Title: Presentation to the Public Service and Administration Portfolio Committee on the appointment and uti
1Presentation to the Public Service and
Administration Portfolio Committee on the
appointment and utilisation of consultants
- Report of the Auditor-General - RP122/2002
- 29 January 2003
2Introduction
- Reports issued by the Office on the
appointment and utilisation of consultants - RP99/1996
- At certain departments of the Gauteng Provincial
Administration - PR242/2001 - At certain departments of the KZN Provincial
Administration - included in annual reports of
departments - At certain national departments and provincial
administrations - RP122/2002
3Purpose of the presentation
- To facilitate public accountability by bringing
audit findings and corrective measures to the
attention of Parliament - To present outstanding issues and petition
responsible role players to address these issues
4Objectives of the audits
- To respond to a request by Cabinet in view of
perceptions that the PS had become a major
purchaser of consultancy services - To follow up on the corrective measures
implemented since the previous audit reported on
in 1996
5Focus areas
- The audits focused mainly on the following
areas - Appointment of consultants
- Control over and monitoring of the execution of
the functions of consultants - Responsibilities of departments and
implementation of proposals by them
6Appointment and use of consultants
- 1. Alternative ways of addressing needs, such as
training, capacity building and recruitment, were
not always considered. - ? Filling of vacant posts, setting of
productivity standards, networking, information
sharing - ?Management competencies
- ?Coordination initiatives
- ?Maintaining of a database of consultants used
- ?Accreditation of consultants and monitoring by
National Treasury
7Appointment and use of consultants
- 2. Sound procurement principles were not always
applied. - ?Strengthen existing guidelines and
procurement procedures and determine national
norms and standards - ?National Treasury to provide guidance on supply
chain management by 1 April 2003 - ?National Treasury and DPSA to coordinate
national norms and standards
8Appointment and use of consultants
- 3. Consultants without the required experience
or competencies were appointed which resulted, in
some instances, in staff having to assist
consultants. - ? Departments to consider impact of consultants
on internal resources - ? References of consultants to be followed up
- ? Consultants to provide proof of previous
successes - ? DPSA to introduce a code of conduct or
accreditation system for consultants - ? Departments to put into practice proper
contract administration and quality assurance
procedures before appointing consultants
9Appointment and use of consultants
- 4. Terms of reference did not always provide for
skills transfer and the transfer of skills and
capacity building were not monitored closely. - ? Provide opportunities to staff to learn from
consultants by creating mixed teams - ? DPSA and SAMDI to assist departments in
following best practice frameworks for skills
transfer - ?Departments to identify skills to be transferred
- ?Quality of skills transfer and capacity building
to be monitored
10Appointment and use of consultants
- 5. Appointments were often of a virtually
permanent nature or contract periods were
continually extended, causing departments to
become reliant on consultants. - ? Vacancies to be filled and periods of
appointment of consultants to be more defined - ? Cost-effectiveness of appointments to be
compared with that of filling of vacant posts - ? DPSA to evaluate remuneration structures for
positions in the PS -
.. cont.
11Appointment and use of consultants
- 5. Appointments were often of a virtually
permanent nature or contract periods were
continually extended, causing departments to
become reliant on consultants. - ?Departments to monitor vacancies on PERSAL
- ?Departments to use oversight reporting facility
available on DPSA website - ?DPSA guide on hourly fee rates for consultants
to be used
12Appointment and use of consultants
- 6. The lack of detailed tender specifications led
to tenders being extended and, consequently, to
non-compliance with the requirements of
transparent, fair and competitive procurement. - ? Departments to substantiate the need for
appointing consultants with proof that it cannot
be met internally - ? Appropriate briefs regarding the nature,
outcomes and time frames of products to be
compiled - ? TOR to serve as a guide to consultants
regarding scope of work.
cont. -
13Appointment and use of consultants
- 6. The lack of detailed tender specifications led
to tenders being extended and, consequently, to
non-compliance with the requirements of
transparent, fair and competitive procurement. - ?Departments to ensure proper job evaluation and
effective management practices - ?Procurement framework to be clear on detailed
tender specifications
14Monitoring and control of consultants
- 7. The performance, progress and impact on
service delivery of the work of consultants were
not always monitored. - ? Management information to be provided for the
assessment of the performance of consultants - ? Regular evaluations to be done during and after
assignments - ? Consultants remuneration to be linked to
performance - ? Performance to be evaluated by independent
internal auditors
cont. -
15Monitoring and control of consultants
- 7. The performance, progress and impact on
service delivery of the work of consultants were
not always monitored. - ?PSC to monitor information on consultants
included in annual reports and to establish
relevance and usefulness of information - ?Management information available on oversight
reporting facility to be used - ?Guide on fee rates to be implemented
- ?Departments to ensure that contract management
staff is competent and skilled
16Involvement and responsibilities of departments
- 8. Departments did not create an environment in
which consultants could perform their duties -
causing delays. - ? Departments to create supportive organisational
climate - ? Processes conducive to the achievement of the
objective for which the consultant was appointed
to be put in place - ? Departments to plan properly before appointing
consultants
17Implementation of proposals
- 9. Proposals were not always implemented, due to
inadequate human and financial resources, lack of
commitment, lack of computer skills. - ?Capacity to implement proposals to be assessed
before tender specifications are finalised - ?Management to accept ownership of business plan
before the project starts - ?Departments to assess the impact of the work of
consultants
18The way forward
- The majority of the key findings of the 1996
special report have not been addressed. - Consultants should be properly managed.
- The appointment of consultants should be
considered in the strategic planning and
budgeting phases. - The framework for supply chain management to be
compiled by NT should enhance the management of
consultants. - Departments/DPSA/NT should monitor the impact of
the appointment of consultants in the public
service on a continuous basis.