The Compensation Commissioner for Occupational Diseases (CCOD) 11/9/2018 Presentation to Portfolio Committee on Health Annual Performance Plan of the CCOD for 2016/17 Barry Kistnasamy, Weitz Botes, Nhlanhla Mtshali, Sam Molautsi, Mishack Maswanganye 7 April 2016

Overview Performance 2015/16 Annual Performance Plan 2016/17 Budget 2016/17

Annual Performance Plan (2015/16) Legislative amendments to the Occupational Diseases in Mines and Works Act, 1973 Governance of the Compensation Commissioner for Occupational Diseases Provision of decentralised occupational health services Improve claims administration Collect revenue Ensure outreach and awareness activities Ensure financial sustainability of the Compensation Fund

Performance Environment Support of trade unions, Chamber of Mines (Gold Mining companies), development partners Governance committees in place and functioning Functioning Certification Committees Integration of compensation systems Global Fund support for One Stop services in neighbouring countries

Performance Environment Preparation of financial reports and actuarial valuation Process flow mapping of operations Increased awareness of ex-mineworkers Involvement of other departments – facilitated by Presidency Externally – class action on silicosis and Tuberculosis compensation; settlement by 2 mining companies

Fraud Prevention strategy Fraud Prevention policy Policies finalised for submission to Director-General for approval (31 March 2016) Fraud Prevention strategy Fraud Prevention policy Risk Management policy Risk Management framework Risk Management strategy Cash and Investment policy Related Party policy Prescription of Debt policy Chart of Accounts policy

Performance Indicator Past Targeted Actual % Variance   2012/13 2013/14 2014/15 2015/16 Number of workers and ex-workers in controlled mines and works accessing benefit medical examinations (BMEs) per year 11750 10694 9781 10500 15318 +46% Number of claimant applications processed by the Certification Committee of the Medical Bureau for Occupational Diseases 4376 4444 6324 8000 7295 -9% Number of claims paid by the Compensation Commissioner (other than pensioners) per year 1779 3124 1977 3000 1774 -41%

Performance Indicator Past Targeted Actual % Variance   2012/13 2013/14 2014/15 2015/16 Number of controlled mines and works inspected per year to verify levies payable based on risk shifts worked - 29 58 40 77 +93% Number of outreach and awareness activities with service providers, unions, employers, workers and ex-workers conducted per year 4 6 8 10 34 +240% Number of workers in controlled mines and works paid for loss of earnings while undergoing tuberculosis treatment per year 1453 1923 459 750 598 -20%

Non-Performance Legacy problems going back many years Outdated information technology systems and business processes Lack of staff in legal, actuarial, medical, analytic / epidemiological sciences Lack of finances Revenue covers income protection Voted funds for administration, medical services Personnel management, work ethos and culture

CCOD File Verification Audit Special project on track & trace; completion of documents for unpaid claimants

Age Analysis of Paid Claims In 2013/14, consolidation of CCOD & MBOD; setting up systems

(Compensable Diseases) MBOD Certifications (Compensable Diseases) 19 medical doctors appointed by Minister began work in December 2015

Country of Claimants TOTAL COUNTRY NOT PAID PAID No. % AMOUNT PAID SOUTH AFRICA 36,436 38,517 74,953 37.44% 772,498,691 56.12% LESOTHO 11,337 16,343 27,680 13.83% 336,562,842 24.45% No Country of Origin on File 47,809 34,743 82,552 41.24% 158,716,152 11.53% MOZAMBIQUE 4,250 3,869 8,119 4.06% 62,887,681 4.57% BOTSWANA 1,473 1,666 3,139 1.57% 20,892,565 1.52% SWAZILAND 1,699 1,160 2,859 1.43% 21,433,487 1.56% OTHER COUNTRIES 407 469 876 0.44% 3,622,813 0.26% TOTAL 103,411 96,767 200,178 100.00% 1,376,614,231

Compensable Diseases DISEASE NOT PAID PAID No. % AMOUNT PAID SILICOSIS 8,993 24,052 33,045 16.51% 564,888,944 41.03% TUBERCULOSIS 61,310 47,573 108,883 54.39% 298,047,951 21.65% ASBESTOS RELATED DISEASES 5,289 8,399 13,688 6.84% 195,060,831 14.17% OBSTRUCTIVE AIRWAYS DISEASE (OAD) 1,701 3,383 5,084 2.54% 115,934,942 8.42% PNEUMOCONIOSIS 1,807 9,107 10,914 5.45% 114,514,769 8.32% No Disease on File 23,725 3,139 26,864 13.42% 54,004,418 3.92% CANCER 126 207 333 0.17% 12,468,255 0.91% COAL WORKERS PNEUMOCONIOSIS 298 356 654 0.33% 6,648,017 0.48% PLATINUM SALTS 22 248 270 0.13% 6,102,326 0.44% TUBERCULOSIS + SILICOSIS + OAD 57 145 202 0.10% 4,260,268 0.31% SYSTEMIC SCLEROSIS 32 97 129 0.06% 3,791,936 0.28% MIXED DUST 51 61 112 891,574 Total 103,411 96,767 200,178 100.00% 1,376,614,231

Gender of Unpaid Claimants NOT PAID PAID TOTAL % AMOUNT FEMALE 2,854 2,221 5,075 2.54% 36,665,204 2.66% MALE 84,831 77,418 162,249 81.05% 1,220,135,815 88.63% No data available 15,726 17,128 32,854 16.41% 119,813,212 8.70% Total 103,411 96,767 200,178 100.00% 1,376,614,231

Missing Documents in Files (Unpaid Claimants) DOCUMENT TYPE NO. % IDENTIFICATION (IDs, PASSPORTS) 78 203 75.62% BANK ACCOUNT 97 239 94.03% RECORD OF SERVICE 63 375 61.28% ADDRESS 64 970 62.83% TOTAL UNPAID FILES 103 411 100.00%

Personnel Distribution (31/3/16) Designation Level No of posts Filled Vacant Commissioner 15 1 Director 13 2 Deputy Directors 12 Assistant Directors 10 3 Senior State Accountants( Finance) 8 Senior State Accountants( Inspector) Senior Administration Officer State Accountants 7 Administration Officer 4 Senior Administration Clerks Personal assistant to the Commissioner Personal assistant to the Director 6 Senior Administration Clerk Administration Clerk 5 24 20 Switchboard Operator Cleaner Messenger Total 50 43 + 2 Managers seconded

Personnel Profile (31/3/16) LEVEL AFRICAN COLOURED INDIAN WHITE TOTAL M D F 15   1 13 2 12 10 8 3 1  7 4 6 5 14 18 22 19 24

Annual Performance Plan (2016/17) Integration of compensation systems Policy and legislative framework (Deputy Ministers of Health, Labour & Mineral Resources) Development of Legacy Fund Development of Care Fund Governance of CCOD Increase access to benefit medical examinations New One Stop Facilities (Burgersfort & Kuruman); neighbouring countries (Global Fund) Mobile facilities (Aurum) Certification Committees Training of health professionals

Annual Performance Plan (2016/17) Development of electronic database Enhanced IT system Pastel Evolution (financial management & reporting) Internal to Compensation Commissioner and Medical Bureau External to Ones Stop Service Centres Payment of unpaid claimants (Project Ku-Riha) Legacy claims (tracking & tracing project – IP Capital, TEBA, World Bank) Fast track process from One Stop Services / current claims Links to Banks, South African Social Services Agency Current claimants (process flow mapping)

Annual Performance Plan (2016/17) Collection of revenue (levies) Actuarial valuation report (June 2016) Personnel management & systems Advisory Committee support Chamber of Mines / Gold Working Group (business process reforms) Process to deal with TB claims Process for calculation of lump sum payments Financial Statements (2010/11; 2011/12) Preparation of financial statements (process started in October 2015) Final financial statements (September 2016)

Financial Statements Outstanding since 2010/11 Actuarial valuators appointed in Quarter 3 of 2015/16 Actuarial valuation needs quality data (data clean-up and verification to be completed by May 2016) Actuarial report (June 2016) Revenue Reconciliation of register of controlled mines and works Risk assessment levies Expenditure Data verification and clean up of ~ 200 000 files Data on paid and unpaid claimant files

Financial Statements Accounting system Audit preparation Pastel Evolution implementation since November 2015 Opening balances loaded Cashbooks loaded Audit preparation Audit team appointed by Auditor General of South Africa in March 2016 Bi-weekly meetings with Finance team and Audit team

Budget / Expenditure* Budget (16/17) 28 283 29 285 (1 002) 103.5% Classification Budget (15/16) R ‘000 Expenditure R ‘000 (15/16) (Over)/Under % Budget (16/17) Compensation of Employees 28 283 29 285 (1 002) 103.5% 31 461 Goods and services 23 886 14 652 9 234 61.3% 24 037 Transfer Payments 3 363 3 445 (82) 102.4% 3 541 Machinery and equipment 3 112 2 041 1 071 65.6% 2 604 Total 58 644 49 423 9 221 84.3% 61 643 *Covers Medical Bureau for Occupational Diseases as well

External Funding 40 700 99 400 One Stop Services 18 000 16 000 Activity Funding 2015/16 (R’000) Future Funding Need Comments One Stop Services 18 000 16 000 4 One stop Service Centres File Verification 5 000 2 500 500 000 MBOD files Finance 7 200 14 400 Preparation of financial statements Track & Trace 500 6 500 Chamber of Mines & World Bank Certifications 15 doctors Funding by individual companies; backlog of 8 000 claimant files Management support 2 Senior seconded managers Health inspectors 9 500 Global Fund Claims management / IT system - 50 000 Payment of 100 000 outstanding claims; processing backlog at MBOD Total 40 700 99 400

FINANCIAL STATEMENT OF THE COMPENSATION FUND

Statement of financial performance % Deviation from target Revenue Statement of financial performance Unaudited amount (’000) Target (‘000) Actual (‘000) % Deviation from target 2012/13 2013/14 2014/15 2015/16 Levy income 286 316 269 202 260 939 296 795 310 208 4,52% Interest received 114 230 130 851 172 104 201 170 210 854 4,81% Transfers received 2 916 3 062 3 215 3 363 Total revenue 403 462 403 115 436 258 501 328 524 425 4,61%

Statement of financial performance % Deviation from target Expenditure Statement of financial performance Unaudited amount (’000) Target (‘000) Actual (‘000) % Deviation from target 2012/13 2013/14 2014/15 2015/16 Administration costs 7 839 7 724 7 411 7 571 -3,42% Claims payments including pensioners 108 966 136 862 158 508 164 066 63 392 -61,36% Total expenditure 116 805 144 586 165 919 171 905 70 963 -58,72%

Statement of financial performance % Deviation from target Assets Statement of financial performance Unaudited amount (’000) Target (‘000) Actual (‘000) % Deviation from target 2012/13 2013/14 2014/15 2015/16 Investments 2 229 267 2 606 886 2 963 136 3 163 067 3 349 193 5,88% Accounts receivables 3 017 29 578 40 488 27 338 18 508 -32,30% Cash and cash equivalent 169 797 74 618 58 995 60 000 122 351 103,92% Total assets 2 402 081 2 711 082 3 062 619 3 250 405 3 490 052 7,37%

Statement of financial performance % Deviation from target Liabilities Statement of financial performance Unaudited amount (’000) Target (‘000) Actual (‘000) % Deviation from target 2012/13 2013/4 2014/15 2015/16 Surplus/(deficit) 842 673 1 353 934 1 891 950 2 176 824 2 121 962 -2,52% Provisions 1 554 807 1 311 395 1 143 645 1 054 021 1 349 455 28,03% Accounts payable and other payables 4 601 45 753 27 024 19 560 18 635 -4,73% Total 2 402 081 2 711 082 3 062 619 3 250 405 3 490 052 7,37%

Acknowledgement Minister and Deputy Minister of Health Deputy Minister of Mineral Resources Director-General, Deputy Director-General Anban Pillay and Chief Financial Officer Ian van der Merwe Staff of MBOD/CCOD Advisory Committee and Audit and Risk Committee Chamber of Mines and Gold Working Group World Bank

Thank You kistnb@health.gov.za