1. SASSA’s Progress PORTFOLIO COMMITTEE
06 September 2017

2. Purpose The purpose of this table the progress report on the:
Implementation of the legislative mandate of SASSA and the extent to which the mandate has been implemented;
Constitutional Court Order implementation and Key Event Schedule to ensure the continuation of social assistance grants payments beyond April 2018; and
Proposed insourcing of the payment function over an estimated period of 3 to 5 years;

3. Key SASSA Objectives
As stated in Chapter 2 Section 3 of Act No. 9, 2004: SOUTH AFRICAN SOCIAL SECURITY AGENCY ACT, 2004, are:
Act, eventually, as the sole agent that will ensure the efficient and effective management, administration and payment of social assistance
(b) Serve as an agent for the prospective administration and payment of social security; and
(c) render services relating to such payments.

4. The Current Scope of Work entails the following:
Management, Administration and Payment of social assistance to 17.3 million Beneficiaries.
Management and Administration Functions are largely in-sourced;
Payment Functions is out-sourced;
(b) SASSA in in a process to further execute administration and payment of social security; and

5. Compliance with Constitutional Court Order
Towards the end of the 5 year payment contract between SASSA and CPS an Urgent Court application was lodged by Black Sash supported by various interested parties to stop SASSA from applying for an extension of the contract
Judgement was handed down 17 March 2017
It declared that SASSA and CPS are under an obligation to ensure payment of social grants to beneficiaries from 1 April until an entity other than CPS is able to do so and that a failure to do will infringe upon beneficiaries rights of access to social assistance under section 27(1)(c) of the constitution;
The declaration of the invalidity of the contract was further suspended for 12 months from 1 April 2017

6. Compliance with Constitutional Court Order
(Order 4 – 6): Extension and contracting
Addendum with CPS signed 31 March 2017
Payment to Beneficiaries is taking place as per the agreed upon payment Schedule
SASSA is monitoring the service provider to ensure that beneficiary information is not compromised
CPS has on the 30/05/’17 filed its financial Audited statement for the contract that ended 31/03/’17 – SASSA upon obtaining quotations for the independent verification decided it will be cost effective to obtain such at the end of the current contract.

7. Compliance with Constitutional Court Order
(Order 7 & 8): Filling of reports
SASSA supported by the Minister to file a reports on affidavit
The first report was tabled on the 21 June 2017 – the report was due on the 17 June 2017, which was a public holiday
Condonation was received from the Court to file on the 20 June 2017
Dates for reporting:
15 September 2017
15 December 2017
16 March 2018

8. Compliance with Constitutional Court Order
(Order 10): Additional Safeguards for Beneficiaries Personal Data
The Addendum signed with CPS on 31 March contains clauses which seek to protect beneficiary data, and prevent CPS and Grindrod Bank from inviting beneficiaries to “opt in” for the sharing of their data for marketing purposes.
Written confirmation solicited from CPS for specific measures to be taken to ensure compliance judgement and
CPS responded to this correspondence on 15 May confirming their compliance to this order

9. Compliance with Constitutional Court Order
(Order 11 & 12):Appointment of Independent Experts
Both the Minister and SASSA submitted their nominations on 7 April The other parties also filed nominations
On 6 June, the Constitutional Court confirmed the appointment of 10 experts, to work with the Auditor – General in this task
Members of the panel are:
Ms Angela Bester Mr Anthony Felet
Mr Werner Krull Dr Gill Marcus
Mr Tim Masela Mr Mmamoletelo E Mathekga
Mr Mavuso Msimang Dr Barend Taute
Ms Doris Tshepe Mr Heinz Weilert

10. Compliance with Constitutional Court Order
Order 11 & 12:- (continued)
The court further ordered that SASSA would be responsible for the payment of these experts – SASSA has since written to the panel in this regard
Payment discussion has not been concluded yet – DPSA rates proposed but instead a counter has been received
The inaugural meeting with the Panel of Experts happened on the 14 June and subsequent one’s on the 7 and 24 July 2017
SASSA briefed the panel on the payment model strategy, project plan and costing
The panel on the other hand has even had engagement with SASSA stakeholders

11. Payment Model
SASSA in consultation with the Department of Social Development resolved that a Hybrid model be implemented, which will include:
Insourcing certain components of the payment process
Procuring services of a payment service provider as an interim solution through a combination of government to government services and a competitive bidding process;
Engaging with other organs of state involved in the payment space for possible collaboration in line with approved prescripts; and
Continuing with efforts to build internal capacity to take over the responsibility for payments over time;

12. PHASE 1: CURRENT UNTIL 31 MARCH 2018
SASSA’s ROLE
Building Capability, Capacity in Systems, Processes, People
Manage Data Migration from Service Provider
Open Corporate Bank Accounts
Possible Direct Transfers to Beneficiaries with Commercial Banks
Roll-Out of Biometric Management System
Management Of Regulation 26A deductions
Payment Service Provider’s ROLE
Overall Beneficiary Data Migration
Payment of Beneficiaries Until 31 March 2018 3 4 5 6 1 2 1 2
Change Management Programme (Systems, Processes, People)
Building Capability Over Time
Building Capacity Over Time

13. Services that SASSA will take in-source
Key aspects which SASSA will phase-in between include:
Corporate bank account (s)
Direct transfers to beneficiaries in commercial bank accounts inclusive of Walvis Bay beneficiaries;
Biometric Identity User Management system (Contract awarded)
Management of Regulation 26A direct deductions (October 2017); and
Migration of DATA from current service provider

14. SASSA Insourced: SASSA Corporate Accounts (s)
OBJECTIVE
PLANNED INTERVENTIONS
PROGRESS
The objective is for SASSA to take ownership of the main account
PMG account re-activated (30 September 2017)
Confirmation from SARB and National Treasury on the requirements and time frames
Manage direct transfers to beneficiaries in commercial banks
Dedicated user codes for SASSA through Bankserv
SOCPEN reports enhancements to align to new user codes
Develop framework to manage dormant accounts
SARB issued requirements for adjustment for payment files.
Confirmation of accounts involved (1.6 million)
Quality Assurance in process
SASSA Social Assistance Bank Account (Holding Account) - October /November 2017
Incorporated in the RFP as part of acquiring sponsor bank

15. SASSA Insourced : Regulation 26A Direct deductions
OBJECTIVE
INTERVENTIONS
PROGRESS
Insourcing Management of Regulation 26A direct deductions (funeral policy premiums)
SASSA will be taking responsibility for this activity prior to the remainder of the payment function being brought in-house. October 2017
SASSA investigated a process to ensure compliance to the legislation
BAC approval for the process was granted
SOCPEN enhancements in process
Engagement with local service providers completed.
Registering of the service providers currently in process.

16. SASSA Insourced : Migration of beneficiary data
OBJECTIVE
INTERVENTIONS
PROGRESS
Securing Beneficiary Data
Beneficiary profile (Masterfile)
Beneficiary profile data stored inhouse in SOCPEN
Payment files are sent back to SASSA on monthly basis with reconciliations
Phase-out: Letter will be sent to CPS to retrieve all beneficiary information on conclusion of the contract
Biometric Data
Monthly Migrations (100% up to date
Payment Transactions data

17. Biometric Data Migration: Details
Data Set
Brief Description
Who Owns It
Custody/Storage
Migration Plan
Beneficiary Grant Payment Data
The payment file that is generated by SOCPEN to effect payment to beneficiaries
The payment reconciliation that is regenerate by CPS to confirming the payments that were effected.
SASSA
SASSA (SOCPEN)
Transmitted to Service Provider monthly in form of payment file
Transmitted to SASSA monthly in form of reconciliation file
Beneficiary Biometric Data
Beneficiary Biometric images captured at registration/ enrolment
Transferred to SASSA on a weekly/monthly basis
Beneficiary Transactional Data
These are transactional data sets that are effected by the beneficiary and CPS on the beneficiary bank accounts. These include:
where and when the beneficiaries withdraw their cash;
number of withdrawals;
bank charges; and
any other transactional activity between Beneficiary and the bank.
Grinrod/ Beneficiary SASSA ownership of this data still needs to be clarified as legally it’s a different relationship between a Beneficiary and a bank
CPS/Grinrod
This data has not yet been availed. The format and frequency to be agreed will based on the analysis of the data structures, as well as agreement on the ownership.

18. Biometric Data Migration: Details
FICA Data
These are FICA related scanned documents pertaining to a beneficiary entering into relationships with banks of their choice
CPS/ Grinrod Bank
CPS
There are legal challenges regarding the ownership of this data set as it involves third party relationship
Beneficiary/ Customer Master Data
All Beneficiary Data relating to any form of interaction with SASSA or Service Provider via Call Centre or any other point of interaction
SASSA
This data has not yet been availed. We expect that this data will be transferred to SASSA by November 2017 and residual data will be transferred at the end of the contract.
Beneficiary Voice Data
These are the voice prints of the Beneficiary recorded during the enrolment and registration process.
Limited data was received. This data is not currently used by SASSA.

19. Key elements to be Out-sourced: Procurement of Payment Services
Account Management
Holding Bank Account
Special Disbursement Account
Card Body Production
Payment Card Production
Card Distribution
Biometric Enrolment
Provision of payment
Provision of Electronic Payment
Cash Payment Services

20. Government to government Collaboration – engagements with SAPO
SASSA had engagements with SAPO to establish possible government- to – government collaboration
SAPO confirmed its readiness and capabilities to offer SASSA the full payment value chain
SASSA supported possible collaboration with SAPO, subject to compliance with procurement policies and due diligence being conducted

21. Timelines for Procurement of Payment Services
Payment Services include the development of SASSA Payment Platform
RFP developed and approved on the 20 July 2017
RFP issued to SAPO 24 July 2017 (close procurement )
Bid Document Dateline 07 August 2017
Evaluation: 14 August - 08 September 2017
- Technical Due diligence
- Evaluation Committee
BAC recommendation 12 September 2017
Approval of the recommendation 13 September 2017
Setting up & development November & December 2017
New card roll out January 2018

22. Timelines for Procurement of Payment Services
Open Procurement process (if no award)
RFP revised and approved 21 September 2017
Advertised in the Tender bulletin 29 September 2017
Bid document dateline 24 October 2017
Evaluation: 01 – 5 November 2017
BAC recommendations 8 November 2017
Approval of the recommendation 10 November 2017
Setting up and development November & December 2017
New card rolled out January 2018

23. Issues and risks Risk/ Issue Mitigation action
Delay in issuing new SASSA beneficiary cards
Current card life extension
Confusion amongst beneficiaries
Communication Drive to beneficiaries through GCIS and other stakeholders
Lack of Systems Integration
Budgetary Constraints Phase-in Phase-Out
Earlier piloting and testing
Reprioritisation in the baseline

24. Business Continuity & Transition Payment
It is imperative that a well-managed exit from CPS is taken into account and planned for as phase-out and phase-in:
Possible Card life extension and phase-out
New SASSA card roll out project will take place alongside the card life extension project
If extended, the life of the card should be replaced in the shortest possible time
A new SASSA payment Card
New SASSA card will be managed by the new service provider while remaining the property of SASSA
the card will address all SASSA goals and objectives for the business value sought.

25. PHASE 2: CURRENT UNTIL 31 MARCH 2021
SASSA’s ROLE
Payment Service Provider’s ROLE
Introduction of New SASSA Card
Management of New SASSA Card
Collaboration with Other Spheres of Government
Management of New Payment Arrangement Mechanisms
Management of Biometric Management System
Management of Interim Payment Arrangement
Possible Phasing Out of Interim Payment Arrangements
Roll-Out of Interim Payment Arrangements 1 2 3 4 5 1 2 3
Change Management Programme (Systems, Processes, People)
Building Capability Over Time
Building Capacity Over Time

26. Summary of SASSA Plan CURRENT
Outsourcing all components of the payment process
TRANSITION
Hybrid
Mixture of insourced and outsourced services
FUTURE
In-house processing of payments by SASSA
April 2017 – March 2018
April 2018 – March 2021
From April 2021

27. 5 Year Programme Model The 5 year plan will be phased in as:
Year 1: New SP Development, Integration & Management (& CPS Exit)
2 Years: Transition to SASSA Insourcing
2 Years: Maintenance & Support
Proposed Implementation Approach
Payment Service Provider managed by Solution Integrator
Sponsor Bank direct with SASSA
SAPO/Postbank In Auxiliary Role that scales over time and on-demand (Subject to CM determined by due diligence)

28. SASSA APPROACH SASSA Data Large Solution Integrator
Integrated Grant Admin & Payment
Large
Solution Integrator
Data Services & Integration
Payment Service Provider/s
Biometric Authentication, Verification & Proof of Life
Sponsoring Bank
Grant Admin SYSTEMS
Cash Distribution & PayPoint SP
Auxiliary Role
Grant Payment SYSTEMS
&
SASSA Data
Integrated
Customer Care & CRM Platform
3rd Party Banking & Payment Systems
Integration

29. Government to government collaboration – Department of Home Affairs
Responsible for confirmation of identity
Interface for information verification through population register
Biometric data
One – to – one verification
Bulk interface with HANIS
Card production
Establishment of card bureau for production of future SASSA payment card

30. Government to government collaboration – other government departments
National Treasury – financing, costing, procurement and ensuring that the macro-economic imperatives of the state are complied with
SSA – all forms of state security, including cyber, human, information management, financial, etc
Department of Small Business Development – utilising social grant payments to stimulate local economy, empowerment of small businesses and co-operatives
SITA – information technology, back end technologies, storage of data

31. Constitutional Court Report Framework
Phase 1: Transitional phase
Implementation Plan & progress report
Timelines
Procurement decision
Risk Register
Stakeholder management / engagement
Phase 2: SASSA future
Readiness plan and budget requirements
Change management Programme plan

32. Recommendation
It is recommended that the Interdepartmental Task Team note the progress in relation:
Legislative mandate of SASSA and the extent to which the mandate has been implemented.
Key Events Schedule to ensure the payment of social assistance grants as from April 2018; and
Proposed Framework towards SASSA taking the payment function in-house over an estimated period of 3 to 5 years

33. Thank you 33