Background

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INTRODUCTION

• Background
• Statistics
• Geographical Area
• Contractual Obligations
• Challenges
• Addressing the Challenges

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BACKGROUND

• Empilweni Payout Services has secured a Contract
  with the Mpumalanga Government to pay out Social
  Development Grants in cash.
• This exclusively black owned company has been in
  operation for the past 8 months after taking over
  the contract from an former contractor.

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STATISTICS

• We started with 126 000 beneficiaries in December
  2000 paying to the value of R 60 000 000
• After 8 months of being in operation we are now
  paying 180 000 beneficiaries to the value of R
  80 000 000 per month
• That represents a growth rate of 40
• 247 Pay points are paid monthly
• 70 Has water
• 65 Has toilets
• 55 Has shelters
• Pay point ranging in size from 100 to as many as
  3400 Beneficiaries
• Servicing 18 Districts within 3 Government
  Regions (Highveld, Eastern Highveld and the
  Lowveld)
• Empilweni is a Black Empowerment Group
• Crime
• 38 CIT Heists during the year 2000
• The number has increased to as much 37 heists
  for this year
• 4 CIT Heists (Only one was successful)
• Geographical area

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GEOGRAPHICAL AREA
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CONTRACTUAL OBLIGATIONS

• Payment
• No more than a 1000 beneficiaries per pay point
• Pay between 07H00 and 16H00
• All new Pay Points should provide all the basic
  facilities
• Water, Toilets and Shelter
• Safety of Beneficiaries
• Payment should be concluded within the first 13
  day of the month
• Reconciliation should be done within the first 15
  days
• Secure Government funds through proper security
  protocols

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CONTRACTUAL OBLIGATION

• Enrolment
• Capturing of 10 digital biometric prints
• Capture digital passport size photograph
• Use enrolment database to authenticate
  beneficiaries for payment
• Do ongoing Enrolment

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CHALENGES

• The 40 growth factor in terms beneficiaries (2
  current growth per month)
• Introduction of new grants by the department (CSG
  Care Dependence)
• Geographical area
• Crime in the province (Many neighboring borders)
• The future Norm and Standards to be introduced by
  the Department
• Facilities at pay points
• Queuing durations at the pay points
• Fraud and corruption within the border aspect
• The risk element of carrying large amounts of
  cash over great distances due to the oversized
  pay points

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ADDRESSING CHALLENGES

• After studying the overall challenge we as
  company presented the following solutions to the
  Provincial Government. It was approved and we
  are now in the implementation face.  
• We have taken the biggest routes in the province
  and spit them in half.
• Thus a route that used to be paid over 13 days
  will now be split in half.
• The first 7 days now becomes 13 days and the last
  6 days now also becomes 13 days. Thus
  reducing the number of beneficiaries to be paid
  per day by half.
• This allows as to now start later and finish
  earlier. (Inline with the new Norms Standards)
• The amount of cash carried is cut in half
  limiting the overall risk.
• The smaller number of people at the pay points
  now decreases the need and use of facilities like
  water, shelter and toilets.
• Smaller pay sites means we can now by involving
  other stakeholders look for better developed
  locations for payment.
• With the smaller number of beneficiaries we can
  now divide every day in to periods.

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ADDRRESING THE CHALLENGES

• We will then allocate grantees to the periods.
• This will ensure that no person queues for longer
  than 2 hour since the periods will only be 2
  hours long.
• We can easier attend to the needs of the aged in
  this way and the risk of death at the pay point
  in largely minimized.
• Portable workstations will be introduced to
  service the elderly in community halls and other
  formal structures where shelter is available.
• These portable workstations will ensure that we
  do not pay more than 350 beneficiaries per
  workstation.
• With this solution we will be paying less than
  1000 beneficiaries per site as foresaid.
• The labour induced by both the payment operator
  and the payment equipment will now be largely
  reduced solving the overlabouring of the
  equipment, which caused a lot of technical
  problems in the past.
• Payment operators will also spend less time
  working on the system per day thus allowing them
  to be more alert when they engage in payment.
• The new structure allows as to have more mobile
  units available for use in the smaller pay
  routes, providing a total solution (Not only for
  one region).

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QUESTIONS