Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698931017462.pdf (South Africa)
Tuesday, 17 August 2021] No 105—2021] THIRD SESSION, SIXTH PARLIAMENT PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA _____________________ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS _____________________ TUESDAY, 17 AUGUST 2021 _____________________ TABLE OF CONTENTS ANNOUNCEMENTS National Assembly and National Council of Provinces 1.

Classification of Bills by JTM .......................................................................................... 2 National Assembly 1.

2.
2.

Communication of Changes in National Executive .........................................................11 Rules for the Election of Speaker .....................................................................................11 TABLINGS National Assembly 1.

Acting Speaker .................................................................................................................11 COMMITTEE REPORTS 1 National Council of Provinces 1.

2.
2.

Health and Social Services ............................................................................................. 14 Health and Social Services ............................................................................................. 35 ANNOUNCEMENTS National Assembly and National Council of Provinces The Acting Speaker and the Chairperson 1.
Classification of Bills by Joint Tagging Mechanism (JTM) (1) The JTM in terms of Joint Rule 160(6) classified the following Bill as a section 76 Bill: (a) Upstream Petroleum Resources Development Bill [B 13 - 2021] (National Assembly – sec 76).

The JTM further classified the Bill as falling within the ambit of section 39(1) of the Traditional and Khoi-San Leadership Act, 2019 (Act No 3 of 2019).

Bill to be referred to National House of Traditional and Khoi-San Leaders.
National Assembly The Acting Speaker 1.

Communication of Changes in National Executive (a) A letter from the Leader of Government Business, Deputy President D D Mabuza, informing the National Assembly about changes in the national Executive which were made to improve the capacity of government and fill vacancies that occurred after the passing and resignation of some members of the national Executive, as announced by the President on 5 August.

2.
2.

Rules for the Election of Speaker (a) Rules as approved by the Chief Justice of South Africa in terms of section 52(3) of the Constitution, for the election of Speaker of the National Assembly scheduled for Thursday, 19 August 2021 at 11:00 in the National Assembly Chamber.
2 Republic of South Africa Rules for the election of the President of the Republic Speaker and Deputy Speaker of the National Assembly Chairperson and Deputy Chairpersons of the NCOP Premier of a Province Speaker and Deputy Speaker of a Provincial Legislature As approved by Chief Justice Date: 13 August 2021 3 Rules for the election of President of the Republic of South Africa; Speaker and Deputy Speaker of the National Assembly; Chairperson and Deputy Chairpersons of the National Council of Provinces; Premier of a Province; and Speaker and Deputy Speaker of a Provincial Legislature.
[In terms of item 9 of Part A of Schedule 3 to the Constitution of the Republic of South Africa, 1996] 4 PRESIDING OFFICER 1.

In these Rules the “Presiding Officer” means the Chief Justice, a Judge designated by the Chief Justice or a Speaker presiding at a meeting to which these Rules apply.

RETURNING OFFICER AND ASSISTANT RETURNING OFFICERS 2.
(1) In the event of an election referred to in item 1(a) or (b) of Part A of Schedule 3 to the Constitution, the Secretary to Parliament or a member of the staff of Parliament designated by the Presiding Officer, and in the event of an election referred to in item 1(c) of Part A of that Schedule, the Secretary to the relevant Provincial Legislature or a staff member of the Provincial Legislature designated by the Presiding Officer, must act as the returning officer at the election and must, in accordance with these Rules, do all things necessary for the due conduct of the election.
(2) The returning officer must appoint assistant returning officers from among the staff of Parliament or the Provincial Legislature concerned to assist him or her in connection with the performance of his or her duties.

(3) The returning officer and every assistant returning officer must, before assuming their duties, take an oath or make a solemn affirmation before the Presiding Officer in accordance with Annexure A.

NOMINATION OF CANDIDATES 3.


(1) Nominations must be submitted substantially in the form of Annexure B.

(2) The returning officer must satisfy himself or herself as to the identity of every signatory to a nomination paper and report the result to the Presiding Officer.

MEETING 4.

(1) Immediately before the appointed time for any meeting to which these Rules apply, the bells of the Chamber in which the meeting is to be held must be rung for 5 minutes.
(2) If more than one candidate has been nominated, the Presiding Officer must announce the names of the candidates nominated and may thereafter suspend proceedings for such period as he or she may deem necessary.
(3) If at any stage in the election procedure before the announcement of the result a candidate for whatever reason becomes ineligible for election, the Presiding Officer must declare the nomination null and void, and he or she may proceed with the election or start that process anew or take such steps as he or she considers necessary.

5 BALLOT 5.

(1) Ballot papers substantially in the form of Annexure C must be prepared as directed by the Presiding Officer.
(2) The ballot papers must reflect the surnames and full names of all duly nominated candidates in alphabetical order.

(3) One ballot paper marked on the reverse side with the official mark provided for the purpose must be issued by an assistant returning officer.
In the event of an election under these Rules in the National Assembly and a Provincial Legislature, it must be issued to every Member present and eligible to vote at the meeting, and in the event of an election under these Rules in the National Council of Provinces the ballot must be issued to every Head of a provincial delegation, in the following manner: (a) The returning officer must call out the names of persons eligible to vote from the official Members’ list, or from a list of the names of Heads of provincial delegations, as the case may be.
(b) When the name of a Member or a Head of a provincial delegation is called, he or she must, if present at the meeting, be issued with a ballot paper and record his or her vote in accordance with Rule 5(5).

(4) The name of the Member or Head of a provincial delegation to whom a ballot paper is issued must be marked off by an assistant returning officer on the list referred to in Rule 5(3)(a).
(5) A Member or a Head of a provincial delegation must record his or her vote by placing a cross against the name of the candidate for whom he or she desires to vote, in the space provided on the ballot paper for recording a vote.
(6) A Member or a Head of a provincial delegation to whom a ballot paper has been issued must, after having recorded his or her vote thereon, fold it in such a manner that the official mark thereon is visible to an assistant returning officer, and place it in the ballot box provided for the purpose, after the assistant returning officer has noted the official mark.
(7) If, during the ballot, the Presiding Officer is satisfied that a ballot paper has been inadvertently spoiled, he or she must instruct the returning officer to cancel that ballot paper, endorse the counterfoil thereof accordingly and issue a new ballot paper to the Member or the Head of the provincial delegation concerned.

INVALID BALLOT PAPERS 6.


A ballot paper is invalid — (a) if it does not bear the official mark required to be placed thereon in terms of Rule 5(3); or (b) if it is unmarked; or (c) if a Member or a Head of a provincial delegation has signed his or her name or written any word or made any mark other than the one required to be made by him or her in recording his or her vote.

6 COUNTING OF VOTES 7.


(1) As soon as the voting has been completed, the Presiding Officer must suspend proceedings and the returning officer and the assistant returning officers must remove the ballot box and all papers to a room where the counting is to take place.

(2) The ballot box must be opened by the returning officer in the presence of the Presiding Officer and the counting of the votes must then be proceeded with.
(3) No person other than the Presiding Officer, the returning officer and the assistant returning officers may be present in the room while the votes are being counted.

(4) After the votes have been counted, the returning officer must report to the Presiding Officer, informing him or her of the result of the counting of the votes.

(5) On receipt of the report the Presiding Officer must return to the place of the meeting and announce the result of the election.
(6) (a) The returning officer must retain the nomination papers, the used ballot papers and the counterfoils thereof in a sealed packet for a period of at least one year.

(b) The sealed packet may not be opened except by order of a court.

UNFORESEEN PROCEDURAL MATTERS 8.


(1) The Presiding Officer may submit to the meeting, for decision, any question of procedure which is not provided for in the preceding Rules and which may arise at the meeting and, in his or her opinion, cannot be decided by him or her in the capacity of Presiding Officer.
(2) A question of procedure may be raised, with the Presiding Officer’s leave, by way of a motion proposed by a Member or, in the event of an election under these Rules in the National Council of Provinces, a Head of a provincial delegation on behalf of a delegation, and seconded by another Member or by a Head of another delegation on behalf of such other delegation, as the case may be.
(3) If he or she considers it necessary or desirable in a particular case, the Presiding Officer may permit a discussion of the question and may limit participation in, and the duration of, the discussion in such manner as he or she thinks fit.
(4) If two or more Members or, in the event of an election under these Rules in the National Council of Provinces, two or more Heads of provincial delegations on behalf of their delegations, request that the question be put to a vote, a poll by a show of hands by Members or Heads of delegations, as the case may be, must be taken.
7 ANNEXURE A OATH/SOLEMN AFFIRMATION BY RETURNING OFFICER AND ASSISTANT RETURNING OFFICERS OATH I …… (full names) swear that I will faithfully and impartially discharge my duties in terms of the rules for the election of - President of the Republic; Speaker/Deputy Speaker of the National Assembly; Chairperson/Deputy Chairpersons of the National Council of Provinces; Premier of a Province; Speaker/Deputy Speaker of a Provincial Legislature, and will not divulge any information which may be disclosed to me, except for the purposes of the said rules or when it is required of me to do so as a witness in a court of law.
So help me God.
________________________________ SOLEMN AFFIRMATION I…….. (full names) solemnly affirm that I will faithfully and impartially discharge my duties in terms of the rules for the election of - President of the Republic; Speaker/Deputy Speaker of the National Assembly; Chairperson/Deputy Chairpersons of the National Council of Provinces; Premier of a Province; Speaker/Deputy Speaker of a Provincial Legislature, and will not divulge any information which may be disclosed to me, except for the purposes of the said rules or when it is required of me to do so as a witness in a court of law.
8 Nomination paper for election of - ANNEXURE B * President * Premier * Speaker * Deputy Speaker * Chairperson of NCOP * Deputy Chairperson of NCOP (Under item 9, Part A, Schedule 3 to the Constitution of the Republic of South Africa, 1996) We, the undersigned members of the National Assembly/the Provincial Legislature of ..................................... /delegates to the National Council of Provinces, hereby nominate the following person as a candidate for election as President/Premier/Speaker/Deputy Speaker/ Chairperson/Deputy Chairperson #: ------------------------------------------------------------------------------------------------------------------------- (Full name of person nominated in block letters) ------------------------------------------------------------------------------------------------------------------------ (Address) ------------------------------------------------------------------------------------------------------------------------ (Occupation) First Proposer ___________________________________________________________________ (Name in block letters and signature) Second Proposer ________________________________________________________________ (Name in block letters and signature) I, the abovementioned nominee, do hereby accept the nomination #.
______________________________________________________________________________ (Signature) * Delete whichever is inapplicable.

# Willingness to accept nomination may also be signified separately in writing.
9 ANNEXURE C Form of front of ballot paper Counterfoil No ..................................................... Election of President/Speaker/ Deputy Speaker/Premier/ Chairperson of NCOP/ Deputy Chairperson of NCOP NAME NAME Date .................................................. Form of back of ballot paper OFFICIAL MARK No ...................................................... Election of President/Speaker/ Deputy Speaker/Premier/ Chairperson of NCOP/ Deputy Chairperson of NCOP Date .................................................. 10 TABLINGS National Assembly 1.
The Acting Speaker (a) Reply by the Minister of Police to a motion of the Assembly on a gang-related shooting incident in Delft on 25 May, as adopted by the House on 27 May.

Referred to the Portfolio Committee on Police.

(b) Letter from the Public Protector, explaining how the delay in the finalization of the audit by the Auditor-General may have an impact on her office’s ability to table their annual report in line with section 40 (1) (e) of the Public Finance Management Act, 1999 (Act No 1 of 1999).
Referred to the Portfolio Committee on Justice and Correctional Services for consideration.

(c) Letter from the President of the Republic, dated 10 August 2021, to the Acting Speaker of the National Assembly, informing members of the Assembly of the extension of employment of the South African National Defence Force (SANDF) for service in cooperation with the South African Police Service (SAPS).

11 12 COMMITTEE REPORTS National Council of Provinces 13 1.
REPORT OF THE SELECT COMMITTEE ON HEALTH AND SOCIAL SERVICES ON THE ANNUAL PERFORMANCE PLAN AND BUDGET OF THE DEPARTMENT OF HEALTH; DATED, 16 MARCH 2021 The Select Committee on Health and Social Services (hereinafter, the Committee), having considered Budget Vote 18, the 2020/21-2024/25 Strategic Plan and 2021/22 Annual Performance Plan (APP) of the Department of Health (the Department), reports as follows: 1.

INTRODUCTION Section 5(2) of the Constitution of South Africa (No.
108 of 1996) and Section 27(4) of the Public Finance Management Act (No.1 of 1999) sets out the role of Parliamentary Committees in overseeing the performance of government departments and entities.

This report summarises a presentation received from the Department focusing on its Annual Performance Plan and Budget for the 2021/22 period.

The report entails the deliberations, observations and recommendations made by the Committee relating to Budget Vote 18.
On 16 March 2021, the Select Committee on Health and Social Services engaged the Department on its Annual Performance Plan (APP) and B udget for 2021/22.

2.

OVERVIEW OF KEY POLICIES AND STRATEGIES The Department aims to improve the health of all South Africans through the provision of services that are geared at promoting healthy lifestyles and, preventing illness and disease; and by focusing on access, equity, efficiency, quality and sustainability.
The Committee’s engagement with the national Department of Health ((hereinafter the Department) occurs a year since the coronavirus (COVID-19) pandemic hit the South African shores.

Since its incidence the impact of health on all aspects of society are self- evident.

Economies have been severely affected.

Excess deaths and unemployment have 14 increased globally due to the pandemic, and the resultant lockdowns.
As with other countries, South Africa has begun procuring COVID-19 vaccines with the aim to achieve herd immunity or population immunity.

The World Health Organization (WHO) supports this strategy, which would minimize the number of cases and deaths.1 All this is occurring in a context of a virus, which continues to mutate.

Variants of the virus have been found in different parts of the world, and more are expected to emerge.

South Africa has not been spared.


A new variant (known as 501Y.V2) was discovered to be the dominant variant in the country.

This hampered South Africa’s vaccination rollout as the vaccine procured (AstraZeneca) was found not to be effective against this variant, and other vaccines had to be procured.

In order to navigate the many challenges, the country faces it is imperative that Government uses its dwindling available resources effectively and efficiently.
The Department aims to provide leadership and coordination of health services to promote the health of all people in South Africa through an accessible, caring and high-quality health system, based on the primary health care (PHC) approach.2 Over the medium-term, the Department’s main focus will be to respond to the COVID- 19 pandemic throughout the various stages of the vaccine rollout strategy.
The Department will also continue its focus on the following: • The phased implementation of the National Health Insurance (NHI); • Prevention and treatment of communicable and non-communicable diseases; and • Investing in health infrastructure and supporting tertiary health care services.3 At a time when ideal spending on health would increase, “Cabinet has approved reductions on the Department’s baseline amounting to R15 billion” 4 over the medium- term (2021/22 – 2023/24).

1 WHO.

2020.
1 WHO.

2020.

Herd immunity, lockdowns and COVID-19 Retrieved from: https://www.who.int/news-room/q-a-detail/herd- immunity-lockdowns-and-covid-19.

2National Treasury.

http://www.treasury.gov.za/documents/National%20Budget/2021/Estimates.aspx.

3 Ibid.

4 Ibid.

Expenditure.

Retrieved estimates National 2021.

Full of from: 2 15 2.1.


The Basis and Context of the Department’s Strategic Plan and APP The national Department of Health derives its Strategic Plan and APP from the following strategies and policy initiatives: • Government’s National Development Plan (NDP): Vision 2030 and the United Nations (UN) Sustainable Development Goals (SDGs).

• Medium-Term Strategic Framework (MTSF) 2019-2024.

• NHI policy directive of government, including the consultations on the NHI Bill led by Parliament.
• Key diagnostics provided by the Presidential Health Summit Compact; recommendations from the Lancet quality commission; recommendations by the Health Market Inquiry; and the South African Demographic and Health Survey.

• Monitoring the APP 2020/21 through the National Indicator Data Set (NIDS) in line with the revised 2020-2024 strategic objectives and the growing need to reduce the data collection burden on facilities.

2.2.
2.2.

State of the Nation Address (SONA) The February 2021 SONA highlighted the following main health-related issues:5 • Defeating the COVID-19 pandemic and facilitating the rollout of the vaccination programme.

The President highlighted the comprehensive response to overcome the pandemic.

By restricting movement and activity via the lockdowns, preparing health facilities, and implementing basic health protocols, government prevented potentially greater devastation by the pandemic.
• The need to intensify prevention efforts and strengthen the health system.

The President highlighted that a massive vaccination programme will be rolled-out with millions of vaccines having been procured and being delivered.

The President applauded the scientists who lead research that discovered the AstraZeneca vaccine, 5 The Presidency.

2021.

President Cyril Ramaphosa, State of the Nation Address 2021.

The Presidency, Pretoria.


Retrieved from: https://www.gov.za/speeches/president-cyril-ramaphosa-2021-state-nation-address-11-feb-2021- 0000#.

3 16 which was procured, was ineffective against a new variant (known as 501Y.V2) that is dominant in South Africa.

• Continuing to use a science-driven approach.

The President emphasised the important role the South African Health Products Regulatory Authority (SAHPRA) plays in relation to all medication imported into the country.
• The importance of collaboration between all sectors of society including business, labour, the health industry and medical schemes in implementing the mass vaccination drive.

• Implementation of the National Anti-Corruption Strategy.

The Special Investigating Unit (SIU) was authorised to investigate COVID-19 related procurement by all state bodies.
The SIU released a report in February detailing alleged personal protection equipment (PPE) corruption.6 Over R13.3 billion worth of tenders were investigated, in respect of 189 State institutions and entities, with allegations still being received.

• Rolling out of broadband to hospitals and other government facilities.
This will be important to modernise administration and filing systems and in preparation for the NHI which will require all users/patients to be registered on the Health Patient Registration System (HPRS).

2.3.

National Development Plan: Vision 2030 The National Development Plan (NDP) identifies demographics, burden of disease, health systems and the social and environmental determinants of health as the key areas for intervention required to improve the health system in the country.
Nine goals for health have been identified in the NDP.

These are: • Increase the average male and female life expectancy at birth to 70 years; • Progressively improve tuberculosis (TB) prevention and treatment; • Reduce maternal, infant and child mortality; • Significantly reduce prevalence of non-communicable chronic diseases; • Reduce injury, accidents and violence by 50% from 2010 levels; • Complete health system reforms; 6Special Investigating Unit (SIU).

2021.
2021.

Investigation into the procurement of, contracting for good, works and services during or from: https://www.siu.org.za/wp- content/uploads/2021/02/R23_of_2020_Final_report_on_matters_finalised_for_public_release_05022021.pdf.

the National State of Disaster report.

p.18.


Retrieved respect of in 4 17 • Deploy primary health care (PHC) teams to provide care to families and communities; • Achieve universal health coverage achieved; and • Fill health posts with skilled, committed and competent individuals.

2.4.

Sustainable Development Goals (SDGs) The Department is committed to working towards achieving the health-related United Nations (UN) Sustainable Development Goal (SDG) targets.
The particular focus of the Department is Goal 3, which is to ensure healthy lives and promote well-being for all at all ages.

It is envisaged that this would be achieved through the following: • Putting in place social protection systems and measures.

• Reducing maternal mortality to less than 70% per 100,000 live births.

• Ending preventable deaths of new-borns and children under 5 years of age; and epidemics such as AIDS, TB and malaria.
• Reducing one-third of premature mortality from non-communicable diseases.

• Strengthening the prevention and treatment of substance abuse, including the harmful use of alcohol.

• Improving road safety for all, and halve the number of deaths and injuries caused by road traffic accidents.

• Ensuring access to sexual and reproductive health care services, and rights.

• Attaining universal health coverage.


• Maintaining ecosystems, and reducing the number of death and illnesses caused by hazardous chemicals and pollution.

In addition to these, the Department is also guided by the health sector Ten Point Plan.

3.
3.

THE DEPARTMENT OF HEALTH FIVE-YEAR STRATEGY 5 18 The Department’s Strategic Plan consists of two impact statements derived from the MTSF7 2019-2024, which are linked to 18 outcomes.8 As shown in Table 1, five outcomes relate to the quadruple burden of disease; and 13 outcomes relate to health system strengthening and NHI.

Table 1: Department of Health Five-Year Strategic Goals MTSF PRIORITY 3: EDUCATION, SKILLS AND HEALTH IMPACT STATEMENTS A.
Life expectancy of South Africans improved to 66.6 years by 2024, and 70 years by 2030 OUTCOMES 1.

Maternal, Child, Infant and neonatal mortalities reduced 2.

HIV incidence among youth reduced 3.

The 90:90:90 targets for HIV AIDS achieved by 2020 and 95:95:95 targets by 2024/25 4.

Significant progress made towards ending tuberculosis (TB) by 2035 through improving 5.

Premature mortality from Non-Communicable Diseases reduced by 10% 6.
An equitable budgeting system progressively implemented and fragmentation reduced 7.

Resources are available to managers and frontline providers, with flexibility to manage it according to their local needs 8.

Financial management strengthened in the health sector 9.

Management of Medico-legal cases in the health system strengthened 10.

Package of services available to the population is expanded on the basis of cost-effectiveness and equity 11.
Integrated services delivered according to the referral policy, at the most appropriate level, to ensure continuity of care 12.

Quality and safety of care improved 13.

Staff equitably distributed and have right skills and attitudes 14.

Community participation promoted to ensure health system responsiveness and effective management of their health needs to 15.
Environmental health strengthened by contributing improved quality of water, sanitation, waste management and food services 16. Financing and Delivery of infrastructure projects improved 17.

Adaptive learning and decision making is improved through use of strategic information and evidence 18.

Information systems are responsive to local needs to enhance data use and improve quality of care all B.
Universal health coverage for South Africans, progressively achieved and all citizens protected from financial the catastrophic impact of seeking health care by 2030 Source: Adapted from the Department of Health Strategic Plan 2020/21 – 2024/25 An extra outcome has since been added due to the pandemic: Morbidity and mortality due to COVID-19 reduced.

The Department will be reviewing its Strategic Plan during a mid- term review and the MTSF 2019–2024 will also be updated accordingly.
7 Department of Planning, Monitoring and Evaluation (DPME).

2019.

Medium Term Strategic Framework, 2019-2024.

The Presidency, Pretoria.

Retrieved from: https://www.dpme.gov.za/keyfocusareas/outcomesSite/Pages/mtsf2021.aspx.

8 DOH (2021) Presentation to the Select Committee on Health and Social Services, (16 March).

6 19 4.

ANNUAL PERFORMANCE INDICATORS FOR 2021/22 Programme 1: Administration The purpose of the Administration programme is to provide support services to the Department.
These (services) include: human resources development and management, labour relations, information communication technology, property management, security services, legal services, supply chain management and financial management.

The key Department plans for the 2021/22 financial year are: • To attain an unqualified audit opinion for 2021/22 and for 6 Provincial departments to achieve improvements in audit outcomes with no significant matters.
• Utilise a medico-legal claim management system in 7 provinces, to manage new medico legal claims.

• Broadcast approximately 100 health promotion messages on social media, to help reduce premature mortality due to non-communicable diseases to 26% (this is a 10% reduction).
Programme 2: National Health Insurance (NHI) The purpose of the NHI programme is to improve access to quality health services through the development and implementation of policies to achieve universal health coverage and health financing reform.

Under Programme 2, the Department plans to achieve the following: • Attend Portfolio Committee and National Council of Provinces (NCOP) public hearings on the NHI Bill.

• Register medical aid beneficiaries on the HPRS.


Develop a project plan in partnership with the Council for Medical Schemes (CMS) in this regard.

• Complete the service benefits framework for PHC.

• Register 4.5 million patients to receive medicines through the centralised chronic medicine dispensing and distribution (CCMDD).

7 20 • Ensure that 3830 health facilities report stock availability at the national surveillance centre.
Programme 3: Communicable and Non-Communicable Diseases The purpose of the programme is to develop and support the implementation of national policies, guidelines, norms and standards and the achievement of targets for the national response needed to decrease morbidity and mortality associated with communicable diseases (HIV, TB, malaria, influenza and others) and non-communicable diseases (mental health, cancer, hypertension, diabetes and others).
This programme is also responsible for developing strategies and implementing programmes that reduce maternal and child mortality.

The targets under Programme 3 for the 2021/22 financial year include the following: • Vaccinate 16.6 million people against COVID-19 (This is a new indicator).

• Ensure that 98 Hospitals obtain 75% or more on the food service quality assessments.

• Ensure that 1600 PHC facilities have youth zones.
• Develop and publish the National Strategic Plan (NSP) for non-communicable diseases.

• Approve and partially implement the NSP for tobacco control.

Admit 75 state patients admitted into designated psychiatric hospitals.9 • Train 500 medical officers and professional nurses to improve their skills in clinical management of mental disorders (They would work in units that are listed to conduct 72-hour assessments, and psychiatric units attached to general hospitals.

• Approve maternity care guidelines.


• Approve neonatal care guidelines.

Programme 4: Primary Health Care (PHC) The purpose of the Primary Health Care (PHC) service programme is to develop and oversee the implementation of legislation, policies, systems, and norms and standards for 9 State patients are defined as persons who allegedly committed a criminal offence due to mental illness and declared by the Court.
8 21 a uniform well-functioning district health system, including emergency and environmental health services.

The targets for Programme 4 for the 2021/22 financial year include the following: • Implement the National Quality Improvement Programme in 100 PHC facilities and 80 hospitals.

• Ensure that 2200 PHC facilities qualify as Ideal Clinics.

• Approve and commence implementation of the policy and implementation guidelines on Traditional Medicine.
• Ensure that 18 Ports of entry comply with international health regulations (IHR).

• Test the monitoring system for measuring effectiveness of clinic committees in 200 clinics.

• Trace 250,000 clients lost to follow-up for treatment through community health workers (CHWs).

• Ensure that 1250 PHC facilities have Ward Based Outreach Teams (WBOTs).

• Assess 11 metropolitan and district municipalities for adherence to environmental norms and standards.
• Assess all 9 provinces for compliance with Emergency Medical Services (EMS) Regulations.

Programme 5: Hospital Systems The purpose of this programme is to develop national policy on hospital services and responsibilities by level of care; provide clear guidelines for referral and improved communication; develop detailed hospital plans; and facilitate quality improvement for hospitals.
Further, the programme is responsible for the management of the National Tertiary Services Grant and, ensures that planning of health infrastructure meets the health needs of the country.

The targets for 2021/22 under Programme 5 are to: • Construct or revitalise 40 PHC facilities.

• Construct or revitalise 21 hospitals.

• Maintain, repair and/or refurbish 120 public health facilities (That is: clinics, hospitals, nursing colleges, and emergency medical services base stations).
9 22 Programme 6: Health Systems Governance and Human Resources The purpose of this programme is threefold, namely: a) To achieve integrated health systems planning, monitoring and evaluation and research.

b) To develop and monitor the implementation of health workforce policies and ensure effective health workforce planning, development and management in the national health system, as well as alignment of academic medical centres with health workforce programmes and training of health professionals.
It assists the government to achieve the population health goals of the country through nursing and midwifery, through the provision of expert policy and technical advice and recommendations on the role of nurses in attainment of desired health outputs.

c) To conduct oversight over public entities and statutory health professional councils, and ensure compliance through applicable legislative prescripts.
Targets under Programme 6 for the 2021/22 financial year include the following: • • • • • Publish the community service policy.

Allocate 90% of eligible students to health facilities for community service.

Register 500 COVID-19 vaccination sites on the Electronic Vaccination Data System (EVDS).

Produce revised National Health Research priorities.

Develop an alpha version of the networked TB/HIV Plus Information System.

5.

BUDGET ANALYSIS 5.1.


Consolidated Health Budget 2021/22 The public health budget spans across the national department, its entities and the provincial departments of health.

The consolidated budget for 2020/21 totals R248.8 10 23 billion, up from R229.7 billion in the previous financial year.

Table 2 provides a summary breakdown of the 2021/22 budget, by functional and economical classification.
Table 2: Consolidated health summary by functional and economic classification, 2021/22 CLASSIFICATION Compensation of Employees (CoE) Goods and Services Capital Spending and Transfers Current Transfers and Subsidies Interest Payments TOTAL Source: National Treasury (2021) Table 2 shows the following: CONSOLIDATED HEALTH R Billion Percentage (%) 150.7 80.1 12.2 5.8 0.0 248.8 60.6 32.2 4.9 2.3 0 100 • A significant segment of the consolidated health expenditure (60.6% down from 63.2% in 2020/21) is dedicated to Compensation of Employees (CoE), which totals R150.7 billion, up from R145.1 billion.
• Consolidated health expenditure on Goods and Services totals R80.1 billion, which constitutes 32.2% of overall health expenditure.

• Consolidated health expenditure also makes provision for R12.2 billion (4.9%) allocated to Capital Spending and Transfers, and R5.8 billion for Current Transfers and Subsidies (2.7%).

• There is no allocation for Interest Payments.

5.2.

Department of Health Budget (2021/22) For the 2021/22 financial year, the Department has been allocated R62.5 billion.
This represents an increase of 7.7% in nominal terms (3.4% in real terms) compared to the R58.1 allocation of the 2020/21 financial year.
11 24 Table 3: Budget allocation by programme for the 2021/22 financial year Source: Adapted from the National Treasury (2021) The two largest programmes, namely Programme 3: Communicable and Non- Communicable Diseases (receives R32.6 billion) and Programme 5: Hospital Systems (receives R21.3 billion), jointly constitute 86.3% of the total budget allocation to the Department.

Three programmes show real decreases in budget allocations for the year under review.
These are: • Programme 4: Primary Health Care – This programme’s budget shows a real decrease of R64.5 million (or 23.2% in real terms), from R277.8 million in 2020/21 to R222.3 million in the 2021/21 financial year.

It also receives the smallest allocation (which is less than half a per cent (that is, 0.4%) of the Department’s budget.

• Programme 5: Hospital Systems – The programme receives a budget of R21.3 billion for 2021/22 which shows a nominal increase of R152.7 million (or 0.72%).
However, when the inflation rate is considered, the programme’s budget shows a real decrease of R708.8 million (or -3.34%).

12 25 • Programme 6: Health System Governance – This programme’s budget allocation shows a real decrease of R597.7 million from R6.5 billion in 2020/21 to R6.1 billion in the 2021/22 financial year.

Economic classification: The bulk of the Department’s budget (R54.1 billion or 92.4%) consists of Transfers and Subsidies.
This figure includes R49.3 billion to provinces and municipalities, R193.4 million to Non-Profit Organisations (NPOs), and R1.8 billion to departmental agencies and accounts.

• Current payments constitute a total value of R7.3 billion, which represents 11.7% of the total budget allocation.

R845.3 million, down from R928.3 million (11.6% of the current payments budget) is allocated to Compensation of Employees.
• However, most of the current expenditure (R6.5 billion) is allocated to Goods and Services, constituting approximately 88.4% of the total current payments.

• The lion’s share of expenditure (R4.4 billion) goes to Inventory: Medicine.
• Expenditure items that also receive a large share of the Goods and Services budget are Contractors at R797.9 million; Consultants: Business and Advisory Services at R256.4 million; agency and support/outsourced services at R133.6 million; and operating leases at R151.0 million.

• Travel and subsistence at R153.6 million is higher than operating leases (R151 million).

• Capital assets is allocated R1.2 billion.


Buildings and other fixed structures are allocated R935.7 million, and machinery and equipment is allocated R243.6 million.

Spending priorities for 2021 MTEF: Over the medium-term, the Department will focus on responding to the COVID-19 pandemic, including the vaccine rollout strategy.
It will also continue to focus on the phased implementation of NHI, prevention and treatment of communicable and non- communicable diseases, supporting tertiary health care services and investing in Public Health Infrastructure.

13 26 • Responding to the COVID-19 pandemic is ongoing and a matter of extreme priority.

In 2020/21, the Special Adjustments Budget allocated approximately R20 billion to the health sector for COVID-19 interventions.
The Department’s focus over the medium term will be on managing the COVID-19 pandemic by preventing the spread of the disease by non-pharmaceutical means, and providing vaccines to eligible persons in a phased vaccine rollout strategy.

To fund the rollout, R9 billion has been added to the Department’s baseline- R6 billion in 2021/22 and R3 billion in 2022/23, that is: o R6.5 billion ring-fenced in the Communicable and Non-Communicable Diseases programme for vaccine procurement and distribution nationally.
o R2.4 billion allocated to the COVID-19 component of the HIV, TB, Malaria and community outreach grant, which is transferred to provinces to fund the service delivery costs of administering the vaccines.

o R100 million is allocated to the South African Medical Research Council (SAMRC) for COVID-19 research.
o R1.25 billion was also allocated in 2020/21 for vaccines and vaccine research as per emergency provisions of the PFMA.10 o If needed, the allocations for vaccines can be augmented by both government’s contingency reserve and with revenue from vaccines sold to the private sector for medical scheme members.
o A further R8 billion is allocated to the provincial equitable share through National Treasury in 2021/22 to enable provincial health departments to continue their prevention, testing, and treatment interventions including managing a possible third wave of COVID-19 infections.

• Phased implementation of the NHI will continue.

The National Health Insurance Fund will be the established as the public entity – a key priority in the Department’s plans to implement NHI.
R121.3 million over the MTEF is allocated to the NHI programme to strengthen the Department’s NHI unit which will be transferred to the entity when it is created.

Over the MTEF, the National Health Insurance Indirect Grant is allocated R7.5 billion.11 R986.3 million is allocated to the personal services 10 Public Finance Management Act (Act No.

1 of 1999) Section 16.

11 National Treasury.

2020. p. 269.

14 27 component, which contracts health care services.
R2 billion is allocated to the non- personal services component which funds projects that strengthen the health system in preparation for the rollout of NHI, and R4 billion is allocated to the health facility revitalisation component to fund infrastructure projects.

• The HIV, TB, malaria and community outreach grant is allocated R82.6 billion over the medium term in the HIV, AIDS STIs sub-programme in Programme 3: Communicable and Non-Communicable Diseases.

The grant has 8 components.


The largest component is the HIV and AIDS component, which is allocated R69.3 billion over the MTEF period.

This funds the antiretroviral treatment programme which aims to reach 6.7 million people by 2023/24, as well as HIV prevention services.

The grants community outreach services component is allocated R7.7 billion over the MTEF to ensure better resourcing and management of the community health worker programme.
• Investing in health infrastructure: The Health Facility Revitalisation Grant is allocated R20.6 billion over the medium term to be transferred to provincial health departments through the Health Facilities Infrastructure Management sub- programme in Programme 5: Hospital Systems programme.

An additional R129.4 million is allocated to the grant for the construction of the Tygerberg and Klipfontein Hospitals in the Western Cape.
Health Facilities Infrastructure Management sub- programme also contains the health facility revitalisation component of the NHI Indirect Grant, which is allocated R4.4 billion over the MTEF.

• The National Tertiary Services Grant is allocated R13.7 billion in 2021/22, R14 billion in 2022/23 and R14 billion in 2023/24 in the Hospital Systems programme.

The grant compensates provinces for providing tertiary services to patients from elsewhere.
15 28 Reasons for Deviations: The baseline budget has been decreased across all the economic classifications due to economic pressures as a result of the COVID-19 pandemic.

This is outlined below: 12 • Compensation of employees (CoE): The COE ceiling was reduced with 12%, resulting in reductions across all the programmes.

• Goods and Services: R4.35 billion was allocated for the procurement of COVID-19 vaccines.
• The allocation for indirect NHI grants under Programmes 2 and 5 has been materially decreased.

Additional funds have been allocated under Programme 1 to fund the related expenditure due to the relocation of the Department to another building.

• Transfers and Subsidies: The allocations for conditional grants and transfers to non- profit institutions were reduced with 3% and 13% respectively, across all the applicable programmes.
The South African National AIDS Council (SANAC) received a once-off increase of R10 million, while allocations for the other Departmental Agencies have been decreased.

• Purchase of capital assets: The NHI Indirect grant for the construction and refurbishment of health facilities under Programme 5, have been reduced with R107 million.

The allocation for the procurement of machinery and equipment of the indirect NHI grants under Programmes 2 and 5 has been decreased.
The capital allocations of all the units across all the programmes has been increased once-off to make provision for procurement of computer equipment and/or furniture due possible damage because of the relocation to another building.

Tables 4 and 5 provide a breakdown of the Conditional Grants Direct and Indirect allocations.

Table 3: Direct Allocation of Conditional Grants 2021/2213 DIRECT CONDITIONAL GRANTS TO PROVINCES R MILLION 12 Department of Health.

2021.
2021.

Presentation to the Select Committee on Health and Social Services.

s. 33-34.

13National http://www.treasury.gov.za/legislation/bills/2021/[B3%20-%202021]%20(Division%20of%20Revenue).pdf.

Treasury.

B3-2021.

Revenue Division 2021.


Bill, of Retrieved from: 16 29 Schedule 4, Part A National Tertiary Services Grant Schedule 5, Part A HIV, TB, Malaria and Community Outreach Grant Health Facility Revitalisation Grant Human Resources and Training Grant National Health Insurance (NHI) Total 13 708.8 27 585.5 6 445.2 4 054.4 268.7 52 062.6 Source: Adapted from the National Treasury Division of Revenue (2021) pp.42 and 46 In terms of direct grants, the Department administers R52.1 billion in 2020/21.
The largest grant is the HIV, TB, Malaria and Community Outreach Grant, which receives R27.6 billion; followed by the National Tertiary Services Grant (NTSG) and the Health Facility Revitalisation Grant which receive R13.7 billion and R6.5 billion respectively.

For 2021/22 there is an overall reduction on direct grants of 3,4% or R1,8 billion growing over MTEF period.

The major reduction is under NTSG (R1 billion) and the HIV component (R1,6 billion).
This is of concern as it will have a negative impact on service delivery: this will require:14 • Rationalisation of services.

• Maintenance of current services.

For example, it will be difficult to initiate new patients on the antiretroviral treatment (ART) programme.

• All the current initiatives to modernise the tertiary services and establishment of new services will have to be postponed.

• Cross-border referrals will continue which will have a direct effect on patients.
However, the Department aims to continue to put measures in place to ensure current services are not affected.

Table 4: Conditional Grants Indirect Allocations 2021/22 CONDITIONAL GRANTS INDIRECT ALLOCATIONS Schedule 6, Part A National Health Insurance (NHI) Indirect Grant Total Source: Adapted from the National Treasury (2021c) Division of Revenue p. 51 R MILLION 2 117 2 117 14Department of Health.

2021.

Presentation to the Select Committee on Health and Social Services.
s. 38 17 30 With regard to the indirect grants, the National Health Insurance Indirect Grant is allocated R2.1 billion.

For 2021/22, the overall reduction in indirect grants is 16.3%.15 This is without the new allocation for COVID-19 vaccines, which means that the 21% increase is due to new COVID–19 funding for vaccines.

The major reduction is under the Infrastructure Indirect Grant with 19.6%, followed by Non-Personal Services with 15.6%.
The reduction will have a negative impact on nationally managed programmes especially infrastructure projects.

Some planned projects will need to be postponed due to limited funding.

The current infrastructure backlog will continue to grow.

The Department is in the process of establishing oncology services in underserved provinces, however, this process may be negatively affected due to budget cuts.

6.
6.

COMMITTEE FINDINGS, OBSERVATIONS AND RECOMMENDATIONS Having considered the APP and the Budget of the Department, this section summarizes the Committees’ findings, observations and recommendations.

6.1.

Findings and Observations • The Committee welcomed the APP of the Department and indicated the need to understand how emerging issues due to the COVID-19 pandemic will be addressed.

Concern was raised regarding the impact of COVID-19 on the implementation of strategies and programmes of the Department.
• The Committee flagged various concerns around the budget decline and how that may affect the PHC programme in particular, and the general service delivery.

• The Committee was interested in whether provinces are able to manage plans for disease management programmes, including COVID-19 interventions.

15 NDoH.

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Presentation to the Select Committee on Health and Social Services.
s. 36 18 31 • The Committee was interested in the state of emergency medical services (EMS) in the country, particularly in rural and peri-urban areas.

• The Committee was interested in the impact of the COVID-19 pandemic on the HIV programme; and on the progress and maintenance of infrastructure projects.

• The Committee was interested on the lessons the Department has attained through the COVID-19 experience, and how those (lessons) can be applicable for NHI implementation.
• The Committee was interested in how the Department was addressing the audit findings by the Auditor General, and what it intends to do to improve the overall public health sector audit performance/outcomes.

• The Committee was interested in receiving the Mental Health policy strategy and plans.

• The Committee was interested in the status of the cancer registry.

• The Committee asked for more detail on initiatives to fight TB, particularly TB drug resistance management.
• The Committee asked how the youth will be reached for medical services (to ensure provision of, and accessibility to the services.

• The Committee asked how provinces have been assisted with catch-up plans due to budget cuts.

• The Committee was interested in knowing whether all government departments are co-operating with the Department’s COVID-19 strategies, including the vaccination plan.
More detail was sought on the country’s vaccine strategy, including information on the procurement of vaccines and the envisaged timelines for rollout to ensure herd immunity.

19 32 6.2.
19 32 6.2.

Recommendations The Committee recommends the following to the Department: • COVID-19 initiatives: The Department should continue to hold provincial workshops; strengthen communication strategies and clearly outline the next phase of the vaccination strategy – including timelines and how rollout will occur and be accelerated; and put systems in place to address potential challenges.
• Cross-sectoral interventions on COVID-19: The Department should engage with relevant stakeholders in the fight against COVID-19 to ensure improved health care services.

• Entity preparedness: The Department should ensure that entities such as the National Health Laboratory Services (NHLS) including the National Institute for Communicable Diseases (NICD) are strengthened and capacitated to ensure effective response to epidemics.
• Mental health services: The Department should develop a Mental Health Monitoring Policy to monitor and evaluate the implementation of the Mental Health Policy Framework and Strategic Plan (2013-2020).

Further, the Department should consider a collaborative approach to mental health care, to strengthen the accessibility and delivery of mental health services.

The Department to forward the Mental Health Strategy to the Committee.
• Financial management in provinces: The Department should assist provincial departments to strengthen financial planning and management.

In addition, the Department should monitor provincial budget expenditure against approved plans.

• Audit outcomes: The Department should ensure that systems and measures are put in place, and internal controls are strengthened to prevent fruitless and wasteful expenditure at the national and provincial departments.
20 33 • Monitoring: The Department should strengthen its monitoring of the implementation of the Auditor General’s findings on key areas of internal controls and financial management, and reporting thereof.

• Improving the quality of health care in the public sector: The Department should continue to work towards improving the quality of health care in the public health sector.
• Primary Health Care (PHC): The Department should negotiate with National Treasury so as to minimize challenges created by the COVID-19 pandemic.

• Social determinants of health: The Department should present to the Committee, its plans that have been developed in collaboration with other government departments to address the social determinants of health.

The plan should reflect an integration of communication strategies which include social media platforms for outreach.
• Response to TB: The Department should ensure inter-sectoral collaborations for the effective response to TB.

7.

CONCLUSION The Committee commends the hard work of the Minister, MECs, national and provincial Departments of Health in the country’s response to the COVID-19 pandemic.

Unless otherwise indicated, the Department of Health should respond to the Committee’s recommendations in three months from the day the report is adopted by the House.

Report to be considered.

21 34 2.
REPORT OF THE SELECT COMMITTEE ON HEALTH AND SOCIAL SERVICES ON THE BUDGET VOTE 19, THE ANNUAL PERFORMANCE PLANS OF THE DEPARTMENT OF SOCIAL DEVELOPMENT AND ITS ENTITIES FOR 2021/22 DATED 01 JUNE 2021 The Select Committee on Health and Social Services (henceforth, the Committee) having considered and deliberated on the Budget Vote, the Annual Performance Plans of the Department of Social Development (DSD), the South African Social Security Agency (SASSA) and the National Development Agency (NDA) on 01 June 2021, wishes to report as follows: 1.
INTRODUCTION Section 5(2) of the Constitution of South Africa (No.

108 of 1996) and Section 27(4) of the Public Finance Management Act (No.1 of 1999) sets out the role of Parliamentary Committees in overseeing the performance of government departments and entities.

This report summarises a presentation received from the Department and its entities on the Annual Performance Plans and Budget for the 2021/22 financial year and allocations over the medium-term expenditure framework (MTEF) period.
The report entails the deliberations, observations and recommendations made by the Committee relating to Budget Vote 19.

On 01 June 2021, the Select Committee on Health and Social Services engaged the Department and its entities on the Annual Performance Plans (APPs) and Budget for 2021/22.
The Department of Social Development Strategic Plan and Annual Performance Plan (2021/2022) 1 35 1.1 Mandate, Vision and the Mission of the Department The key outcomes for the Department of Social Development (henceforth, the Department or DSD) during the 2019 – 2024 Medium Term Strategic Framework (MTSF) period are as follows: • Reduced levels of poverty, inequality, vulnerability and social ills.

• Empowered, resilient individuals, families and sustainable communities.
• Functional, efficient and integrated sector.

These outcomes are in line with the mandate, vision and mission of the Department.

The mandate of the Department is to provide social protection services and lead government efforts to forge partnerships through which vulnerable individuals, groups and communities become capable and self-reliant participants in their communities.
The vision of the Department is a to promote “caring and self-reliant society”, and its mission is to transform society by building conscious and capable citizens through the provision of comprehensive, integrated and sustainable social development services.

2.

DEPARTMENT OF SOCIAL DEVELOPMENT (DSD) APP The Department’s budget and APP was tabled at a time when the country is battling the COVID-19 pandemic, which has exacerbated economic slowdown and further strained the national budget.
Therefore, the DSD’s budget and APP should be viewed against this backdrop.

The DSD APP 2021/22 articulates the Departments’ mandate, vision, impact, outcomes and indicators of achievements.

Most importantly, the DSD’s budget and APP should also be viewed against budget cuts over the medium term (MTEF).

In this regard, the DSD expenditure is expected to decrease at an average annual rate of 2.2%, from R230.8 billion in 2020/21 to R216.1 billion in 2023/24.
This is mainly due to a decrease in the social grant budget allocation following the cessation of the additional social grants for the COVID-19 pandemic (top up budget for existing social grants and Social Relief of Distress Grant (SRD) in 2020/21.

An additional R32.8 billion was 2 36 allocated for this intervention for 2020/201 financial year.
It is worth noting that to accommodate for the extension of the Special COVID-19 Social Relief of Distress Grant, an additional R2.8 billion was allocated in 2020/21.

This was a direct charge for grant payments in February and March 2021.

The projected decrease in spending on social grants will amount to R36 billion over the MTEF period due to the Cabinet‐approved reductions.

It is however, expected that social grants will be extended to 300 000 additional beneficiaries per year.
2.1 Overview of the 2020/21 Financial Year As a precursor to analyzing the 2021/22 budget and APP of the DSD, it is important to take stock of its performance at the third quarter of 2020/21 financial year.

For the 2020/21 financial year, the DSD had an available budget of R230.8 billion, of which R229 billion was appropriated for transfers and subsidies.
Of this amount, a total of R220.6 billion (which is 96%) is transferred to households for social grants, and R7.4 billion is a transfer to the South African Social Security Agency (SASSA) for the administration of social grants, and R216 million to the National Development Agency (NDA).

The bulk of social grants are allocated to the child support grant (CSG), which benefits 12.97 million poor children, and the old age grant (OAG) which benefits 3.7 million people aged 60 and above.
Table 1 outlines the expenditure of the DSD as at the last quarter of the 2020/21 financial year.
R’000 Table 1: Fourth Quarter Expenditure of the Department of Social Development 2020/21 Programme Actual Q4 expenditure Projected Spending Q4 in Rand % Spent In Rand Available end of Q4 in Rands COVID-19 spending in Rand Adjusted Budget in Rand Total 230 807.3 228 932.8 99.2% 230 807.3 1 874.5 19 588.0 3 37 Source: National Treasury, 2021 Table 1 indicates that the Department spent R228.9 billion by the end of the fourth quarter, about R1.8 billion below the available budget.
This means that the Department had spent 99.2% of its available budget for 2020/21 financial year.

The under expenditure is mainly due to delays in payments for the March R350 special COVID-19 social relief of distress grant.

As at the end of the fourth quarter, the department reports R19.588 billion in COVID-related expenditure.

The bulk (R19.541 billion) of this was for payments to beneficiaries of the R350 special COVID-19 social relief of distress grant.
Over 6 million beneficiaries have received this grant to date.

There is also an amount of R29.7 billion paid for top-up grants, adding up to a total of R49.3 billion spent on Programme 2: Social Assistance.

R43.0 million was spent within Programme 1 Administration mainly for the procurement of personal protective equipment (PPE), as well as on communications and advertising mainly related to media campaigns on COVID-19 regulations.

3.
3.

ALIGNMENT OF DSD POLICY PRIORITIES TO THE NDP, MTSF, AND SONA 2021 This section seeks to determine whether the DSD priorities for the period under review are aligned with the strategic frameworks such as the National Development Plan (NDP), the Medium Term Strategic Framework (MTSF) 2019 – 2024, and the 2021 State of the Nation Address (SONA).

Government has recently adopted a new MTSF electoral cycle.
In the previous electoral cycle 2014 – 2019, the social development sector took ownership of outcome 13 (inclusive and responsive social protection system) out of the 14 government priority outcomes.

The new MTSF 2019 – 2024 structure has changed from 14 priority outcomes to seven (7).

However, it remains informed by the policy goals in the NDP.

The seven (7) priorities outcomes are the practical framework within which the sixth administration is implementing the NDP.
Three of these priorities are geared directly towards social protection.

Further, the current MTSF 2019–2024 looks towards a more integrated, multi-pronged and cooperative approach.

Currently, the Ministers of Health and Basic Education co-chair the 4 38 Social Protection, Community and Human Development Cluster.
Within the social development sector, the NDP is operationalised by MTSF priorities 2, 3, 4 and 6: PRIORITY 2 • Economic Transformation & Job Creation PRIORITY 3 • Education, Skills & Health PRIORITY 4 • Consolidating the Social Wage through reliable & quality basic services PRIORITY 6 Social Cohesion & Safe Communities • Social Cohesion & Safe Communities South Africa is party to several international goals and agendas and has an obligation to implement them.
Examples include the United Nations (UN) Sustainable Development Goals (SDGs).

The aspirations articulated in the SDGs resonate with those found in the NDP and the statutory and policy mandates of the Department.

Over the medium term, the DSD will continue to transfer funds to beneficiaries for the provision of social grants as administered and paid by SASSA for the provision of social grants to the elderly, children, war veterans and persons with disabilities.
Social grants account for an estimated 94.3% (R175.3 billion per year on average) of the Department’s total budget over the MTEF period.

The DSD is expecting to pay social grants to more than 81.6 million people in 2021/22, up from 18.1 million people the previous year.

This is in line with the NDP, which commits to achieving a defined social protection floor.
The NDP defines social protection as mechanisms used by Government to protect the most vulnerable in society and ensure that all citizens live above the ‘social floor’.

The ‘social floor’ is the minimum defined level of income and a social wage that ensures no one suffers from malnutrition or hunger and has access to basic services, education and health.
It is well documented that the social grant system continues to be a major anti-poverty programme of government, providing income support to millions of poor households.

In addition, the 2021 SONA announced an extension of the payment of the Special COVID-19 Social Relief of Distress grant by three months.

This announcement comes as the COVID- 5 39 19 pandemic and lockdown continue to devastate the economy, entrenching extraordinarily high unemployment and poverty.
However, there is a notable budget cut on Social Relief of Distress during the year under review.

The NDP supports social security reforms that are being considered by government, including mandatory retirement contributions.

It emphasises the need for social protection of the working age population, including enhancing public employment programmes such as the Expanded Public Works Programme (EPWP).
The NDP further advocates that social welfare services be expanded, funding for non-profit organisations (NPOs) reviewed, and more education and training expanded for social service practitioners.

It also highlights gaps and strategies that government must pursue to effectively build a human capital foundation for the country through Early Childhood Development (ECD) programme.
The MTSF agenda for social protection is to consider how to progressively realise rights, mitigate current patterns of inequality, prevent further deprivation as well as contribute to the economic and social transformation agenda.

For social protection to play the expected developmental role there is a need to consider new policy instruments and re-envision how the different policy instruments can interact and contribute to the betterment of poor South Africans.
Further, the 2021 SONA outlined several policy imperatives for DSD.

SONA 2021 highlights combating gender-based violence (GBV), women empowerment, extension of the Special COVID-19 Grant, and empowerment of people with disabilities as key issues for the social development sector.

This means that DSD should continue to provide services for the vulnerable groups of our societies, which include victims of GBV; children, the elderly, and person with disabilities.
South Africa has one of the highest GBV rates in the world, with a Femicide rate that is reportedly five times higher than the global average.

The recent crime statistics released by the South African Police Service (SAPS) revealed a 5% increase in reported sexual offences between October-December 2020.

SONA 2021 recognises that GBV is a crisis in South Africa.
In its efforts to end GBV, the South African government has developed the National Strategic Plan (NSP) on GBV and plans to strengthen the criminal justice system through the introduction of legislation, as well as reducing the backlog of GBV cases.

6 40 4.

DSD 2021/22 BUDGET ANALYSIS The Social Development Sector provides social protection services and leads government efforts to forge partnerships through which vulnerable individuals, groups and communities become capable and self-reliant participants.
This mandate is realised through the following five (5) budgeted programmes: Administration; Social Assistance; Social Security Policy and Administration; Welfare Services Policy Development and Implementation Support; and Social Policy and Integrated Service Delivery.
Table 2: The national Department of Social Development appropriation 2020/2021 and 2021/2022 Table 2 indicates that the DSD has been allocated a budget of R205.2 billion for 2021/21 financial year, which shows a nominal decrease of R25.5 billion (or 11.1%) compared to the R230.8 adjusted budget of 2020/21 financial year.

Programme 2: Social Assistance consumes the bulk of the DSD budget to the value of R195.5 billion for 2021/22 financial year.
Programme 2 consist of payments made to beneficiaries for the provision of social grants as administered and paid by SASSA on behalf of DSD.

The DSD is experiencing budget cuts (in real terms) across all its programmes.

The programme that has a significant budget decrease is Programme 4: Welfare Services Policy 7 41 Development and Implementation Support, that is, from R1.8 billion in 2020/21 to R1.3 billion in 2021/22 financial year, indicating a nominal decrease of -R475.0 million (-25.78 percent).
Since the Department’s budget declines in both nominal and real (inflationary related) terms, it indicates the money available for the current financial year has less purchasing power compared to what it had during the previous financial year.

Figure 1 illustrates how the DSD budget allocation is affected by the inflation rate of 4.2 percent for the year under review.
Figure 1: DSD budget over the medium term in nominal and real (with inflation rate of 4.2%) Rand value Figure 1 illustrates that when the inflation rate of 4.2 percent is considered, the purchasing power of the DSD is R196.9 billion compared to last year.

This means that the DSD budget decreases by R33.8 billion when compared to the adjusted allocation of R230.8 billion in the 2020/21 financial year.

It is projected that the DSD budget will decline by 6.2% over the medium term period.
In terms of budget spent on specific line items according to economic classifications, Figure 2 indicates that a large portion of the DSD budget goes to transfers and subsidies, which is 8 42 R204.2 billion (or 96% of the total departmental budget).

This is followed by current payments to the value of R916.9 million (0.4%) and payment of capital assets at only R12.6 million (0%).
Figure 2: Allocation per economic classification in Rand value, 2021/21 The current payment budget decreases from the adjusted R999.5 million in 2020/21 to R916.9 million in 2021/22.

This shows a nominal decrease of R82.6 million or 8.3% from the adjusted budget of 2020/21.

Of the R916.9 million, about R510.7 is allocated to the compensation of employees (CoE) line item.

The CoE budget has been reduced by R140 million or 22.3% (in real terms) from R630.8 million allocated in 2020/21.
The goods and services line item shows a budget increase from R368.7 million in 2020/21 to R406.2 in 2021/21 financial year.

This shows a nominal increase of R37.5 million (or 10.17%) and a real increase of R21.1 (or 5.73%).

The transfers and subsidies budget decreases by R25.4 billion or 11.38% percent in nominal terms from an adjusted budget of R229.7 billion in 2020/21 financial year to R204.2 billion in 2021/22 financial year.
When the inflation rate is considered, the budget declines by R33.7 billion or 14.68%.

The budget cuts are driven by the following line items: • Non-Profit Organisations (NPOs): the transfer to non-government organisations declines by R8.9 million in nominal terms, from R42.6 million in 2020/21 to R33.7 million in 2021/21 financial year.
9 43 • Households: there is a notable real budget decrease of R32.9 billion (or -14.95%) from R229.7 billion in 2020/21 financial year to R204.2 billion in 2021/22 financial year.

The payment of capital assets budget increases by 5.9% (nominal percent change) from R11.9 million in 2020/21 to R12.6 million 2021/22 financial year.

Of the R12.6 million, a total of R11.9 million, about 94.96% of the allocation is allocated to machinery and other fixed structures line item.
4.1 Conditional Grant Allocations The Early Childhood Development (ECD) grant is the only direct grant that is allocated to the DSD.

This grant is meant to support Government’s prioritisation of early childhood development, as envisioned by the NDP.

This grant aims to improve poor children’s access to early childhood programmes and ensure that early childhood development centres have adequate infrastructure.
This grant has two components with detailed outputs, conditions and responsibilities for each component specified in separate frameworks.

These include the infrastructure component and subsidy component.

The subsidy component is aimed at assisting registered ECD centres that do not receive funding elsewhere or conditionally registered care facilities.
The infrastructure component provides supplementary funding to provinces to support maintenance upgrades of unregistered and conditionally registered ECD centres in poor wards.

Figure 3: ECD grant share allocations per province, 2021/22 10 44 The ECD grant receives a total share of R1.056 billion.

Of this amount, R963 million is allocated to the subsidy component, whereas the maintenance component receives a share of R94 million.
Over the medium term, the Early Childhood Development grant is funding is not expected to decrease.

In terms of grant share allocation per province, as illustrated by Figure 3, KwaZulu Natal (KZN) receives the largest share to the tune of R227.0 million (or 22% of the total grant) and followed by Eastern Cape (EC) to the value of R157.9 million (or 15%).

Gauteng and Limpopo receive an amount of R152.1 million and R143.4 million, respectively.
The smallest share goes to Northern Cape to the value of R25.3 million, i.e.

only 2% percent of the total grant allocation.

Provinces are tasked with implementing the ECD function, so it is their responsibility to prioritise funding from their equitable share to provide additional support for their ECD programmes.
Therefore, DSD should facilitate compliance to the National Integrated ECD Policy approved by Cabinet on 9 December 2015 by ensuring that the delivery and maintenance of any capital investment is coordinated in an efficient manner that is consistent with norms, standards and guidelines.

4.2 DSD Programme Performance Targets This section provides an analysis of the planned target performance of the DSD for 2021/22 financial year.
Table 3 provides the overall number of planned targets across the five budget programmes of DSD for 2021/22 in comparison with the planned targets in the previous financial year.

Table 3: Performance targets across the 5 programmes, 2020/21 and 2021/22 PROGRAMME 1.

Administration 2.

Social Assistance 3.

Social Security Policy and Administration 4.

Welfare Services Policy Development & Implementation Support NO.

OF TARGETS 2020/21 8 1 7 25 NO.

OF TARGETS 2021/22 13 1 10 24 5.


Social Policy & Integrated Service Delivery 18 20 11 45 Total 59 68 The DSD has set itself to achieve 68 performance targets for 2021/22.

This number is higher than the revised 59 performance targets set in the 2020/21 financial year.

The increase in the number of performance targets should be viewed in the context of budget cuts across all the departmental programmes and the implications for resource availability in the Department.
The analysis of the performance targets per programme against the allocated budget follows.

4.3 Programme Analysis This programme is responsible for providing leadership, management and support services to the departments and the sector.

Some of the core business units of the DSD are located within this programme, i.e.

Ministry, Internal Audit, and departmental management.
Table 4 provides the budget allocation of this programme and its sub-programmes: Programme 1: Administration provides leadership, management and support services to the department and the sector.

Table 4: Administration Programme The Administration programme receives a budget of R413.2 million for the 2021/22 financial year, which shows a nominal decrease of R13.4 million compared to the adjusted budget of 12 46 R426.6 the previous year.
However, when inflation is considered, the budget shows a real decrease of R30.1 million (or -7.05%).

The Corporate Management sub-programme is the main driver of the declining budget.

This means that Corporate Management has R29.7 million less purchasing power than the previous year (i.e.

-15.87%).

The Corporate Management sub-programme is the largest in terms of budget share compared to other sub-programmes hence the noticeable budget decline.
Other sub-programmes that show real declines include Internal Audit and Office Accommodation at -4.03% percent and -2.73% in real terms, respectively.

Under the programme, the DSD has set itself the target of developing sector strategies, policies, and frameworks in areas such as Strategy, Human Resources, Infrastructure, Governance, and Digital Monitoring and Evaluation.

In addition, this programme has to ensure that the DSD obtains a positive audit outcome.
The realisation of the above-mentioned targets will contribute to the achievement of Government priority outcomes 3 and 6.

Figure 4: DSD planned target performance for Programme 1: Administration, 2021/22 Figure 4 shows that for 2021/22, this programme has 13 planned performance targets; i.e.

slightly higher than the previous eight (8) adjusted planned targets for 2020/21.
The notable 13 47 performance targets that have been included from the previous financial year targets included: • Integration of Victim Empowerment Programme (VEP) and GBV systems.

• Three percent reduction of irregular, fruitless and wasteful expenditure.

• Develop and monitor the establishment and utilisation of the database of women owned businesses.

Programme 2: Social Assistance ensures the provision of social assistance to eligible beneficiaries in terms of the Social Assistance Act (No.
13 of 2004) and its regulations.

The programme consists of payments made to beneficiaries for the provision of social grants as administered and paid by the South African Social Security Agency (SASSA) on behalf of DSD.

Table 5: Appropriation for Programme 2, 2020/21 and 2021/22 The only target for this programme is to pay social grants to eligible individuals.

The programme’s budget shows a decline from R220.6 billion allocated in 2020/21 to R195.5 billion in 2021/22 financial year.
This shows a nominal budget decrease of R25.9 billion (or 14 48 11.4 percent).

However, when the effects of inflation are considered, this amounts to R32.9 billion less than the previous year (-14.95% real decline).

Table 5 indicates a significant budget decrease in child support from R84.8 billion in 2020/21 to R73.3 billion in 2021/22 financial year.

This illustrates a nominal decrease of R11.5 billion or (-13.63%).
Considering inflation, this translates into a real decrease of R14.5 billion or -17.11%.

In real terms, the allocations to all the sub-programmes under the social assistance programme remain below inflation.

The largest contributor to the budget decline in this programme is the budget cuts on Social Relief of Distress sub-programme from R17.976 billion in 2020/21 to R2.535 billion in 2021/22.

In real terms, it declines with -86.46%.


Social Relief of Distress is a temporary grant of assistance intended for someone in desperate need.

The grant helps those who are unable to provide for their or their families most basic needs.

The grant may come in the form of a food parcel, a voucher or cash.
Whilst there are budget cuts in real terms across all the social grants, the DSD expects SASSA to pay social grants to 18.6 million beneficiaries in 2021/22, up from 18.2 million in 2020/21 financial year.

Programme 3: Social Security Policy and Administration is responsible for the provision of social security policy development and the fair administration of social assistance.
Table 6: Appropriations for Programme 3, 2020/2021 and 2021/2022 15 49 This programme’s budget decreases from R7.585 billion in 2020/21 to R7.576 billion in 2021/22 financial year.

This represents a decline from the previous year both in nominal (0.1%) and real terms (4.15%).

The Social Grants Administration and Social Grant Fraud Investigation sub-programmes, which declines in both nominal and real terms from the previous year drives the decline in the voted allocation of the programme.
The budget decline, especially for the Social Grant Administration sub-programme (which is a transfer to SASSA), is concerning because the budget cuts could make it challenging for the entity to optimally perform its duties.

However, the budget increase in both nominal and in real terms for the Appeals Adjudication sub-programme is commendable as the DSD is planning to reduce the time it takes for appeals to be adjudicated from 180 days to 90 days during the year under review.
The budget for this sub-programme increases from R37.6 million in 2020/21 to R40.6 million in 2021/22.

This represents a nominal increase of R3.0 million or 7.98%.

However, considering inflation, this represents a real increase of R1.4 million or 3.63%.

The R7.576 billion allocated to this programme will be spent to achieve 10 planned target performances for the 2021/22 financial year.
These are: Figure 5: Programme 3 planned performance targets for 2021/22 financial year 16 50 The DSD plans to amend the Social Assistance Act, SASSA Act, and the Fund-Raising Act to address existing gaps and inconsistencies in the legislation.

The amendment to the Social Assistance Act aims to introduce a provision to empower the Minister, with the concurrence of the Minister of Finance, to augment the child support grant benefit provided to orphaned children residing with relatives.
The DSD further aims to complete the extensive policy proposals on social security reform, ranging from extending social assistance coverage to all, introducing mandatory contributions for retirement, death and disability.

It also seeks to create a platform for informal sector workers to participate in social security coverage and developing an appropriate institutional architecture for a coherent, efficient and sustainable social security system in the long term.
The severe impact of the COVID-19 pandemic on the economy and its ability to create jobs has raised new questions about the reliance on economic growth to address unemployment and poverty and revived interest in the prospect of a Basic Income Grant (BIG) as another lever to tackle poverty and inequality, and engender a more inclusive growth path.
Table 7: Targets towards the realisation of the Basic Income Grant (BIG), 2021/22 ANNUAL TARGET Consultation report on draft for policy income support to 18-59 year olds Q1 Q2 Q3 Q4 Finalize policy on income support for 18 to 59 year olds Obtain Cabinet approval for consultations on Policy Conduct Stakeholder consultations Conduct stakeholder consultations In 2021/22, the DSD will initiate a feasibility assessment of a Basic Income Grant (BIG).
The issue of the BIG has been on the public debates for quite some time.

Therefore, Parliament should closely monitor progress towards the realisation of the grant, as well as public debates on the issue.
According to the DSD, ongoing policy development will continue, particularly to address very specific social security coverage gaps in relation to pregnant and lactating women, and 17 51 institutional mechanisms and the cost thereof, to crowd in all government interventions to address the social protection needs of children, using the social grants as an entry point.
Programme 4: Welfare Services Policy Development and Implementation Support creates an enabling environment for the delivery of equitable developmental welfare services through the formulation of policies, norms and standards and best practices.

Some of the developmental-social welfare issues identified in the 2021 SONA are located in this programme.

These includes GBV and services to persons with disabilities.

The 2021 SONA reaffirms Government’s commitment to strengthen access to ECD.
Given that ECD services are mainly delivered by non-profit organisations (NPOs), the Department plans to develop the ECD service delivery that will outline Government’s approach to the delivery of ECD services and the role of each stakeholder during this financial year.

Further, the focus will be on the development of Quality Assurance and Support system; and Human Resources (HR) strategy for ECD.

These contributes towards Government’s mandate of provision of quality ECD.
The Department will also train Master Trainers on the parenting programme, who will in turn empower parents/caregivers on parenting.

Table 8: Appropriation for programme 4, 2020/21 and 2021/22 18 52 Notwithstanding the importance of this programme, the programme’s budget decreases from R1.845 billion in 2020/21 to R1.367 billion in 2021/22, which denotes a nominal decrease of R475 million or -25.8%.

Considering inflation, this shows a real decrease of R530 million or -28.77%.
This decline is driven by reductions in allocations to the Children, Social Crime Prevention and Victim Empowerment, and Social Worker Scholarship sub-programmes; these declines in real terms with -27.12%, -58.43%, and- 85.75% respectively.

Whilst social crime prevention is also one of the key priorities mentioned in SONA 2021, the budget directed to social crime prevention and victim empowerment has been significantly reduced from R169.7 million in 2020/21 to only R73.5 million.
In real terms, this shows a decline of R99.2 million from the adjusted budget of 2020/21.
With the substantial budget cuts under this programme, the DSD is planning to achieve the targets outlined in Table 9: Table 9: Planned target performance for Programme 4, 2021/22 SUB-PROGRAMMES Childhood Early Development (ECD), Children’s Legislation and Families HIV/AIDS Social Crime Prevention and Anti-Substance Abuse Services to Persons with Disabilities PERFORMANCE TARGETS 2021/22 • Consultation on the draft Regulations of Children’s Amendment Bill.

• Draft ECD quality assurance and support system.


• Increase the number of children accessing quality ECD services by 5%.

• Monitor registration of ECD services.

• Conduct capacity building on the Sinovuyo Teen Parent digital programme for implementation by provinces.

• Capacitate 300 SSPs on psychosocial support guidelines.

• Capacitate 400 SSPs on Social and Behaviour Change (SBC) programmes.

• Target 9 high risk Districts implementing Anti- Gang strategy.
• Reach about 8 campuses through prevention & early intervention measures to curb social ills amongst children and youth.

• Capacitate about 7 public treatment centres on the UTC.

• Capacitate 4 provinces and 6 GBVF hotspot districts on the provision of psychosocial services policy and inter-sectoral policy on the sheltering services in implementing the NSP, • Submit the VSS Bill to Cabinet for approval.
• Submit Policy on Social Development Services to Persons with Disabilities to Cabinet for approval, • Submit the Guidelines on Respite care services for Families of children and Persons with disabilities for approval and implementation 19 53 Over the medium term, the DSD will prioritise the transformation and standardisation of social welfare through the development and coordination of overarching policies, legislative frameworks, and norms and standards that promote defined, integrated, quality driven, professional and accountable service delivery.
In this regard, the DSD is planning to: • Finalize a second amendment to the Children’s Act (2005) to enable government social workers to render adoption services; • Draft a Bill for social service practitioners to ensure the delivery of professional and accountable social services through the effective regulation of social service practice; • Revise the 1997 White Paper on Social Welfare, which is expected to lead to the development of a draft social development bill and the national community development policy framework; and • Implement the social development sector funding policy, accompanying guidelines to streamline the prioritization, and funding of welfare services across provinces, including for services delivered by NPOs.
The above-mentioned policy developments will be supported through the medium-term allocations in the Welfare Service Policy Development and Implementation Support Programme and the Social Policy and Integrated Service Delivery programme.

However, the expenditure in the Welfare Services Policy Development and Implementation Support programme is set to decrease from R1.8 billion in 2020/21 to R1.6 billion in 2023/24 due to a one‐off allocations related to the presidential employment intervention in 2020/21.
This includes allocations of R380 million through the Early Childhood Development grant to provide support to 83 333 ECD‐related workers, and R76 million to extend the contracts of 1 809 social workers employed to provide psychosocial support to individuals and families affected by COVID‐19.
Programme 5: Social Policy and Integrated Service Delivery is responsible for developing and facilitating the implementation of policies, guidelines, norms and standards for effective and efficient delivery of community development services to 20 54 enable the poor, the vulnerable and the excluded within South African society to secure a better life and build sustainable, vibrant and healthy communities.
Table 10: Appropriation for Programme 5, 2020/21 and 2021/22 Expenditure for the programme increases from R349.9 million in 2020/21 to R353.9 million in 2021/22, indicating a nominal increase of 1.1%, but declines with -2.93% in real terms.

The National Development Agency (NDA) is located within this programme, and its budget declines from R216.2 million in 2020/21 to R216.0 million in 2021/22 financial year.

This represents a nominal decrease of 0.09%.


However, when considering inflation, the NDA budget further declines with -4.41% real terms.

It is concerning that the budget of the NDA keeps on declining year on year as this entity provides grants to civil society organisations (CSOs) to implement sustainable community-driven projects that address food security and create employment and income opportunities.
Key budget highlights include the following: • The Registration and Monitoring of NPOs sub-programme has the second largest allocation in this programme to the value of R40.9 million in 2021/22, up from 21 55 R38.9 million in 2020/21.

However, this budget shows a real decrease of -1.38%.

This sub-programme is responsible for the registration and compliance monitoring of NPOs in terms of the Non-Profit Organization Act (Act No.

71 of 1997).
71 of 1997).

• The budget allocations for the Special Projects and Innovations, Substance Abuse Advisory Services and Oversight, and Community Development sub-programmes are all above the inflation.

• The Social Policy Research and Development sub-programme’s budget declines from R6.8 million in 2020/21 to R6.4 million in 2021/22.

Showing a real decline of -9.68%.

Under programme 5, the Department has set itself 20 performance targets for 2021/22, up from 18 in the previous financial year.
Some of the targets include: • The Programme will conduct community capacity enhancement in all nine provinces to bolster social cohesion.

Functional community structures will be created as part of prevention and addressing the social ills of communities.

Out of 17.4 grant recipients, the programme intends to target 2 percent to link the beneficiaries as a means to alleviate poverty and build sustainable communities.
• Through the EPWP, the Programme will continue to create meaningful work opportunities as a social protection safety net for vulnerable individuals over the MTSF period.

For the year under review, the DSD is planning to create 175 253 EPWP work opportunities.
• The Programme administers the NPO Act and has identified the following outputs; NPO Policy framework, Turnaround time on NPO registration, NPO compliance monitoring and NPO education and awareness programmes as pillars that will ensure the outcome “Reduced levels of poverty” is achieved.

The DSD hope to this by increasing public trust and confidence through effective yet fair regulation of NPOs.
• Over the medium term, the DSD will implement the National Food and Nutrition Security plan for South Africa that seeks to ensure the implementation of food and nutrition security initiatives targeting vulnerable individuals and households.
This will be accomplished through the coordination of DSD food and nutrition interventions, which include all centre, based feeding programmes providing 22 56 nutritious food to the poor and vulnerable in partnership with the Civil Society organizations, Social Partners and Agencies.

• The Department will also prioritize the linking of CSG recipients below 60 years of age to sustainable livelihoods opportunities.
The community development branch will continue with the development of policy framework, guidelines and tools to enhance community development within the country 6.

COMMITTEE DELIBERATIONS • The Committee sought clarity on the status of the Social Relief of Distress Grant (SRD) with regard to its extension.

Related to that, it also wanted to know about the progress made in the discussions about the introduction of the Basic Income Grant (BIG).
• The Department reported that the SRD Grant came to an end at the end of April 2021, however it was planning on engaging National Treasury for its extension.

It was in its final stages of formalizing a request for an extension.

It also conducted an impact assessment and found that the grant has had a significant impact on the lives of people.

Also, studies conducted by academic researchers, National Treasury, and other government departments had similar outcomes.
This reinforced the motivation for the extension of the grant.

The Department was also looking at ways to link the SRD Grant to BIG.

• The Committee also raised a concern that the budget of the Department had no allocations made for the payment of the Child Support Grant Top Up as legislated in the Social Assistance Amendment Act (No.

16 of 2020) as part of a legal solution to the challenges of backlogs in the foster care system.
• The Committee wanted to know the type of employment opportunities that will be created through the Extended Public Works Programme (EPWP).

• The Department explained that employment opportunities through EPWP are created through the social cluster.

So the target of 175 000 work opportunities is implemented through the cluster.

DSD contributes through the employment of ECD practitioners and 23 57 home based care workers.
The Department of Health contributes through the employment of primary health care workers.

The Department of Basic Education contributes through the employment of contractors who deliver the national school nutrition programme.
• The Committee also wanted to know whether the Department’s plans to be innovative using technology, maximizing partnership opportunities and improving coordination of the social development portfolio and provincial Departments, will also include implementation of food vouchers in all provinces.

• The Department responded that it had engaged provinces and agreed to implement food vouchers.

Two provinces have already implemented them.


The implementation will be monitored during this current year (2021/2022).

• The Committee also wanted to know the progress made by the Department in issuing registration certificates to all the registered NPOs.

A number of registered NPOs had indicated that they had not received them.

• The Department explained that the COVID-19 lockdown created a backlog in the issuing of the NPO registration certificates but it has since been cleared.
Other delays were caused by incorrect email addresses provided by the NPOs.

• The Committee expressed a concern over the impact the budgetary cuts over the medium term period, will have on service delivery.

It was particularly concerned that over the medium term, budgetary cuts in the social assistance programme will amount to R19.5 billion in 2023/2024.

This is despite the increasing child malnutrition and stunting.
It also expressed a particular concern on the impact the budget cuts will have in the funding of the NPOs.

It wanted to know which NPOs will be affected – provincial funded NPOs or those funded by the national department?

It also wanted to know what measures the Department was putting in place to cushion the impact of the budget cuts.

• The Committee also raised a concern about non-payments, late payment or subsidy cuts to NPOs and NGOs who provide vital services on behalf of the State.
24 58 • The Committee further raised a concern over the impact of budget cuts on the employment of social workers, which the sector desperately needs.

• The Department reported that only NPOs funded by the national department will be affected.

It also reported that it will be conducting an impact assessment on the impact of the budget cuts and thereafter identify interventions that would need to be implemented.

7.
7.

SOUTH AFRICAN SOCIAL SECURITY AGENCY (SASSA) 2021/22 APP The mandate for SASSA (or the Agency) is to ensure the provision of comprehensive social security services against vulnerability and poverty within the constitutional and legislative framework.

SASSA’s work for the MTEF period will be streamlined towards achieving the four outcomes as identified and detailed in its strategic plan 2020 – 2025.

These outcomes include: • Reduced poverty levels.


• Economic transformation - empowered individuals and sustainable communities.

• • Improved customer experience.

Improved organisational efficiencies.

7.1 Alignment of SASSA Priorities with International and National Frameworks The NDP suggests that South Africa needs to ensure that vulnerable groups and citizens are protected from the worst effects of poverty by 2030.
The social protection measures proposed to support those in need, including children, people with disabilities and the elderly.

In addition, the NDP seeks to promote active participation in the economy and society for those who are unemployed and underemployed through labour market activation measures, employment services, income support programmes and other services to sustain and improve quality of life.
The NDP recommends that priority should be improving efficiency in the delivery of services, addressing exclusions by identifying and reaching those who are entitled to the existing benefits of social protection, reducing the administrative bottlenecks that prevent 25 59 people from accessing benefits.
In this regard, SASSA is responsible for the provision of a basket of social assistance services (income support and safety net to the most vulnerable) through amongst others, and oversee services responding to the needs of the community.

In line with the requirement to addressing exclusions by identifying and reaching those who are entitled to the existing benefits of social protection, for the 2021/22 financial year, SASSA prioritized improving coverage for children below the age of one (1).
Further, SASSA has prioritized implementing measures to reduce the administrative bottlenecks that prevent people from accessing social assistance benefits.

Government has recently adopted a new MTSF electoral cycle.

In the previous electoral cycle 2014 – 2019, the social development sector took ownership of outcome 13 (inclusive and responsive social protection system) out of the 14 government priority outcomes.

The new MTSF 2019 – 2024 structure has changed from 14 priority outcomes to seven (7).
However, it remains informed by the policy goals in the NDP.

The seven (7) priorities outcomes are the practical framework within which the sixth administration is implementing the NDP.

The main priority that speaks directly to the mandate of SASSA is Priority 4: Consolidating the Social Wage through Reliable and Quality Basic Services.
In this regard, SASSA has prioritized improving coverage of the social assistance programme, including for eligible refugees, with the objective to ensure that South Africans who are unable to support themselves and/or their dependents are not excluded.

As stated earlier, the SASSA was established, amongst others, to eliminate poverty and its causes; this speaks to the SDGs aspirations.
The SDGs, otherwise known as the global goals, is a global agenda consisting of 17 goals aimed at ending poverty, protecting the planet and ensuring that humanity enjoys peace and prosperity.

The SDGs recognize that eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for sustainable development.
In this regard, SASSA contributes to South Africa’s target of ensuring that no South African lives below the extreme poverty line by 2030.

SASSA provides temporary relief of distress to individuals and households experiencing undue hardship due to disasters, loss of breadwinners etc.

Further, SASSA ensures that vulnerable groups such as women and children are prioritized when processing the social assistance programmes.
26 60 The State of the Nation Address (SONA) for 2021 outlined several policy imperatives for the social development sector.

SONA 2021 highlighted women empowerment, the extension of the Special COVID-19 Grant, and the empowerment of people with disabilities as key issues for the social development sector.

This means that SASSA should continue to provide safety nets for the vulnerable groups of the South African societies, which include people with disabilities, children, and the elderly.

8.
8.

OVERVIEW OF THE SASSA 2020/21 BUDGET The overall budget of SASSA for 2020/21 financial year was R7 718 421 billion.

The actual expenditure for the third quarter was R5 305 623 billion (69%) compared to R3 372 186 (44%) billion in the second quarter.

With regard to non-financial performance, the Agency had set to achieve 47 targets for the third quarter and managed to achieve 35 (74%), which was an improvement compared to39% and 71% in quarter 1 and 2.
8.1 Performance Information by Programme The Agency functions through two main programmes, namely, Programme 1: Administration and Programme 2: Benefits Administration and Support.

Programme 1: Administration Under this programme SASSA managed to achieve 76% of its planned targets and related to this NDP priority for this quarter.

They are as follows: • SASSA managed to achieve 94.2% (925 429 of 982 497) of its 95% target of processing new grant applications within 10 days.
• It achieved its target of developing and implementing the online grant application solution at district offices.

It piloted solution in at least 28 districts.

More than 9 499 grant applications were received through this channel.

At least 842 grants administration officials were trained on how to use the online grants application solution.

Those trained included 440 capturers, 332 verification officials, and 70 Customer Care officials.
27 61 • It also achieved its target to develop an integrated validation database with government datasets.

• It further achieved its target to implement the biometric identity access management system for SOCPEN users.

The scanning solution was developed and staff were trained on the new solution.

The solution is being implemented in 231 local offices.

• It also investigated 81% (198 of 243) reported fraud, theft and corruption cases.

The target was to investigate 50%.


Programme 2: Benefits Administration and Administration and Support This programme is responsible for the implementation of the core business of SASSA, that of administering the payment of social grants.

It is the programme that was mainly affected by the changes in the budget for payment of social grants and introduction of the Special Relief of Distress Grant.

Accordingly, it had eight (8) new targets added to it.
It also significantly contributes towards the achievement of most of the NDP priorities, SONA priorities and MSTF priorities listed above.

Under this programme SASSA managed to achieve 72% of its planned targets and related to this NDP priority for this quarter.

8.2 Budget Analysis for the 2021/22 Financial Year Social assistance has proved to be one of the most effective pro‐poor programmes that keep vulnerable people from falling into abject poverty.
In the period 2017/18 – 2020/21 (December 2020), SASSA continued to implement its mandate of providing Social Assistance to the most vulnerable people of South Africa.

During this period, SASSA increased the number of grants in payment, including a grant in aid from 17 509 995 at the end of March 2018 to 18 265 487 at the end of December 2020.

This represents an increase of approximate 4.14% during this period.
Compensation of employees accounts for an estimated 46% or R10.5 billion of the agency’s budget over the medium term.

The remainder of the budget is earmarked for goods and 28 62 services for essential operational requirements such as grant payments, building leases, security, cleaning and computer services.

Over the medium term, the spending priorities of SASSA include: • Compensation of employees accounts for an estimated 46% or R10.5 billion of the agency’s budget over the medium term.
• The agency plans to implement a fully automated grant application process (these include: e-application, scanning supporting documents, digital signatures and electronic files) over the MTEF period at an estimated cost of R128 million.

• The biometric data of an estimated 21 million beneficiaries that was captured by payment contractors between 2012 and 2018 has been migrated to the agency’s new system and is expected to be fully rolled out in 2021/22.
This is expected to ensure that no transaction processed are repudiated.

An estimated R68 million will be spent on the system over the MTEF period.

The Agency’s new operating model, emanating from its 2020‐2025 strategic plan, proposes clustering its nine (9) regions into three (3).
The high‐level structure review will continue at an estimated cost of R40 million over the MTEF period, ensuring that the agency is structured to be fit for purpose, with modernized systems that improve operational efficiency and reduce the growth in the wage bill and executive management.

Table 11 provides the budget allocation of SASSA for 2021/22 financial year in comparison with the revised allocation of 2020/21 financial year.
Table 11: Overall appropriation of SASSA for 2021/2022 and 2021/2022 Programme R million 2020/21 2021/22 Budget Nominal Increase / Decrease in 2021/22 Real Increase / Decrease in 2021/22 Nominal Percent change in 2021/22 Real Percent change in 2021/22 Programme 1: Administration Programme 2: Benefits administration support 3 538,3 4 556,4 3 007,7 4 461,9 - 530,6 - 94,5 - 651,8 -15,00 per cent -2,07 per cent - 274,3 -18,42 per cent -6,02 per cent TOTAL 8 094,7 7 469,6 - 625,1 - 926,2 -7,7 per cent -11,44 per cent 29 63 Table 11 indicates that SASSA receives an allocation of R7.469 billion for 2021/22 financial year, which shows a nominal budget decline of R625.1 million or 7.7%.
When the inflation is considered, SASSA budget further declines by R926.2 million or 11.44%.

Both programmes of the agency show a nominal and a real budget decline from the 2020/21 budget allocation.

Programme 1: Administration shows a significant budget cut from R3.538 billion in 2020/21 to R3.007 billion in 2021/22 financial year, representing a nominal budget decline of R530.6 million or 15% (R651.8 million or 18.4% when the inflation is considered).
It is concerning to note the alarming decrease in expenditure for programme 1, noting that this programme is responsible for ensuring effective leadership and administrative support services within SASSA.

Programme 2: Benefits administration support receives an allocation of R4.461 billion in 2021/22, down from R4.556 billion allocated in 2020/21 financial year.

This illustrates a nominal budget decline of R94.5 million or 2.07%.
When the inflation is considered, this programme’s budget is further reduced by R274.3 million or 6.02% for 2021/22 financial year.
Figure 6 shows the percentage proportion of the total SASSA budget spent on specific line items according to economic classification: Figure 6: Percentage share of the total SASSA budget spent on specific line items according to economic classification 30 64 The largest share of the total budget of SASSA per economic classification is allocated to Goods and Services to the value of R3.886 billion (52% of the total budget), whereas the Compensation of Employees receives R3.500 billion (47% of the total budget).
One percent (1%) or R34.4 million is for Transfers and Subsidies.

8.3 Programme Analysis SASSA’s budget structure is implemented through two programmes, namely: • • Programme 1: Administration, and Programme 2: Benefits Administration and Support.
Table 12: Overall targets of SASSA for 2021/2022 financial year PROGRAMME TARGETS 2020/21 TARGETS 2021/22 Administration Benefits Administration & Support Total Targets 31 25 12 37 As can be seen on Table 12, SASSA has set itself to achieve 37 performance targets for 2021/22.

This number is higher than the revised 31 performance targets set in 2020/21 financial year.
The increase in the number of performance targets compared to the previous financial year should be viewed in the context of budget cuts for both the agency’s two programmes.

The analysis of the performance targets per programme against the allocated budget follows.

Programme 1: Administration provides leadership, management and support services, which constitute as sub-programmes of it.
They are Executive Management, Corporate Services, Financial Management, Information and Communication Technology and Strategy and Business Development.
31 65 Table 13: Linking SASSA outcomes with annual performance targets OUTCOMES Economic transformation Improved customer experience Improved organisational efficiency social grant beneficiaries opportunities ANNUAL PERFORMANCE TARGETS to Linking through developmental existing relationship among the Department of Social Development and NSFAS Utilise SASSA database as a strategic asset to improve decision making and effective integration with government institutions; • Improve organisational efficiency and other governance; • Intensify the fight against fraud and corruption; and • Clear existing irregular expenditure register.
• Consider various towards migration from legacy system to modern solutions.

options Critical to the identified priorities within this programme are the organisational transformation interventions, which deals with the capacity of the Agency to deliver on its mandate.

Among these projects is the skills audit aimed at the proper placement of staff for optimal utilisation.

Similarly, the modernisation of business processes remains a priority for SASSA in the MTEF period.
The programme’s compensation of employees will increase from R1.

092 billion in 2021/22 to R1.102 billion in 2023/24.

The increase in compensation of employees is expected to accommodate the outcomes of the planned initiatives, e.g.

automation and the review of business processes.


To improve the quality of its financial reporting, the agency reports that it will invest in a business intelligence solution to verify that all payments to grant recipient bank accounts were successful and match claims from the South African Post Office (SAPO).

This solution is expected to allow data to be profiled comprehensively and effectively to support transactional, operational and analytical workloads regardless of source, volume or latency.
Programme 2: Benefits Administration and Support provides grant administration service and ensures that operations within SASSA are integrated.

It manages the full function of grant administration from application to approval, as well as beneficiary maintenance.

32 66 This programme is responsible for the core business of SASSA and ensures the implementation of the full value chain of grants administration.
The functions relating to this programme cut across all levels within the Agency, including the day-to-day interface with clients.

Programme 2 has a total of 12 performance targets.

The budget allocation for the programme is R4.461 billion for 2021/22, as opposed to the revised budget of R4.556 billion allocated for 2020/21 financial year.
Figure 7 shows the budget allocation trends for programme 2 between 2019/20 and 2021/22 financial years: Figure 7: Trends in budget allocation for Programme 2 of SASSA between 2019/20 and 2021/22 in nominal terms As can be seen from Figure 2, over the past three financial years the budget allocation for programme 2 has been declining.

Over the medium term, the cumulative growth rate for the budget of this programme is expected to be 0.0%.
However, when the inflation rate is considered, over the medium term, this programme’s budget is expected to decrease by -4.1% between 2020/21 – 23/24.

The programme is responsible for the core business of SASSA and it provides an efficient and effective grant administration service for the implementation of the social assistance 33 67 programme across the country.
The programme manages the full function of grant administration from application to approval, as well as beneficiary maintenance, benefit payment, customer care, strategic direction and guidance pertaining to grant operations.

It monitors and evaluates improvements, innovations and service delivery networks.
Some of the notable interventions that SASSA is planning in the next MTEF include: • Increase the number of grants in payment including grant-in-aid to an estimated 18.8 million at the end of March 2022 (actual grants in payment as at 31 December 2020 – 18,2 million); • Reduce the turnaround time for processing social grant applications from 10 days to 5 days and gradually to 1 day at the end of the MTSF period; • Improve time spent in resolving customers’ enquiries and disputes; • Strengthen the management of SASSA’s payment partnerships in order to ensure that social grants beneficiaries receive their correct grants at the right time and place; • Explore the possible value that can be added to the SASSA beneficiaries using the economies of scale that we have and the improvements in the payment landscape.
9.

COMMITTEE DELIBERATIONS • The Committee wanted to know the progress made in the assessments to renew lapsed Temporary Disability Grant (TDG).

• SASSA reported that all the assessments for the grant were completed.

A number of people did not re-apply and follow ups were made on 10% sample.

Those contacted indicated that they were not ill anymore and some had other sources of income.

The Agency is in the process of initiating payments.
• The Committee was concerned that SASSA’s budget will be cut by R641 million in this financial year, noting that the bulk of the cuts will affect employee compensation.

Given the high vacancy rate at SASSA this budget cut is concerning in relation to the effect it will have on SASSA’s ability to deliver services to the vulnerable grant beneficiaries.

34 68 • The Committee reiterated its concern over overcrowding at SASSA and SAPO (South African Post Office) offices.
It wanted to know what plans SASSA has to ensure that each town has a fully operational office, in line with its turnaround strategy.

• The Committee emphasized its concern over the escalating fraud and corruption in the payment of social grants, particularly fraudulent activities in the SAPO/SASSA card system.

It wanted to know what plans SASSA has put in place to intensify the fight against fraud and corruption.
• The Committee wanted to know what plans has SASSA put it place to clean the social grant payment system off ineligible beneficiaries.

It wanted to know the update on the investigations of 241 government employees who received the SRD Grant even though they did not qualify.

• It also reported that before payments are made to SAPO, it first validates the payment file from SAPO to make sure it is aligned with SOCPEN (SASSA payment system).
SAPO accounts for 70% of social grants payments and so it takes time to validate the file from SAPO.

• It further reported that it will recover all the money that was paid to government employees.

It was still conducting investigation.

It was also engaging with DSD on what actions should be taken against those implicated.

It will also engage with the departments these people work for to explore disciplinary actions to be taken.
• In the light of increasing child malnutrition and stunting, the Committee wanted to know if SASSA was working with the Department of Home Affairs to ensure that more children are registered in the Birth Register and enrolled in the social assistance programme.

The Department of Home Affairs is in the process of expanding its birth registration system.

• The Committee noted that SASSA APP has no targets set in relation to the modernization of the Call Centre.
This is despite the fact that SASSA contracted a service provider at a cost of R30 million a month to improve capacity of the call centre.

The APP should have 35 69 made targets pertaining to the kind of service delivery improvement envisaged at the call centre and skills transfer from the contractor to SASSA officials.

• The Committee reiterated its concern that communication provided to it is not filtered through to the public and to the front desk officials.
This negates all the interventions the Agency is implementing.

• It wanted to know the causes of non-compliance to SCM rules and regulations and are there any disciplinary actions taken against implicated officials?

• The Committee asked how many social workers have been absorbed by Provinces.

• SASSA reported that it had taken a zero tolerance on non-compliance to SCM rules and regulations.
Disciplinary actions were delayed by management not being able to conduct physical hearings due to lockdown regulations.

10.

NATIONAL DEVELOPMENT AGENCY (NDA) 2021/2022 APP The National Development Agency (henceforth, NDA or the Agency) is an agency of government that reports to Parliament through the Department of Social Development (DSD).

The NDA is classified as a public entity under Schedule 3A of the Public Finance Management Act (Act No.

1 of 1999).
1 of 1999).

The NDA was established in November 1998 as government’s response to the challenge of poverty and its causes in South Africa.

The NDA has a two-fold legislative mandate consisting of a primary mandate and a secondary mandate.
Its primary mandate is to contribute towards the eradication of poverty and its causes by granting funds to civil society organisations (CSOs) for carrying out projects or programmes aimed at meeting development needs of poor communities and strengthening the institutional capacity of CSOs involved in direct service provision to poor communities.
The secondary mandate is to promote consultation, dialogue and sharing of development experience between civil society organisations and relevant organs of state; debate on development policy; and undertake research and publications aimed at providing the basis for development.

36 70 10.1 Alignment of the NDA Policy Priorities to South Africa’s Strategic Framework The above-mentioned mandates in the main contribute towards the eradication of poverty and its causes.
This is achieved through granting of funds to CSOs to enable them to implement development projects in poor communities.

The NDA is also entrusted with strengthening the institutional capacity of CSOs that provide services to poor communities.

The 2021/22 budget and annual performance plan (APP) of the NDA should be viewed within the context of the COVID-19 pandemic and budget cuts across government departments.

South Africa and the world at large is faced with an enormous challenge of Covid-19 pandemic.
This pandemic has hit across the all races, class, ages and all sectors of our societies.

The NDA has not been spared by the ravaging wrath of COVID-19.

The enormity of COVID-19 has seen massive changes across public, private and CSOs.

That said, the NDA has a mandate to fulfil even during difficult times to empower the civil society sector so that one day, South Africa could also celebrate the end of extreme poverty.
The concerted global response to the pandemic from its onset has been on of prioritising resources towards healthcare in a bid to lessen the envisaged impact on humanity.

The overall impact on developing countries was and continue to be catastrophic as these countries are largely faced with a myriad of development challenges competing for limited resources.
South Africa’s response to the detriments caused by the pandemic and its lockdown restrictions came in the form of an economic stimulus package to the value of R500 billion announced by the President of South Africa.

This economic stimulus package was intended to lift the country from the economic abyss imposed by the Covid-19.
In response to the COVID-19 pandemic and the need to create awareness, advocacy and education on COVID- 19 and behavioural change programme to communities, the NDA launched a Volunteer Programme in April 2020.

In this regard, the NDA received an allocation of R1.8 million to collaborate with 52 CSOs that provide ten volunteers each, amounting to 520 volunteers.
The volunteers were deployed to distribute food parcels and other necessities to the elderly and persons with disabilities in communities, according to the NDA.

This paper outlines the policy priorities for the NDA as highlighted in amongst others, the 2021 State of the Nation Address.
This is followed by an analysis of the budget and the 37 71 performance targets for the 2021/22 financial year, as well as highlighting issues that Parliament may consider discussing with the Department regarding the budget and APP for the 2021/22 financial year.

10.2 Overview of the NDA 2020/21 Financial Year For the 2020/21 financial year, the NDA had an operational budget of R230.8 million compared to R215.3 million received in 2019/20.
In nominal terms, the budget of NDA increased by R15.5 million (7.2%).

However, when the inflation rate of 4.4% is taken into consideration, the budget only increased by R5.8 million (2.6%) from previous financial year.

Over the years, the main costs drivers of the NDA have been the employment costs and operating overheads such as rental for offices and Information and Communication Technology (ICT) infrastructure, which are increasing at a rate above Consumer Price Index (CPI).
For the past three years, the NDA operational budget has been increasing in nominal terms from R202.6 million in 2018/19, R215.3 million in 2019/20, and R230.8 million in 2020/21.

Table 14 outlines the expenditure of the NDA as at third quarter of the 2020/21 financial year.
Table 14: NDA expenditure as at 31 December 2020 38 72 The budget as indicated in Table 14 includes the budget from 2019-20 commitments hence the budget indicates a total budget of R345.9 million as opposed to the 230.8 million allocated for 2020/21 financial year.

Table 14 depicts that a total amount of R177.7 million was spent, which represented a budget utilisation of 51% as at the end of December 2020.
This meant that the NDA had R168.2 million budget available to spend between January 2020 and 31 March 2020.

As at third quarter of 2020/21, Programme 1 had spent 57% of its full year budget, and had 43 percent remaining for implementation.

There has been underspending on consulting & professional fees (R3.3 million), Information Technology (IT) costs (R3.4 million), audit fees (R1.3 million), and travel (R1.1 million).
Programme 2 had spent 48% of its full year adjusted budget (including 2019-20 commitments), and had 52% of the budget remaining for implementation over the last 3 months.

Excluding the CARA project, Programme 2 has spent 65% (R85 million) of its full year budget, whilst 35 percent of budget (R46 million) remains for spend over the last 3 months.
In terms of expenditure per economic classification, there has been a notable underspending on mobilisation and formalisation, capacity building, NDA grant funding, and CARA grants.

Programme 3 had spent 51% of its full year budget, as at the end of December 2020.

The drivers of the under expenditure in this programme is research studies and monitoring and evaluation line items.
10.3 NDA 2021/22 Budget Analysis The main source of funding for the NDA is allocation from the DSD, located within Programme 5: Social Policy and Integrated Service Delivery.

The mandate of the NDA is realised through three (3) budgeted programmes, namely, (1) Administration, (2) Civil Society Organisation, and (3) Research.

Table 2 provides 39 73 the budget allocation of the NDA for the 2021/22 financial year and estimates over the medium term.
Table 15: Appropriation for the NDA for 2021/22 financial year Programme R million 2020/21 2021/22 Budget Nominal Increase / Decrease in 2021/22 Real Increase / Decrease in 2021/22 Nominal Percent change in 2021/22 Real Percent change in 2021/22 Programme 1: Administration Programme 2: Civil society organisations development Programme 3: Research 103,7 121,0 7,5 105,3 102,4 10,2 1,6 - 18,6 2,7 - 2,6 1,54 per cent - 22,7 -15,37 per cent 36,00 per cent 2,3 -2,55 per cent -18,78 per cent 30,52 per cent TOTAL 232,2 217,9 - 14,3 - 23,1 -6,2 per cent -9,94 per cent The NDA receives a budget allocation of R217.9 million for 2021/22 financial year, down from a revised budget allocation of R232.2 million in 2020/21.
This illutsrate a nominal decrease of 6.2% and a real decrease of 9.9% (when inflation is considered).

The real decrease is R23.1 million.

10.4 Budget Allocation per Programme Figure 8 provides a percentage share of the three programmes of the NDA.

The bulk of the Agency’s budget is allocated to programme one (1) and programme two (2).
Figure 8: percentage share of total budget per programme 40 74 Read with Table 15, Figure 8 indicates that Programme 1 of the NDA consumes 48.3% of the total budget of the NDA to the value of R105.3 million for 2021/22.

Whilst Programme 2 receive 47% of the total budget to the value R102.4 million during the same period.

Programme 3, which is the smallest in terms of budget allocation, consumes only 4.6% of the total budget of NDA for the 2021/22 financial year.
The significant budget cuts in the NDA budget for 2021/22 is largely driven by the budget cuts in programme 2.

This programme’s budget has been reduced by 15.37% (nominal percentage change) and 18.78% (real percent change).

Programme 1: Administration is focused on promoting and maintaining organisational excellence and sustainability through effective and efficient administration that includes performance, employee wellbeing, cost containment as well as brand enhancement and recognition.
These will be achieved within a sound governance and administration environment.

This programme has an allocation of R105.3 million for 2021/22, up from a revised budget allocation of R103.7 million in 2020/21 financial year.
For 2021/22 financial year, the NDA is planning to achieve the following six (6) performance targets it set for itself: Table 16: Indicators and annual performance targets for Programme 1 of the NDA OUTPUT INDICATOR ANNUAL TARGET Percentage % reduction of cumulative The NDA plans to reduce by 80% the balance of irregular, fruitless and cumulative balance of IFW expenditure reported wasteful expenditure (IFW) reported in in prior year annual financial statements.
prior year annual financial statements Integrated Information Management system developed Percentage % Recommendations implemented Approved turnaround strategy State and CSO Partnership model developed of Skills Audit The NDA is planning to develop an integrated portal The Agency has set itself to implement at least 30% of Skills Audit recommendations Revised NDA turnaround strategy approved Approved partnership model developed 41 75 Programme 2: Civil Society Organisation Development is focused on elevating the NDA to become the lead coordinator of development initiatives, in its pursuit of becoming the Premier Development Agency in the country.
This programme also focuses on creating effective poverty eradication impact through utilising key mechanisms and channels of poverty eradication, including but not limited to support of CSO’s.

The budget allocation for this programme declines from an adjusted budget of R121.0 million in 2020/21 to R102.4 million in 2021/22 financial year.

Figure 9: Expenditure items for programme 2 As evident in Figure 9, the employment costs line item consumes 72.5% or 74.5 million of the total budget of programme 2.
The grant for CSOs only receives 13.1% or R13.5 million of the total budget under this programme.

The resource mobilisation line item only receives R147 765.

This programme has a total number of four (4) performance targets for 2021/22 as opposed to the seven (7) targets for the 2020/21 financial year.

During the year under review, the NDA plans to raise R20 million to fund CSOs and intend to create 500 work opportunities as a result of CSOs development interventions.
It also plans to capacitate about 1800 CSOs during the year under review.

42 76 Programme 3: Research is focused on action research and impact evaluative studies that will be used to inform programme planning, implementation and management of NDA CSOs development Programmes.

The outcome is to inform national development policy debates and engagements on issues relating to the development and poverty alleviation in general.
This programme has a total number of three (3) targets for 2021/22 which is a reduction compared to the five (5) targets for the 2020/21 financial year.

The Agency is planning release three research publications and three evaluation reports for the year under review.

It is also planning to have five (5) external dialogues to engage on the NDA research outputs during this period under review.
Table 2: Expenditure per line items of Programme 3 KEY EXPENDITURE ITEMS Research Studies Dissemination Sessions Knowledge Management Monitoring & Evaluation Studies Employment Costs Total Programme Allocation 2021/22 2 178,147 175,000 213,905 1 531,015 6 169,504 10 267,571 Programme 3 is expected to contribute to reducing the levels of poverty in South Africa, by focusing on influencing development policy through thought leadership.
The outcome of this programme is to produce research and thought leadership that solely aims to influence development policy.

11.

COMMITTEE DELIBERATIONS • The Committee reiterated its concern over the lack of visibility of the NDA.

It also raised a concern with regard to the budget structure of the NDA wherein operational costs accounts for more budget allocation compared to its core mandate implemented through Programmes 2 and 3.
The Committee wanted to know the rational or motivation behind this budget structure and how it is aligned to the Agency’s objectives of poverty reduction and capacity building of CSOs as well as setting of performance targets.

• The Committee resolved that a special session should be organized with the NDA wherein its mandate, budget structure and performance planning will be discussed in 43 77 detail.
The session will also discuss the draft Turnaround Strategy, which is aimed repurposing the NDA programme in alignment with the NDA mandate and Government’s policy direction.

12.
12.

RECOMMENDATIONS Having considered the APPs and Budget of the Department and its entities, the Committee makes the following recommendations: 12.1 Department of Social Development • The Minister should as a matter of urgency ensure that the Department finalizes a budget allocation with National Treasury for the Child Support Grant (CSG) top-up grant.

• The Minister should ensure that during the 2021/22 financial year the Department addresses the AG’s findings on status of controls.
The Department only had an improvement in oversight and monitoring – there needs to be improvement.

• The Minister should ensure that within the current year the Department prioritizes and conducts an impact study on the implications and impact of budget cuts over the medium term period and develop necessary interventions.

Particular focus should be on ensuring that service delivery and social assistance programme are not adversely impacted upon.
• The Minister should also ensure that the Department as a matter of urgency, investigates the non-payment, late payment or subsidy cuts to NPOs and NGOs who provide vital services on behalf of the State.

• The Minister should further ensure that the Department and SASSA explore all avenues to ensure that debt owed to them are recovered.
• The Minister should also as a matter of urgency ensure that the Department engages with relevant Departments to make sure that the 2019 Cabinet resolution on the employment of social workers is implemented.

44 78 • The Minister should also ensure that within the current financial year, the inter-ministerial interventions with the Department of Communications and Digital Technologies on addressing fraud and corruption in the SAPO/SASSA card system are implemented.
12.2 South African Social Security Agency (SASSA) • The Minister should ensure that SASSA (within the current financial year) completes investigations on government employees who received the SRD Grant and ensure that necessary disciplinary actions are taken.

The Minister should also ensure that SASSA takes harsh disciplinary actions against its employees who were involved in fraud and corruption activities.
• The Minister should also ensure that within the current financial year SASSA strengths its monitoring systems in the payment of social grants to ensure that there is a preventative mechanism that will give early warning of ineligible beneficiaries receiving grants.

This includes implementation of the biometric system and efficient and speedy validation process of ID numbers from SAPO payment file.
• The Minister should ensure that SASSA works with the Department of Home Affairs to ensure that all children registered with the Department of Home Affairs are enrolled in the social assistance programme.

• The Minister should also ensure that SASSA conducts skills transfer from the contractor currently operating at SASSA’s call centre to SASSA staff to ensure a more efficient and effective service call centre.

Report to be considered.

45 79