1. Public Service Act and challenges faced in its implementation with the Public Finance Management Act
Presentation to
Portfolio Committee on Public Service and Administration - 9 November 2011 1

2. Content
Role of political and administrative heads under Public Service Act (PSA)
Challenges in implementation
Way forward 2

3. PSA - EA & HOD (1) Executive Authority (EA) - political head
President/Minister/Premier/MEC/Chair-person of PSC iro OPSC
Appointed by President/Premier ito Constitution
Normally serve term of government, but may be replaced by President/Premier during term 3

4. PSA - EA & HOD (2) Head of department (HOD) – administra-tive head
Director-General in case of national departments and Offices of Premier
Appointed by President/Premier ito applicable legislation unless delegated
Maximum renewable term – 5 years
Provisions of PSA and/or sector specific employment legislation apply to terms & conditions 4

5. PSA - EA & HOD (3) EA of department ito PSA responsible for
organisational structure and establishment
strategic planning
service delivery improvement programme 5

6. PSA - EA & HOD (4) EA vested with bulk of HR powers iro employees
HR planning
creation & abolition of posts
appointments, performance manage-ment, transfer, dismissal (except for misconduct) and other career incidents of employees 6

7. PSA - EA & HOD (5)
HOD ito PSA responsible for efficient management & administration of department, including
effective utilisation & training of staff
maintenance of discipline
promotion of sound labour relations
proper use & care of state property
implementing sanctions for misconduct 7

8. PSA - EA & HOD (6)
PSA enables EA (not obliged) to delegate PSA powers and duties to HOD
May only delegate to HOD and not to other employees in department
EA may impose conditions when exercising delegated powers & duties
HOD may further delegate these powers & duties 8

9. CHALLENGES IN IMPLE-MENTATION OF PSA WRT PFMA (1)
EA’s decision ito PSA having financial impli-cations must be in writing & within limits of authorised funds
AO or delegated official to approve expenditure
Examples of decisions
Expanding post establishment
Appointments additional to establishment
Upgrading of posts
Higher salaries awarded to recruit or retain 9

10. CHALLENGES IN IMPLE-MENTATION OF PSA WRT PFMA (2)
Possible conflict between EA & HOD (as AO) wrt their different powers under PSA and PFMA limited by
measures in PFMA, e.g. monthly expenditure reports by HOD to EA requiring written directives by EA, processes to deal with unauthorised expenditure
delegation by EA of certain powers & duties under PSA to HOD 10

11. CHALLENGES IN IMPLE-MENTATION OF PSA WRT PFMA (3)
Lack of, or inadequate, delegation of HR powers may, especially in large departments, result in slow decision-making
Conflict may arise if HOD refuse to approve funds because seen as
outside budget vote (scope of department’s mandate)
resulting in irregular expenditure or fruitless and wasteful expenditure, e.g. EA makes appointment that does not accord with PSA prescripts
One is refusing to approIf not sound interpersonal relations 11

12. CHALLENGES IN IMPLE-MEMTATION OF PSA WRT PFMA (4)
If conflict between EA and HOD arises in this regard
Could sour or even result in breakdown in trust relationship
One using powers to obstruct other, e.g. HOD frustrating financial approval, EA withdrawing HR delegations 12

13. WAY FORWARD - POSSIBLE CHANGES TO STRENGTHEN PSA
Consider advantages/disadvantages of
locating HR management functions in HOD, subject to EA’s policy directives
exception for top management appointments (i.e. DDG level) - to be made by EA or with concurrence of EA
DPSA developed principles and templates for PSA delegations for departments
Propose to seek Cabinet’s approval as standard for PSA delegations
Trust and professionalism play key role in political-administrative interface – these matters are not matters that can always be regulated by legislation 13

14. End