Portfolio Committee on Social Development: Public Hearings Social Assistance Bill Social Security Agency Bill 22/23 September 2003 © 2003 Accenture. All Rights Reserved.

Key Considerations for the SSA Specific Comments on Bills Discussion Points Background Key Considerations for the SSA Specific Comments on Bills Other Considerations Conclusion © 2003 Accenture. All Rights Reserved.

Background In recent years, various issues have been raised in the Social Security domain, including: Fragmentation of Social Security System & Institutional Arrangements Disintegrated and inefficient processes Human Resources Financial Management Skills Poor Management of 3rd Parties Information Systems Interfaces with key Departments Social Dependency Challenges Lack of Performance Management Culture The draft bills have to take into account how it can address these challenges by structuring a more efficient Social Security Agency which is enabled by more progressive Social Assistance legislation © 2003 Accenture. All Rights Reserved.

Key considerations for a SSA Mix / Type of Skills Strategic Elements Key Stakeholders Performance measurement Key Business Processes &, Best Practices Alternative Delivery Strategies SSA Fraud Management Strategies Pace of transformation Facilities Strategies Training & Re-skilling Transition Strategy Key competencies required Etc. © 2003 Accenture. All Rights Reserved.

Specific Comments on SSA Bill Chapter 2 Chapter 2 deals with South African Social Security Agency legal persona, objectives and functions, but is vague around institutional and organisational detail. The SSA Bill needs to ensure that new Agency does not perpetuate current practices. Chapter 3 places a strong emphasis on a professionally managed agency and the CEO role. The section on other staff is rather vague and could lead to ambiguity. The Bill needs to ensure that staff be appointed in accordance to key competencies required, and not create a situation where “old” skills and jobs merely get transferred into a “new” organisation. The Bill needs to consider governance and accountability towards a representative stakeholder base, e.g. independent board reporting to minister. Chapter 4 deals with the funds and business of the Agency, including general financial management. However, it is critical to include a more clear accountability framework to focus on and deal with fraud related issues. The Social Assistance Bill may need to be broadened to deal with contributory benefits in future, thus contributing to sustainable social security. Chapter 6 makes provision for broader transitional aspects, including employees, assets, liabilities and funds. This could however be strengthened to include principles to drive the transfer of staff to match the new skills required by the Agency. Chapter 3 Chapter 4 Chapter 6 © 2003 Accenture. All Rights Reserved.

Other Considerations Going forward, the end-to-end social security delivery value chain, together with its dependencies, need to be considered. Provide for comprehensive customer-centric operating model Future legislation needs to facilitate interaction with with various strategic partners, including Home Affairs, 3rd Party Payment Agents, Labour, Health and SARS, to name a few. Above could be provided for in a chapter dealing with infrastructure and systems. © 2003 Accenture. All Rights Reserved.

Conclusions The transformation of Social Security is of strategic importance in improving service delivery and achieving government’s broader goals and objectives. We recognise that all details cannot be addressed through legislation, but we believe the proposed legislation should provide a comprehensive framework to address the current challenges in a holistic manner. Finally, a firm step-change is required to fundamentally change the way the poorest of the poor in South Africa is treated and serviced – we wish the Committee success in its ongoing deliberations on this important issue. For more information, please contact: Debbie Zwane, Director Tel: 012 – 483 1500 or email: debbie.zwane@accenture.com © 2003 Accenture. All Rights Reserved.