ANNUAL REPORT OF THE PUBLIC SERVICE COMMISSION 2002/2003

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ANNUAL REPORT OF THE PUBLIC SERVICE
COMMISSION2002/2003

• PRESENTATION TO THE PARLIAMENTARY PORTFOLIO
  COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION
• 30 JANUARY 2004

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PROGRAMME 1
ADMINISTRATION AIM Responsible for the overall
management of the office
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INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2003

• Revenue

R000 2002/03 2001/02
Voted Funds 57 971 54 013
Other revenue 238 376
Total 58 209 54 389
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INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2003

• Expenditure

R000 2002/03 2001/02
Personnel 43 763 76 38 993 74
Administrative 8 095 14 8 408 16
Inventory 1 362 3 1 340 2
Equipment 975 2 884 2
Prof Spec Services 3 046 5 2 435 5
Authorised Losses 187 - 682 1
Total 57 428 100 52 742 100
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INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2003

• Net Surplus

R000 2002/03 2001/02
Net Surplus 781 1 647
Made up as follows
Voted funds surrendered 543 (1) 1 271 (2)
Revenue surrendered 238 376
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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

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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

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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

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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

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HUMAN RESOURCES MANAGEMENT REPORT FOR THE YEAR
ENDED 31 MARCH 2003
Gender Level 1-8 9-12 13-16 Total
Male 30 (16) 38 (20) 26 (14) 94 (50)
Female 66 (35) 16 (9) 10 (5) 92 (49)
Disabled 1 (1) 0 0 1 (1)
Total 97 (52) 54 (29) 36 (19) 187 (100)
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HUMAN RESOURCES MANAGEMENT REPORT FOR THE YEAR
ENDED 31 MARCH 2003
Level African Coloureds Indians Whites Total
01 to 08 65 (35) 8 (4) 3 (2) 21 (11) 97 (52)
09 to 12 36 (19) 5 (3) 0 (0) 13 (7) 54 (29)
13 to 16 22 (12) 2 (1) 5 (2) 7 (4) 36 (19)
Total 123 (66) 15 (8) 8 (4) 41 (22) 187 (100)
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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.
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SUB-PROGRAMME

• 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

The PSC endeavored to provide a focused analysis
of the field of labour relations through
important concepts, issues and advise on best
practice.
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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.

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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.

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MONITORING THE IMPLEMENTATION OF THE COMMISSIONS
RECOMMENDATIONS

• 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.

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MONITORING AND EVALUATING PERSONNEL AND PUBLIC
ADMINISTRATION PRACTICES BY MEANS OF AD HOC
REQUESTS.
The following investigations were undertaken and
reports compiled

• 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.

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ASSESSING THE ROLE OF LABOUR RELATIONS OFFICERS

• 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.

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REPORTING ON THE OUTCOME OF DISCIPLINARY
PROCEEDINGS IN CASES OF FINANCIAL MISCONDUCT.

• 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.

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SUB-PROGRAMME
HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT

• 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.

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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.

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EVALUATION OF THE MANAGEMENT OF PERFORMANCE
MANAGEMENT SYSTEMS

• 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.

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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).

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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.

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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.

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SUB-PROGRAMME
SENIOR MANAGEMENT AND CONDITIONS OF
SERVICES OBJECTIVES

• 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
  Departments performance.

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REPORT ON THE FIRST IMPLEMENTATION OF THE
FRAMEWORK FOR THE EVALUATION OF HODS

• 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.

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MANAGE THE HOD EVALUATION PROCESS

• 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.

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INVESTIGATION AND EVALUATION OF INDUCTION,
MENTORING AND COACHING PRACTICES FOR SENIOR
MANAGERS IN THE PUBLIC SERVICE

• 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.

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INVESTIGATION INTO THE MANAGEMENT OF THE
SUBSIDIZED MOTOR VEHICLE SCHEME

• 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.

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EVALUATION OF DEPARTMENTS CAPACITY TO ADMINISTER
CONDITIONS OF SERVICE

• 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.

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INVESTIGATION INTO THE RE-EMPLOYMENT OF PERSONS
RETIRED DUE TO ILL-HEALTH

• 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.

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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.
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SUB-PROGRAMME
PROFESSIONAL ETHICS AND RISK MANAGEMENT The PSC
endeavored to establish a culture of
professional end ethical behaviour in the Public
Service

• 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.

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AUDIT OF ANTI-CORRUPTION CAPABILITIES IN NATIONAL
AND PROVINCIAL DEPARTMENTS

• 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.

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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.

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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

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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.

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PRODUCE EXPLANATORY MANUAL ON THE CODE OF CONDUCT

• 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.

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COMPARATIVE ANALYSIS OF THE MANAGEMENT OF ASSET
REGISTERS

• This research supported PSCs 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

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PROFESSIONAL ETHICS INVESTIGATION NON-COMPLIANCE
WITH THE CODE OF CONDUCT

• 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.

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SUB-PROGRAMME
SPECIAL INVESTIGATIONS The PSC endeavored to
combat corruption in the Public Service through
selected investigations.

• 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.

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INVESTIGATION INTO THE PROCUREMENT AND
DISTRIBUTION OF STATE MEDICINES IN MPUMALANGA

• 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

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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.

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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.

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SUB-PROGRAMME
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.

• 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
  peoples 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.

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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.

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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

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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.

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EVALUATION OF DEPARTMENT OF TRANSPORT AND
SELECTED AGENCIES

• 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 Ministers Stakeholder Forums to be
  created to ensure consultation/transparency.

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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.

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MONITORING EVALUATION

• 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.

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CHALLENGES

• Implementation of recommendations of the
  Commission.
• National roll out of Citizens 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.