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Empilweni Payout Services: Addressing Challenges in Cash Grant Payments

Learn how Empilweni Payout Services is successfully addressing challenges in cash grant payments, including growth in beneficiaries, new grant introductions, geographical area constraints, and risks associated with carrying large amounts of cash.

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Empilweni Payout Services: Addressing Challenges in Cash Grant Payments

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  1. INTRODUCTION • Background • Statistics • Geographical Area • Contractual Obligations • Challenges • Addressing the Challenges

  2. BACKGROUND Empilweni Payout Services has secured a Contract with the Mpumalanga Government to pay out Social Development Grants in cash. This exclusively black owned company has been in operation for the past 8 months after taking over the contract from an former contractor.

  3. STATISTICS • We started with 126 000 beneficiaries in December 2000 paying to the value of R 60 000 000 • After 8 months of being in operation we are now paying 180 000 beneficiaries to the value of R 80 000 000 per month • That represents a growth rate of 40% • 247 Pay points are paid monthly • 70% Has water • 65% Has toilets • 55% Has shelters • Pay point ranging in size from 100 to as many as 3400 Beneficiaries • Servicing 18 Districts within 3 Government Regions (Highveld, Eastern Highveld and the Lowveld) • Empilweni is a Black Empowerment Group • Crime • 38 CIT Heists during the year 2000 • The number has increased to as much 37 heists for this year • 4 CIT Heists (Only one was successful) • Geographical area

  4. GEOGRAPHICAL AREA

  5. CONTRACTUAL OBLIGATIONS • Payment • No more than a 1000 beneficiaries per pay point • Pay between 07H00 and 16H00 • All new Pay Points should provide all the basic facilities • Water, Toilets and Shelter • Safety of Beneficiaries • Payment should be concluded within the first 13 day of the month • Reconciliation should be done within the first 15 days • Secure Government funds through proper security protocols

  6. CONTRACTUAL OBLIGATION • Enrolment • Capturing of 10 digital biometric prints • Capture digital passport size photograph • Use enrolment database to authenticate beneficiaries for payment • Do ongoing Enrolment

  7. CHALENGES • The 40% growth factor in terms beneficiaries (2% current growth per month) • Introduction of new grants by the department (CSG & Care Dependence) • Geographical area • Crime in the province (Many neighboring borders) • The future Norm and Standards to be introduced by the Department • Facilities at pay points • Queuing durations at the pay points • Fraud and corruption within the border aspect • The risk element of carrying large amounts of cash over great distances due to the oversized pay points

  8. ADDRESSING CHALLENGES • After studying the overall challenge we as company presented the following solutions to the Provincial Government. It was approved and we are now in the implementation face. • We have taken the biggest routes in the province and spit them in half. • Thus a route that used to be paid over 13 days will now be split in half. • The first 7 days now becomes 13 days and the last 6 days now also becomes 13 days. Thus reducing the number of beneficiaries to be paid per day by half. • This allows as to now start later and finish earlier. (Inline with the new Norms & Standards) • The amount of cash carried is cut in half limiting the overall risk. • The smaller number of people at the pay points now decreases the need and use of facilities like water, shelter and toilets. • Smaller pay sites means we can now by involving other stakeholders look for better developed locations for payment. • With the smaller number of beneficiaries we can now divide every day in to periods.

  9. ADDRRESING THE CHALLENGES • We will then allocate grantees to the periods. • This will ensure that no person queues for longer than 2 hour since the periods will only be 2 hours long. • We can easier attend to the needs of the aged in this way and the risk of death at the pay point in largely minimized. • Portable workstations will be introduced to service the elderly in community halls and other formal structures where shelter is available. • These portable workstations will ensure that we do not pay more than 350 beneficiaries per workstation. • With this solution we will be paying less than 1000 beneficiaries per site as foresaid. • The labour induced by both the payment operator and the payment equipment will now be largely reduced solving the overlabouring of the equipment, which caused a lot of technical problems in the past. • Payment operators will also spend less time working on the system per day thus allowing them to be more alert when they engage in payment. • The new structure allows as to have more mobile units available for use in the smaller pay routes, providing a total solution (Not only for one region).

  10. QUESTIONS

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