Briefing to Portfolio Committee: Social Development South African Social Security Agency (SASSA) Progress Report on Establishment Process

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Briefing to Portfolio CommitteeSocial
DevelopmentSouth African Social Security Agency
(SASSA) Progress Report on EstablishmentProcess

• 22 June 2005

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Outline of presentation

• Agency establishment process
• Service Delivery Improvement Initiatives
• Fraud and Corruption
• Strategic issues for consideration

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Background(1)

• The Agency seeks to address weaknesses in the
  current social grant system. These weaknesses
  include
• Fragmented institutional arrangements and a lack
  of uniformity across Provinces
• Inefficient processes and high transaction costs
• Budgetary and financial pressures at provincial
  level
• Fraud and corruption and
• The poor quality of service delivery

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Background (1)

• Stage 1 Create the Agency in readiness for the
  Transitional Phase complete 1st April 2005
  achieved
• Stage 2 Transitional Phase complete 1st April
  2006 in progress
• Stage 3 Fully Operational and Optimising Phase
  1st April 2006 onwards

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Background (3)
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Objectives for 2004/5 Stage 1

• The key deliverables of the DSD Agency team for
  April 1st 2005, as defined and agreed, are as
  follows
• Agency created as a legal entity
• Budget finalised
• Mechanism for Social Security Grants
  administration finalised
• Provincial staff separation (ring fencing)
• Amend legislation where necessary
• Agency Head-office structure in place
• Conditional Grant funding to provinces in place
  and
• Agency Regional management team in place.

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Achievements(1)

• Whilst all of the objectives are critical to the
  successful creation and operationalisation of the
  Agency, not all of them were critical for April
  1st, 2005.
• Payments to beneficiaries were made beyond April
  1st, 2005 without disruption and thus this core
  duty of the DSD was successfully discharged
  without interruption.

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Achievements(2)

• Objectives achieved by April 1st, 2005
• Agency created as a legal entity
• Budget finalised
• Agreements for Social Security Grants
  administration finalised and
• Conditional Grant funding to provinces in place.

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Objectives for 2005 (1)

• Appointment of Agency Executive Management Team
• Appointment of the Agency CEO completed
• Selection of the Agency Executive Management Team
• Appointment of Agency Executive Management Team
• Review and Finalisation of the Agency Business
  Plan
• Establishment of the Strategic Direction for the
  Agency
• Review and consolidation of Business Model
• Review and consolidation of the Service Delivery
  Model
• Finalise Business Model and Service delivery Plan
• Agree Business Model and Service Delivery Plan

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Objectives for 2005 (2)

• Executive Management Team Performance Agreements
• Prepare draft Performance Agreement for the CEO
• Issue Draft Performance Agreement for the CEO
• Performance Agreement of the CEO Finalised
• Prepare Draft Performance Agreements for
  Executive Management Team
• Performance Agreement of the Executive Management
  Team Finalised

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Objectives for 2005 (3)

• Agency Operationalisation Processes
• Legislation review (and amendment as appropriate)
• Develop Service Delivery Model
• Develop Business Processes
• Develop Operational Policies and Procedures
• Develop SASSA Corporate Identity
• Launch SASSA Corporate Identity
• Commence Social Assistance Act of 2004

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Objectives for 2005 (4)

• Establish Agency Regional Structures
• Develop Regional Operational Model
• Selection of Regional Management Teams
• Regional Management Teams Appointed
• Establish Local Social Security Operations
• Complete Local Office Staff Ring Fencing
• Local Office Staff Vetting and Assessment
• Agree Staff Transfer Process
• Transfer Local Office Staff into the Agency

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Objectives for 2005 (5)

• SASSA Development Support
• Preparatory processes in the Provinces
• Service Delivery Improvement Processes
• SASSA Budget Development Processes
• Complete SASSA Proposed 2006/2007 MTEF Budget
• Agree SASSA 2006/2007 MTEF Budget

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Challenges

• Appointment of top management structure
• Successful transfer of staff into the new
  structure
• Establish a best practice service delivery model
• Legislation particularly the regulations and
  amendment of the Social Assistance Act
• Establishment of the Inspectorate
• Rate of progress
• Agency fully operational by March 6th, 2006

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Service Delivery Improvement

• Sustainability of growth rate of social grants
• Clean process to remove ineligible beneficiaries
• Reviewing procedures for eligibility
• Inefficiencies in social grant system
• Reviewing all temporary disability grants
• Improving data integrity through interfaces with
  other government data basis
• Return of unclaimed benefits to the Department

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Fraud and Corruption

• Estimate R1,5 Billion lost due to fraud and
  corruption.
• Establish the fraud hotline
• Conducted data-interrogation exercises
• Ran fraud and corruption campaign
• Contracted the SIU to assist in following up on
  cases
• Significant saving have already been attained

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Strategic issues for consideration

• Amendments to SASSA Act to be finalised by end
  2005/06
• Regulations giving effect to the Social
  Assistance Act to be finalised by November 2005.
• Fraud and corruption committed by public
  officials
• Need for enhancement of service delivery
  improvement

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End Thank You