eastern cape province - the dpsa april...upliftment of 1.8 million beneficiary files upliftment of...

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EASTERN CAPE PROVINCEEASTERN CAPE PROVINCE

DEPARTMENT OF SOCIAL DEVELOPMENTDEPARTMENT OF SOCIAL DEVELOPMENT

SOCIAL SECURITY REGISTRYSOCIAL SECURITY REGISTRY

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PROGRAMME OF DISCUSSION1. Registry for Social Grant Files

• Past Registry Difficulties• The Solution• Current Registry System• Present and Future Projects• Conclusion

2. Management Information Systems (SDIMS)• Past Difficulties in the Province• The MIS Systems• Management Information and Reports• Conclusion

3. Contract Management4. Review Process5. Disability Assessment Unit6. Fraud Initiatives - Inspectorate7. Conclusion

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PASTREGISTRY

DIFFICULTIES

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PAST REGISTRY DIFFICULTIES

1. Poor Registry Conditions2. No Reliable Filing System3. No Control over File Movement4. Could not carry out Registry Completeness

Checks5. Duplication of Files6. No Check for File Contents7. No Separation of Active and Inactive Files8. Lost Files or Delays in Finding a File9. Litigation and Fraud

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PAST REGISTRY DIFFICULTIES

1. Poor Registry Conditions2. No Reliable Filing System3. No Control over File Movement4. Could not carry out Registry Completeness

Checks5. Duplication of Files6. No Check for File Contents7. No Separation of Active and Inactive Files8. Lost Files or Delays in Finding a File9. Litigation and Fraud

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THESOLUTION

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THE SOLUTION

Infrastructure and File Management System

1. Customized Software (EFMS)• Barcode Scanning Facility• Ease of Use• Ownership of Files, Audit Logs• Checks for Registry Completeness and

Missing Documentation2. Centralized Filing Centre (CFC)3. Bin-location Registry

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THE SOLUTION

The Process

Upliftment of1.8 million

Beneficiary Files

Upliftment of1.8 million

Beneficiary FilesStorage of Files

At CFCStorage of Files

At CFC

Processing of1.8 million Files

Into EFMS

Processing of1.8 million Files

Into EFMS

FilingArchives, Actives,Special Projects

FilingArchives, Actives,Special Projects

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THE SOLUTION

Transport

1. Transportation of Files from 24 Districts to CFC• Files Packed in Boxes• Control Sheets per District Office• Truck Secured with Pre-numbered Seals

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THE SOLUTION

Storage at CFC

• Match Pre-numbered Seals to Control Sheets• Storage of Boxes by District• Demarcated Areas

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THE SOLUTION

Process

1. Reviewed File Contents – Critical Documents2. ID No. Scanned

• Compared to SOCPEN• Home Affairs Checkdigit

3. Attached Barcoded Label4. Separation into Active & Archive Registry5. Filed by Correct District

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THE SOLUTION

Process – Contd…

6. Identification of Specific Files for Project Teams• Auditor General• Class Action• Fraud Investigations• Regulation 11

7. Validation and Registry Filing• Archives• Actives

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THE SOLUTION

Systems Security

1. CFC linked to Offsite Facility• User ID and Password to Database• Firewalls

2. Data Security• Offsite Server• Daily Back-ups• Disaster recovery plan

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THE SOLUTION

Project Outcomes

• Registry of Approximately 1.8 million Files(1.4 million Active)

• Completeness Checks could be Generated• Missing Documents could be Requested• Security and Integrity of Files and Data• Approximately 2 min to Find a File

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CURRENTREGISTRY

SYSTEM

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CURRENT REGISTRY SYSTEM

Functionality

1. GUI, Web-based 2. Capture of Actives & Archives3. Booking Files In/Out to Users - Ownership4. Search facility by ID5. Enquiries on Exceptions6. Incomplete File Reports7. Capture of Critical Documentation Function8. Audit Logs

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CURRENT REGISTRY SYSTEM

Sustainability and Growth

• Departmental Operation since June 2003• Deceased Staff Complement• Enquiries, Appeals, Litigation at CFC• Growth of 30% from May’03 to Sept’04• AG Find Rate from 84% (’03) to 94% (’04)

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0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Aliwal

North

Butterw

orth

CalaCofi

mvaba

Cradoc

kEas

t Lon

donEng

cobo

Fort Bea

ufort

Graaff R

einet

Graham

stown

Human

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Idutyw

aLa

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ode

Lusik

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Mount A

yliff

Mount F

letch

erPort

Eliza

beth

Queen

stown

Qumbu

Sterkspru

itStutte

rheimUmtat

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kulu

Total Files per Office

May-03 Sep-04

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Type Active Inactive Grand Total

0-Old Age 414,435 313,104 727,539

1-War Veteran 474 1,607 2,081

3-Disability 324,521 227,069 551,590

4-Maintenance 60,755 60,755

5-Foster Child 27,537 11,587 39,124

6-Maintenance + Foster + Care Dependency 667 47 714

8-Grants in Aid 3,032 2,209 5,241

9-Care Dependency 18,931 13,125 32,056

C-Child Support 553,206 516,702 1,069,908

Grand Total 1,342,803 1,146,205 2,489,008

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PRESENTAND

FUTUREPROJECTS

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PRESENT & FUTURE PROJECTS

1. Temporary Disability Review and Lapsing2. National AG Forensic Audit3. Registry Completeness – File Reconstruction4. Critical Documentation5. Housekeeping – Archives, District Change6. Beneficiary Payments to Public Servants7. Beneficiary Payments to GEPF8. Systems-generated ID’s9. Multiple Occurrences of Same Bank Account

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10.Payments where Status is not “Verified”11.Disability Conversions to Old Age12.Disabilities not of Prescribed Age13.Lapsing of Temporary Disabilities14.Updating of TDG Statuses (Blanks, etc.)15.Deceased Status on Home Affairs16.CDG’s 18 Years and Older17.CDG Children Receiving DG’s18.Invalid CDG Child ID’s

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19. Invalid CSG Child ID’s20. Children’s Parent ID’s vs PERSAL21. CSG Marital Status vs Home Affairs22. CSG Children Older than 1123. FCG’s Older than 2124. Expired Court Orders on SOCPEN25. Deceased War Veterans26. Beneficiary too Young (WVG)

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CONCLUSION

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BENEFITS OF EFMS

Improved EfficiencyMonitoring Tools and AccountabilityIncreased ProductivityImproved Turn-around Time on QueriesImproved Audit-abilityManagement Information Available

IMPROVED SERVICE DELIVERY

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MANAGEMENTINFORMATION

SYSTEMS(SDIMS)

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THE DEPARTMENT

Past DifficultiesShortage of up-to-date informationInaccurate budget predictionsNo information for future planning purposesNo Transversal systems integration/interactionLack of management reports – reports not supplied timeously

Result: need for accurate planning based on sound and up-to-date business indicators

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MANAGEMENT INFORMATION SYSTEMS

Central DatabaseVarious reporting optionsUtilise existing Hardware and NetworksModular systemGraphic User InterfaceWeb-based SystemBarcode reading facilities

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MIS cont…

DATA WAREHOUSINGDATA WAREHOUSING

FRONT-END SYSTEMS(Community Based Services, Community Development,

Social Security, Facilities, Procure-to-Pay, Registries)

FRONT-END SYSTEMS(Community Based Services, Community Development,

Social Security, Facilities, Procure-to-Pay, Registries)

Encryption

BACK-END SYSTEMS(SOCPEN, PERSAL, GEPF,

Home Affairs, etc.)

BACK-END SYSTEMS(SOCPEN, PERSAL, GEPF,

Home Affairs, etc.)

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MIS cont…

ModulesSocial Security – Workflow MonitoringProcure-to-Pay SystemCommunity Development – Community Project ManagementRegistriesFacilities

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MIS cont…

Social Security Workflow MonitoringMonitoring the Progress made on Applications Evaluate and Monitor Staff Work Performance Application Management – Scanned Owenrship of Applications

Capture of Applicant Details (Attestation)Verification Officers Verify Applicant DetailsData capturers then Capture the Verified Grant (SOCPEN) Approval Officers Approve or Reject the Application

The Social Security System is the precursor to the File RegistryForm ManagementEnquiry Management

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MIS cont…

AttestBeneficiary

Info Captured on

MIS

AttestBeneficiary

Info Captured on

MIS

ApprovalBeneficiary

Approved on MIS &

SOCPEN

ApprovalBeneficiary

Approved on MIS &

SOCPEN

CaptureBeneficiary

Info Captured on

SOCPEN

CaptureBeneficiary

Info Captured on

SOCPEN

VerifyBeneficiary

Info Verified on MIS

VerifyBeneficiary

Info Verified on MIS

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MIS cont…

Further DevelopmentsReconciliation of Transfer Payments

Between Systems, Contractors, BAS“Closed Loop” of client payment reconciliation

Means Test ValidationOn-LineApproval or Rejection

Uploads to 3rd Party Contractors for PaymentEvery EveningReduction in Turnaround Time

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MIS cont…

BenefitsImproved service deliveryImproved efficiency, accountability and monitoring within the departmentIncreased productivity and turn around time on queries and applicationsSingle point of entry for all services provided by the departmentPaper reduction -> e-government policyManagement information available at the touch of a button

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SYSTEMSSPATIAL

MAPS

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EXAMPLES OFSYSTEMSREPORTS

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0

20000

40000

60000

80000

100000

120000

140000

160000

Form

s

Attesta

tion

Awaiting

Veri

ficati

onAwait

ing D

ata C

apture

Awaiting

App

roval

Completed

Provincial Form Exceptions Analysis

23-Dec-04 03-Jan-05 12-Jan-05 19-Jan-05 10-Feb-05 4-Mar-05

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TURNAROUND TIMEArea Apr 2004 May 2004 Jun 2004 Jul 2004 Aug 2004 Sep 2004 Oct 2004 Nov 2004 Dec 2004 Jan 2005 Feb 2005 AverageN M Metro 21 44 66 49 62 67 87 79 106 117 91 72Cacadu 83 101 96 150 114 59 100Amatole 29 64 53 70 71 68 73 64 77 92 71 66Chris Hani 29 64 53 70 83 73 78 68 73 90 73 69OR Thambo 61 84 64 74 64 55 74 106 83 74Alfred Nzo 84 64 74 58 56 79 107 83 76Ukhahlamba 61 65 65 72 61 74 93 76 71Average 32 68 75 75 92 96 72 75 75 100 77 80

0

10

20

30

40

50

60

70

80

90

100

Day

s

Apr 20

04

May 20

04

Jun 2

004

Jul 2

004

Aug 20

04

Sep 20

04

Oct 20

04

Nov 20

04

Dec 20

04

Jan 2

005

Feb 20

05

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Approved Disability Grants by Disease Category

146149

335

312

4199

14937

1380

9 44 25 29

Early contro lled chronic medical condition Early HIV infection

Late stage HIV/AIDS Late/severe epilepsy, hypertension, diabetes or asthma

Limb amputation/paralysis M ental retardation, dementia or psychotic disorder

M inor ailment No significant medical condition diagnosed

Other Other psychiatric ilnesses

Significant hearing impairment Psychiatric illness

Significant visual impairment

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MIS cont…

Strategic AdvantagesOrganised methods and processes for information sharingStatistical trends of key business driversSound platform for planning and budgeting on latest upto date informationManagement controls on KPI’s and exceptionsStructure for actioning of controlsHelp desk for beneficiary enquiries through the website –on-line

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MIS cont…

Main objective of theMIS is to provide the Department

with quality Management Information,from which the Department can accurately

make sound business predictions,and manage effectively….

Leading to Improved Service Delivery

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CONTRACTMANAGEMENT

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HELPDESKS

The Concept of helpdesk is born out of inconvenience caused to beneficiaries at paypoints, these include rendering of limited services resulting into referrals of beneficiaries to other points of services.The Helpdesk constitute an extension of services rendered at pay point, by availing offices/desk services in addition to the payment services rendered at pay point.The helpdesk has to be manned by not less than two officials, attending and recording beneficiary queries throughout the duration of payment.BENEN information is utilized for all system related problems to give immediate advice and answers to beneficiaries instead of referring them to the nearest offices

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HELPDESK CONTINUES

Check lists are also utilized to check both the conditions of the pay point and compliance to SLA by the service providers.Complete and collate notes for weekly reports.Report incidents that warrant urgent response.

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LARGE AMOUNTS

All grant amounts with a cash value of R4000.00 or more are regarded as large amounts.These amounts have to be verified before payment to prevent fraud.A list is generated before payments for distribution to relevantoffices for quick verification.Feedback is given to CPS within few days of receipt of these lists for stop payment purposes and unblocking of payments.No official (CPS & DOSD) is allowed to touch these amounts during payments.

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ITERNERARIES

All beneficiaries are paid at paypoints registered on SOCPEN. An itinerary is developed each month to ensure proper allocationof resources and scheduling of payment days inline with SOCPEN cut-off dates.Standard procedure is set for compliance by all districts All beneficiaries are paid 30 days after their previous payment.When paypoint payment days are to be shifted for some reasons, this should not exceed five days to avoid inconvenience to beneficiariesRural paypoints should be paid earlier in the pay-cycle than the urban pay-points to avoid migration to urban paypoints.

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ITERNERARY CONTINUES

Paypoints must Geographically clustered in order to make the process of traveling from one paypoint to another easy and practicalThe number of beneficiaries paid must be evenly spread over the 17 day pay cycle. A maximum of 1000 beneficiaries is highly recommended where practically possible.Where paypoints a larger staggering by grant type is applied, prioritizing DG, AO, WV and the rest.Where beneficiaries want to be transferred to another paypoint formal application must be made to the department.

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ITERNERARY CONTINUES

Itinerary must be re-assessed if there are paypoints that are paid after 16h30 for three consecutive months.The number of paypoints paid a day should not exceed six a day.Rescheduling of payment days must only be approved by the Director of Social Security.SOCPEN database will be updated with the CPS payment history to improve the reliability of beneficiary information onSOCPEN.

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PAYPOINT CREATION PROCEDURE

As the number of beneficiaries increase the need for more paypoints also increases.Some paypoints were never registered on SOCPEN but they are used for grant payments.For the creation of a new paypoint an application is made through the district office with a list of beneficiaries intending to be paid at that paypoint. Criteria of 100 beneficiaries and 5km radius distance from the closest paypoints.After registering a new paypoint code, transfers are effected and the itinerary is updated accordingly. Before the actual payments.

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ROLE OF MONITORS

The DOSD monitors are the liaison officers between the decision making process and payment activities at paypoints.They are deployed on sample basis targeted problematic areas.The information they collect is forwarded to the CMC management for immediate decisions and interventions where necessary. Some of the information is submitted for further investigation.The main focus of the paypoint monitoring is to ensure adherence to the Service Level Agreement.Reporting is controlled by standard forms which help to provide professionalism in reporting.

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ROLE OF MONITORS CONTINUE

Monitors are responsible for quick responses during crisis at paypoints, e.g. robberies, deaths and special investigations.The play administrative role between helpdesks officials and theCMCThey further attend Area Forum meetings for the purposes of observing proceedings within this meeting inline with the area forum responsibility.Give feedback on paypoint incidence within specific areas.All monitors are based in East London but continuously deployed to various districts for the full duration of the payment cycle.

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AREA FORUMS

In terms of the SLA the outsourced payment of grants is jointly managed at Provincial and District level,through the Provincial Steering committee and Area Forum respectivelyThe Area Forum is responsible for managing the day to day activities of the outsourced payments of grants, jointly by the area offices of CPS and DOSD.It is necessary that these forums are utilized optimal to deal with challenges of cash payments that include communication with communities, beneficiaries and the Provincial Steering Committee.A uniform Agenda has been developed for these meeting for the purposes of uniform an focused discussions.

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PROJECT CHAMPION

PAYMENTS & BUDGET

MONITORING

CONTRACTS AND SLA’s

DATA ANALYSIS

MONITORING & LOGISTICS

INFRASTRUCTURE DEVELOPMENT & COMMUNITY LIAISON

PROJECTMANAGER

LEGAL UNIT MONITORING & EVALUATION

SECR

CMC STRUCTURE

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THEOUTSOURCED

PAYMENTFUNCTION

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Overview of the Payment Function

SOCPEN generates pay file & submits to SP’s for preparation

for the pay cycle

Itinerary developed between Department and SP and

beneficiaries informed (ACB deposits on 1st day of month)

Service Provider makes payments and performs

enrolment of new beneficiaries (Beneficiaries

withdraw from ATM’s)

Payment history submitted to

department to update SOCPEN

(sporadic)

Problem being experienced is flocking/migration of beneficiaries to cash pay-points earlier in the pay cycle

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SP Responsibilities from the SLA

Bulk enrolment of beneficiaries & on-going

enrolments of new beneficiaries (including

procurators but excluding ACB beneficiaries)

Payment hours between 8am and 4pm (weekdays excluding public holidays). Pay cash and issue receipt. Rescheduling and

late payments to be kept to a minimum.

Dissemination of information to

beneficiaries (via message field printed on the

receipt)

Provide statistics, management reports (including fraudulent

activities) and reconcile payments against the original SOCPEN pay file

Contribution to the community and pay-point development

funds

Pre-fund payments and invoice weekly

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Cash Payment by Service Providers

Pay +-850,000 beneficiaries at +-2,700

pay-points

Average of 92-96% of beneficiaries are paid

before 4pm as per SLA (May 2004 statistics)

Job creation at a local level

(Department & Service Providers)

Heightened awareness of

fraud

Cash delivered to the beneficiary at a point within 5km

of their homeMore reliable

data which will be updated to SOCPEN

Biometric data collection &

confirmation of data for each

paymentAdvanced

technology and smartcard

payment systems for alternatives

to cash

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Payment by “self assist” ATM’s (Banks)

Pay +-270,000 beneficiaries

Increased roll out of ATM’s

across the Province to all

citizens, especially previously

disadvantaged areas

Alternative competition to cash service providers,

especially in urban areas

Access to other banking facilities such

as debit orders, funeral & insurance policies (potentially

good) and loan deductions

(potentially bad)

Beneficiary can determine withdrawal patterns (time,

day, number of withdrawals) based on limitations such as

available ATM’s

Lower service fee for reduced service (such as limited client contact); no direct comparison to cash payment

service providers

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Other Payment Alternatives

Post Office with their new Post Bank system could be a new player in the market

(the “society” option because it would make

post offices more viable in more remote areas)

Province Cheque (retro option)+-60,000 beneficiaries in Qumbu

& Engcobo still to be transferred

Merchandise stores that sell goods and charge directly onto the

smartcard and/or pay cash out based on the balance on the

smartcard (the future option because it will migrate beneficiaries away from cash and to a debit card

system being rolled out in retail outlets, but will require an

education process)

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THEGRANTS REVIEW

PROCESS

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FORENSIC AUDIT

The National Department and Auditor General full forensic audit of all Disability files where their activity status had changed during the period from June 2001 to November 2003. The impact: > 165,000 Disability files, as well as approximately 15,000 files of various other grant types were extracted from the registry, and certain critical information was captured in order to attempt to identify trends in the files.At the same time, the Department initiated a data mining exercise into the SOCPEN snapshots, specifically aimed at identifying trends where exceptions occurred with the aim to eliminate those grants from the payment cycle.

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FORENSIC AUDIT

The types of anomalies that have been investigated include (but not limited to):

Missing data in critical fields (e.g. ID’s, dates of birth, etc.).Beneficiaries in receipt of a grant where that beneficiary is not of the prescribed age.Beneficiaries in receipt of a Temporary Disability Grant where that grant has expired on the system.Beneficiaries in receipt of a Child Support Grant where that beneficiary is not the child’s parent or guardian.Analysis of beneficiaries against the PERSAL, GEPF, and Municipal Employees databases.Analysis of beneficiaries against Home Affairs for deceased status.

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DISABILITY GRANTNOTIFICATION & REVIEW

The Department embarked on a process aimed at removing certain TDGs.Implementation of certain control measures to ensure that such TDG’s are terminated after due notification.

Analysis of SOCPEN to identify all TDG’s where their grants have expired.Notification of those beneficiaries (either by registered letter, or in person at the Pay Points).Analysis of representations made by the beneficiaries by a Review Unit into categories.Identification of all affected beneficiaries who proceeded to reapply for a Disability Grant.Capture of the outcome of all beneficiaries who made representations by the categories of status. This formed the basis of which beneficiaries were to be lapsed, and which to be re-instated.Consultation with National on the electronic lapsing of beneficiaries, and the supply of an electronic list of such beneficiaries to SITA.Analysis of the current activity status of the beneficiaries to be lapsed against the “live”SOCPEN database prior to lapsing electronically.Notification of lapsed status to all affected beneficiaries.Re-instatement of lapsed beneficiaries where that beneficiary had re-applied for a Disability Grant.Projections of future lapsing for months until March 2005 – ongoing monthly lapse.Modification of the MIS module to cater for the identification and validation of all TDG’s for future lapsing.

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Lapse Category No. Lapsed Monthly Savings

TDG Data Cleanse Oct 04 85168 R 62,790,234.33

TDG Ongoing Nov 04 3126 R 2,302,358.18

TDG Ongoing Dec 04 3276 R 2,412,718.88

Old Age Cleanse Dec 04 3241 R 2,398,140.00

Care Dependency Cleanse Dec 04 582 R 430,680.00

Foster Care Cleanse Dec 04 27 R 14,310.00

TDG Ongoing Jan 05 3683 R 2,725,420.00

TDG Ongoing Feb 05 3302 R 2,433,961.17

Pre-June 04 TDG - Mar 05 726 R 535,749.95

TDG Ongoing Mar 05 1772 R 1,376,712.42

Month of Savings Monthly Savings Compounded Savings

November 2004 R 62,790,234.33 R 62,790,234.33

December 2004 R 65,092,592.51 R 127,882,826.84

January 2005 R 70,348,441.39 R 198,231,268.23

February 2005 R 73,073,861.39 R 271,305,129.62

March 2005 R 76,043,572.51 R 347,348,702.13

April 2005 R 77,420,284.93 R 424,768,987.06

REVIEW STATISTICS

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DISABILITYASSESSMENT

UNIT

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DISABILITY ASSESSMENTUNIT

Formation of Disability Assessment Tool, and Establishment of Appeals Process.Providing Medical Opinion on Litigation, Appeals, and Class Action cases.Continual auditing of Assessment Reports.Providing recommendations on outcomes of Disability and Care Dependency applications.

Director Appointed.7 District Medical Officers.24 Area Administrators.

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FRAUD INITIATIVES& THE

INSPECTORATE

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FRAUD & INSPECTORATE

Numerous sources of information have made it possible for the Inspectorate to investigate cases of fraud and corruption: real financial savings. Investigations that have and are currently in progress include:SOCPEN/PERSAL Investigations.

The MIS and SOCPEN interfaces with PERSAL prevent Government employees from applying for a grant. However, these interfaces are recent, and prior to this such employees have been defrauding the system. The Inspectorate now furthermore has direct access to PERSAL.To date, 2,015 cases have been identified with a Fraud value of R 23,789,089. Many such officials have been arrested, with 400 cases investigated by the DSO and JACTT. Approximately 280 Departmental hearings have been completed. The savings realized to date amounts to R 9,638,400 per annum, whilst 57 officials have voluntarily submitted recoveries to the value of R 110,922.

SOCPEN/GEPF Investigations.Investigations reveal that 19,500 such cases exist, of which 8,000 investigations have been completed. The Inspectorate is currently removing approximately 400 such cases per week from SOCPEN (for 2005). The total savings amounts to approximately R 25,455,924 per annum.

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Deceased Children Investigations.The Inspectorate have identified 1,595 instances of deceased children on SOCPEN with a Fraud value of R 1,542,202. All such cases have been removed, with a savings of R 3,600,000 per annum. To date, 621 investigations have been concluded, whilst R 20,171 has been recovered from 32 beneficiaries.

Municipal Officials Investigations.The Inspectorate have uncovered 98 cases where Municipal employees are in receipt of a grant illegally with a Fraud value of R 1,755,242. All have been investigated, with 20 arrests to date. The total savings on this initiative is R 557,556 per annum.

Pension Fraud and Theft Investigations.Most investigations date to pension cash voucher Fraud between 1994 and 1996, and pension cheques between 1997 and 2001. 75 Departmental officials were dismissed, most of whom received prison sentences. 13 Private persons were also involved. The amount of Fraud involved is approximately R20,000,000, of which R797,000 has been recovered through asset forfeiture. This could increase with further guilty verdicts.

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Dormant Bank Accounts.The Inspectorate has ascertained that approximately R30,000,000 is pending in dormant bank accounts where such beneficiaries are deceased. In order for those funds to be recovered, the banks require Treasury to complete indemnities (handed over in October 2004), as well as valid death certificates from Home Affairs (negotiations in progress).

Inspectorate Fraud Register.Created during May 2004, this register caters for all cases identified as fraud and corruption for both Departmental and criminal purposes. Between May 2004 and February 2005, 2,775 instances have been registered, of which 939 have been referred to agencies for criminal proceedings.

Indemnity Applications.A committee has been established comprising Inspectorate and Legal Section officials. This committee makes recommendations relating to the success of such indemnity applications.

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FRAUD & PROJECT SSG

The unreasonably high annual intake rate of 100% on Disability grant applications in the Eastern Cape resulted in cost pressures to the extent that the Department was predicting a deficit of approximately R 1.2 billion for the fiscal year. Applications in the Nelson Mandela Metropolitan District were a major concern. Consequently, the Department met with the Directorate of SpecialOperations (Scorpions) on 9th July 2004, where the parties agreed to work together to eradicate the fraudulent activities affecting Social Assistance benefits.

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FRAUD & PROJECT SSG

Focus areas include:Fraudulent applications to the High Courts by Attorneys.

Investigations confirm that there is unethical conduct in the form of touting by certain attorneys. These attorneys do not have personal consultations with their "clients“.People handing over their ID’s were found to be unaware that the attorneys would be taking their cases to court – most assumed that the touts were officials from the Department who would assist them with their grant applications. Certain attorneys have even billed the Department on more than one occasion for the same matter. Four attorneys have been identified behind this scheme, and investigations are at a sensitive stage presently.

Fraud committed by Doctors.Two Doctors in the Queenstown area have been identified who allegedly recommend Disability grants where the applicants are not sick or disabled. An organizer in the Lady Frere area has been identified where this person supplies the Doctors with such applicants. This scam has been filed with the Public Prosecutor for a decision, with arrests pending.

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FRAUD & PROJECT SSG

Unscrupulous money lenders in the Metro.A notorious syndicate consisting of eight women and one man has been unearthed in the Metro area known as the Untouchables. These individuals defraud the Department by arranging Disability grants for residents who do not qualify for such assistance. A fee is paid by the beneficiaries in the form of a lump sum payment, and thereafter by means of a loan at 100% per month (the beneficiary pays for the rest of his/her life). Two Doctors appear to be colluding with this syndicate (handwriting analyses are pending). In addition, the Team has identified Departmental officials and nurses from the Department of Health who are issuing fraudulent medical certificates as well as fake Tuberculosis clinic cards to prospective beneficiaries. The members of the Untouchables were arrested in November 2004, and items were seized by the Team for court purposes. Information is still being gathered to strengthen the case further.

Government and Municipal employees fraudulently receiving Social grants.A significant number of arrests have been effected in this regard, with further investigations in progress.

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CONCLUSION

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CONCLUSION

The Department in the Eastern Cape Province has initiated a multi-phased approach to rid the system of fraud, theft, and instances of beneficiaries receiving payment where their grants have expired according to the Act.This initiative by the Province is both pro-active as well as retro-active due to the following factors:

The implementation of the MIS with interfaces to PERSAL, GEPF, and Municipal Employee databases.The reporting of application approval rates that appear above the norm.Trends of abnormal Disability grant approval rates for certain disease categories.The implementation of a Task Team to stamp out Fraud and Corruption in conjunction with the Scorpions.The implementation of the Review Unit and MIS enhancements to lapse expired grant payments as well as perform Life Certification and Review.

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CONCLUSION

The Forensic Audit to highlight and pinpoint exception areas, combined with a SOCPEN data cleanse and data mining exercise.The Inspectorate who investigates all instances of fraud identified in the systems.

These activities combined have resulted in a savings to the Department exceeding R 400 million for the year to date. Furthermore, the investigations performed allow the Department to be in a position to improve and enhance the systems to prevent abuse, fraud, and corruption from occurring in future.The Department is still faced with the challenges of stamping out these activities, which are compounded by the lack of suitable supervision at the Service Offices, capacity shortcomings, insufficient staff vetting, and lack of public cooperation.

However, by ensuring that these and other initiatives are sustainable into the future, the Department will continue with its strategy to fight crime

and improve the quality of service to the public.