Central Deduction Administration System

About DataNet _______________________________________

DateNet is a dynamic IT Solution Provider having operations in Lesotho, South Africa, Swaziland, Australia, Singapore, and Bangladesh. DataNet specialises in combining cutting-edge technology with proven business expertise to provide our clients with turn-key service solutions – innovative combinations of software, hardware, training and people that deliver tremendous impact on a client’s business.

DataNet’s strength lies in its ability to integrate a wide range of services into a single, simple package tailored to each client’s needs. This package can include any or all of business analysis, software design and development, hardware and communications solution design, procurement, training, technical & helpdesk support, data-entry staff and customer-service staff.

DataNet is an experienced systems developer to manage third party transactions, having developed and implemented a very successful Central Deductions Administration System (CDAS) for the Government of Swaziland and also for Botusafe, Botswana.

CDAS Background _______________________________________

Without a system like CDAS, Governments experience significant issues around payroll deductions. Without a mechanism for checking deductions in advance, many staff over-committed their deductions, and Government was left with claims that exceeded the maximum amount that could legally be deducted from a civil servant’s salary. Financial services companies and micro-lenders also suffered, with claims for payroll deductions often being rejected, and lenders unable to recover loan amounts. This manual system of payroll deductions placed a huge administrative burden on Government, and resulted in numerous disputes with civil servants and financial institutions.

CDAS Solution _______________________________________

DataNet’s CDAS solution has completely resolved all of these problems. The system gives financial services companies and micro-lenders 24-hour live web-based access to a credit-checking facility, so that financial institutions can see how much of a staff member’s salary is available for deduction, and it includes a range of checks and blocks that prevent them from making deductions that exceed Government limits. The system includes live read-only links to Government’s payroll software, so the information it provides is always accurate up-to-the-second. It also provides a range of other facilities and reports to assist Government and financial institutions.

The CDAS system is provided to Governments as a whole-service solution, in which all transactions are fully managed by DataNet. Government no longer needs to make individual payments to numerous financial institutions – DataNet consolidates all of their requirements into a single monthly payment, and then distributes this amongst financial institutions on behalf of Government. The system has dramatically reduced the burden of payroll administration, and at no cost to Government. (The system is funded by a small levy on the deductions as they are passed onto financial institutions.)

CDAS Benefits _________________________________________
For Financial Institutions
  • Loan requests can be checked with requester’s current credit status in real time.
  • Loans can be disbursed with full assurance that repayment through deduction will not breach the Employment Act limits.
  • Loans can be disbursed with reasonable assurance that deductions will be successful.
  • Customer satisfaction increased by ability to respond quickly to borrowing requests.
  • Deductions are transmitted to the institution quickly and with full explanation.
For Government
  • CDAS dramatically reduced the burden of payroll administration and at no cost to the government.
  • No staff time needed for manual and error-prone calculations, and for reconciliations with institutions.
  • CDAS incorporates extremely strong security measures, including a secure server, strong password control, and encryption of all data. The system even has the ability to incorporate photographs of government staff, so that civil servants are protected from fraudulent use of their names.
  • No chance of violating the Employment Act.
For Employees
  • Third-party deductions from salary will not be over one-third of the basic salary.
  • CDAS assists over-indebted employees to restructure their debt and becomes debt-free.
  • Responsible borrowing is easily and quickly approved by the financial institutions.

DataNet’s CDAS solution has been warmly welcomed everywhere including Botswana and Swaziland, and is considered a huge success by all stakeholders. It gives financial institutions peace of mind when making loans or other arrangements, gives civil servants certainty around their salary and deductions, and removes a huge administrative burden from Government.