12 SEPTEMBER 1997
Last month, in a tiny house in Macassar, I launched the War on Poverty campaign alongside religions leaders, labour representatives and members of the NGO community. The declaration which we all signed says very clearly that "the war on poverty and inequality is South Africa's most important priority and our greatest challenge". The declaration goes on to say that "government at all levels must create the democratic space and effective governance that will help empower the poor and give support to initiatives on the ground".
As far as the Welfare portfolio is concerned, I believe that the next few months will show concretely that we are empowering the poor and supporting particularly the NGO sector. The proof of this is in the three key policy initiatives which have recently been approved by the Cabinet and which will come before Parliament soon. These are the Welfare Matters Amendment Bill, the Not-for-Profit Organisations (NPO) Bill and the White Paper for a Population Policy for South Africa - they are among the key building blocks of the new welfare paradigm.
1. A focus on the child
Through the Welfare Matters Amendment Bill, the child support grant will be introduced. The child support programme forms part of a new developmental approach to welfare delivery that is being forged. As expressed in our White Paper for Social Welfare, this approach seeks to empower individuals by promoting self-reliance. It also seeks to support community initiatives and to build partnerships with the vast and varied sector of NGOs in service delivery. In line with this approach, the new CSG aims to redress the racial imbalances of the past in the support offered to parents and children. It is also an expression of our determination to end the imbalances in spending between the elderly and the young.
The CSG:
I believe that these progressive features of the child support grant make it a programme that will be remembered for putting our national social security system on a new path of equity and sustainability.
The latest Cabinet decision (of August 20) has confirmed the following specific details of the new child support grant:
An important aspect, the means test is close to being finalised. Through effective targeting we hope to reach approximately 48% of children under 7 years, amounting to an estimated three million of the poorest children when the programme reaches maturity, that is when a stable number of beneficiaries has been recorded.
2. A national social security system
Besides introducing the Child Support Grant, the Welfare Matters Amendment Bill also addresses another important social security issue. The Bill will repeal the assignment of the Social Assistance Act (1992) to the provinces and restore the administration of that Act to the national sphere of government. However, the Bill will provide for the delegation of powers to the provinces.
This measure has been approved by the Welfare MECs in the provinces and the provincial heads of department. The step has become necessary in order to ensure the uniform application of social security legislation and regulations throughout the country as this major poverty-alleviation programme affects 3 million beneficiaries every month. It is also in line with an earlier Cabinet decision that the social security system should be nationally organised and the recommendations of the Committee for the Restructuring of Social Security (CRSS).
Such a system will be more cost-effective; make it easier to co-ordinate, to detect and contain fraud.
I have therefore appointed a committee to investigate the policy, delivery systems as well as the constitutional and legislative implications for the establishment of a national social security system. The committee will facilitate the drafting, adoption, monitoring and implementation of inter- provincial agreements in the areas of financial and budgetary processes, forensic accounting, information technology, management and human resource requirements, legislation and outsourcing. It will also analyse and make recommendations on the roles and responsibilities of national and provincial departments of welfare within a national framework to deliver social security benefits.
The committee will be chaired by the Director-General of the Department of Welfare, Dr Leila Patel. Other members are : Mr Michael Haddad (information technology advisor), Mr Eric Mhlogno (Welfare KwaZulu-Natal), Mr Moffat Mogane (Welfare Northern Province) Ms Virginia Petersen (Welfare Western Cape), Mr Jerry Rees (Welfare Gauteng), Mr Tim Steele (forensic auditor), Dr Jean Triegaardt (Director: Social Security of the national department), Mr Vernon van Wyk, (Welfare Gauteng) Dr Jan Viljoen (human resource management advisory), Mr Collin van Schalkwyk (Department of Communications).
3. Fraud and corruption
Since the successful amalgamation of the 14 different social security systems onto one data-base earlier this year, the cleaning up of the data has begun. Several initiatives are under way.
Firstly, data checks with ID numbers on the Population Register at Home Affairs have been conducted on a quarterly basis and have yielded outstanding results. Through this we have been able to remove the names of about 46 000 deceased beneficiaries last year, and about 30 000 in the first half of this year.
A second aspect is the drive to re-register all social security beneficiaries in the provinces. Early indications from these pilot projects are that approximately 5 percent of beneficiaries should not be receiving grants.
Thirdly we are also investigating the possibility of comparing our data tapes with those of other government departments.
Fourthly, we are at the planning stage of a process that aims to review every disability grant to check whether the medical certificate is still valid. And finally, we will be preparing a programme to ensure that every beneficiary has a 13-digit RSA identity number.
These data cleaning-up initiatives are important first steps that we need to take in order to remove the names of those beneficiaries who through ignorance or administrative error have been receiving payments they are not entitled to. This will save us time, energy and manpower from conducting investigations into the innocent. However, at the same time we are determined to proceed with investigations against officials and members of the public who are involved in fraudulent practices. A table has been handed out which details the progress that has been made in the provinces. More than 530 officials and members of the public are under investigation or have been convicted.
4. An enabling environment for NGOs
In South Africa, as in other parts of the world, NGOs are emerging as very important organisations. This trend is recognised in the White Paper for Social Welfare - our guiding policy document - which spells out the need for partnerships with the NGO sector. More specifically, the White Paper commits the Department to creating an enabling environment for NGOs.
We realise that our goal of empowering the nation cannot be attained through the efforts of government alone. But for our partners in the NGO sector to be effective in helping to build self-reliance they need to be strengthened as well. This is precisely what we hope to achieve through the NPO Bill - assist in creating a vibrant NGO sector.
The main thrust of the NPO Bill is to repeal those sections of the Fund Raising Act (No 107 of 1978) which provide for the granting of authorities to organisations to raise funds. This Act was widely viewed as an instrument of control over NGOs, through stipulations restricting fund- raising, inter alia by geographical area, racial group and purpose. It also reinforced the position of larger, centralised and well-established organisations.
It provides for voluntary registration as a fundamental shift from government control to a climate of freedom and voluntary association. Voluntary registration means that those organisations choosing to register are willing to account to and meet some basic rules set by government.
An organisation wishing to register will have to submit a written constitution that specifies certain practices and standards. Among other things, the constitution must state clearly that the organisation has a not-for-profit purpose, state what its objectives are; state how it will function and the powers of the organisation, specify certain financial procedures and how the constitution can be amended. The organisation will have to provide basic information on where it operates from and details about its Board members. This includes their ID numbers and where they reside.
A registered organisation will have to report on an annual basis. Narrative reports and financial reports and changes to the constitution and the Board will have to be reported. Once registered, organisations that fail to meet these requirements will be de-registered following a process to ensure that efforts have been made to rectify the situation.
This system will provide for a public register and data-base on the sector. The register could provide more accurate information than is presently available on the composition and distribution of the sector. This data could be used by government and others to leverage further benefits. Members of the public will have access to a list of registered organisations, as well as information on any registered organisation on file.
An important capacity building feature of the Bill is that it creates the opportunity to provide support to organisations. The department will provide guidelines to organisations wishing to register. Model constitutions will be drawn up. The aim is to assist even the smallest rural organisation to access the Bill. However, there are some things the NPO Bill will not do. The Bill no longer provides for control of fund raising. Members of the public would have to use the common law provisions if they wish to report theft or fraud. We share the concern many organisations and individuals have on the issue of mismanagement and fraudulent fund-raising. However we are convinced that we cannot legislate an end to such practices.
Registration will also not provide automatic rights to any other benefits, such as tax exemption, nor will it preclude any donor or contractor from imposing additional criteria and obligations on organisations.
5. White Paper for a Population Policy
South Africa, like many parts of Africa and the developing world, faces an array of critical issues which impact on sustainable development and the improvement of the quality of life of all South Africans. These challenges include some of the following:
Another policy document approved by the Cabinet, the White Paper for A Population Policy for South Africa, marks a significant shift in the way these challenges have been addressed in the past. The population white paper moves away from an emphasis on keeping the numbers down - though this is important - to a paradigm which seeks to address these population concerns by improving the quality of life of the individual.
The White Paper for A Population Policy rests on two main pillars. The first is the need to integrate the above concerns into all policies, plans, programmes and strategies aimed at development. The second is the need to act in a co-ordinated, multi-sectoral, interdisciplinary and integrated way when addressing these concerns.
The basic truth on which the White Paper is based is that an individual is the sum of many influences, from the food there is to eat, or whether there is anything to eat all, the water available to drink, the schooling, the presence or absence of health and welfare services and others.
The Population White Paper therefore outlines broad strategies which will be turned into action plans jointly with all partners: government, business, civil society. Welfare will play its part and is already doing so through its poverty alleviation programme in a multi-sectoral manner, such as the Flagship Programme for Unemployed Women with Children Under Five. In fact to a large extent the welfare budget is a poverty-alleviation budget. We are therefore committed to honour the declaration I signed waging war on poverty.