Documents handed out: Welfare Portfolio Committee Meeting of 10/11/99:
Appendix 1:
Social Security Delivery
Activities - How many grants are paid per month?
Old Age: 1 845 889
War Veterans: 8 306
Disability: 635 881
Grant-in-aid: 8 893
Maintenance
Parent: 154 046
Child: 207 222
Foster Care: 51 074
Child dependency: 21 498
Child support: 163 950
Total: 3 096 759
Activities - How much is paid per grant type?
Old Age - Maximum amount: R520.00
War Veterans - Maximum amount: R538.00
Disability - Maximum amount: R520.00
Grant-in-aid - Maximum amount: R94.00
Maintenance (Parent) - Maximum amount: R215.00
Maintenance (Child) - Maximum amount: R67.00
Foster Care - Maximum amount: R374.00
Child dependency - Maximum amount: R520.00
Child support - Maximum amount: R100.00
Activities - How are Grants paid?
Percentage Beneficiaries Paid By Different Contractors
Social security budget
1998/99
Social Security
[Graph not included]
Summary- Focus Areas
Appendix 2:
Objective of the Re-registration Project
Actions undertaken for Re-Registration
Plans for the Re-registration Project
Measurement of progress
Per province per social security district the following info are required from the provinces to track progress:
Provinces are supplying the above monthly to the Department of Welfare
Quality Assurance
External tender for QA was initiated and will audit among others the following:
Identify and calculate possible savings that may result from the re-reg project itself or from proposals made by the audit team
Appendix 3:
Re-Registration Programme, Kwazulu/Natal
AIM
Scope of project
Main focus areas
Communication
The challenge:
to communicate with 600 000 beneficiaries
Administration
Challenges
Logistics
Process
Data processing
Challenge:
Operate in live environment
Contract staff
Logistics
Process
New applications
challenges
PROJECT COMPLEXITIES
STAKEHOLDERS
ACHIEVEMENTS TO DATE
LESSONS LEARNT
Timing of project
Control of stationery and equipment
Public query system
District surgeons
Balance - fixed and mobile sites
Training
Productivity management
Quality control
Files for correction
Communication
Queing
Data processing
Appendix 4:
DEFINITION OF DISABILITY
A disabled person is" a person who has attained the prescribed age and is owing to his physical or mental disability unfit to obtain by virtue of any service, employment or profession, the means needed to enable him to provide for his maintenance".
PROBLEMS – REGULATIONS & POLICY
APPLICATION PROCESS
APPROVAL/REJECTION
PROBLEMS WITH PROCESS
PROPOSED OUTCOMES
Appendix 5:
Background to the grant
Target
Statistics
Factors impeding reaching targets
Strategies developed
QUALIFYING CRITERIA
• can be eligible for own child/ren
• must be the primary care giver
• must satisfy the financial criteria
• does not receive remuneration for the child
• child is not in an institution
• is not already in receipt of a grant in respect of the child
• the child is under 7 years of age
THE MEANS TEST
Scheduled rural location, <R1 100pm
Informal house, <R1 100pm
Formal house, <R800 pm
RURAL AREA
Living in a formal or Informal Dwelling; personal income is below: R1100 per month or R13200 per annum
URBAN AREA
Living in a Formal Dwelling; person income below is R800 per month or R9600 per annum
Living in Informal Dwelling, person income below R1 100 per month or R13 200 per annum
TARGET SIZE
• aiming for 3 million by 2003
CHILD SUPPORT GRANT STATISTICS AS AT 29/10/1999
Western Cape:
Applications: 6 796
Payment: 6 350
Eastern Cape:
Applications: 36 166
Payment: 32 772
Northern Cape:
Applications: 8 197
Payment: 7 851
Free State:
Applications: 8 332
Payment: 5 399
Kwazulu Natal:
Applications: 40 111
Payment: 30 933
North West:
Applications: 13 988
Payment: 12 528
Gauteng:
Applications: 28 471
Payment: 26 172
Mpumalanga:
Applications: 15 938
Payment: 13 976
Northern Province:
Applications: 37 768
Payment: 27 969
TOTAL:
Applications: 195 767
Payment: 163 950
FACTORS IMPACTING ON UPTAKE
RELAXATION OF REGULATIONS
Proof / documentation in respect of the above is therefore no longer necessary to enable accessibility of grant to the targeted children
COMMUNICATION
IDENTITY DOCUMENTS
123 MOBILE UNITS FROM DEPT OF HOME AFFAIRS TO FACILITATE TAKING DOWN APPLICATIONS
RESEARCH CSG
RESEARCH SMG
Appendix 5:
FACTSHEET 1
1. SOCIAL GRANTS FOR THE AGED
In order to qualify for a social grant for the aged, the applicant:
Must be a South African citizen
Must be resident in the Republic at the time of application
If a male, must be 65 years of age
If a female, must be 60 years of age
As well as the spouse, must comply with the means test
Must not be maintained or cared for in a state institution, and
Must not be in receipt of another social grant, in respect of him or herself.
2. SOCIAL GRANTS FOR DISABLED PERSONS
In order to qualify for a social grant for disabled persons, the applicant:
Must be a South African citizen
Must be resident in the Republic at the time of application
Must be a disabled person, who has attained the age of 18 years and as a result of his or her disability is unable to obtain employment or does not have any other resources to support himself or herself.
The period of disability for all work must either be permanent or for a continuous period of 6 months or 1 year.
Must not refuse to undergo the necessary medical treatment, unless the treatment may be life threatening
As well as the spouse, must comply with the means test
Must not be maintained or cared for in a state institution, and
Must not be in receipt of another social grant, in respect of him or herself.
3. SOCIAL GRANTS FOR WAR VETERANS
In order to qualify for a social grant for war veterans, the applicant:
Must be a South African citizen
Must be resident in the Republic at the time of application
Must be a war veteran, that is a person who has attained the age of 60 years, or who is disabled and has served full-time in wars, between 1914 and 1945
As well as the spouse, must comply with the means test
Must not be maintained or cared for in a state institution, and
Must not be in receipt of another social grant in respect if him or herself.
4. FOSTER CHILD GRANTS
What is a Foster Child Grant?
A foster child grant is payable to a foster parent or parents in respect of a foster child who has been placed in their custody in terms of the Child Care Act.
What are the Qualifying Requirements?
The child or children must be legally placed in the care of the foster parent/s
The income of the foster child must not exceed twice the annual amount of a foster child grant, and
The applicant and foster child/ren must be resident in the Republic at the time of application.
Note: Foster parents and children need not be South African citizens.
5. CARE-DEPENDENCY GRANTS
What is a care-dependency grant?
A care-dependency grant is payable to the parent/s or foster parents in respect of a care-dependent child between the ages of 1 and 18 years in their care, who, due to severe mental and /or physical disability, needs full-time care.
What are the qualifying requirements?
The parent/s and care-dependent child must be South African citizens
The applicant and care-dependent child must be resident in the Republic at the time of application
The care-dependent child/ren must be between the ages of 1 and 18 years
A medical report and functional assessment for the child must be submitted
Medical treatment must not be refused provided it is not life threatening
At the age of 6 the child/ren must be evaluated as to his or her educability and trainability
The care dependent child/ren must be legally in the care of the parent or foster parent, and
The care-dependent child/ren must not be permanently care for in a state institution.
6. CHILD SUPPORT GRANTS
What is a child support grant?
A child support grant is a grant of R100 per month payable to a primary care-giver in respect of a child or children under the age of seven. A primary care-giver is any person who takes primary responsibility for the daily care needs of the child or children and is not necessarily related to the child/ren.
What are the qualifying requirements?
The child/ren and the primary care-giver must be South African citizens
The child/ren and the primary care-giver must be resident in the Republic at the time of application
The applicant must be the primary care-giver of the child/ren concerned
The child or children must be under the age of 7 years
The grant is payable in respect of a maximum of 6 children
The primary care giver must comply with the financial criteria in the means test
The primary care-giver must not receive remuneration to take care of the child/ren concerned
An institution must not receive an award for taking care of the child
The primary care-giver or any other person must not already be in receipt of a grant on behalf of the child
7. DOCUMENTS REQUIRED WHEN APPLYING FOR GRANTS
The following documents or certified copies must accompany all applications made for grants:
7.1 Documents required for all grants:
South African Identity Document (13 digits) of the applicant and spouse (if applicable) and relevant child/ren
Proof of marital status: marriage certificate, divorce order and agreement and death certificate of late spouse (if widow/er)
7.2 Social Grants:
In addition to the documents mentioned under 7.1, the following documents must be submitted:
Proof of income and assets of the applicant as well as his/her spouse:
Bank statement/s for a period of 3 consecutive months
Interest/dividends earned on investments and bank accounts
Explanation of any deposit and credits in bank accounts
If unemployed, a UIF card (blue card) or discharge certificate from the previous employer
Medical history and report for a disability grant
Proof of war service in the case of war veterans
If a lumpsum was received, documentary proof of how it was invested or spent.
7.3 Child Support Grant
In addition to the documents mentioned under 7.1, the following documents must be submitted when applying for a child support grant:
Each child’s ID or a 13-digit birth certificate with the child’s ID number (if the child does not have an ID or a birth certificate with 13 numbers, the applicant must apply for one at the Department of Home Affairs)
If the applicant is working, he or she must show proof of recent personal income or make a sworn statement
If the applicant is not working, he or she must tell this to the welfare officer
If the applicant is married, he or she must show proof of their spouse’s income if the spouse is working or make a sworn statement
If the applicant is not the parent of the child, he or she must show proof that they have permission to look after the child
If the applicant is looking after the child because the parents are dead or missing, the applicant can apply for the grant.
7.4 Foster Child Grants
In addition to the documents mentioned under 7.1, the following documents must accompany an application for a foster child grant:
Identity document or birth certificate with 13 digits for each child
Proof of income for the foster child concerned
Proof of regular school attendance, if the child/ren is of school going age
An order of the Children’s Court.
7.5 Care-dependency Grants
In addition to the documents mentioned under 7.1, the following documents must accompany an application for a care dependency grant:
Identity document or birth certificate with 13 digits for each child
Proof of income of the family
A medical report from a medical officer
Note: An application form will not be completed, unless all the required documents are submitted
8. CANCELLATION OF GRANTS
All grants will be cancelled, should one or more of the following circumstances occur:
8.1 A social grant shall lapse:
On the last day of the month in which the beneficiary dies
when a beneficiary is admitted to a state institution, and
when the period of temporary disability has lapsed in the case of a grant for the disabled.
8.2 A child support grant shall lapse:
On the last day of the month in which the primary care-giver dies
On the last day of the month in which the child in respect of whom the grant is paid, dies
On the last day of the month in which the child in respect of whom the grant is paid, attains the age of 7 years, and
On the last day of the month in which the child is no longer in the custody of the primary care-giver.
8.3 A foster child grant shall lapse:
On the last day of the month in which the last-living foster parents dies
On the last day of the month in which the foster child dies
On the last day of the month in which the foster child is no longer in the custody of the foster parent
At the end of the calendar year in which the foster child attains the age of 18 years, and
With effect from the first day of the month following the month in which the foster child leaves school.
Note:
Continuation of the payment of a foster child grant may be authorised, on recommendation of a social worker:
in the case of a child under the age of 18 years, for a maximum period of 1 year, pending placement; or
in the case of a foster child between the ages of 18 to 21 years, to enable the child to complete hi or her secondary school training, or in the case of a disabled child, his or her special educational training.
8.4 A care-dependency grant shall lapse:
On the last day of the month in which the parent or the foster parent dies
On the last day of the month in which the care-dependent child dies,
On the last day of the month in which the care-dependent child attains the age of 18 years, whereupon he or she will be able to apply for a grant for disabled persons, and
Where a care-dependent child is admitted (permanently) to a psychiatric or care- and rehabilitation centre.
8.5 Any grant shall lapse:
If the beneficiary has not claimed the grant for a consecutive period of three months.
Note:
Application for re-instatement of the grant must be made within 90 days after the grant has lapsed.
Approval and notification procedure
After all the relevant information and documents have been supplied in support of an application for a grant, a decision is made whether to approve or reject the application.
A letter of approval or rejection is furnished as soon as possible to inform the applicant of the outcome.
The applicant must be informed of the reasons of rejection and his or her right to appeal within 90 days.
Note:
For disability and care-dependency grants the same procedure is followed, but a medical report and medical history of the applicant, for assessment and classification by a Medical Pension Officer is required before an application form may be completed.
Date of approval of grants
From 1 April 1998 payment of a grant is made from the date of approval and NOT the date on which the application is made.
Payment of the grant must commence within 3 months of the date of approval.
The policy adopted is that NO applicants should wait longer than 3 months for finalisation (approval or rejection) of their applications, from the date on which the application form is completed together with all the necessary documents.
Note:
A foster child grant is payable from the date on which the child was placed in the custody of the foster parent/s, therefore the date of the court order, on condition that the application for this grant is made within 6 months of the date of the court order.
10. SOCIAL RELIEF OF DISTRESS
10.1 What is a Social Relief of Distress?
Social Relief of distress is a means of alleviating the need of persons by means of the temporary rendering of material assistance to them.
It is therefore intended for persons in such dire material need, that they are unable to meet their needs or their family’s most elementary needs.
It is designed to help persons and families over a crisis period.
10.2 Who qualifies for social relief of distress?
In order to qualify for Social Relief of Distress, the applicant must comply with one or more of the following conditions:
The applicant must be awaiting permanent aid
The applicant must have been found to be medically unfit to undertake remunerative work for a period of less than 6 months
No maintenance is received from the person obliged to pay maintenance, and proof must be submitted that efforts made to trace such a person to obtain maintenance were unsuccessful
The breadwinner is deceased and insufficient means are available
The applicant has been affected by a disaster, and the area of the community in which he or she lives, has not yet been declared a disaster area, and
The applicant is not receiving assistance from any other organisation
Note: No person is entitled to a grant and Social Relief of Distress simultaneously. Overpayments which have occurred in this regard will be recovered from a grant payment, including an arrear grant payment.
10.3 Period and value of Social Relief of Distress
Social Relief of Distress is issued monthly for a period of 3 consecutive months. Extension of the period by a further 3 months may be granted, in exceptional cases.
The value of Social Relief issued for each adult may not exceed the maximum social grant payable per month, and for each child may not exceed the maximum child support grant payable per month.
Note:
In some provinces assistance is only rendered in the form of food vouchers.
Transport expenditure may be paid in exceptional cases where:
The applicant is referred for treatment by a medical officer and no other transport arrangements can be made, and
The applicant must travel to a specific destination to assume employment where he or she will not be dependent on further state aid.
11. FUNERAL EXPENSES
Grant money owing to deceased beneficiaries or children, may be paid to persons who paid for the funeral expenses, if a claim is made within 6 months after the death of the beneficiary or child concerned.
But: The amount payable shall not exceed the amount owing to the deceased beneficiary or child concerned.
12. PAYMENT OF A GRANT
There are different ways in which grants can be paid:
In some provinces, grants are paid out by people employed by the state / Welfare department
In other provinces, grants are paid out by people working for private companies. These companies have been awarded a contract by the welfare department of the province
Grants can also be paid at the Post Office
If applicants have their own bank accounts, the money can be deposited into the account
Grant money in respect of beneficiaries maintained or cared for in institutions may be credited to the institution’s bank account
Note:
If a beneficiary is unable to collect his or her grant money, due to illness or other reasons beyond his or her control, the beneficiary may appoint and authorise another person (procurator) to draw the grant on his or her behalf. It remains the prerogative of the beneficiary to spend the money in any way he or she wishes.
An administrator can be appointed by the Department to administer a grant on behalf of a beneficiary as a result of misspending, mental disability or alcohol abuse on the part of the beneficiary.
REVIEWS
All grants are reviewed at different times and intervals by each province. A review may result in the grant being increased, decreased or cancelled, depending on the information and changed circumstances. Failure to act upon a review will result in the suspension or cancellation of the grant.
FACTSHEET 2
THE NEW CHILD SUPPORT GRANT
The Department of Welfare is committed to reaching 3 million children by the year 2003 through the child support grant. The current figures show that close to 150 000 children are receiving the grant.
The New Child Support Grant regulations were gazetted on 25 June 1999. The requirements for child support grant have been relaxed to encourage applications. The Child Support Grant is a grant of R100 a month per child paid to the primary caregiver of a child.
The child support grant is aimed at helping poor families to look after their children. It can be paid to a mother, father, grandparent or any one else who looks after the child on a day to day basis without being paid.
TO QUALIFY FOR THE CHILD SUPPORT GRANT:
Primary care-giver and child must be SA citizens
Primary care-giver must comply with the means test
Primary care-giver must submit his or her bar-coded 13-digit identity number
The child’s ID or a 13-digit birth certificate with the child’s ID number (If the child does not have an ID or a birth certificate with 13 numbers, the applicant must apply for one at the Department of Home Affairs be fore you apply for the child support grant).
If unemployed the applicant can tell this to the welfare official.
If applicant is working he or she must show proof of recent income or make a sworn statement.
If applicant is married he or she must show proof of spouse’s income if they are working or make a sworn statement.
If applicant is not a parent of the child, he or she must show proof that they have permission to look after the child.
Any one looking after the child because the parents are dead or missing can also apply for the grant.
FACTSHEET 3
COMPREHENSIVE SOCIAL SECURITY SYSTEM
In November 1998, the Minister for Welfare, Population and Development set up an inter-departmental consultative process to determine the feasibility and requirements for the introduction of a comprehensive social security system in South Africa. The Department of Welfare is convening the task team as part of the consultative process.
SPECIFIC TERMS OF REFERENCE
To review the current status of programs and provisions related to social security with the aim of identifying the gaps in the present system, investigating the manner in which the various provisions may be restructured, individually or in combination to provide for a comprehensive social security system.
To review policy options within the context of international best practice and social solidarity principles underlying them.
To provide Cabinet with recommendations for moving towards a comprehensive and integrated social security system in South Africa.
The inter-departmental task-team is planning to submit proposals to Cabinet by October 1999.
FACTSHEET 4
DISASTER RELIEF FUND
The Department of Welfare administers the Disaster Relief Fund as established in terms of Section 16 of the Fund-Raising Act, 1978 (act107 of 1978).
This fund is managed by a board appointed by the Minister for Welfare, Population and Development. The board may appoint a committee to carry out its objectives as prescribed and according to the needs of the situation.
The President may, by proclamation in the government gazette, declare an even to be a disaster, as outlined in the Act, if in his opinion the event has or is likely to have disastrous consequences.
Financial assistance is given on an ex-gratia basis for damage or loss with regard to the following:
Buildings: houses, outbuildings, walls, barns, cellars, factories, business premises and flats
Contents: furniture, equipment, personal effects and stock
Agriculture: livestock, implements, harvested crops and fences
Motor vehicles: including caravans that are used for accommodation
FACTSHEET 5
WELFARE PAYMENT AND INFORMATION SERVICE (WPIS)
The Department of Welfare needs to improve the operational efficiency of its grant payments. Every month about 3 million South Africans receive pensions or grants, totalling more than R16 billion for the past financial year. This is a major poverty alleviation programme of government.
The Department of Welfare will publish a tender to find a business partner to completely reengineer the payment of social grants and establish a new Welfare Payment and information Service (WPIS).
The objective of the WPIS is to design a service that will offer citizens who qualify at least the following:
Access to arrange of payment options including physical and electronic cash services and partial withdrawal of benefits
Access to a high quality service with quick turn around times between application and first payment
Value added services such as interest-bearing savings mechanisms and other micro-finance services
Access to information regarding the full range of welfare services offered in South Africa
The objective is also to offer government at least the following:
The most cost-effective way to administer public funds
Significant fraud reduction
Accuracy of beneficiary information to ensure that the service is targeted in line with government policy to reach the poorest of the poor
A high level of productivity of staff responsible for the payment and information functions
The ability to reconcile payments on a daily basis
These stated objectives will also improve medium to long term budgetary planning. The current cost of disbursing social grants is estimated at around R500m per month.
Appendix 6:
Fraud & other forms of abuse, Eastern Cape
Department of Welfare - Eastern Cape
FINDINGS OF FORENSIC AUDITS AND DATABASE INTERROGATION
During the forensic auditing and interrogation of the Provincial Social Security database the following exceptions; were unearthed:
EMPLOYED PERSONS AND FORMER CIVIL SERVANTS DRAWING GRANTS ILLEGALLY.
|
Government officials (employed) |
985 |
|
Transitional Local |
|
|
Authorities (employed) |
547 |
|
Total |
1 532 |
|
Monetary Value (per month) |
R 796 640 |
|
Monetary Value (per annum) |
R955 9580 |
|
Recipients of both civil pensions and |
|
|
social grants # |
3 277 |
|
Monetary value (per month) |
R1 704 040 |
|
Monetary value (per annum) |
R20 448 480 |
# Failed to declare their income on application.
PERSONS RECIVING DOULBE PAYMENTS
|
Old age Duplicates |
3 487 |
|
Disability grant duplicates |
306 |
|
Swapped names |
104 |
|
Duplicate old age and disability grants |
1 476 |
|
Total |
5 373 |
|
Monetary value (per month) |
R2 793 960 |
|
Monetary value (per annum) |
R33 527 520 |
SUSPECT BENEFICIARIES OVER THE AGE OF 80 YEARS
|
Pay Point |
District |
Beneficiaries |
|
|
230207 |
Port Alfred |
261 |
|
|
240139 |
Cala |
383 |
|
|
240312 |
Lady Frere |
111 |
|
|
240315 |
Lady Frere |
174 |
|
|
242201 |
Lusikisiki |
127 |
|
|
242101 |
Flagstaff |
133 |
|
|
240321 |
Lady Frere |
115 |
|
|
240327 |
Lady Frere |
124 |
|
|
Total |
1 428 |
||
|
Monetary value (per annum) |
R 742 560 |
||
|
Monetary value (per month) |
R 8910 720 |
||
The department is not in any way suggesting that persons over the age of 80 years do not qualify for social security grants. What raises suspicions is the number of this age group that receives such grants in one pay-point.
Further investigations that the department is engaged in.
Our investigations in Idutywa have unearthed the following exceptions:
|
Duplicates |
20 |
|
Deceased beneficiaries |
137 |
|
Too young to draw old age grants |
20 |
|
Ghosts* |
400 |
|
Total No of exceptions |
577 |
|
Monetary Value (per annum) |
R 300 040 |
|
Monetary Value (per month) |
R 3 600 480 |
· Persons who have failed to collect their grants for three consecutive months since the start of the verification exercise.
· In another case the following was discovered - 150 finger print runs of the same person drawing and cashing grants illegally. Two departmental officials have since been arrested. The investigations of this case are so sensitive that any publicity will be detrimental to its outcome.
The Department is also engaged in further data mining investigations to identify persons suspected of receiving double payments from different payment methods using different identity documents.
·
The following towns have been specifically targeted for intensive investigation:
· Lady Frere - where 1 650 identical finger print runs have been identified and
· Centane - where members of the Welfare Forum have raised concerns about rampant fraudulent activities.
· Cofimvaba - where members of the community reported cases of fraud.