22 June 2005

1. Briefing to Portfolio Committee:Social DevelopmentSouth African Social Security Agency (SASSA) Progress Report on EstablishmentProcess 22 June 2005

2. Outline of presentation • Agency establishment process • Service Delivery Improvement Initiatives • Fraud and Corruption • Strategic issues for consideration

3. 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

4. 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

5. National Treasury National DSD Inspectorate National Treasury National Treasury National DSD Inspectorate National DSD Inspectorate Provincial Treasury Province DSDW Agency Provincial Treasury Provincial Treasury Province DSDW Agency Province DSDW Agency Beneficiaries Beneficiaries Beneficiaries Transitional Phase 2005/6 Optimising Phase 2006/7 onwards Previous Arrangement Background (3)

6. 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.

7. 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.

8. 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.

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. End Thank You