ATC140711: Report of the Portfolio Committee on Social Development on the Budget Vote 19, the Strategic Plans and the Annual Performance Plans of the Department of Social Development and its Entities For 2014/15, dated 09 July 2014

Social Development


The Portfolio Committee on Social Development having considered and deliberated on the Budget Vote, the Annual Performance Plans and the Strategic Plans of the Department of Social Development and its entities on 02 July 2014, wishes to report as follows:

1. Introduction

The Committee’s mandate as prescribed by the Constitution of South Africa and the Rules of Parliament is to build an oversight process that ensures a quality process of scrutinising and overseeing government’s action that is driven by the ideal of realising a better quality of life for all people of South Africa.

The following institutions briefed the Committee: the Department of Social Development (DSD); the South African Social Security Agency (SASSA) and the National Development Agency (NDA). The department also briefed the Committee on the additional functions relating to programme 3 (Children’s Rights and Responsibilities) and 4 (Rights of People with Disabilities) of the Department of Women, Children and People Disabilities (DWCPD).

2. Presentation by the department

The Deputy Minister, Ms H Bogopane-Zulu gave an overview of the department’s performance and highlighted that the department will be undergoing transformation brought about by the incorporation of programme 3 and 4 from DWCPD. The department will be in a position to brief the committee on the details of the transformation after the proclamations on the restructuring and content changes have been made.

Mr C Pakade, Director-General, informed the Committee that the APP was drafted based on the Medium Term Budget Policy Statement (MTBPS). The APP of the department has been kept separated from that of Programme 3 and 4 of the Department of Women Children and People with Disability. The APP was aligned with the National Development Plan (NDP) and the Government Outcomes. The APP was particularly linked to the new Outcome 13 which calls for “an inclusive and responsive social protection system. This outcome links with other outcomes, therefore the department’s APP had to be all inclusive. Social protection floor encompasses income, assets, basic services, food security, Early Childhood Development (ECD), access to quintile 1, 3 and 4 schools and multi-dimensions of poverty. The department with its counterparts is working on formulating a definition of social protection floor for South Africa. The department will be driving the integration of the delivery of the social protection services under the Social Protection programme.

The Minister of Social Development has been appointed as a leader coordinator for Outcome 13: Social Protection. A number of engagements have been taking place in preparation for the Medium Term Strategic Framework chapter. Various sector departments have been consulted leading to the drafting of the Medium Term Strategic Framework. This includes workshops with provincial counterparts and leadership within the South African Social Security Agency [SASSA] and the National Development Agency.

The department has the following programmes:

· Programme 1: Administration.

· Programme 2: Social Assistance.

· Programme 3: Social Security Policy and Administration

· Programme 4: Welfare Services Policy Development and Implementation


· Programme 5: Social Policy and Integrated Service Delivery.

3. The vision and mandate of the department

The vision of the department is that of a caring and integrated system of social development services that facilitates human development and improves the quality of life.

The department derives its mandate from several pieces of legislation and policies, including the White Paper for Social Welfare (1997) and the Population Policy (1998), which sets out the principles, guidelines, policies and programmes for developmental social welfare in South Africa. The White Paper for Social Welfare has provided the foundation for social welfare in the post-1994 era.

The constitutional mandate of the department is to provide sector-wide national leadership in social development by developing and implementing programmes for the eradication of poverty and social protection and development amongst the poorest of the poor and most vulnerable and marginalized.

The department’s mission is “to ensure the provision of comprehensive, integrated, sustainable and quality social development services and create an enabling environment for sustainable development in partnership with all those committed to building a caring society.

Strategic goals

The key sector priorities over the Medium Term Strategic Period are:

· Reforming the social welfare sector and services to deliver better results.

· Improving the provision of Early Childhood Development. All children should enjoy services and benefits aimed at facilitating access to nutrition, health care, education, social care and safety.

· Deepening social assistance and extending the scope for social security.

· Strengthening community development interventions.

· Establishing the social protection systems to strengthen coordination, integration, planning, monitoring and evaluation of services.

· Improving household food and nutrition.

4. Programme performance

4.1 Programme 1: Administration

The purpose of Programme 1: Administration is to provide leadership, management and support services to the department and the sector. The total allocation to this programme is R275.1 million, marking a 3.23 per cent increase in nominal terms and a decrease of -2.80 per cent in real terms. This vacancy rate is mainly attributed to posts being temporarily suspended as a result of departmental restructuring. In terms of economic classification, the bulk (99.1 per cent) of Programme 1’s budget goes toward current payments which include compensation of employees (R152.7million) and goods and services (R119.8 million).

4.1.2 International Relations

The strategic objective of this sub programme is to have effective participation in key bilateral and multilateral initiatives. For 2014/15 the department has targeted to sign four bilateral agreements. In addition the department plans to facilitate participation in six international bodies and will also coordinate reporting on the implementation of resolutions.

4.1.3 Stakeholder Management

In terms of improving relations with development partners and other stakeholders in support of service delivery, the department plans to establish partnership with eight (8) stakeholders that support the department’s initiatives and projects.

4.1.4 Strategy Development and Business

The department is targeting to finalise the Bill on Social Development during this current year (2014/15). In terms of risk management, a Risk Management Report will be produced by November 2014.

4.1.5 Communications

With regards to the improvement of public access to the Department’s information and services, the Department has targeted itself to reach 55 000 people via the DSD website and social media. Furthermore in terms of proactive media engagements the Department will generate free publicity worth R2.2 million. In addition 27 million people will be reached through marketing and advertising initiatives.

4.1.6 Human Capital Management

The department will reduce the vacancy rate by 10% in 2014/15. A Human Resource Plan (HRP) will be developed and approved during the current year.

4.1.7 Performance Monitoring

The Department is planning to update social development sector monitoring and evaluation system and align it to outcomes based model in 2014/15.

4.1.8 Performance and expenditure trends

The bulk of this programme’s spending over the medium term goes towards compensation of employees, which constitutes on average 5.5 per cent of the budget, and operating leases for office accommodation, which constitutes on average 8.8 per cent of the goods and services allocation.

Spending on this programme increases steadily over the seven-year period, mainly due to the building of capacity in the oversight function of the department in the Internal Audit sub-programme.

In addition to corporate services responsibilities, the Administration programme coordinates the department’s strategic vision and provides overall monitoring support through the Department Management sub-programme.

4.2 Programme 2: Social Assistance

The purpose of this programme is to p rovide social assistance to eligible beneficiaries in terms of the Social Assistance Act (no. 13 of 2004) and its regulations.

The strategic objective set by the department on this programme is to extend the provision of social assistance to approximately 16.6 million eligible individuals by 2014.

Performance and expenditure trends

The Child Support, Old Age and Disability Grants make up the bulk of the programme’s expenditure over the medium term, and reflect government’s commitment to supporting the most vulnerable in society by providing income support.

The number of the social assistance grant beneficiaries decreased from 15.9 million in March 2013 to 15.6 million as at December 2013 due to the re-registration process where ineligible beneficiaries were removed from the grant system.

Expenditure on the social assistance grants is expected to increase over the medium term mostly due to the inflation related adjustments to the grant values of the individual grant types and a slight growth in beneficiary numbers over the period.

The department expects that the number of beneficiaries will increase to approximately 16.6 million by the end of March 2017. The number of elderly persons receiving the Old Age Grant is projected to grow at 3 per cent each year over the medium term, in line with population growth for that age cohort.

4.3 Programme 3: Social Security and Administration

The purpose of this programme is to provide for social security policy development administrative justice and the administration of social grant reduction of incorrect benefits payments.

4.3.1 Social Security Policy and Development

The strategic objective of this sub-programme is to provide an effective and efficient social security system that protects poor and vulnerable people against income poverty by 2017. The department has committed itself to ensure adherence to the norms and standards for the social assistance programme. It aims to produce three oversight reports on adherence to norms and standards for the social assistance programme by 2014/15 financial year. A performance indicator set for this objective is to have a discussion paper on the removal of social grant means test and the baseline to this is a research on the impact of social grants. The department will complete a discussion paper on the universalisation of the Older Person’s Grant as well as the universalisation of the Child Support Grant.

Another strategic objective under this programme is to provide uniform and coherent information on social expenditure by March 2017. The performance indicator for this target is the publication of the Social Budget Bulletin in 2016/17 financial year. The department aims to publish and launch the Social Security Review within the 2014/15 financial year.

4.3.2 Appeals Adjudication

In terms of Appeals Adjudication, the department’s objective is to provide an effective, efficient and accessible social assistance appeals service for beneficiaries of social assistance by March 2017.

The high level outputs set for this sub-programme are to ensure that 100 per cent of appeals are adjudicated within 90 days. For 2014/15 financial year the department has estimated to achieve the set strategic goals of an effective, efficient and accessible social assistance appeals service by adjudicating 60 per cent of appeals lodged within 90 days of their receipt. It will also implement an Integrated Appeals Business Information System.

4.3.3 Inspectorate for Social Security

The strategic objective of the sub-programme is to establish an Inspectorate for Social Security to ensure the integrity of the Social Assistance Framework and Systems by March 2019. By the end of the 2013/2014 financial year, the department has set itself a target to approve a policy framework for social security inspection.

Performance and expenditure trends

The spending focus over the medium term will continue to be on making transfers to the South African Social Security Agency as the grants administering entity. The programme transfers 98.6 per cent of its allocation to the Agency for it to improve its fraud management system and ensure that social assistance grants are paid to an estimated 16.6 million beneficiaries by 2016/17.

Social grant administration costs constitute 6.4 per cent of the budget for social assistance grants, as reflected in spending in the Social Assistance programme in 2010/11, but are expected to decline to 5.2 per cent in 2016/17, partly due to the efficiencies from the new payment contract implemented in 2012/13.

The medium term period also provides for the implementation and roll-out of an integrated appeals business information system which is expected to speed up turnaround times by increasing the proportion of appeals adjudicated within a period of 90 days to 70 per cent in 2016/17.

4.4 Programme 4: Welfare Services Policy Development and Implementation support

The purpose of this programme is to create an enabling environment for the delivery of equitable developmental welfare services through the formulation of policies, norms and standards, and best practices. It is also to provide support to implementation agencies.

4.4.1 Service Standards

The strategic objective of this sub-programme is to strengthen social welfare services delivery through the legislative and policy reforms by 2019. The high-level output for this goal is the review the implementation of the White Paper for Social Welfare. For the 2014/15 financial year the department would award 1 100 new scholarship to social work students.

The department through this programme would professionalize and regulate Social Service Practitioners through the development of a Regulatory Framework by March 2019. It also aims to strengthen capacity for social service professionals through the veteran’s programme by 2019. In 2013/14 guidelines on the recruitment, remuneration and engagements of social work veterans were developed.

The department would also introduce effective Regulatory and Funding systems for funded Non Profit Organisations by 2017.

4.4.2 Care and services to Older Persons

The strategic objective of this sub-programme is to create an enabling environment for the protection and promotion of the rights of older persons by 2019.

The department would ensure compliance with the norms and standards for care and protection of older persons. It will ensure that Community Based Care Services and Support and residential facilities are compliant with the prescribed norms and standards. Within this financial year the department intends to have a national register for residential and registered Community Based Care Services and Support.

Amendments to the Older Persons Act (2006) will be introduced to Parliament in 2016/17 financial year.

4.4.3 Services to people with disabilities

The strategic goal of this sub-programme is to promote and protect the rights of people with disabilities. The department will by March 2015 draft a legislation that will deal with services to people with disabilities. It will be finalised and introduced to Parliament in 2017. The department will also develop norms and standards for residential facilities for people with disabilities.

4.4.4 Children

The department aims to improve the quality of Early Childhood Development (ECD) services by 2019. In so doing, it will develop and implement an ECD policy. By March 2015, the department will draft the ECD policy, finalise comprehensive ECD programme, finalise roll out plan on ECD and develop a concept paper on the legislative alignment for ECDs.

The department will strengthen the child protection services through the implementation of the child care and protection measures by 2019 by:

  • increasing the number of children adopted by 10 per cent each year in the Medium Term Framework (MTF);
  • auditing current foster care placements and finalise the foster care policy;
  • capacity building on the guidelines for the registration of drop in centres in terms of the Children’s Act and
  • Monitor the implementation of Isibindi Model in provinces.

4.4.5 Families

The strategic objective of this programme is to strengthen families by providing comprehensive social services. In this current financial year the department has established 6 provincial forums and an Integrated Parenting Framework was approved. By March 2015, the department has set a target to facilitate establishment and strengthening of the national and provincial forums. A key activity over the medium term will be to review the White paper on Families and monitor and support implementation of family development programmes. By March 2015 the department aims to build capacity on Fatherhood and Active Parenting programme for teenagers.

4.4.6 Social Crime Prevention and Victim Empowerment

The strategic objective of this sub-programme is to reduce the incidence of social crime through programmes, policies and legislation by March 2016. Through this sub-programme the department will monitor and support the implementation of quality assurance processes for diversion programmes and service providers accredited in terms of Child Justice Act.

In March 2014 the department will build capacity of the 63 Quality Assurance Panel Members of the Policy Framework on Accreditation of Diversion Services. It will also facilitate the implementation of the Policy Framework on Accreditation of Diversion Services. In the 2013/2014 financial year, the department monitored the implementation of the integrated Social Crime Prevention Strategy Action Plan.

The department intends to draft a bill on victim support services. It will also monitor the implementation of gender based violence prevention programs. It will develop an Inter-sectoral Strategy for VEP programme and develop a Monitoring and Evaluation system for this programme. The department will also draft a policy framework for the accreditation of services and programmes for the victims of human trafficking.

4.4.7 Substance abuse

This sub-programme’s goal is to reduce demand for substances in communities by providing prevention and treatment services.

The performance indicator on this sub-programme is the implementation of the National Anti-Substance Abuse Programme of Action. A number of 120 people were capacitated on the Prevention of and Treatment for Substance Abuse Act and its Regulations. The implementation of the National Anti-Substance Abuse Programme of Action was implemented and monitoring of implementation will be done by the national departments. The department has set a target to monitor and implement the National Drug Master Plan during 2013-2017.

4.4.8 Youth

The goal of this sub-programme is to empower youths for sustainable development and social change. It develops and facilitates the implementation of policies, legislation and programmes to protect vulnerable youth.

The department has set a target to ensure that by the end of the 2014/15 financial year, 4 800 youth will be participating in mobilisation programmes. It also intends to establish 3 provincial youth forums.

4.4.9 HIV and AIDS

The department, through this sub-programme aims to develop and facilitate the implementation of social and behaviour change programmes. It has set a target to reach a number of 500 000 youth through the social and behavioural change programmes. Training material on men in action has been developed.

A number of 2 700 young people were trained as mPintshis to implement social and behaviour change programmes. The department facilitated 124 conversations and social mobilisation guidelines and costing plan was developed.

Performance and expenditure trends

Through the Social Worker Scholarships sub-programme, the department provides scholarships which are administered by the National Student Financial Aid Scheme. The department expects to award scholarships to 4 154 students in 2016/17. Through the HIV and AIDS sub-programme, the department makes transfer payments to LoveLife to increase the number of HIV and AIDS awareness prevention and management programmes, including training 540 Groundbreakers and 2 700 mPintshis.

The increase in expenditure in the Youth sub-programme in 2012/13 and in 2013/14 was due to the additional funding requirements of the youth camp events.

Spending in the Children sub-programme has grown, with additional allocations in 2012/13 and 2013/14. These allocations are for the ECD audit and for systems to facilitate the rollout of the Isibindi model, a community based model of responding to the needs of orphaned and vulnerable children.

A key cost driver in the Older Persons sub-programme is the Golden Games, in which older people participate and compete in various sporting activities in order to promote active ageing. In 2012/13, the department carried all costs relating to the Golden Games. In 2014/15, and 2015/16, the decrease in expenditure in the Older Persons sub-programme is due to cost sharing arrangements between provincial departments and the national Department of Sports and Recreation.

4.5 Programme 5: Social Policy and Integrated Service Delivery

The purpose of this programme is to support community development and promote evidence-based policy making in the department and the social development sector.

4.5.1 Special Projects and Innovation

The strategic objective of this sub-programme is to increase job opportunities and skills through the coordination of the Social Cluster Public Employment programmes by 2019. It intends to promote community driven development and provide social protection to military veterans. For the year under review, the department will create 33 307 job opportunities.

Another strategic objective is to promote community driven development and in 2013/14 they have established 9 sites of Community Works Programme (CWP). In 2014/15 financial year the department has set a target to facilitate the provision of integrated Department of Social Department services to 21 CWP.

4.5.2 Registration and Monitoring of Non-Profit Organisations

This sub-programme aims to create an efficient regulatory an capacity building framework for Non-Profit Organisation (NPO) by 2019. The department intends to process 90% of applications for registration of NPOs within two months. In 2013/14 the department received 18 448 registration applications and 17 573 were processed within two months as per set performance indicator. It approved a policy for amending the NPO Act. A target has been set to adjudicate 50% of NPO appeals in 2014/15 financial year and it also intend to audit 10 000 department’s funded NPOs.

4.5.3 Community Development

The strategic objective of this sub-programme is to create an enabling environment for uniform and effective community development practice by 2019. In 2013/14 the department had trained 700 Community Development Practitioners (CDPs) on community development practice. The department has developed a Draft Community Development Policy Framework.

Performance and expenditure trends

Through the transfer payment the NDA receives from the department, the agency implements sustainable community driven projects that provide support to the NPOs working on ECD, food security, and employment creation.

Between 2013/14 and 2016/17 financial years, expenditure under this programme is expected to increase due to the additional allocation provided for food security through the Food for All programme carried out in the Community Development sub-programme. Non-profit organisations will administer the food relief programmes to various households. This is expected to result in 1.4 million people being fed through numerous hunger relief initiatives such as food banks and community nutrition development centres by 2016/17.

The department has reprioritised R10 million for each year of the MTEF period from the South African Social Security Agency as an additional allocation to the Registration and Monitoring of Non-profit Organisations sub-programme to improve the management of the NPOs database, make the process to register NPOs more efficient.

5. Financial implications

The overall budget of the department for the financial year 2014/15 is R128.7 billion compared to R 118.5 billion the previous financial year, which represents an increase of 8.7 per cent in nominal terms and 2.34 per cent in real terms. Ninety five per cent ( 95%) of the budget constitutes transfers and subsidies and only 0.5 per cent goes to the current payments.

T he most significant transfer is approximately R120.9 billion intended as social assistance transfers to beneficiaries. The 2014 budget includes additional allocations of R35.6 million in 2014/15. As part of Cabinet approved budget reductions, the department will reduce spending by R451.8 million in 2014/15.

Table 1: Budget allocation per programme









P1: Administration


275 065

288 288

304 641

P2: Social Assistance

111 006 800

120 952 101

129 493 278

137 556 422

P3: Social Security Policy and Administration

6 394 000

6 662 596

6 929 864

7 297 860

P4: Welfare Service Policy Development and Implementation Support

554 500

586 450

607 098

638 862

P5: Social Policy and Integrated Development


323 166

341 572

360 639


118 511.6

128 799 3787

137 660 100

146 158 424

6. Observations and concerns

  • The Committee noted that the department in its programmes had not given enough focus on the equality and accessibility of programmes aimed at addressing issues of people with disabilities. It raised this as an area of concern and urged the department to include it as one of its priority areas.

· It observed that the department is still lagging behind in terms of capacitating Non Profit Organisations. It highlighted issues of NPO registration, compliance to norms and standards and guidelines by NPOs and other factors that hinder effective service delivery as main challenges. It emphasized that the department should prioritise these issues and put in place monitoring and evaluation mechanisms aimed at addressing service delivery challenges.

· It further noted that the department’s breakdown of economic classification reflected transfers to certain NPOs and not to other NPOs playing a key role in implementing the department’s services and programme. The department acknowledged the concern of the committee and undertook to give it the necessary attention.

· The Committee expressed concern over the delays in the adopti on processes due to the long processes that have to be followed before the actual adoption.

· It was also concerns that some targets set had no baselines. This may be viewed as poor planning.

· It was concerned about the high levels of inequality in service delivery in communities. It advised the department to address this challenge. The department acknowledged that inequality in service delivery is a challenge hence it launched the Mikondzo programme, which profiles households and identify their needs.

7. Recommendations

The Committee made the following recommendations:

· The Minister of Social Development should review the allocation of funds to the NPOs. The review should particularly focus on the relevance of the NPO, its visibility and accessibility to all communities.

· The Minister should ensure that the department conducts an audit on the rehabilitation centres to assess their compliance to norms and standards. The audit should also focus on the accessibility and affordability of their programmes.

· The Minister should ensure that the department conducts a needs assessment on the accessibility of its programmes to the communities to ensure that the challenges of inequality in the service delivery are addressed.

8. Resolution

The Committee resolved that the department should come and brief it on the Early Childhood Development Master Plan.

The department should provide the Committee with a list of the NPOs it is funding. The list should provide the budget allocation to each NPO, the programmes they implement and their relevance to the mandate of the department.

The Committee resolved to visit the Noupoort rehabilitation centre in the Northern Cape to assess its compliance to norms and standards and the kind of treatment programmes it administers.

The department should brief the Committee on the National Disability Rights Policy and the National Disability Framework.

8. Annual Performance Plan and Budget Vote of Programme 3 and 4 of the DWCPD

The Committee proceeded to consider the Annual Performance Plan of the Department of Women, Children and People with Disabilities focusing on programme 3 and 4.

The Committee noted the tabling of the APP of programme 3 and 4 by the Department of Women, Children and People with Disabilities and that these functions had been added to the Department of Social Development.

Deputy Minister gave a high level background on the reasons why the department was established. South Africa is a signatory to the international agreements. These include the United Nations Convention on the Rights of a Child and United Nations Convention on the Rights of Persons with Disabilities. The department was therefore formed to facilitate the implementation of these agreements as well as provide technical expertise and advise. Hence the three sub-programmes of the department are: Advocacy and mainstreaming, institutional support and capacity development and monitoring and evaluation.

Under Programme 3 the priority of the department is to launch and pilot the Ulwazi ngabantwana database, which will profile the children. The database will be linked to the Department of Home Affairs and the Department of Health. Under Programme 4 the department’s priority is to publish the draft National Disability Rights Policy.

The department reported that the baseline country reports on children and people with disabilities were being finalised and thereafter they will be tabled in Parliament.

The two programmes were allocated a budget of R25 million.


The Committee noted the additional functions of Programme 3 and 4 to the Department of Social Development and resolved to wait for the proclamation by the President outlining the restructuring of the department. Thereafter it will invite the department to brief it on the new structure.


1. Introduction

The South African Social Security Agency ( hereafter referred to as the SASSA or the Agency) is a Schedule 3A Public Entity that was established in April 2006. The objectives of SASSA are to act as the sole agent that will ensure the efficient and effective management, administration and payment of social assistance and to eventually serve as institution to manage broader social security benefits.

The Portfolio Committee on Social Development having considered and deliberated on the Annual Performance Plan (APP), and the Strategic Plan and the Budget of SASSA on 2 July 2014 wishes to report as follows:

2. Background

The presentation gave an overview of the rationale for the establishment of SASSA, its human resource capacity, foot print and a summary of its achievements. It was reported that the organizational structure of SASSA provides for 18,000 staff members at different levels. The n umber of funded posts, including Extended Public Works Programmes (EPWPs) was 10 888. The filled posts stood at 9 699. The majority of the staff (70%) perform the grant administration function (application to approval), excluding the actual payment of grants. The full structure will be gradually implemented as the Agency takes over the payment of social grants from the current service provider. The Agency has received unqualified audit opinions from 2011 - 2013.

The Agency reported that it had achieved the following achievements between 2011/12 – 2013/14 financial years: the finalisation of the payment tender and migration to the new payment system, improvement of the local offices, implementation of a standardised four step process, re-registration of 20.7 million beneficiaries, capacity building of staff, linking of social grants recipients to cooperatives and the incorporation of the Integrated Community Registration Outreach Programme (ICROP) into the Mikondzo programme.

The number of social grants beneficiaries as at March 2014 was 15. 9 million. This constitutes 30.8% of the total population of the country. Between 2012/13 and 2013/14 financial years the growth rate of the number of grants benefits decreased by 1.08% due to the decreasing growth in the Disability Grant, the Foster Care Grant and the Child Support Grant. The decrease was as a result of efficiencies in grant administration and cancellations brought about by the re-registration process.

3. Priority areas for 2014/15 - 2018/19

3.1 Reduce income poverty by providing income support to eligible beneficiaries

The Agency will expand enrolment and payment of social assistance to eligible older persons, people with disabilities and children. It will improve the take-up rates of 0-1 year old and 16 – 18 years old Child Support Grant (CSG) beneficiaries. It will also improve the take up rates of the Foster Care Grants (FCG) and conduct reviews of the grant in collaboration with the Department of Social Development. By the end of 2014/15 it plans to increase the number of grants in payment from 15 932 473 to 16 052 000.

It will further improve the management of Social Relief of Distress (SRD) by ensuring that qualifying beneficiaries are not disadvantaged. It will process 150 000 SRD applications per annum over the next three years. Priority will be given largely to the following areas:

· children suffering from mal-nutrition;

· assisting families where the breadwinner died or is unemployed;

· assisting in disaster situations; and

· individuals awaiting grants.

The CSG uptake rates will be increased up to 70% to address the current stagnant uptake rates of infants.

3.2 Improve service delivery

SASSA will improve its service delivery by acquiring and maintaining infrastructure in areas that are strategically located to serve the beneficiaries better. Most importantly it will improve turnaround time and quality in the processing of applications. The turnaround time will be progressively reduced to an average of 10 days by 2016.

3.3 Improve internal efficiency

To further fight fraud and corruption among its officials, the Agency will develop and implement biometric for staff. As part of automating its business operations, the Agency will develop an in-house system for management of beneficiaries biometrics information. It will improve its payment systems by developing a data factory - an in-house payment control and reconciliation capability.

Preparations for the new payment model would be done in phases, as follows:

· Phase 1 (2012 -2014): Centralisation and improvement of integrity of the data which included collection of biometric data. This had been achieved through the re-registration process. In addition, SASSA introduced beneficiaries to an electronic banking environment.

· Phase 2 (2014 – 2015): Taking over on-going enrolment process, that is, the biometric enrolment of all new grant beneficiaries.

· Phase 3 (2014 - 2015): DATA Factory - Developing SASSA’s in-house capability to manage enrolments, payments and reconciliations.

These phases will run parallel to the new tender process.

3.4 Institutionalise the social grants payment system within SASSA

A Ministerial Advisory Committee was appointed to provide advise the Minister on the future payment options for SASSA. The plan was for SASSA to take total responsibility for the payment of social grants in 2017. However, the Constitutional Court instructed SASSA to issue a tender for five years. The Agency is in the process of implementing the tender. The payment tender would cost R10 billion.

3.5 Other initiatives to be addressed by SASSA

For 2014/15 SASSA will embark on an intensive effort to recruit people with disabilities. It will also explore measures to build SASSA’s Future Workforce by establishing partnerships with universities and the universities of technology and giving bursaries for training and education in the field of social security.

4. Financial plan for 2014/15

The Agency was allocated a budget of R6, 7 billion. The bulk (60%) of this budget was allocated to Goods and Services. This is because the strategic and spending focus of SASSA is on the administration and payment of social grants. Thirty nine percent (39%) of the budget was allocated to Compensation of Employees.

5. Challenges

The Constitutional Court ruled the payment tender to Cash Paymaster Services (CPS) invalid. It further ruled that SASSA needs to take remedial processes to correct the public procurement principles of transparency, empowerment, empowerment and competitiveness that it had found had not been correctly followed. SASSA has therefore a challenge to implement this ruling and develop a new payment tender.

SASSA provides support to the areas affected by natural disasters. It therefore has a challenge to put in place systems and registries to co-ordinate its intervention programmes.

The Agency is faced with the impact of the unlawful deductions from the beneficiaries grant payments. SASSA indicated that this is the unintended consequence of the electronic payment process. Its investigation revealed that some of the deductions are repayments for the beneficiaries existing loans. In other instances deductions are made by companies who sell their products through telemarketing. SASSA explained that it is difficult for it to intervene because these companies had been granted trading licenses by the Department of Trade and Industry. The Minister of Social Development set a task team to deal with matter and advise her on possible solutions. It is envisaged that the task team’s report will be completed by the end of July 2014 and it will be submitted to the Minister.

6. Deliberations and concerns

The Committee raised a concern over the cash handling fees charged by the banks on the grant payments. SASSA reported that it was in discussions with the Reserve Bank to find ways to address this. The Committee also raised a concern over the long queues at the pay points. This is a challenge that SASSA does not seem to be able to eliminate. SASSA reported that interventions to reduce long queues are an ongoing process.

The Committee welcomed the task team set by the Minister to investigate and advise her on the new Payment Model for SASSA. The Committee will be closely following progress in this matter. It also welcomed the task team set to investigate and advise the Minister on the ways to address the issue of deductions from the social grants.

7. Recommendations

The Committee made the following recommendations:

· The Minister of Social Development should ensure that measures to eliminate cash handling fees charged by the banks on the social grants payments are prioritized and finalized within this medium term period. This process has been under discussion for some time.

· SASSA should continue raising awareness of its beneficiaries on the nature and the impact of the deductions (either from existing loans or telemarketing) from their social grants. This should be over and above the interventions the task team will advise the Minister to implement.


1. Introduction

The National Development Agency (hereafter referred to as the NDA or the Agency) is a Schedule 3 (A) Public Entity established in terms of Section 2 of the National Development Agency Act (108 of 1998) and reports to the Parliament of the Republic of South Africa through the Minister of Social Development.

The Portfolio Committee on Social Development having considered and deliberated on the Annual Performance Plan, the Strategic Plan of the National Development Agency and the budget on 2 July 2014 wishes to report as follows:

2. NDA strategic goals and objectives for 2014-2019

The NDA identified two strategic focus areas for 2014/15 – 2019, namely, capacity building of Civil Society Organisations (CSOs) and grant funding. Under grant funding it will provide funding to the following programmes:

· Early Childhood Development;

· Food security; and

· Income generation (programmes and projects).

It will specifically support programmes aimed at promoting the livelihood of vulnerable groups – children, persons with disabilities, women and youth. With regard to the ECD, the Agency will focus on infrastructure upgrade, capacity building of ECD practitioners, and ECD management and food nutrition through food gardens at the ECD sites.

To achieve the aforementioned objectives, the Agency identified four strategic goals, which are to:

2.1 Increase capacity of the CSOs that deliver development programmes to reduce poverty, inequality and unemployment

The Agency plans to achieve this goal by increasing the number of CSOs capacitated in institutional strengthening and technical skills from 690 to 14 000 by 2019. It also plans to fund 375 ECD sites, 475 food security programmes and 175 income generating projects by 2019.

2.2 Increase resources towards poverty eradication programmes and projects

It plans to achieve this goal by undertaking research, evaluations, best practices, publications and policy dialogues to improve and influence policy direction for development practices.

2.3 Conduct evidence based information that informs development policy and programmes

It plans to mobilise R650 million in cash and in kind through sustainable partnerships towards building the capabilities of communities and households for self reliance by 2019.

2.4 Increase internal efficiency, cost effectiveness and organizational sustainability

To achieve this goal, the Agency plans to strength internal system, processes and human capability to deliver its mandate. It set itself an objective to maintain sound governance and administration that promotes performance, employee development and growth, efficient financial management and enhance brand recognition from 71% to 90% by 2019.

3. Financial plan

The NDA has been allocated a total budget of R178, 337 million for 2014/15 financial year. The bulk of the budget (R111, 758 million) has been allocated to the mandated costs of the Agency, followed by R99, 852 million to Programme 1: Capacity Building. This budget allocation reflects the Agency’s resolution to allocate more budget towards its mandated costs versus administration costs. The budget allocation over the Medium Term Expenditure Framework (MTEF) will increase to R195, 443 million.

4. Deliberations and concerns

The Committee expressed a concern over the Agency’s low targets of increasing its visibility over the next five years. The Agency reported that it will increase its visibility from 71% to 90% by 2019. This translates to only 19% each year.

The Committee was also concerned over the low targets on ECD infrastructure improvements. Over the next five years the Agency plans to improve 375 ECD sites. This translates to only 77 sites each year. Another concern raised by the Committee was the lack of integration of the Agency’s performance targets to the Department of Social Development’s mandate. Because of these concerns, the Committee felt that the presentation by the Agency failed to provide adequate motivation for a budget review and increase as requested by the Chief Executive Officer.

5. Recommendations

The Committee made the following recommendations:

· The Minister of Social Development should ensure that the integration between the department and the NDA is strengthened so as to make sure that the Agency’s programmes and performance targets are aligned to the mandate of the department.

· The Minister should ensure that the NDA improves on its reporting to Parliament on its Annual Performance Plans and Strategic Plan. The presentations should give more details on the Agency’s programmes and funding to the CSO, ECD and food security programmes.

6. Resolution

· The Committee resolved that the presentation to be made by the Department of Social Development on the ECD Master Plan should also include the kind of support, both financial and non-financial, the NDA provides to the ECD sites.

· It requested the NDA to provide it with a copy of the National Treasury Review Report on the NDA.

Report to be considered


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