Presentation on theme: "Progress Report on Implementation of Constitutional Court Order - Presentation to Portfolio Committee 7 November 2018 Out with the Old In with the New."— Presentation transcript:
1 Progress Report on Implementation of Constitutional Court Order - Presentation to Portfolio Committee7 November 2018Out with the OldIn with the New
2 PurposeTo present to the Portfolio Committee on Social Development with a progress report on the implementation of the Constitutional Court Order
3 Priorities during the 1st Phase of the Payment Transition Phase out CPS services by 30 September 2018Decommissioning of old SASSA cards by December 2018Phase-in the services of SAPOSystems developmentCard swapResourcing (staff and financing)Actual paymentsMigrate beneficiaries who choose to be paid using own bank accounts – collection and processing of Annexure “C” mandatesRationalization and re-alignment of pay pointsInsourcing certain critical components of the payment process
4 Phasing out CPS services The contract between SASSA and CPS came to an end on 30 September 2018All beneficiaries (3 ) that were serviced by CPS have been migrated to SAPO and to banks of their choiceThe migration was done progressively over a period of five months mainly through the card swap process and capturing of banking requests mandatesProcess to collect outstanding information has commencedObjective achieved !
5 Transition from old SASSA Card to New SASSA/SAPO Card Baseline as at April 2018 indicated that there were approximately million beneficiaries that were paid through the old SASSA card (to be card swapped or migrated to ACB).Approximately have been card swapped (as at 30 October 2018Old SASSA Card Biometric CVM - 3 (fully migrated)Old SASSA Card NPS – 5.3 million (4.8 million swapped)Approximately still remain to be swapped before the end of December 2018 (Old SASSA cards in the NPS)Other beneficiaries have since migrated to other banksObjective achieved !
6 Decommissioning the Old SASSA Card SASSA intends to fully decommission the old SASSA card by end of December 2018.This will be done through the migration of beneficiaries that are still using the old SASSA in the NPS to the new SASSA card or any Bank of their choice.In September there were still beneficiaries that were still using the old SASSA card in the NPS.The reduced has been reduced to (as at 23 October 2018) beneficiaries that still remain to be swapped before the end of December 2018.
7 Card swapNumber of Beneficiaries with Old SASSA cards who are with Grindrod Bank as at 23 October 2018RegionOld SASSA cards with Grindrod extraction (baseline)Remaining (still to be swapped)Total card Swaps to date% swapped to dateEastern Cape92 45050 79635%Free State51 43226 58824 84448%Gauteng80 97841%KwaZulu Natal73 07852 24642%Limpopo82 73245 83336 89945%Mpumalanga54 99431 68923 305North West74 60251 59523 00731%Northern Cape27 15319 1018 05230%Western Cape68 07945 04240%Grand Total
9 BackgroundSASSA pays 17.6 million social grants to approximately 10.9 million beneficiaries across the countryREGIONEND SEPT 2018ECFSGPKZNLPMPNWNCWCTOTALGRANT TYPEEnd SeptCDGCSGFCGDGGIAOAGWVG113TOTAL
10 Number of Beneficiaries paid from April to November 2018 MonthCPSPostBankGrindrodOther BanksTotal BeneficiariesACB Direct (SASSA)SASSA/ Grindrod (Bilateral agreement )April 20183 31 4481,877,3925 439,26710 851 315May 20183 110 33383 4482,802,095646,19110 June 20181 233,2157,714,443980,44910 July 20181 936,6806,970,9251,340,14810 August 20182,548,0455,589,5061,663,083September 20185,439,9053,267,7331,990,052October 20180 6,708,7912,131,5762,101,312November 20187,205,9971,642,7532,122,15110,970,901
11 October/November 2018 Payments In terms of the October payment extraction file, approximately beneficiaries were paid throughout the country.The number increased to in November 2018.All beneficiaries are paid through ACB transfers facilitated directly by SASSAAvailability of funds – ALL beneficiary accounts were debited on the last working day of the monthOctober payments - 29 September 2018.November payments - 31 October 2018Objective achieved !
12 October/November 2018 Payments Breakdown of the 10.9 million beneficiaries in October 2018,SAPOapproximately 61% ( ) are paid through Post Bank; The number will increase to in November 2018.Total value of grants paid by SAPO in October is RGrindrod19% ( ) are be paid through Grindrod Bank. The Grindrod Bank transfers included 868,589 beneficiaries who were still using the old SASSA card in the NPS system in October;The Grindrod account holders decreased to in November payment file. This number still include the 523,420 old SASSA card holders still to be migratedOther BanksThe remaining 20% ( ) were paid through the beneficiaries personal bank accounts in OctoberMarginal increase of 20,731 in November to 2,122,151
13 Sum of Number Of Beneficiaries ACB Payments up to Nov. 2018Sum of Number Of BeneficiariesRow Labels201804201805201806201807201808201809201810201811ABSA BANK88,180119,007165,646211,358249,934283,844294,956296,425UBank BANK1,0472,5835,8009,22512,02315,40516,28516,382ALBARAKA BANK43587089118127136142BANK OF ATHENS1,4192,6373,5345,0696,4477,1498,2089,509BANK WINDHOEK152154153140BIDVEST BANK1,7553,4035,1387,1969,93213,36414,62114,776CAPITEC BANK124,280189,616301,158421,107532,078655,150704,747717,022FINBOND MUTUAL10,06720,60024,94731,71036,89340,44542,924FIRSTRAND BANK93,149137,309200,812271,464332,285392,767410,427410,906GRINDROD BANK1,877,3922,802,0957,714,4436,970,9255,589,5063,267,7332,131,5761,642,753HABIB OVERSEAS13HBZ BANK468910HSBC BANK2INVESTEC BANK LTD51314ITHALA1,4473,5227,55210,85013,71015,46215,56815,226
14 Sum of Number Of Beneficiaries ACB Payments up to Nov. 2018Sum of Number Of BeneficiariesRow Labels201804201805201806201807201808201809201810201811MERCANTILE BANK7394119151184208223234NBS57565554NEDBANK24631NEDBANK EX PERMNEDBANK INC. BOE121315NEDBANK LIMITED54,31083,164136,306203,661263,363327,530344,219346,329NEDBANK NAMIBIA39383735POSTBANK31,44883,448233,215936,6802,548,0455,439,9056,708,7917,205,997SASFINSTANDARD CHARTEREDSTANDARD NAMIBIASTANDARD SA63,01889,519133,186174,557210,926241,842251,182251,987STATE BANK OF INDIAUNIBANKVBS MUTUAL2252501898018Grand Total2,348,1073,531,7348,928,1079,247,7539,800,63410,697,69010,941,67910,970,901
15 No. of Active Pay point as at April 2018 No. of Remaining Pay Points Cash Pay-pointsRegionNo. of Active Pay point as at April 2018No. of closed pay pointsNo. of Remaining Pay PointsEastern Cape25901990600Free State21214072Gauteng14413311Kwa-Zulu Natal17001343357Limpopo18391399440Mpumalanga38634838North West609435174Northern Cape34430737Western Cape262251Total80866346*1740SAPO will service no more than 1740 pay points in November and December per the Master Services Agreement. The number is subject to review based on beneficiary behaviour
16 Payments at Cash Pay Points To accommodate human resource constraints of SAPO, payments at cash pay points were scheduled to start on 8 October 2018.Pay points serviced by SAPO in October 2018 were 1 269REGIONTARGETEDNUMBER OF PAYPOINTS SERVICEDEastern Cape600414Free State7276Gauteng117Kwazulu-Natal357191Limpopo440329Mpumalanga3828Northern Cape17453North-west37162Western Cape9Total17401,269
18 October Payment Observations The payment cycle was in general successful and beneficiaries were able to access their grants through a variety of payment channels without major challenges.Almost 90% of beneficiaries accessed their grants through the NPS primarily ATMS and retailer POSThe number of beneficiaries accessing their grants at cash pay points was significantly lower than originally projected.Long queues and over crowding: Shopping malls, SAPO outlets, ATMs on the first three days of the monthsSecurity challenges remain a concern – Post Office burglaries, CIT heists, fraud across the payments value chain both within SASSA/ SAPO and outside
19 Payment Dates – November, December Payments have been scheduled as follows:NovemberACB payments October 2018Cash pay point payments on the 6th except for Free State and N Cape that will start on the 5thDecemberACB payments – 28 November 2018Cash payments to start on the 3rdThe 2019 schedule will be confirmed by end of November 2018
20 SASSA – SAPO Risk Management Status UpdateRisks and Mitigations effectiveness (low and medium residual risk)Key Strategic RiskKey Operational RiskUnable to pay at all cash pay point siteSafety of beneficiaries and staffAppointment of skilled staffOvernight cash at SAPO outletsUnable to complete financial reconciliationsIGPS fully functional at all branchesNetwork connectivity and capacityCyber crime, fraud, robberiesOffline functionalities and data uploadPay Point rationalizationTraining/reskilling of staffCash projections for SAPO branchesDelayed payment of service providersTermination of service/systemsOverdrawn accounts “Double dipping”Appointment of cash payment contractorDignity issue
21 RecommendationsIt is recommended that the Portfolio Committee on Social Development note progress report on the implementation of the Constitutional Court Order