National Development Agency & Social Development Dept Annual Reports 2007/08

Meeting report

The Department replied generally to the questions that had been posed to them the day before.

Welfare Services Transformation
The Chairperson said that there had been no questions on welfare services transformation, however, he wondered if there were any other policy initiatives involved in the transformation.

The Acting Deputy Director-General of the Department of Social Development (DSD), Ms Conny Nxumalo, stated that there were other policy initiatives that were being used in the transformation.

The Chairperson asked the DSD to provide a table that listed all of the initiatives that were being used in the transformation. He suggested that these policies be presented at a Committee meeting.

Substance Abuse
The Chairperson asked the DSD to answer question on the substance abuse section in the Report. He noted that the DSD had been asked when the report on the National Drug Master Plan would be submitted, as it should already have been submitted.

The Department stated that the report had just been adopted by the Central Drug Authority (CDA) and the DSD hoped to submit the report to the Committee the following week.

The Chairperson wanted to know how many substance abuse cases had been reported and what the Department was doing to improve the situation.

The Department noted that not all substance abuse cases were reported. However, the DSD was working with Non Government Organisations (NGOs) to improve the situation. The DSD was also involved in providing training programmes to organisations (and the youth) to help them deal with substance abuse cases.

The Chairperson wanted to know how many provinces had submitted their Mini Drug Master Plan reports to the DSD. He wanted the DSD to submit a report showing the last Mini Drug Master Plan reports submitted by the provinces. He wanted to see what plans the provincial departments had put in place to deal with substance abuse. He asked how much the provinces were spending on combating substance abuse.

In reply to the Department stating that it did not know the exact figure, the Chairperson wondered how the Department could not have this information, as it was their responsibility to know if the provinces were using their resources to combat substance abuse.

The Department replied that the national budget for substance abuse in 2007 was about R12 million. The DSD estimated that the budget for 2009/10 would be R13 million.

The Chairperson asked if DSD knew how much other national departments were setting aside for substance abuse. He noted that it was the national departments’ responsibility to report on the portion of their budget given to the CDA.

Mr Coceko Pakade, DSD Chief Financial Officer, commented that the Department had already started collecting this information from the national departments. The DSD would share this information with the Committee as soon as they were done analysing it. The Department was aware of the need to monitor the expenditure trends of the provinces and other departments.
 
Older Persons
The Chairperson pointed out that there were a number of old age homes that belonged to municipalities and not to the provinces. He noted that there were often complaints about the condition of those homes. He asked the DSD to comment on this.

Ms Thuli Dorothy Mahlangu, DSD Chief Director: Care and Services to Older Persons, answered that there were quite a number of old age homes that were state run and others that received government subsidies. She would comment on the conditions of these homes when the information became available.

The Chairperson wanted to know how the subsidies given to these homes fitted into the budget.

Mr Pakade replied that there had been a significant increase in the DSD’s budget over the past few years. Therefore the DSD was of the understanding that there would be enough money in their budget to cover the subsidies.

Ms I Mars (IFP) wanted to alert the Department to the plight of ageing domestic employees. Many domestic employees had no place to go to once they retired other than to an informal settlement. She wondered if the Department had ever done any research on this issue.

The Chairperson noted that this was quite a common phenomenon. It was part of the DSD’s policy to care for people within these communities.

Ms Mahlangu stated that there were support services and care was provided for domestic employees that were forced to retire to informal settlements. Research was being conducted to see how accessible these care facilities were for older people. The research that was being undertaken would inform the DSD of the type of services that were being rendered and the quality of these services.

The Chairperson asked what the DSD’s subsidy policy was and if these subsidies covered maintenance costs. He also wanted to now if the Department provided funding for the implementation of private old age homes.

Ms Mahlangu replied that the subsidies covered operational costs and that subsidies were provided in an integrated manner. She warned that it was going to be compulsory for all government departments to work together to improve the funding situation.

Mr Zane Dangor, DSD Chief Operating Officer, commented that this was a strategic issue that needed to be addressed. The DSD and the Committee needed to look at social infrastructure costs. There were also a number of policy issues that needed to be addressed.

The Chairperson commented that the issue about the DSD’s capacity to deliver services needed to be addressed. The Committee and the DSD would need to come back to this issue. He stated that there were often complaints from NGOs about a lack of funding. The Committee and the DSD could not afford to have civil society feeling uncomfortable with its relationship with the DSD, as civil society provided many services to the public.

Disability
The Chairperson asked the Department to comment on questions posed by the Committee on this section at the previous day’s meeting.

Ms Nxumalo stated that DSD Chief Director for Disabilities had been told the previous day by parliamentary officials that she was not on the list to attend the meeting. She had then returned to Pretoria. So if there were any questions, the Department would provide a written response.

The Chairperson asked if the DSD supported any entrepreneurship initiatives by people with disabilities.

Ms Nxumalo replied that she did not have this information; however, the DSD would provide the Committee with a written response.

The Chairperson wanted to know what other initiatives the DSD was funding.

Ms Nxumalo stated that the DSD mainly supported centres that were providing services to people, specifically children. These centres were partial care facilities for children with disabilities.

Ms H Semple (DA) commented that it was unacceptable that the Director for Disabilities was not present at the meeting. If she had struggled to attend the meeting, alternative arrangements could have been made with the Committee Section.

The Chairperson agreed. He needed all the line function managers to be available at meetings so he could engage with them and perform proper oversight. He stated that the Committee wanted to formally express its displeasure with this particular situation.

Mr Dangor stated that he would follow up on the matter and report to the Committee.

Children
Dr Maria Mabetoa, DSD Head of Welfare Services for Children, Youth and Families, stated that there had been a question on inter-country adoptions. She read out a list of all the countries with which South Africa had inter-adoption agreements.

Mr J Schippers (ANC) requested that the Committee be provided with a written list as well. He also asked if inspections were carried out on all inter-country adoption cases.

Ms Nxumalo stated that there were not always inspections. However, the DSD received reports on the child’s well being for the first five years after the adoption. Other countries received reports on the child’s well being until the child turned eighteen. The DSD was not sure whether they should also follow this method. Although most inter-culture adoptions only occurred after 2002, the DSD noted that the children were generally well looked after.

Ms Semple wondered if the DSD had checked up on some children’s homes where there had been problems such as the one at Bushbuckridge.

Ms Nxumalo stated that the Department had followed up on certain homes and would address the problems that were encountered there. A report on the visits to the homes could be forwarded to the Committee. The Department had found that there were children that were placed in certain care centres for care but these centres had not been funded and could not care for the children.

Ms Nxumalo commented that the DSD would also be looking at children that were cared for at home. The DSD would be looking for a way to subsidise these children as well.

Families
The Chairperson asked if the Victim Empowerment Programme (VEP) impacted on certain Acts overseen by the Department of Justice.

Ms Nxumalo stated that it did. The VEP provided services to victims of domestic violence. The DSD also provided funding to NGOs who provided shelters and victim support services to those affected by domestic violence. The VEP was a policy that still needed approval. It covered services provided for victim empowerment.

The Chairperson asked if the DSD had a list of the shelters that provided care for victims of domestic violence. He wanted to know what services these shelters rendered and who would benefit from the VEP policy. He asked how long a victim of domestic violence was entitled to benefit from the policy.

Ms Nxumalo replied that there was no set standard that the shelters followed. However, there were regulations in the Domestic Violence Act to which they needed to adhere. There were also norms and standards developed for shelters that addressed how long a victim would be able to stay. Normally, victims of domestic violence could not stay at a particular shelter for longer than six months. There were people working at the shelters that helped victims with their problems and what steps they should take next. After the six-month period had ended, the victim would not be turned away, they would be helped.

The Chairperson wondered if there were enough shelters in the country.

Ms Nxumalo replied that there could never be enough shelters. The DSD was looking for places of safety for members of communities who were victims of domestic violence.

The Chairperson stated that the Committee would have to track the VEP’s progress in terms of policy and research. The Committee needed to find a way to track the development of the policy and its research.

Social Crime Prevention
Ms Nxumalo commented that the DSD was building more secure care facilities closer to courts. The DSD was piloting a project where all children in correctional facilities awaiting trial would be constructively engaged in activities. This project was currently being conducted at six facilities.

The Chairperson asked the Department to comment on probation services.

The Department commented that this was a very big problem, as there were issues such as lack of capacity in the DSD.

The Chairperson stated that there was a situation where children were getting deeper and deeper into trouble. Somehow the system was not working. The DSD could not prevent crime by youths without factoring into their initiatives substance abuse prevention.

Ms Nxumalo replied that the DSD was busy integrating substance abuse into social crime prevention. This would help to develop the crime prevention strategy. The Department would start to look at preventative mechanisms.

DSD Annual Report on Integrated Community Development
Integrated Community Development had been divided into four programmes; namely, HIV/AIDS, Community Development, Youth Development and Non-Profit Organisations.

Programme 3: Social Welfare Services (HIV/AIDS)
The Department of Social Development had strengthened its support of Home/Community-Based Care and support initiatives, through the funding of 1579 Home/Community-Based Care organisations and 617 drop-in centres through provincial offices. The Department had also ensured that 60% of all funded Home/Community-Based Care organisations complied with the norms and standards set by the Department.

The Department had provided services and support to 50 887 Child Headed Households within the Home/Community-Based Care and that it was estimated that South Africa had 1,5 million maternal orphans

Programme 4: Community Development, Non-Governmental Organisations and Youth Development
The Department had developed a Partnership with Trade and Industrial Policy Strategies (TIPS) under the supervision of the Second Economy Strategy in the Presidency that facilitated the ‘Communities Work Programme’ in the form of a work guarantee scheme. It also conducted a Skills Audit of Community Development Practitioners (CDPs) in all nine provinces. The skills audit focussed on the geographical location of the CDPs and their capacity to deliver sustainable community development programmes.

Non-Governmental Organisations
The Department completed and gazetted the Regulations of the terms and conditions to appoint a technical committee that complied with Sections 10 and 20 of the Non-Profit Organisations Act that would see to strengthen and improve the regulatory framework of non-governmental organisations.

Youth Development
The Department had engaged stakeholders on the National Youth Service in all nine provinces as well as processing sights for the implementation of the National Youth Service Programme.

Discussion
Mr Masutha asked whether the DSD had considered an ‘adoption grant’ to ‘attract’ prospective parents. He said that he was aware that currently it was illegal to derive any benefits from adoption.

Mr Zane Dangor (COO, DSD) said that an in depth analysis would be done on the inception of an adoption grant as issue of funding was not linked with adoption.

Mr J Schippers (ANC) said that the Department of Social Development’s (DSD) Annual Report stated that 60% of all funded home/community-based care (HCBC) entities complied with the norms and standards set by the DSD. He asked for clarity on what would happen to the remaining 40%.

He further asked whether the Situational Analysis of Child Headed Households Report (SACHDR), which would inform the development of a capacity and mentoring model for HCBC, would be made available to the Committee.

Dr Connie Kganakga (Acting DDG, DSD) said the aim of the DSD was to have all funded organisations comply with the norms and standards, but that many NGOs did have the capacity to comply. The DSD had thus decided to train district officials that would assist these under capacitated NGOs so that they can comply. She said that the reason why organisations failed to obtain funding was due to a lack capacity and that these organisations would also be assisted so that they can comply with the norms and standards.

She added that the SACHDR would be made available to the Committee as soon as the DSD hierarchy had approved it.

Mr Masutha asked whether the Anti-Poverty Strategies (APS) by the DSD was linked to the Anti-Poverty War Room (APWR). He also asked how the DSD faired with its APS and whether any identifications and interventions had been made.

Mr Dangor replied that the DSD had developed a Partnership with Trade and Industrial Policy Strategies (TIPS) that had been tasked by the Second Economy Panel houses in the Presidency. He said that the full findings would also be shared with the Committee and that it had borrowed itself from lessons learned from prior initiatives. The DSD envisaged that regular income would be replicated to those who are was receiving skills through various job creation and skills programmes. He noted that the rationale behind it was that as people earned an income, their skills would be updated through various capacity building initiatives. He said that this methodology had been quite successful in South America.

He added that the Anti-Poverty Campaign was led by the Presidency and that the SDS sat on the steering committee of the Campaign. He said that a questionnaire on household profiling had been developed that would be shared electronically between line departments that would facilitate better tracking of the interventions that need to be made.

Ms I Mars (IFP) said that the DSD Annual Report stated that an estimated 50 887 Child Headed Households (CHH) had received services within HCBC and that South Africa had an estimated 1, 5 million maternal orphans.

She asked whether the estimated 50 887 CHC that had been serviced by the HCBC had been the total number that had been identified from the estimated total maternal orphans.

Mr Schippers noted that many municipalities participated in community development initiatives and asked whether the DSD had a mechanism that ensured that there was no duplication of services to that community.

Dr Kganakga replied that the estimated 1,5 million is the total number of maternal orphans and not necessarily CHH and that the SACHDR had indicated that only about 22% are youth headed. She said that STATSA had provided the information.

Mr Mbulaleni Mulaudzi (Director, Community Development Policy) added that a Development Quality Framework had been implemented to address the lack of integration and duplication. He said that the integrated development plans had been interfaced with other line departments so that integrated decisions could be made. This was further strengthened by the Community Development Practitioners (CDP) liaising with other departments, once they have identified problems.

Mr Zane Dangor (COO, DSD) said that the DSD can only do so much and that duplication was an old issue, but that it was hoped that the facilitation of integration amongst NGOs by the DSD would pay dividends. He added that community development forums were gatekeepers of development and that policies would have to be looked at to draw lessons from the past so that real development can take place.

He stated that R 4 billion was spent annually on corporate social responsibility, with R2 billion spent on BEE and the remaining R2 billion on other causes and or initiatives. He noted that the DSD had no control on how that money was spent.

Mr Masutha asked what the difference between a CDP and a Community Development Worker (CDW) was and whether they could be considered as ‘social workers’ in disguise.

Mr Mulaudzi replied that when the concept came into being the DSD felt that it was necessary to distinguish between DSD employees and CDW which worked for DPW. He said that the main aim of CDP had been to serve as a link and or liaison between municipal structures and national government structures.

Dr Kganakga said that Home Community Based Care Workers (HCBCWs) did care giving in communities and since the inception of HCBCW the wanted a distinction between community health workers (CHW) and HCBWs.

Mr Dangor added that the profession and not necessarily what you did defined social work. He said that in many instances a lot of work had been compromised, as auxiliary social workers had not been allowed to do certain work within the social work environment. H stressed that there was a need to review the whole profession, through the Social Services Act as well as engagement with the social work profession, especially on allowing sociologist to do statutory work.

Mr Masutha said that over 42 000 NGOs were registered with the DSD, many of whom involved themselves with politics. He stated that this was unacceptable, as they should not use the platforms that NGOs provided to engage in politics.

He further asked how opportunities for young people would be created and how young people would be integrated into the ‘working world’.

Mr Malaudzi replied that the DSD was actively assisting the youth to have access to work opportunities through various initiatives to reach out to poor youth who have no access to education and employment.

He said that it was important that young people had to be capacitated, as they would be the leaders and decision makers of the future.

He added that the DSD had also embarked skills training of poor youths that would enable them to apply for further studies and or seek better employment.

National Development Agency (NDA) 2007/08 Annual Report
Mr Godfrey Mokate (CEO, NDA) and Mr Mandla Ncube (CFO, NDA) briefed the Committee on the Annual Report of the National Development Agency. Mr Mokate explained that the Non Financial Performance Report (NFPR) had been divided into Four Strategic Goals: Organisational Transformation (Goal 1), Partnering for development (Goal 2), Community Empowerment for sustainable development (Goal 3) and Communication of credible and relevant researched information (Goal 4).

Goal 1: Organisational Transformation
The NDA had achieved organisational stability through an enhanced performance culture by improving the performance of the various management systems. It had also strengthened its organisational capacity by building the Human Resource Unit by filling critical vacancies, increased skills development and education of staff and the formulation of appropriate policies. The NDA had also increased its organisational visibility through the fostering of relations with key stakeholders and the promotion of the NDA brand.

Goal 2: Partnering for development
A partnering for development strategy had been developed that was based on the overall strategy of the organisation. This strategy still awaited approval by the NDA Board. An extensive organisational promotion campaign had been conducted to raise awareness about the mandate and function of the NDA among key government stakeholders and Civil Society Organisations (CSOs). Mr Mokate said that the NDA had also strengthened ‘on the ground’ collaborations with strategic partners such as local municipalities and specific relevant departments in the implementation of projects.

Goal 3: Community Empowerment for sustainable development
During the 2007/08 period, the NDA had granted funding to 78 CSOs that was aimed at funding poverty eradication and development initiatives nationally, especially in the rural areas.

Goal 4: Communication of credible and relevant researched information
The NDA had conducted research on the state of CSOs in the country, Municipal Poverty and Research Flows as well as a Provincial Poverty Profile and Resource Flows. It had also promoted its visibility through newsletters, the internet, newspapers, conferences and exhibitions.

Financial Report: 2007/2008
Mr Ncube said that the NDA had recorded a deficit of R61, 4 million for the period under review, compared to the budgeted break-even and that the reported deficit was mainly attributed to projects committed in the current year which were approved by the NDA Board in previous financial years. These projects could not be provided for in the financial statements during prior years as they did not meet the requirements for either a Provision or Contingent Liability.

The NDA currently had cash holdings of R278, 7 million and were made up of R264 million for the NDA and R14 million for the European Union. For further information, see document.

Discussion on NDA Annual Report
Mr K Morwamoche (ANC) said that the NDA Annual Report had indicated that only two females had been appointed to the position of Provincial Managers. He asked if the NDA was planning to rectify the equity balance within its organisational structure.

Ms J Semple (DA) asked why the NDA held such a large amount of funds (R14 million) on behalf of the European Union (EU).

Mr Schippers asked whether the NDA was allowed to raise funds overseas and if so, how the NDA accounted for this type of funding.

Mr Mandla Ncube (CFO, NDA) replied that the EU criteria for funding did not match that of the NDA as the EU laid down stipulations on how and by when the money was to be spent. In the event of the money not being used within the specific timeframes then the funds revert to the EU. He added that when the DeLoitte auditors discovered that some project managers did not keep records of all their transactions, the NDA decided to pay back that money to the EU from its coffers. He said that it had been carried over to account as the NDA-held EU funds. The interest on the funds would also be paid back to the EU.

Ms Semple expressed her concern at Mr Ncube’s explanation as the NDA should have intervened when they realised that certain projects had poor accounting practices. This could have provided individuals with the opportunity to steal large amounts of money.

Mr Nkensani Mthembi (National Grants Manager, NDA) explainedd that at first the NDA had allocated funds in two stages, but that it had reviewed the policy and decided to allocate funds as they became necessary as it wanted to tie activities to expenditure.

He added that a female Provincial Manager had been appointed for Gauteng and that more would be appointed if a position became vacant.

Mr Mokate said that the NDA could raise funds from foreign sources as it was considered a key strategic goal to increase finances.

Mr Dangor added that when the NDA was established, it was envisaged that both the government and bilateral aid would fund it.

Ms S Rajbally (MF) asked why the NDA had spent such large amounts of money on accommodation, travel, cleaning and catering as well as on a miscellaneous line item.

Mr Ncube said that the increase in accommodation and travel had been due to a NDA decision that oversight and monitoring visits to projects would be conducted. The NDA had spent a lot of money on catering for each meeting that it had. After consultation, it was decided that catering would be provided only if the NDA received guests.

Mr Mokate added that the NDA had spent a lot of money on cleaning services when it was still based at its previous head office, as it was a very old building. The NDA had since moved to a newer, modern building that drastically cut down on cleaning expenditure.

Mr Masutha asked why the NDA had not funds earmarked by the Independent Development Trust (IDT).

Mr Mokate replied that the funds earmarked by the IDT was an establishment fund that could only be utilised if the Board gave their permission

Mr Schippers said that the Annual Report mentioned that the NDA would undergo organisational transformation. He asked how far this process was and whether the concept of the NDA had been modelled on international best practice. He also asked how accessible the NDA was and how the public accessed these funds.

He added that one worried about the deep rural as many people and organisations were experiencing capacity problems that impeded on their ability to manage food gardens and other development initiatives.

Mr Masutha said that the CEO of the NDA had not commented on its relationship with the Development Unit that was situated within the DSD. He also asked whether the German Exchange Programme (GEP) had yielded any successes.

Mr Mokate replied that the NDA model was very unique as South Africa was the only country that had such an initiative. The NDA had received several requests from other countries who wanted to copy the NDA model. The NDA wanted to ‘sell’ the concept to as many countries as possible.

He added that in terms of the GEP, many successes in the Eastern and Western Cape had been yielded as the Eastern Cape now had a direct relationship with the German Bundestadt, Mercedes Benz and BMW whereas a research project on HIV/AIDS and other issues had been implemented at UCT.

Mr Mthembi noted that the NDA employed development workers in all nine provinces that linked their work with structures at district level, as well as municipal and provincial level. Commuinty Based Organisations (CBOs) and NGOs had the contact details of the NDA and it had received numerous requests for funding. The NDA had a capacity building programme for these organisations and it had provided technical skills to communities who had food gardens in the rural areas. The majority of the funds that the NDA granted had gone towards community development initiatives in the rural areas, which were administered by women and unemployed youth.

Mr Ncube commented on the organisational transformation question and said that the NDA had received very bad press in the past due to organisational difficulties, but that this had all ceased, as the organisational transformation initiative had been a success. The only problems the NDA had experienced so far were considered to be normal of any large organisation.

Mr Mokate added that most of the NDA programmes happened in rural areas where the emphasis was placed on agricultural development. In the light of this, the NDA had very close working relations with the Departments of Land Affairs (DLA) and Agriculture (DoA) and municipalities.

Mr Dangor said that over the past two years the DSD had supported the NDA and there had to be strategic realignment of programmes and the optimum usage of various structures.

Dr Kganaka said that the DSD worked very closely with the Department of Education as well as the Department of Health.

Meeting concluded.