4.110 COMPLIANCE WITH PAYIMENT CARD INDUSTRY STANDARDS (€.6. PC DSS} | SASS undestles 3 Ingourecntain payment functions over time t must e abe to ‘Comply to the Payment Card tnustry ata Securty Standards (PC DSS), Europa, Vise, ‘MasterCard EN) Payment Stondard and Blometic Standards the same way banks re reauled to and ssuhreuies SASSA orp its capa inthis area of expertise. ALLL ACHIEVING STRATEGIC DATA OWNERSHIP FOR SASSA In onde or SAA oben rom i gal amerhip of data, must provide the necesary instruct, hestngerironment and support personnel management to own and ‘onsumeallthe Benefioryreltd data na secure and cost effective manne. 4432 VALUE CHAIN otvensietCATION [tthe heart of SASS statagy ito dry the vale chain that wal empower the SASSA fant payment funtion to reach further and extend ts service and Alternative ayPoint inrastractre to broader bse of demands 443 SASSA SUPPLY CHAIN MANAGEMENT READINESS [tthe heart of SASEA readiness ithe requirement to provide anew operations capacity ‘Supply Chin Management function n SASSA to ensure that the new Sevce providers can Ie managed an aceon eectve way. 4.2 REMAINING CHALLENGES ‘The above SASSAStraeplc Gals and Objectives conine toe faced wih changes the most salt on bine thi inorder for SASS to bene rm the change inthe way serve provisers and tanks wil prove banking and payment servis, SASSA has to undergo series of structural hanger in the way it conducts business ad needs to achieve aleve of readiness in capably ané Capecty terms without whieh no meaningll charge wl be posible. SASSA wis port ofthe froposed change programme undertake» series of recommend people, process and techoony ‘Changes address this chabenge, This approach is icssed further nthe section below.ERLE “The brogramimes below have been develope to both ensure the delvery and enhance the “7” even deverables reported tothe Cnourt~golngboyond these deliverables o deve alaspcts ‘fa SASS readiness programe fo ensure the best posible outomes in suppor of an improved Sci sistance copabity thn SASSA ais future partner eco-system In section 7 below we then report os requested onthe current progress and status ofthese programmes taking back to the7'seven deliverables 5.1. SASSA READINESS PROGRAMME ty tag nt acount the Stage SASSA Requirements & Business Value Sought, SASS should ‘mbork on 8 ramiber of programmes to prepare th otansation fr is new strates role ane pataton inthe barking ar payment vac HEL umn 1 Fei EE 1 aa ~- | Suu SS, a | Sad DATA SERVICE INTEGRATION PROGRAMIME: ‘This progzemene wll ensure that all futare data ownership issues that have constrained SSSA onze of the Gant Paymen: envionment are addressed and managed to» postive outcome and vantage for SASSA. Figure? depicts the chalnge of migrating dts fm mule environments 19 ‘newly hosted data cetre/seie environment 10542 IDENTITY & ACCESS MANAGEMENT PROGRAMME: ‘This programme wil ensre hit acute and future information systoms for grant administration and payments ae secure and wil Incude metic acess control to systems that wil significantly ree fraud ad eyberrin, 542 FRAUD, RISK & CYBER ASSURANCE PROGRAMME: This programme together wit the previous programme wit ensure that Benefciries, SASSA Offi and service providers operate na transparent and accountable manner that redues Kau, Fal and eber lnm invohing people, processes and systems. Figure 4 below Hstrates the ‘chalenge of an integrted appcac: aPerr => Fiewe 5 above dicts the cellenge of» Web Enabled Patform for trastoning fom lescy ‘ystems towards a ature state integrated grant adminisation and payment platform wheat the fame tine broodening the acess to systems to new partners and stlehoiers in a secre srcountable manner, 5.5 BIOMETRIC ENROLMENT PROGRAMME: ‘that wil alow SASSA 10 reduce coststndalone Blometie Scanner _t cue Ticket Prater | eepton cue Site oa eskssaty Somatic ‘sup Scanner + FlatedScanner smmmmmimme—| Fromomce opr eta sonaue Pas ro Prine = aa = “Application emeticcas a 4] ‘ender Figure 6 describes how benicar wl interact wth SASS nthe planed ute to enoy the ons Sto service counter tat proves to improve the quaty of benefary experiance the ap for 4 ont ad ecelve their parent card atone des, witha much quicker turnaround hat ofminates Current problems with ues a tne pent by benefidaries mn SASEA oes ‘This diagram describes how the new interaction wil eg at step (1) where the grant applicant vi approach a meet and pret desk where they wl dent themselves biometry and 2} receive 3 ue tc that willbe splayed onan auc sul pay). At stp (the applicant wi have hei fut tof elgts Domenie ateed an (5) any supporting documentation dgtaly teanned at pat ofe ase menogementfunton/pocess ofthe panned grant administration and payment stem, The results ofthis apication wil be sgn a stp (6) ona egal signature pad and the rests of the applation pred forthe applicant te hold (7) the appcatlon Is epproves the SASSA service desk oper then inalses and provisions the rew Grant Payment Card to the 14bneiary (8) as prt of proses it wil perform wth the elp of @ payment service provider and sponsoring bank, 5:15 INTEGRATED CUSTOMER CARE & SUPPORT PROGRAMME: ‘he heart of SSSA stintepclntnt tore control ofthe benef elationship is the nee to Integrate the call centres on the SASSA and Sence Provider ses into one managed function Capable of handing sl eustoner queries Wa one sng telephone number or st any sevice desk tine. This programme wl neue that phased anstona approach taken ln which over time SASA wltke ove the fl futon over tine ene) Pana Pe Sire | “es one Sop Reson ot Gn miner & Poymer Guster a | 5:1 NEW IMPROVED PROCESS PROGRAMME: ‘his prograrime wil usher in new ra of Socal Azsstnce Serle Delvry ncudng 3 “one sop" tervic desk that wil admins grant apoiations and issue payment cards in less me and at a reduced cost ove the med term prod. 5:8 ALTERNATIVE PAYPOINT PROGRAMME “rs prgramme wi ntoduce new atertvePayPint options and capably that wil hers he ymert vl chia te invoice new partner eco-setems tat Improve the each of SASS while promoting les economic development and employment 1854.9 SUPPLY CHAIN MANAGEMENT RFAMINESS PROGRAMME: This programme i to ensue tat the supply chaln management function of SASSA sendy to meet the new chalengs of working with arse payment pares Including merchents and! motile pymant serie erules ‘The above progranimes wil enable SASSA to reale the Benefits of te Banking and Payments rosemme ad wansorm teSASSA grant administration to an negated vale chain as stated tow i figure 18 and 1-¢ tha wit ve sgnfcant return on investrint as eeasnaly SASSA can do more with ost. AL aneiacuinss inky port ofthe realness programme ale icles how SASS wi partner wth te banking snd peyments dustry to deere word Clas grant administration and payment service where 2s SASSA owes the gals te ave readiness programmes, soit wins transtionl manner tke on ey oretionsof banking and parent series ~these ave described below 16624 NEW BANKING PARTHER “The banking partner wilave art relationship wit SASSA with Rs own SUA attached to that. he tenting gortner lb response fr tat ard SASS hlding acount, beneflry banking zecout ‘suing, Henefiery banking count manegement, benefcery booking account management authorization, reconiation and setement ‘The SASSA grant funds should yo iret tothe SAA banking parnec and tay there una gro Aitharevn. The Banking partes wil be responsible for 2 tlormade SASS Banking eeount tat Should be eacadd fom any deductions, ess sling of products end should ge SASSA an any tine aces nt the acount. nc the new baking partners ey for production the existing SASSA cards shou be migrated te the new baking prtner accounts without the necessity of new ccd re-ssunce 461.2 NEW CASH DISTRIBUTION AND PAY-POINT MANAGEMENT New Cash Dstibutin and Parpoitt Management service provider that asthe ay to acauite SAGEA branded card ino the new SASSA aqui restructure. Tey wl be response for the “Gstbutton of eash othe alotted cash pay pons, management ofthe infastuctre and sey, management ofthe aun devices pd take fl kof he cash management 61.3 MEW CARD BUREAU (CARD BODY PRODUCTION AND DISTRIBUTION) SASS relationship with Card Bureau for Caré Body Production and Distribution, This wil ensure SASSA can gate optimal ping and ful stock management and contol ofthe SASSA Kuo ‘ar. Wh his roatinship SASSA ca lo deat the cad design chip ste and appkstions onthe SAsSA smart ca 614 NEW ACQUIRING INFRASTRUCTURE Sass capi tose up thet own aug nfastracture and merchant networks. This wil aw Sasoato have multiple merchant stwark providers ach wih tei ov SLA and apabies. Test merchant near can then be used inthe new SASSA ned alternative po pln 6:15 NEW BIOMETRIC PROOF OF LIFE SYSTEM ‘the new biometric proof aie proposal sto remave the dependency ona transaction todo «prt tte, New technology can alow SASSAto implement strategy plsced lometsc Proof of ie (devices These devices shoul be standalone devesn ASSA ay points, SASSA oes, near ihiy scoured ATM aetworks et Seneidries can then use tesa devices togetier wih their card on 2 anor bases or when SSSA require to provide proof of Ife vi biomewcs. This roof can then te ienrprated the wat sing process wahout the nace for» lnm enhanced 6:16 NEW SASSA CARO LAB FOR TESTING AND CERTIFICATION SERVICES ‘With al the new technolo and busines funtion in SASSA control, SASSA shoud bus the In owe capably for suppor. This shoud abo be use for future product development nd upsiing wvoftheir interna tft. Tis wit remove the dependency on a third-party spl to prove this ‘thou measurement “This progrome wit ultimate result nthe prolong of @ new SASSA payment car that wi Ince strategie new capabitincidn Separation of Payment Card & Account Provider [EAS contalod Spell Account with SASSA Account Query & Withdrawal Rights Special Accost that does nt allow Deductions ‘Separate Cath Bspensation& Payolnt Service Provides (explore SAPO capably) Control of Merchants (Payment Partners) Separate Cad-bty Production & Ostibutin (explore GPW capably) ey iestones fr tl programe nce: ‘he date the fiat New SASSA Card sued Factoring ne fuziness Continuity bor Fest Phose ef integrated Grant ministration 8 Payrent Value Chain 18&y ‘annexure D Key Milestone & Procurement Roadmap “The follwing etivies and dates have beon st fr this ‘vertzement of Flin Goverment Tender Bultin Distrbition of RF document SSSA website and advertisement newspapers {Compulsory Biefing eon F1Submisin losing Date Requests for resentation [RF Dlesrinaton& RFP Compilation ‘December 2016, ‘9 December 2016, 8° enuary2017 10" February 2017 208 February 2017 0" arch 2017 “The following octvites and dates have been set for the RFP taklng nt secount the potential for multiple swore potently Le 35 arch 2017 FP Complon,Spelicaten Committee & BAC Approval [Aderiserent of REP in Goverment Teer Buti Distruron of RF dacumerts on SASSA website and aversement in newspapers Compulory Being sexton Quastions ‘Questions eating to RF? rem prospective Respondents Answered AFP Submision Cling Date [FP cash itibtlon& Payment Serves Awarded IP Banking & Payment Service Awarded FP Cash Bstrtion & Payment ences SA Sled vP banking & Payment Service Awardee SLAs Sened Key Post rocorement Att: iat Hew C3 Rallou Date “argt for 40.50% New Cares Rolled out Potetial Request for CPS Extension based on new Supper progress “Forget for Ful P5 Legacy Crd Replacement 7 Mateh 2057 Moreh 2017 24° March 2017 28 arch 2017 2a apr 2017 6 sune 2017 308 June 2017 uly 2017 1 august 2057 YNowembor 2017, Pune 2018, Phun 2018, December 2018“ANNEXURE € co o6/17 4. Feb 2017: Negation anne terms of engagement wth CPSs Mow 2017) neu “+ Payment Fle managetentprocsso prove controls on deductions {loner data management handover to SASSA + enfiry data management and transfer to SASSA Caeetre negation na customer care Improvement Grant payment reconctiion Serve fee ‘SUA Aajstment Agreement 2. Request for norman) was undertaken to gan feedback nd allnment withthe banking ‘nd payment industry RF Submision due onthe 10" of Februar and a team of expert re ready to diseminate the esse veily the commercial billy an cost effectivenes ofthe current Icitectore and integration sate, This willbe ued to further enhance our FP forthe proposed ew Grant Adminstration & Payment Services Mode Maren 200 “+ RF1Oisseminaion & A Compilation wil be completed (by Md March 2017 & Spctestion Commitee & BAC Apna chewed fy mid March 2037 andthe RFP wil be advertised in ‘Government Tender Blain (by ed of March 2017), ‘+ Full payment coninuty wil be achieved th NO dlsruptions or elated rks a5 CPS 1s nested with prtne'stoprovie 9 busines continuity and CPS phase out function stbject to the newly ajusted arargerent and SL 1 AFP Submision Casrg Gate wil be onthe 28th Ap 2047 a which point SASSA with the ‘uppor of being ad payment experts willegin he process of technical nd comerco ‘uation and selection reciting in the ewerdng of one or more service providers inelacine= 1 ACash osuibuton& Payment Serie tobe awarded by mid-June 2017 {Banking & Payment Sences tebe awarded by end of une 2017 ans ‘+ Inquarter2, dette SLAs willbe completed with one or mare suppers follows: 1 RFP Cath Dstebution & Payment Services SLA Signe by end of iy 2017 (RFP Bankng & Payment Serves Awarded SAS Signed by m-Augist 2017 as 2007/18 + tnqurtr tre the iat Hew SASSA Payment Card wilb ole out wth the new aking ad payment processes require by SASSA by eaty Noverbes 2017) 1+ msupport of th ew card that SSSA wl issu wth new partners the fist phases and ‘ersions of supporting SASSA capably (new people process and technology wil be io piace ~inlag(Wel enabie plac that integrates ein and new SASEA systems or improved siminrtion nd improved benicar experience 1 Supporting Dat Serie integration apd transfer of ownership and management {SASS ube a place (Systm User nity & Rees Conta fr currant an future SASSA systems wl be rolled ot natinwade © SASSA Manage Henefiary Blometre Enrolment capability wil be up and ‘uring apart of te new improved ran administration and payment process. ‘© Integrated, ik and Gjber Assurance platform wil bein place wth the necessary tegration othe national ber conte another stakehaldes- (© Integratedcustomer Car Suppor capability wil be m place hat empowers SASSA to tae fll nership of Benefidary malntenance and management. ‘© New improved Grant Adminstration ané Payment sem version 3} wil be ve and rolled oot to designated SASS offen (Pet projet ~offering a Sinfient improved “one stop” serie delivery function. ‘6 Alternative py points witha bee instal at 2 number of designated plot Sites where ew level of tural each ad payment inoratin floc scoreic development willbe achieves, Supply Chin Management proceets and syst improvements including 2 new Merchant management system willbe place, allowing SASS to improve Carmine ne performance at erent and itredesigated pe pons 2 2018/18 yea une 2018s expected that between 4-508 of New SSSA Parent Card wl eral out, Ini based on this plang assumption that a deal plan wl be nego forthe "steequent pave ou of CPS in ths period commensurate wth the prowess ofthe new service provider asin SASSA with the rollout ofthe new card cs poignis It isaminate tat subject to planed oprations 2 new suppl wi have achieved the target for Full segacy Crd Replacement atthe end of G4 208/29 facoes ina praéen 6 month contingency andl could therefore take place as early as end of 2 ou,zs national treasury S Se _ QQ Baer om ume et aa Me Thokozani Magwaza Chief Executve Ofer South Acan Social Seovty Agency Pate Bag X85062 PRETORIA 001 Dear Me Magwaza PROCUREMENT OF THE SOCIAL GRANT PAYMENT SERVICES BEYOND 31 MARCH 2017 1. ‘The Notions! Treasury atknowteages receipt of you ltr date C7 Februay 2017 2. The lator requests the approval of extension or existing contract with Cash Paymaster ‘Beacoe eed to heron as CPS) fo pay soil payrent asistence berets, The iil Sele’ R bea por beneolry fr te catract ending on 21 March 2017. The new proposed ‘ate pemeen R22 and R25 per bene for a prod ol eghten months |The request for extension was approved by the Chief Executive Oficeron 07 February 2017 ‘4 The reaton provided fr this extension is thatthe curent contact wil expe on 31 March Freee Sens nat ‘oad Yo take over he payment function tm CPS upon the expiry of the contact as inal erisaped. 15, The reason to extend ths invalid conract eno usable. Requesting National Treasury to ete"S conan at was declared vad by the highest court wil not ony be seen 3 een chant tha jude! sytem but may farther bo seen as perpetuating ho egal enc Uincdasttutena’ actions reprimanded by te Nighest court in the land, GASSA should have aac vation fo aavertsa 2 ew tender for @ she period in December 2016 o ety STahwary 201 ovo a solfreaed emergency 5. National Treasuy doesnot support the extension ofthe invalid contact, Natonal Treasury Na bay ‘support ine extent fesmetorms and condone. being appleable) i the (renstctiona Sa wt hor extend the suspension of inva beyond 31 Maren 2017 71 Your Inston has an obigation to ensure that any contract for geads and sank is in yeScdance wih a eyetom whi Is fa, equtabl, Wansparent, compalive and coe ffectve Kd regards, reaaasa ‘SHEP DIRECTOR. SOM GOVERNANCE, MONITORING AND COMPLANGE owe: BL faxe