget constraints. She underscored that poverty eradication was a collective responsibility across government agencies, with the NDA playing a coordinating role in bringing together various departments mandated to address poverty.

Conclusion

The Minister said she thought the meeting resulted in a good and warm interaction with the Committee. She promised to make sure the DSD always communicated everything with the Committee.

The meeting was adjourned.