Social Development Quarter 1 2024/25 Performance; with Deputy Minister

Meeting report

The Chairperson appreciated the presence of the DSD entities which would enhance the quality of the engagement.

Deputy Minister’s opening remarks
Deputy Minister Ganief Hendricks referenced the Auditor General's report, noting its significance and its implications for the presentation. He outlined key priorities set by the Cabinet, including:

- Revised White Paper for Social Welfare
- Linking social grants to local economic activities.
- Developing a poverty eradication strategy.
- Proposing a permanent Basic Income Support Grant for the unemployed.
- Expanding gender- based violence and femicide shelters.
- Creating an integrated social security database.

The Deputy Minister emphasized the importance of addressing these priorities during the Seventh Parliament, highlighting the urgency and commitment from both the President and Cabinet to see real progress. He concluded by stressing that the ministers and deputy ministers are now directly accountable for ensuring timely updates and results.

DSD Quarter 1 Performance Report 2024-25 (1 April 2024 to 30 June 2024)
DSD Acting Director General, Mr Peter Netshipale, noted that this a transitional report as it is based on the objectives committed to in the Sixth Administration Annual Performance Plan (APP) for 2024/25. For Quarter 1, DSD achieved 81% of its set targets.

The DSD presentation reported on the performance of each of the five programmes.
Programme 1: Administration
Programme 2: Social Assistance
Programme 3: Social Security Policy and Administration
Programme 4: Welfare Services Policy Development and Implementation Support
Programme 5: Social Policy and Integrated Service Delivery

A summary of the Quarter 1 2024/2025 Expenditure was provided (see document)

Discussion
The Chairperson appreciated the Department of Social Development, SASSA and other entities for their critical work. Recently, she received positive feedback about SASSA’s prompt handling of complaints, which is life-changing for many people. Often the loudest voices come from those who are unhappy with the system while those who benefit are unheard. Therefore, she saw it necessary to recognize the efforts of the dedicated individuals behind the scenes who identify gaps and help improve the quality of public service. While it may be easy as the Committee to focus on problems and complaints, it is important to appreciate the thousands of workers who do the work and make a difference.

 Mr T Munyai (ANC) agreed about the need to recognise the value of the workforce behind the DSD, stating that more motivation is due. He suggested an objective and humane approach in meetings when DSD is presenting to the Committee.

He welcomed the current report from the DSD and complemented the clarity of the interventions presented. He congratulated it for achieving a commendable 81% in the first quarter, even amidst transitions. Those areas with lower performance were justifiable due to the red tape of consulting with necessary stakeholders, a process that cannot be bypassed. He also motivated on the need to discuss items only on the agenda so as not to get off track.

Mr Munyai was excited by specific interventions for youth development. The report reflects an implementation of the DSD youth policies. Secondly, its poverty eradication mandate requires a substantial budget increase. He suggested that an increased allocation would be effective through SASSA, which he referred to as the engine of the department. He urged that much more needs to be allocated to SASSA going forward.

Mr Munyai referred to the Office of the Rights of Children and the targeted interventions for children with disabilities. This is an issue close to his heart. He prefers the term “differently abled”, underscoring the importance of inclusive and positive language for people with disabilities. He commended the DSD on the development of tools to assess and profile the needs of children with disabilities. These tools ensure that appropriate social services can be provided to support these children effectively.

Mr Munyai emphasized that most of the DSD resources must go to its delivery structure, SASSA. Without sufficient resources and support to SASSA, the overall effectiveness of DSD could be compromised.

He noted that when the Minister is present, he plans to raise important issues, including the court judgment on the Children's Bill and the basic income grant, which still needs to be addressed. He suggested the need for DSD to provide a workshop and study tour for the Committee to better understand the discourse and issues of these specific policies/bills, before the process of implementation begins.

Lastly, Mr Munyai acknowledged the challenges mentioned by the CFO during the presentation on the financial limitations faced by DSD. He proposed that the Committee engage directly with Treasury to support the department. The Committee must play a role in lobbying resources needed f by the DSD to fulfill its collective mandate.

Ms M Makgato (ANC) commended the DSD Q1 81% performance. She sought clarity on the zero percent achievement of targets for Programme 2.

Ms Makgato positively noted that R66.3 billion had been allocated in the first quarter for the payment of social grants to eligible beneficiaries. This movement of funds instills confidence that the DSD is spending funds effectively. She was pleased to see the funds allocated to Programme 4: Welfare Services Policy Development and Implementation Support. She expressed support for the quarterly progress report.

Ms N Tafeni (EFF) noted that one of the two targeted districts was not capacitated on the teenage pregnancy program. She asked what unforeseen circumstances led to the last-minute cancellation of the program. What are the implications of this cancellation? She expressed concern about the potential consequences for beneficiaries.

On Programme 5 dealing with poverty alleviation, sustainable livehoods and food security, Ms Tafeni referred to the unmet target for data collection to evaluate DSD’s impact on grant beneficiaries being able to obtain sustainable livelihoods. She asked why data collection was conducted in only three provinces. She asked for a detailed explanation of the delays that hindered the target achievement. What are the steps in the data collection process and how exactly did those steps cause the overall delays?

Ms Tafeni asked if DSD has ongoing engagement with the Department of Public Works to ensure that government buildings and public spaces are developed in a manner that makes them user-friendly and accessible for individuals with disabilities.

Ms P Marais (EFF) highlighted the Programme 4 target to capacitate three provinces on the Register of Adoptable Children. She shared a personal story about a relative, whose three children are cared for by their grandmother due to the mother's drug addiction and homelessness. The grandmother struggles to get financial support, especially since the eldest child is now 18. Despite applying for the Child Support Grant Top-Up, the grandmother has been denied because the biological mother is still alive yet unable to provide care. She asked how the grandmother can secure legal guardianship to access the grant and continue supporting the children.

She asked for clarity on the target for Programme 2: Social Assistance. DSD targeted to transfer R66.5 billion to SASSA for social grants. However, only R66.3 billion was transferred. She was concerned that the Programme 4 target for services to people with disabilities was not achieved.

Ms Marais addressed the DSD recent efforts in poverty alleviation, specifically its outreach in the Sarah Baartman region, which is part of her constituency. She stressed the importance of communication, suggesting that if the department could engage with local representatives, they could inform the community about upcoming initiatives. People are often unaware of events or opportunities in their region, leading to poor turnout. She urged for better collaboration and communication between the department and local leaders.

Ms Marais noted that out of 6 799 applications received, only 3 040 qualified. This was not the first time DSD has presented a significant number of disqualified applicants. She asked for clarity on why so many do not qualify.

Ms Marais expressed a need for data on the existing NPOs in the country, emphasizing the importance of understanding the necessity of services these NPOs provide and if they are receiving the necessary financial support, as many are closing down due to funding shortages.

Ms Marais inquired about the allocation of funds for compensation of employees, noting the R132 million on slide 44 and the R39.6 million on slide 48. She requested details on how this compensation is allocated and what it specifically covers. She mentioned employees being fired and receiving compensation at the same time and being reinstated without consequences. She raised a concern if funds are used effectively for compensation of employees.

On the R127 million transferred to the National Development Agency (NDA), she asked what it plans to do with the funds.

On slide 49, Ms Marais highlighted the significant fluctuation between projected and actual spending on compensation of employees. She asked about this abrupt increase, especially since other data points illustrate consistent figures.

Lastly, she referred to the R1.7 million membership fees paid to the International Social Security Association. She wanted to know the significance of the DSD being part of this organization.

Mr K Ramaila (ANC) was concerned about the inconsistency in the data presented for Programme 2: Social Assistance noting the reference to R66.03 and R66.3. There needed to be consistency and clarity in reporting financial data. He noted discrepancies between actual and projected targets, as well as recurring conflicting expenditure figures.

Mr Ramaila suggested a review of how DSD measures target achievement, considering that for Social Assistance it reported that targets were not reached even though all grant beneficiaries were paid. DSD must ensure accuracy of the presentation and improve the alignment of graphs and tables; otherwise, the information is useful.

Mr Ramaila spoke to DSD submission of its annual financial statements (AFS) to Auditor-General South Africa (AGSA) with the aim to have no unauthorized, irregular or wasteful expenditure (UIW). However, DSD has not presented a clear mechanism in an Audit Action Plan for achieving this goal. He asked for the UIW amounts from the previous financial year. Importantly, what are the material irregularities (MIs) and what actions are being taken to resolve them? He recommended that DSD present the available Audit Action Plan next time.

The Chairperson emphasized the importance of effective communication between DSD and the Committee. She gave the example of the maintenance issue with the SASSA system that was in the news. Communication between DSD and the Committee could have mitigated public frustration, had they received timely information. She reiterated the Committee’s commitment to supporting the department in communicating with the public and offered their assistance.

Mr T Mjadu (MK) shared insights from his recent oversight at a few NPOs. There were persistent complaints about a new payment system, the main concern being that it causes them to be in arrears. He spoke about the buildings under the control of NPOs, where vulnerable individuals without families live. These buildings fall under the responsibility of NPOs for essential services like electricity and water. However, NPOs have expressed frustration over the lack of assistance from the department, particularly when dealing with municipalities which treat NPOs like profit-making businesses despite their non-profit status.

Another complaint from NPOs was about the lack of support for mentally ill individuals over the age of 60. These individuals are rejected by shelters and since they are rejected by their families, they end up homeless. He echoed other members’ concerns about system failures at the DSD offices. According to the complaints, when people go to there to collect their social grant, the system is frequently down.

 Ms A Abrahams (DA) had a pressing question about the effectiveness of the six priorities listed earlier by the Deputy Minister. Considering these priorities have been in place for a number of years, what will be different in this administration about the commitment to these priorities?

She expressed concern about DSD’s long-standing challenges with information management systems and technology, particularly in light of the tragic case of Deveney Nel, who was murdered by a fellow learner. According to an article she read, social workers spoke about a significant lack of integration within the child protection framework. Social development professionals often find themselves working in isolation, unaware of the cases worked on by other departments and sectors involved in child protection. She asked how DSD is using available technology to prevent similar incidents in the future.

She noted that the census only represented a fraction of the necessary data. How beneficial has it been to DSD? She was interested to know how these findings have influenced the compilation of the report being discussed, emphasizing the importance of reliable data for effective social development initiatives.

Ms Abrahams asked for clarity on specific budget cuts, particularly the $2.9 million reduction in transport funding to NPOs, including NICRO, which supports youth in conflict with the law. She expressed concern about the implications of this funding cut, emphasizing that it contributes to a cycle where NPOs are underfunded, leading to more children falling through the cracks and an increase in social issues and crime.

Ms Abrahams raised concern about 18-year-olds still in school who age out of the social support system. She acknowledged the department's stance that these individuals do not fall under the Children’s Act, but highlighted the reality that many are still in Grade 10, 11 or 12 and rely on the Child Support Grant. She pointed out the logistical challenges faced by these learners and urged the department to implement regulations that support these students until they complete their education, stressing the need for a more inclusive approach.

Rev N Gcwabaza (MK) reflected and wondered what would true achievement look like within the Department. He argued that it should be initiatives that empower individuals to become self-sufficient reducing their dependence on grants.

Rev Gcwabaza spoke on the importance of collaborating with the religious sector in addressing community needs. He urged DSD to actively engage with religious leaders as part of their community mobilization framework. He requested clarity on the difference between Non-Profit Organizations (NPOs) and Non-Profit Companies (NPCs), particularly in relation to churches. He was concerned about potential financial misconduct by NPOs associated with churches and called for a clearer framework governing their registration. He highlighted the skills that pastors and religious leaders possess, advocating for DSD to partner with them in preventative programs. These leaders are consistently present in their communities, making them vital allies in addressing social issues before they escalate.

Rev Gcwabaza raised concern about the lack of funding for NPOs who are making significant contributions at community level. Noting the plight of underfunded NPOs, he asked for clarity on the process to fund NPOs. There needed to be a strategic approach that identifies and prioritize organizations that effectively alleviate community challenges. Resources could be better allocated to ensure that impactful programs continue, rather than simply adding more to an already strained system. Lastly, he asked if DSD is the custodian of the religious sector.

DSD response
The DSD Acting Director General welcomed the engagement from the Committee and allocated the DSD officials and entities to respond to the questions.

Before the first response, the Secretary facilitated the election of Mr Munyai as Acting Chairperson as the Committee Chairperson had to leave early.

On the unachieved data collection target on grant beneficiaries in obtaining sustainable livehoods, Mr Thabani Buthelezi, DSD Acting DDG: Strategy and Organisational Development, explained that in preparing the field work for achieving this target, there were delays in finalizing DSD readiness to go to communities for the data collection.

On the usefulness of census data, Mr Buthelezi clarified that DSD utilizes not only census data but also various secondary data. The initial chapter includes a strategic development situational analysis, which deepens its understanding of the operational environment. The data supports both the status report and broader strategic frameworks. On a perceived discrepancy in the Monitoring & Evaluation (M&E) system targets, DSD plans to conduct readiness assessments in the Free State. He emphasized that the two provinces are related to the annual rather than quarterly target.

Mr Fanie Esterhuizen, DSD CFO, acknowledged the confusion about the expenditure for Programme 2: Social Assistance. He explained that the initial projection in April 2024 was R66.5 billion for Quarter 1. However, after receiving the allocation and revising some budgetary drawings, the actual payments amounted to R67.7 billion. SASSA had a shortfall in the first three months of the financial year. The complexity arises from the need to make budget projections for transfers to SASSA, which then reports its actual monthly spending. Consequently, there is already a R2 billion shortfall compared to the initial projected spending.

On concerns about funds allocated to compensation of employees (CoE), the amount includes both the salaries and benefits paid to employees. The R132 million allocated reflects the total compensation for DSD’s 700 employees. Slides 46 and 47 provide a detailed breakdown of this expenditure. The fluctuation in projected compensation figures on slide 49 is due to changes in how government employee salary increases were implemented. Historically, back pay was given in October, leading to a spike in that month. But for this financial year, DSD actually implemented the increase on 1 April so he anticipated that the compensation expenditure will stabilize around September or October.

On the AFS strategy, DSD has an annual audit action plan that is developed once the audit findings are finalized. He offered to present this plan to the Committee, including the MIs as requested. On the budget cuts, during discussions with National Treasury, they reduced Goods and Services by about R70 million and R25 million. NICRO has been allocated R1.7 million with funding to NPOs tied to a three-year cycle. Payments to NPOs were not made in Quarter 1 but will be reflected in Quarter 2, with reports and progress updates currently in progress.

Ms Mpho Mngxitama, DSD Acting DDG: Community Development, replied that as of 1 August 2024, there were 291 798 registered NPOs in South Africa. This figure excludes non-profit companies registered with the CIPC and non-profit trusts registered with the Master of the Court under different legislation. The NPO Act is rooted in the Constitution, which upholds the right to freedom of association, meaning DSD cannot deny registration without risking legal challenge. NPOs are registered across various sectors, not limited to social development. DSD is the regulatory body for NPOs regardless of the sector they operate in. The NPO Act mandates a two-month turnaround time for registration by DSD. Section 12 sets out the criteria for eligibility. Applications that meet these requirements are registered.

On how NPOs are supported, Ms Mngxitama explained that DSD is automating its processes to help NPOs access benefits more efficiently. Many NPOs currently miss out on benefits because the system is manual. The automation will integrate with other regulatory bodies, such as SARS, allowing eligible NPOs to gain Public Benefit Organization (PBO) status. This status offers tax incentives and municipal benefits. Once automated, NPOs meeting the criteria will be automatically exempted by SARS, streamlining NPO access to these advantages

On the distinction between NPOs and NPCs, Ms Mngxitama explained that in South Africa, NPOs are defined under the NPO Act and generally refer to smaller, community-based organizations, though legally classified as non-profit organizations. NPCs, formerly known as Section 21s, are registered under the Companies Act and are now referred to as non-profit companies. Both NPOs and NPCs operate on a not-for-profit basis but are regulated by different authorities.

Ms Mngxitama replied that South Africa lacks specific legislation governing religious institutions, allowing churches to choose their form of incorporation. Some churches are registered as NPOs under the NPO Act; others as non-profit companies (NPCs), and some as profit-making entities.

On the funding approach to NPOs, provinces still employ different funding models but the goal is to create a unified approach. A national funding policy has been developed to standardize the procedures for how funding should be allocated. Provinces are now using this policy, and efforts are underway to automate the system so that national authorities can monitor funding distribution. This will allow for oversight to ensure that NPOs receive their funding on schedule.

Ms Lumka Oliphant, DSD Chief Director: Communications, outlined steps DSD is taking to ensure transparency and communication. They have already started sharing updates with the Committee secretariat, and it has been added to the DSD daily communication list to distribute information more widely. She encouraged members to join the social media platforms that DSD uses to post updates.

On the implementation of the National Integrated Social Protection Information System (NISPIS), DSD has signed memoranda of understanding (MOUs) with various departments for information sharing to improve social protection services. However, due to the confidentiality inherent in the social work profession, access to information will be controlled. Meetings with other departments are crucial for clarity about confidentiality and adherence to the right steps. On the IT system for children in conflict with the law, there exists the Probation Case Management System, which social workers access alongside the South African Police Service. This system tracks the arrest of children, providing real-time information on their status and case management. Social workers also have access to the Child Protection Register.

On the Teenage Pregnancy Programme, Ms Siza Magangoe, DSD Acting DDG: Welfare Services, explained that the cancellation was due to logistical challenges in securing transportation and accommodation for local stakeholders, which is the province's responsibility. This program is already in motion for the second quarter.

On adoption, Ms Magangoe stated that the focus is on capacity building for social workers to implement the new amendments to the Children's Act effectively. On access to facilities for older persons, individuals aged 60 and above are eligible for admission to public facilities although private facilities may have different criteria.

On the Probation Case Management (PCM) System, Ms Magangoe highlighted that over 1 000 institutions have probation officers deployed in police stations nationwide. When a child is arrested, the police notify DSD within 24 hours. This is followed by an assessment by probation officers within 48 hours which is key for the court's decision-making on the child's case. Social workers that are trained in probation services have access to the PCM system. DSD has a close collaborative and effective relationship with NICRO.

On engaging the religious sector, Ms Magangoe referred to the DSD policy on families which allows for effective collaboration between DSD and the religious sector. DSD has the Marriage Engagement Programme, emphasizing the involvement of pastors in providing marriage counseling and intervention during marital challenges. DSD trains pastors to enhance their effectiveness in this role.

Ms Brenda Sibeko, DSD DDG: Social Security, spoke on the child unable to access the top-up grant due to the mother's presence, the presenter explained that the grant is indeed intended for orphans and requires parental documentation from SASSA. Children facing neglect or abuse need care, which involves a social worker's assessment. If necessary, the social worker can propose foster placement, allowing the child to qualify for a foster care grant.

Ms Sibeko explained that the International Social Security Association (ISSA) promotes social security policies and implementation globally. ISSA is important in advising countries on improving social insurance and governance systems. South Africa is localizing ISSA, launching its own social security review for independent assessments of the national social security system. This initiative reflects the valuable insights gained from ISSA.

On gaps in the social security system, particularly for children transitioning from the child support grant (CSG) to the social relief of distress (SRD) grant, Ms Sibeko acknowledged the challenges at the implementation level. There was a need for immediate action and effective communication to ensure that children apply for both the SRD grant and for a bank account simultaneously. True celebration will happen when no one goes to bed hungry and every child can reach their potential. While grants provide essential income support, they are not a complete solution to poverty. The focus must also be on job creation and economic opportunities as grants will remain necessary amid rising poverty and job losses.

Ms Busisiwe Memela-Khambula, SASSA CEO, replied to concerns about the selling of SASSA cards online. These cards, although branded as SASSA, are issued by Post Bank, which has faced past challenges with card security. Post Bank is currently working on reissuing secure cards nationwide. On system downtime, there were ongoing efforts to stabilize and improve bandwidth in SASSA offices to mitigate this, especially during power outages. Funding has been allocated for continued improvements. Providing better service to beneficiaries is a critical part of SASSA’s transformation journey.

The NDA representative explained that its funds are used to create sustainable livelihoods for South Africans.

Further questions
The Acting Chairperson referenced the urgent matter of Cape Town social workers facing extortion threats from criminal syndicates. Even though there is no policy for it, the Committee must avail themselves to help.

Ms Marais raised tracking unemployment and families requiring assistance more accurately. Government should consider the Canadian system where families in need must register annually with their tax authority. This interdepartmental data-sharing between the tax authority (like SARS in South Africa) and the social security department could streamline identifying those in need.

Closing remarks
Mr Munyai (Acting Chairperson) emphasized the importance of continued commitment to serving the most vulnerable and praised DSD for its progress. e He urged stronger collaboration with Treasury to avoid budget cuts. The Committee acknowledged the 81% Q1 achievement in service delivery. He called for simpler presentations for better understanding and stressed the need for collective accountability. He urged DSD to address the concerns raised in the meeting, particularly around poverty eradication and efficient grant delivery

The Deputy Minister thanked him for acknowledging the staff's contributions and their crucial role in delivering services. He highlighted the urgency of addressing poverty with the approaching 2030 National Development Plan deadline and stressed the importance of a workshop on the Basic Income Grant. The department needed to embrace the Fourth Industrial Revolution, specifically automation and AI. Lastly, he addressed the concerns about the teenage pregnancy programme and committed to ensuring no district or individual is left behind in DSD's efforts on this.

Committee programme
The Chairperson explained the nature of the Committee programme as a living document that changes time to time.

The Committee secretary outlined the revised programme that focused on key areas like gender-based violence (GBV) and NPO oversight.

9 October: Auditor General audit findings for DSD and its entities for 2023/24 followed by DSD, SASSA and NDA presenting their annual reports.

16 October: South African Council on Alcoholism and Drug Dependency, along with the Western Cape Provincial Substance Abuse Forum will present. This follows concerns raised about substance abuse during previous Committee discussions.

23 October: The Committee will adopt the BRRR and receive further input from the Central Drug Authority.

Early November: NPO sector, including the National Child Shelter Movement and the Hauden Care Crisis Centre will address funding, resources, and compliance. DSD will present on NPO funding policies and measures taken to address non-compliance.

13 November: Medical Research Council will discuss GBV research and interventions.

20 November: DSD will give a progress report on implementing the National Strategy on Gender-Based Violence and Femicide.

The Chairperson recommended the inclusion of big urban cities as they are the hub of substance abuse.

Ms Abrahams asked where the Department response to Committee questions asked in previous meetings can be found. She also advocated for in-person meetings and the importance of broadcasting its meetings so that the public has increased access to Committee meetings.

Mr Mjadu agreed about the convenience of in-person meetings.

Ms Marais agreed about the importance of broadcasting.

The revised Committee programme was adopted.

The Committee minutes of 4 September 2024 were adopted and the meeting ended.