These include outdated legal framework, fraud and corruption, and apathetic staff members.
In a frank and open discussion, newly appointed acting Chief Master of the High Court, Kalayvani Pillay, acknowledged that the Masters’ Offices have been a burning platform, severely affecting service delivery and the lives of ordinary people.
Deficiencies in these 16 offices have impacted the economy and disproportionately affected marginalised communities, she told delegates at the 15th Annual Conference of the Fiduciary Institute of Southern Africa (Fisa).
Pillay noted that the outdated legal framework under which the Masters’ Offices operate has set the scene for how the offices are structured and operate. “The legal framework does not meet the demands of our post-democratic and constitutional state.”
The Masters’ Office is responsible for administering several pieces of legislation, most of them dating pre-1994. The Companies Act is the only post-1994 act.
The Master’s functions include the administration of deceased estates and insolvent persons, the protection of the interests of minors and legally incapacitated persons, the supervision of the administration of companies and close corporations, the Estate Duty Act, the Trust Property Control Act, and the appointment of executors, trustees, curators and liquidators.
ALSO READ: Master’s offices left rudderless due to lack of … masters
The challenges
Many of the challenges facing the Masters’ Offices are well known and include fraud and corruption, a largely paper-based system, and a lack of proper infrastructure and resources.
A burning issue throughout the Department of Justice, in which the Masters’ Offices are situated, is a broken and outdated information and communication technology system.
The public and professionals dealing with the Masters’ Offices are faced with systems that are down for days on end, printers that are either broken or without paper, offices without power, water or working elevators, and disengaged staff members.
“The mostly paper-based system leads to the loss of records, the incorrect storage of information, the inability to find records, and the challenge with fraud and corruption, where records are easily manufactured and changed according to who wants to beat or cheat the system,” says Pillay.
However, it is not only the Masters’ Offices that have been blamed for the problems, particularly with the winding up of deceased and insolvent estates.
There has also been finger pointing at the Government Printing Works, the Department of Home Affairs, the Department of Justice (which oversees the Masters’ Offices), the South African Revenue Service (Sars), and commercial banks for their role in causing delays.
ALSO READ: The winding up of estates in SA is in shambles
Streamlined process
A major challenge is the fact that 70% of all the estates the Masters’ Offices deal with are administered under section 18(3) of the Administration of Estates Act. This means the value of the estate is less than R250 000 and is supposed to follow a “streamlined” process.
The Masters’ Office can appoint a representative or it can issue a letter of authority, allowing someone else – often a family member – to administer the estate. It is only then that the representative can pay off any debts or distribute any assets.
“Families are waiting at the Masters’ Offices to get a letter of authority to claim the funeral benefits, only to be told that the systems are down and they must come back,” remarks Pillay.
People are forced to sleep at the offices because they have travelled far from rural areas and cannot afford to return home and come back at a later date.
Moneyweb previously reported on a family who waited more than four months for a letter of authority from the Master’s Office to wind up an estate worth R15 000. The repeated response received by a family member was that the office would be in touch “within five to seven working days.”
ALSO READ: 2-hour lunch breaks at Master’s Office: Justice department to conduct random spot checks
The solutions
Pillay says they are in discussions with the Project Management Office in the Presidency and National Treasury to increase the section 18(3) threshold.
Pillay also wants to see a direct link between the modernisation and digitisation of the Masters’ Offices and improved service delivery.
“We need to root out the indifference to deadlines. We must move to a place where complaints are dealt with speedily, and, most importantly, the staff needs to show empathy.”
She admits that staff members are working under strenuous conditions, and are daily being faced with complaining members of the public and the fiduciary fraternity. This leaves many jaded and apathetic.
Some offices are in an appalling condition, the space is often inadequate, and leases are not renewed – resulting in buildings not being maintained. “We need to support our people. It is as important as fixing our systems. We need to create an enabling environment.”
Batting for Justice Minister Mmamoloko Kubayi, Pillay says she inherited a “broken system” and is doing everything in her power to fix it. They have met with Sars, and are collaborating with other stakeholders – such as Fisa – on ways to implement effective systems to create an efficient state entity.
This article was republished from Moneyweb. Read the original here.
