1. 1 ANNUAL REPORT OF THE PUBLIC SERVICE COMMISSION 2002/2003 PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION 30 JANUARY 2004

2. 2 PROGRAMME 1 ADMINISTRATION AIM: Responsible for the overall management of the office

3. 3 INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2003 Revenue R’0002002/032001/02 Voted Funds57 97154 013 Other revenue238376 Total58 20954 389

4. 4 INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2003 Expenditure R’0002002/03%2001/02% Personnel43 7637638 99374 Administrative8 095148 40816 Inventory1 36231 3402 Equipment97528842 Prof & Spec Services3 04652 4355 Authorised Losses187-6821 Total57 42810052 742100

5. 5 INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2003 Net Surplus R’0002002/032001/02 Net Surplus7811 647 Made up as follows: Voted funds surrendered543 (1%) 1 271 (2%) Revenue surrendered238376

6. 6 REPORT OF THE AUDIT COMMITTEE FOR THE YEAR ENDED 31 MARCH 2003  Met once during the period under review  Outsourcing of the internal audit function  Improvements on internal controls and the asset management policy operationalised  Focus on ongoing education and awareness to staff of fraud prevention plan  Writing-off of long outstanding items, such as debts and losses in terms of the Policy of Management of Debt  Noted improvement on spending patterns

7. 7 MANAGEMENT REPORT FOR THE YEAR ENDED 31 MARCH 2003  Surplus reduced from 2% in 2001/02 to 1% in 2002/03  Capacity constraints  New or Proposed activities  Donor funds  Corporate Governance Arrangements  Events after the Accounting Date  Functioning of the Audit Committee

8. 8 REPORT OF THE AUDITOR-GENERAL FOR THE YEAR ENDED 31 MARCH 2003  Unqualified report  Emphasis of matter with regard to the effective functioning of the Audit Committee and the reconstitution of a new Committee

9. 9 HUMAN RESOURCES MANAGEMENT REPORT FOR THE YEAR ENDED 31 MARCH 2003  All SMS posts evaluated  Overall staff turnover rate 10.4%  Formulation of Human Resource Policies  No officials on precautionary suspensions  7 grievances lodged and were all resolved

10. 10 HUMAN RESOURCES MANAGEMENT REPORT FOR THE YEAR ENDED 31 MARCH 2003 GenderLevel 1-89-1213-16Total Male30 (16%) 38 (20%) 26 (14%) 94 (50%) Female66 (35%) 16 (9%) 10 (5%) 92 (49%) Disabled1 (1%) 001 (1%) Total97 (52%) 54 (29%) 36 (19%) 187 (100%)

11. 11 HUMAN RESOURCES MANAGEMENT REPORT FOR THE YEAR ENDED 31 MARCH 2003 LevelAfricanColouredsIndiansWhitesTotal 01 to 0865 (35%) 8 (4%) 3 (2%) 21 (11%) 97 (52%) 09 to 1236 (19%) 5 (3%) 0 (0%) 13 (7%) 54 (29%) 13 to 1622 (12%) 2 (1%) 5 (2%) 7 (4%) 36 (19%) Total123 (66%) 15 (8%) 8 (4%) 41 (22%) 187 (100%)

12. 12 PROGRAMME 2 HUMAN RESOURCES MANAGEMENT AND LABOUR RELATIONS AIM: To ensure that human resources and labour relations are managed in compliance with constitutional values and principles and the transformation policies of government.

13. 13 LABOUR RELATIONS OBJECTIVES  To investigate grievances and complaints lodged by public servants and recommend appropriate remedies.  To conduct investigations into complaints relating to the application of personnel and public administration.  To conduct research on issues related to sound human resource personnel practices in the Public Service SUB-PROGRAMME The PSC endeavored to provide a focused analysis of the field of labour relations through important concepts, issues and advise on best practice.

14. 14 RULES DRAFTED BY THE COMMISSION  Grievance Rules were drafted by the Commission in terms of the provisions of section 11 of the Public Service Commission Act, 1997.  To provide for a speedy and fair procedure for dealing with grievances of employees.  After a lengthy delay these rules have been adopted by the PSCBC on 27 March 2003 as the new grievance rules of the Public Service and came into operation 19 September 2003.  Complaints rules were published in the Government Gazette on 19 July 2002 in all the eleven official languages.  The rules provide a procedure for the Public to lodge complaints with the Commission.  Brochures to sensitise the public to lodge complaints were also printed in all the eleven official languages.

15. 15 HANDLING OF GRIEVANCES IN TERMS OF PRESCRIBED GRIEVANCE PROCEDURE  The Commission is empowered to investigate grievances of public servants and to make recommendations to the relevant executing authority.  Grievances are lodged with the Commission in terms of section 35 of the Public Service Act, 1994.  During the period under discussion the Commission considered the merits of 29 grievances, of which 13 were found to be substantiated.  The Commission referred 34 grievances to the departments, as they were not dealt with in terms of the prescribed grievance procedure, or were lodged by former employees, and the Commission subsequently had no jurisdiction to consider same.  During the reporting period 24% of the grievances were lodged by females and 76% by males.

16. 16  Every six months a report is submitted to the Commission with regard to the extent that departments implement the recommendations made on grievances.  Follow-ups are made with departments two months after the recommendations was made.  Of the 13 grievance recommendations followed- up 8 were implemented and 2 were not implemented by the relevant department due to policy considerations. MONITORING THE IMPLEMENTATION OF THE COMMISSION’S RECOMMENDATIONS

17. 17  Investigation into allegations of corruption at the Department of Public Enterprises.  Investigation in the Department of Economic Development and Tourism: North West.  Investigation into the Department of Justice and Constitutional Development, Regional Office :Free State. MONITORING AND EVALUATING PERSONNEL AND PUBLIC ADMINISTRATION PRACTICES BY MEANS OF AD HOC REQUESTS. The following investigations were undertaken and reports compiled:

18. 18  An analysis of the information received through questionnaires and interviews conducted with role players were done. The report is in the process of being finalised.  The following were the preliminary findings:  The labour relations officers are involved in managerial functions, such as disciplinary hearings, when they are supposed to be advisers.  They are not given enough latitude to take decisions for purposes of collective bargaining.  There appears to be a lack of communication with senior management.  They do not attend senior management meetings, where they could make valuable contributions as regards sound labour relations.  The role of labour relations officers are viewed with scepticism by employees as they are seen as selling out to the employer. ASSESSING THE ROLE OF LABOUR RELATIONS OFFICERS

19. 19  A database on cases reported to the Commission in terms of the PFMA has been developed and is being maintained.  A report was drafted containing the following findings:  A total of 434 cases were reported, of which the majority are from the Departments of Defence, Labour and Home Affairs.  The majority of the cases related to fraud, theft, misuse of government property and negligence.  The sanction imposed in 51% of the cases was dismissal. REPORTING ON THE OUTCOME OF DISCIPLINARY PROCEEDINGS IN CASES OF FINANCIAL MISCONDUCT.

20. 20 SUB-PROGRAMME OBJECTIVES  To promote Affirmative Action, Equity and Representativeness.  To ensure that human resources in the Public Service are managed in complaince with contitutional values and principles and the transformation policies of government.  To provide best practices regarding human resources management and development. HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT

21. 21 VERIFICATION OF QUALIFICATIONS OF MIDDLE MANAGERS (LEVELS 11 – 12, DEPUTY DIRECTORS) IN THE PUBLIC SERVICE  The qualifications of 8123 middle managers were verified and profiled in terms of study direction, race and gender. This provides useful information for HR planning.  It was found that middle managers are well qualified holding an average of 1,9 post-matric qualifications.  No cases of misrepresentation were discovered.

22. 22  Report has been finalised and the study found that departments place more emphasis on compliance with the system rather than its ability to promote transformation and service delivery.  It was found that designated implementers are most often at levels too low within the organisation, to ensure effective implementation.  Many departments do not have clear policy on performance management systems, which makes effective management of staff and programmes difficult.  Still needs to be links between strategic objectives of dependants and individual performance. EVALUATION OF THE MANAGEMENT OF PERFORMANCE MANAGEMENT SYSTEMS

23. 23 MANAGEMENT OF DISCIPLINE IN THE PUBLIC SERVICE.  The study found that whilst the Disciplinary Code as a framework is effective, the interpretation and application is problematic. This is seen in the uneven application of discipline in the Public Service.  Effective record-keeping is not happening. Given the legal nature of the process this matter needs serious attention.  The nature of disciplinary cases are largely related to theft and fraud.  Most disciplinary cases are attributed to the lower level employees (level 2 – 8).

24. 24 COMPILATION OF A TOOL-KIT FOR RECRUITMENT AND SELECTION PRACTICES IN THE PUBLIC SERVICE.  Many Commission investigations show that recruitment selection is often improperly done.  Lack of proper processes both undermines government effectiveness as well as results in poor service delivery, as wrong people are appointed.  Tool-Kit produced to assist practitioners and managers and is being workshopped with departments and administration.  The PSC is confident that this will streamline the process, making it more effective, transparent and credible.

25. 25 INVESTIGATIONS INTO HUMAN RESOURCE PRACTICES  Report on allegations into mal-administration and misconduct in the Secretariat for Safety and Security.  Report on allegations of nepotism and favouritism in appointment practices in Mpumalanga Department of Health.  Department has instituted disciplinary action against senior officials, as recommended by the PSC.

26. 26 SUB-PROGRAMME  To improve the management of the employment conditions of public servants by investigating the management practices of departments.  To focus on performance management in the Senior Management Service (SMS).  To facilitate the evaluation of Heads of Department’s performance. SENIOR MANAGEMENT AND CONDITIONS OF SERVICES OBJECTIVES

27. 27  This project evaluated the first implementation of the framework for the evaluation of HoDs for the period 2000/2001. The report was finalized in November 2002.  It indicated a number of problems experienced during the first implementation, particularly, the delay in the finalization of evaluations and the quality of documents submitted by HoDs for their evaluations. REPORT ON THE FIRST IMPLEMENTATION OF THE FRAMEWORK FOR THE EVALUATION OF HODS

28. 28  The HoD evaluation process assists executing authorities with the evaluation of their HoDs. The evaluation period covered the financial year 2001/2002.  17 national and 33 provincial HoDs were evaluated (this number included the outstanding evaluations from the previous financial year). There has been a great improvement compared to the first year of implementation where only 12 national HoDS and 23 Provincial HoDs were evaluated.  Also been an evaluation on the first implementation of the framework for the evaluation of HoDs.  A number of problems were experienced during the first implementation, particularly, the delay in the evaluation and the quality of documents submitted by HoDs. MANAGE THE HOD EVALUATION PROCESS

29. 29  The aim of this project was to evaluate the extent to which departments are implementing these development programmes and to develop a best practice model.  Preliminary findings indicated that at least half the departments have an induction programme, though some had no formal induction policy or guidelines.  Mentoring and coaching was virtually non existent in all departments, with a few having started drafting policies and a pilot being initiated in Defence. INVESTIGATION AND EVALUATION OF INDUCTION, MENTORING AND COACHING PRACTICES FOR SENIOR MANAGERS IN THE PUBLIC SERVICE

30. 30  As a condition of service, officials below the level of SMS could be provided with subsidized vehicles to undertake essential and approved official journeys (where other transport is not available/economical).  It was found that there is a lack of control mechanisms, not all managers understand the policy and there is inadequate record keeping.  Recommendations were made with regard to, amongst others, the provisioning of resources, establishing advisory committees, amending the SMTS policy, keeping participants in the SMTS informed at all times, electronic processing of claims, and information management. INVESTIGATION INTO THE MANAGEMENT OF THE SUBSIDIZED MOTOR VEHICLE SCHEME

31. 31  With effect from 1999 departments are, in terms of the Public Service Regulations, expected to develop policies and administer conditions of service.  This project was aimed at evaluating the capacity of departments in administering conditions of service.  Preliminary findings indicated that provincial departments do not have sufficient capacity in terms of human resources, equipment and skills to effectively administer conditions of service.  Recommendations made in respect of improving HR capacity, establish functional filing systems and implement appropriate delegations. EVALUATION OF DEPARTMENTS’ CAPACITY TO ADMINISTER CONDITIONS OF SERVICE

32. 32  Aim was to identify the extent of re-employment of persons retired due to ill-health within the Public Service, provide recommendations to the GEPF rules to improve the management of ill-health retirement.  Findings indicated a need to improve departmental management processes of ill-health and a general lack of control within the GEPF, resulting in situations of ill-health retirement provisions being used inappropriately. INVESTIGATION INTO THE RE-EMPLOYMENT OF PERSONS RETIRED DUE TO ILL-HEALTH

33. 33 PROGRAMME 3 GOOD GOVERNANCE AND SERVICE DELIVERY AIM: To promote Professional Ethics and Risk Management; conduct Special Investigations; as well as evaluate and support Management and Service Delivery Improvement.

34. 34 OBJECTIVES  To promote a high standard of professional ethics and anti-corruption measures.  To develop effective tools for ethics management.  To research and evaluate professional ethics and corruption. SUB-PROGRAMME PROFESSIONAL ETHICS AND RISK MANAGEMENT The PSC endeavored to establish a culture of professional end ethical behaviour in the Public Service

35. 35  Project conducted jointly with DPSA.  Vast disparities evident between departments in terms of anti-corruption capacity.  Recommendations made on minimum anti-corruption capacity required at national and provincial level. AUDIT OF ANTI-CORRUPTION CAPABILITIES IN NATIONAL AND PROVINCIAL DEPARTMENTS

36. 36 PROVIDE SECRETARIAT TO NATIONAL ANTI- CORRUPTION FORUM  National Anti-Corruption established mid-2001.  Implemented resolution of National Anti-Corruption Summit of 1999.  Comprises representatives of Government, Business and Civil Society sectors.  Minutes of meetings and reports are provided to MPSA on ongoing basis.

37. 37 DEVELOP GENERIC PROFESSIONAL ETHICS STATEMENT FOR PUBLIC SERVICE  Generic professional ethics statement for public servants required as part of national anti-corruption strategy  PSC consulted widely with stakeholders  Produced draft for consideration by Anti-Corruption Coordination Committee

38. 38 DEVELOP PROPOSALS ON HOTLINES  Eight National Departments had established hotlines.  Not all provinces had established hotlines, but most efficient hotlines were those well budgeted for and sufficiently resourced.  Department of Trade and Industry had established international good practice on hotlines.  Reported cases followed up and criminal or disciplinary charges laid against officials.  Establishment of a national hotline should be considered.  National hot line should be backed by strong investigative capacity, standard investigating procedures, data management system and training for officials.

39. 39  1 million copies of explanatory manual produced.  Manual assists Public Servants to deal with ethical dilemmas in the workplace.  Translation into all official languages currently underway. PRODUCE EXPLANATORY MANUAL ON THE CODE OF CONDUCT

40. 40  This research supported PSC’s task of Managing Asset Register and system of Financial Disclosures for Senior Management Service  Studied international good practice in order to formulate recommendations on issues including: Maintenance of central record Access Monitoring Enforcement and penalties COMPARATIVE ANALYSIS OF THE MANAGEMENT OF ASSET REGISTERS

41. 41  Investigation focused on remunerative work in the Dept. of Health Gauteng.  Issues investigated included: Salary dispensations of health professionals. Remunerative work policy. Mechanisms to curtail absenteeism and unauthorised leave.  Recommendations formulated and completed in 2003/4. PROFESSIONAL ETHICS INVESTIGATION: NON- COMPLIANCE WITH THE CODE OF CONDUCT

42. 42 OBJECTIVES  To execute special investigations in relation to the core functions of the PSC.  To promote Good Governance through selected investigations with an emphasis on procurements.  To contribute to the national fight against corruption. SPECIAL INVESTIGATIONS The PSC endeavored to combat corruption in the Public Service through selected investigations. SUB-PROGRAMME

43. 43  Findings on processes and individuals shared with provincial administration and police  Identified a need to refocus investigation on systems  New project established focusing on systems good practice in Mpumalanga, Eastern Cape, North West and Free State INVESTIGATION INTO THE PROCUREMENT AND DISTRIBUTION OF STATE MEDICINES IN MPUMALANGA

44. 44 EVALUATE EASTERN CAPE ANTI- CORRUPTION PROGRAMME  Report evaluated provincial Anti-Corruption Strategy arguing that implementation of resolutions of the PEC generally poor and that there was duplication of function between provincial structures.  Administrative review of key departments showed insufficient expertise by managers, unavailability of well trained investigating officers and chairpersons and the lack of basic infrastructure seriously hampered proper application of disciplinary policies and procedures.  Basic financial controls not implemented.  Key corruption cases identified and taken up during IMT intervention.

45. 45 REPORT ON BLACKLISTING  The Public Finance Management Act and Treasury Regulations create the basis for a data base of employees, found guilty of corruption and fraud.  Report proposed short and medium term solutions to support blacklisting.  These included the establishment of a supplier/procurement code and the inclusion of anti Corruption Pacts in contracts.

46. 46 OBJECTIVES  To promote efficient, economic and effective use of resources.  To promote and monitor impartial, fair, equitable and unbiased provision of services.  To propose measures that will ensure that people’s needs are responded to and that the public is encouraged to participate in policy- making and service delivery decisions.  To monitor and investigate adherence to applicable procedures in the Public Service. MANAGEMENT AND SERVICE DELIVERY IMPROVEMENT The PSC endeavored to investigate, monitor and evaluate management practices and service delivery in the Public Service and provide recommendations. SUB-PROGRAMME

47. 47 CITIZEN SATISFACTION SURVEY  Citizens Satisfaction (CS) Survey undertaken in the Departments of Health, Education, Housing and Social Development.  CS Index score is based on the variance between citizens’ expectations of service delivery and what is actually experienced.  Survey showed expectations of citizens in ABET, Life Skills, Ante-Natal care, care during birth, Post-Natal care, social security grants, are largely being met; while experiences of OBE, EMRS, housing subsidy, and social development projects processes are less positive.

48. 48 EVALUATION OF MULTI-PUPOSE COMMUNITY CENTRES  Project evaluated impact of shared service delivery initiatives, availability and utilization of services provided and citizen satisfaction  Recommendations made inter alia on: Relocation of government services to the centres Human resource requirements Financial requirements Management of MPCCs Capacity building Sustainability  GCIS is overseeing implementation of recommendations

49. 49 CITIZENS’ FORUM PILOT  Joint project with parliamentary portfolio committee.  Piloted in Mpumalanga (Primary Health Care) and Eastern Cape (Dept. Social Development Poverty Alleviation Grant).  Forums generated recommendations on service delivery improvement for consideration by relevant departments.

50. 50  Report evaluated the organisational performance and structuring of the National Department of Transport and Selected Agencies.  Emphasized need to clear inconsistencies in mandates such as overlaps in functions between department and agencies.  Department must be capacitated to effectively monitor agencies.  Recommended that enabling legislation of agencies be regularly reviewed to ensure alignment with government policies.  Recommended Minister’s Stakeholder Forums to be created to ensure consultation/transparency. EVALUATION OF DEPARTMENT OF TRANSPORT AND SELECTED AGENCIES

51. 51 EVALUATION OF LAND ADMINISTRATION IN EASTERN CAPE  Report commissioned by Premier  Report identified key issues including: Revitalisation and transformation of LA in the rural parts of province. New approach to achieve efficient and effective LA. Key areas for intervention (Tenure, SPLUM, LIS). Land administration for state domestic and public purposes. Institutional proposals.

52. 52  New Assessment framework developed and implemented in National Departments (DTI, DWAF, Housing, Education, Social Development, Justice and Agriculture) and in 3 provinces (North West, Limpopo and Western Cape).  This framework will also be the anchor for the State of the Public Service Reports in future. MONITORING & EVALUATION

53. 53 CHALLENGES  Implementation of recommendations of the Commission.  National roll out of Citizen’s Forum after the elections.  Need for joint sittings of Portfolio Committees on cross- cutting issues.  Incorporation of local government becomes an institution building challenge as it impacts on jurisdiction.