Election of Committee Chairperson; DPME Briefing on Operation Phakisa & Medium Term Strategic Framework (MTSF) Monitoring Report 2019- 2024

Meeting report

Election of Chairperson

The Committee Secretary noted the Committee received notice from the National Assembly House Chairperson to elect a new Chairperson. Members were invited to nominate a Chairperson from amongst its Members according to the Rules of the National Assembly. 

Mr J McGluwa (DA) asked if any reason was given for electing a new Chairperson. 

The Committee Secretary said he was not in a position to answer that - Members could discuss it amongst themselves. 

Ms M Ntuli (ANC) nominated Ms T Mgweba (ANC) as Chairperson of the Portfolio Committee on Public Service and Administration. 

Ms M Kibi (ANC) seconded the nomination. Regarding why a new chairperson was elected, she said committee membership changes necessitated this. 

There were no further nominations and Ms Mgweba accepted the nomination. She was duly elected Chairperson of the Committee. 

Mr McGluwa said he would not be part of "voting cattle" and asked to be provided with reasons why a new Chairperson was being elected. Did the former Chairperson resign? It was unacceptable that this process was occurring without explanation. 

Ms Ntuli congratulated the Chairperson on her nomination and wishes her well in the position. 

Chairperson's opening 

The Chairperson opened the meeting by noting Parliament’s National Assembly Programming Committee has decided to constitute a Portfolio Committee on Planning, Monitoring and Evaluation as a stand-alone Committee. As such, this Committee would no longer oversee the Department of Planning, Monitoring and Evaluation (DMPE) – this would be the Committee’s last engagement with the Department. She invited Members to make departing comments to the Department.

Mr McGluwa congratulated the Chairperson on her appointment as Chairperson of the Public Service and Admin Committee even though he still did not understand why she was nominated. He welcomed the good news of the establishment of a DMPE committee. He felt it was long overdue. This would further empower the oversight of the DMPE. He believed the two committees and departments would have a sound working relationship.

Ms Ntuli thanked the DPME for their dedication in working with the Committee. She recounted the numerous programmes the DPME developed alongside the Committee, notably the District Development Model (DDM).

Ms Kibi also congratulated the Chairperson on her nomination. She acknowledged the working relationship between the Department and the Committee, which was not always easy. She hoped to encounter the DPME along the road.

DPME Briefing: Operation Phakisa

Dr Robert Nkuna, Director-General, Department of Planning, Monitoring, and Evaluation (DPME), started the presentation by expressing gratitude to the Portfolio Committee for their support towards the Department's work. He acknowledged that the DPME had to manage the transition following the interruption caused by the Covid-19 pandemic. The focus of the Department had inevitably shifted towards dealing with the pandemic, causing the Operation Phakisa programme to stall temporarily. However, once the pandemic subsided, the Department needed to assess the extent of the damage and determine how Operation Phakisa could contribute to the country's progress.

Dr Nkuna highlighted the importance of deliberating on whether the DPME should concentrate exclusively on assessing other departments or include an evaluation of its own performance. Including a self-assessment in the initial presentation would be crucial, considering the concerns expressed by the Portfolio Committee in their previous interactions.

See attached for full presentation

DPE Briefing: Medium Term Strategic Framework (MTSF) Monitoring Report 2019- 2024

Mr Zakhele Mdlalose offered a comprehensive review of the government's performance as a whole, with specific emphasis on the seven priorities set forth by government.

The DPME reiterated the goals of the National Development Plan (NDP) – which aims to address the three-fold developmental challenge by 2030, with the ultimate aim of significantly improving the quality of life for South Africans. He unveiled the medium plan, which was designed to make the NDP a reality. During his presentation to the Portfolio Committee, Mr Mdlalose explained the Operation Phakisa methodology, stating that it would contribute to achieving the desired outcomes of the NDP by 2030 in a more efficient, expedient, and effective manner. He further assured the Committee that this approach would create a sense of urgency and promote accountability, transparency, and consequence management.

See attached for full presentation

Discussion

Ms Kibi enquired about the potential impact of the district development model (DDM) on the non-implementation of Operation Phakisa. She questioned whether introducing multiple coordinating structures or methods could be seen as a contributing factor, as it often leads to duplication and can consequently hinder the implementation process. She further enquired about the unique characteristics of the methodology that can improve the methods implemented during the sixth administration. Regarding the Medium-Term Strategic Framework (MTSF), she requested that the DPME not only consider the frameworks developed and progress made in various areas but also reflect on whether state capability has been effectively enhanced in practice during the sixth administration. Additionally, Ms Kibi raised a question regarding the reports on the non-implementation of recommendations from the Special Investigating Unit (SIU) by different departments. She sought to understand how the DPME ensures the effective implementation of such recommendations.

Mr McGluwa expressed his disappointment regarding the absence of the Minister and her deputy at this meeting. He regarded their presence as crucial for the welfare of the government. He then enquired about the actions taken by the DPME to ensure that state-owned enterprises (SOEs) also adhere to the established standards. He further questioned the progress and clarity of timelines and performance indicators concerning infrastructure development and the state capture plan, emphasising the need for improved follow-up mechanisms.

Additionally, Mr McGluwa raised concerns about addressing gender-based violence and evaluating progress, particularly regarding the construction of women's shelters. He also highlighted concerns regarding the police. He mentioned several controversies in the country – such as the Arts and Culture Department’s attempt to build a pole worth R17 million, and the Department of Tourism's potential careless expenditure of R1 billion on a sports team. He enquired whether the DPME has fulfilled its watchdog role in overseeing such instances, and how DPME has responded in reducing food waste in South Africa.

Ms S Maneli (ANC) posed a question regarding the characteristics of the methodology that can improve the methods already implemented since the beginning of the sixth administration. Additionally, she enquired about the potential impact of changes in the implementation of methodologies discussed by the presenters, particularly in light of leadership changes at the political level.

Ms Maneli asked what seems to be the cause of the delay in finalising the Petroleum Resource Development Bill. What is the symbiotic relationship between energy scrutiny and local beneficiation, and how can it be strengthened? Furthermore, she asked about the interconnected relationship between energy scrutiny and local beneficiation, and how it can be further reinforced.

Concerning the Medium Term Strategic Framework (MTSF), considering that 2024 is approaching, her question pertained to the proximity of the biodiversity level to achieving the target of attracting R7.1 billion in investments from both the public and private sectors.

She enquired whether it would be fair to assess the performance of the biodiversity lab on the dashboard as still below 50% in 2022 and 2023, considering the economic conditions locally and globally, following the significant impact of the pandemic.

Ms S Graham (DA) expressed concern about leadership failure in poor growth, and in some circumstances, such as the mining sector – barely a one-percent achievement. She wanted to know what could be done. How can one cultivate enthusiasm and political values if there is a clear lack of interest in implementing a government programme? She also reminded the Members that while there is much discussion about consequence management in the government, what are the actual consequences? Are there measures in place to hold non-compliant individuals accountable? She asked whether Operation Phakisa is included as a performance requirement in the agreements of Ministers involved in the programme, and if there are any mechanisms in place to hold them accountable for their failure to implement the issues raised by the Members of the Portfolio Committee. As Operation Phakisa is housed within the office of the Presidency, Ms Graham sought to understand if there are measures in place to ensure that the President takes full responsibility and actively encourages other departments to act accordingly.

Concerning the MTSF monitoring reports, she aimed to provide comments based on the information presented on slide 13, which stated that the Electricity Regulation Amendment Bill was introduced and presented to Cabinet in 2022. She clarified the situation by informing the Members and DPME delegates that the Bill had been returned from Cabinet to Parliament but had not yet been tabled to the Committee. This raised significant concerns, as it was affecting the Department's capacity to address the electricity and energy crisis.

Additionally, slide 13 mentioned the NIP 2050 phase one, which was officially published in March 2022. She further informed the Committee that NIP 2050 phase two was gazetted in October of the same year. This development introduces additional implementation strategies for infrastructure planning in the coming years. She commented on the presentation not incorporating the role of the $1.8 billion grant from international funders, which is set aside for the Just Transition Energy Programme. It is important that DPME start having plans on how that funding will be spent.

She informed the delegates of an error in the presentation, slide 17, where they mentioned the migration from DBE to DSD, saying it was from DSD. She also expressed concern regarding slide 21, which stated that one in two people receive social grants and is regarded as progress. However, she pointed out that, unfortunately, only one in eight people contribute through taxes, while one in two rely on social grants. According to Ms Graham, this situation should not be seen as progress but rather as deeply worrisome and unsustainable. She pointed out that, according to the latest statistics, there are 3.6 million indigent households, meaning that one-third of these households are not benefiting from free basic services. This issue needs to be addressed, especially regarding the electricity crisis, as local governments need to implement free basic services to generate revenue for that purpose.

Referring to slide 24, she highlighted the significant financial challenges faced by local government. Many municipalities are in a state of bankruptcy, emphasising the urgent need to enhance the implementation of free basic services. Doing so can make more funds available to local municipalities to improve service delivery.

In reference to slide 26, she noted that having an objective that lacks funding is not productive. Specifically, when discussing the goal of enhancing visible policing, she pointed out that the budget for this objective has been reduced by R3.3 billion in the upcoming financial year. In other words, it is impossible to expect improved outcomes if the budget has been significantly cut to such an extent.

Concerning slide 27's discussion of heritage legacy initiatives, she brought up the Sarah Baartman Centre of Remembrance, in Hankey, Eastern Cape. The project is currently nearly ten years behind schedule, costing more than R150 million, and there is little indication that it will be completed anytime soon. These are a few of the concerns that she believes require attention.

Finally, on slide 30, the REIPPPP is mentioned, as promised by Minister Gwede Mantashe in his budget speech. She was, however, dissatisfied with the rate at which energy was becoming available. 

Ms V Malomane (ANC, Mpumalanga) raised questions regarding the observed issues with the Medium-Term Strategic Framework (MTSF), particularly concerning the planning and monitoring of public entities. Additionally, she enquired about the interventions proposed by the Department to the executive to address and improve the current situation.

Ms V Malomane (ANC) asked about identifying the key departments responsible for addressing the misalignment of economic policies, and whether this misalignment is attributed to a lack of legislation and enforceable measures for promoting collaboration and coordination. She also enquired about the district development model's effectiveness in light of the outcomes obtained through internet-based solutions. Lastly, on Operation Phakisa, she was curious about people trained in various ocean economy fields as to what happens to those people trained in various ocean economy fields.

Another concern is related to the situation where 50% of schools have only one subject installed on their computers and whether there has been any progress in resolving this issue. Who should be held accountable for addressing this challenge if it continues to exist?

Responses

Dr Nkuna commenced his response by recounting that he had called for government projects to be specialised in previous deliberations with the Committee. In that way, everyone implementing a project will need to indicate when projects are implemented. He mentioned that they even produced a guideline for specialisation to ensure that all Operation Phakisa interventions are specialised. The other justification for this was to make everyone aware of how resources are allocated. As the team returns to resume Operation Phakisa, it will also need to be included in the list of tasks that need to be geolocated so that it is apparent which Operation Phakisa intervention is taking place and when.

Then, regarding the essential elements of Operation Phakisa that make it important, the first is that it is or should be interventionist, allowing DPME to introduce swift actions whenever there are obstacles and effective and efficient coordination within a government. The final feature he mentioned is collaboration in the sense that it forces collaboration.

Answering questions about the MTSF, on what had been done to ensure that the state's risk capacity could deliver a significant number of interventions, he stated one aspect at the political level, where the South African government operates with a system in place where performance agreements bind all ministers. Their performance is regularly assessed, with the DPME providing support to the President in assuming responsibility for their performance. Additionally, the DPME aids the President in establishing scorecards that will ultimately be utilised in the evaluation of Ministers.

On what has been done to professionalise the public service, he indicated that, as part of that process, they have been addressing the interface between political administration, engaging in discussions on the possibility of emulating other countries by extending Directors-General contracts beyond the current duration of five years.

Another concern that Members of the Portfolio Committee raised pertained to clusters. Dr Nkuna explained that the DPME conducted an analysis of how government clusters operate and found that there was a lack of effective coordination. Consequently, there is a requirement for improved coordination within clusters, with the Presidency being involved in setting the agenda.

In response to Mr McGluwa’s enquiry regarding capacity constraints in municipalities, it was explained that municipalities exhibit significant variation and face a substantial crisis in terms of human capacity, especially in project management. The DPME has observed that, in certain instances, there is a lack of project management expertise despite the availability of resources within the municipality to implement programmes. Consequently, there are instances where outsourcing occurs, leading to weak oversight, and creating opportunities for corruption and rent-seeking activities.

Regarding the issue of state capture, Dr Nkuna explained that the DPME has been monitoring the work that government departments should be undertaking. However, it is important to note that this monitoring does not extend to the National Prosecuting Authority, as it is an independent body, and the DPME cannot interfere in its operations. Nevertheless, when it comes to the Special Investigating Unit (SIU), a dedicated team is deployed to specifically focus on implementing SIU recommendations.

Regarding infrastructure, there is a comprehensive presentation that can be provided by ISA (Infrastructure South Africa). The DPME also closely follows their work, as ISA greatly complements our monitoring efforts in the infrastructure sector. On GBV, there has been an engagement with various government departments that it is not just an issue of police as their involvement is mostly after the effect. DPME feels that it is also an economic issue that needs a multifaceted approach.

Dr Nkuna reiterated that the DPME's role is to supervise the Department. In turn, they expect the Department to fulfil their oversight responsibilities for the entities under their purview. This reciprocal relationship is crucial for ensuring the proper functioning of the value chain. The DPME has observed that certain departments face challenges in exercising oversight, which may be due to factors such as overseeing a larger number of entities, compared to other departments.

Ms Palesa Shipalana, Chief Sector Expert: Economy and Infrastructure, DPME, responded to the issue of electricity pricing policy. She mentioned that the Department has engaged with the University of Pretoria’s enterprise branch to evaluate the impact of pricing policy on South Africa. The steps taken so far include assessing NERSA’s electricity pricing review published in 2021 and conducting stakeholder consultations on the proposed modelling framework. She informed the Committee that the team has recently finalised the assumptions and indicators to be used in the model. The final phase will involve obtaining the modelling results. The review of the Integrated Resource Plan, guided by the EPP review from NERSA, will be beneficial to the Ministry of Minerals and Energy.

Regarding the Sara Baartman project in Hankey, Ms Josephilda Hlope acknowledged that it has been a challenging undertaking. A new delivery model has been implemented to address this, involving community participation. The focus has been on completing ongoing projects before taking on new ones. Regarding Early Childhood Development (ECD), there have not been many complaints regarding the relocation of ECD centres. As for Gender-Based Violence (GBV), she mentioned that a national strategy had been developed to address this issue, and delivery agreements are in place to ensure its implementation.

A DPME official provided further clarification on implementing the District Development Model (DDM), addressing a comment made by a Committee Member. She highlighted that the DDM was initially piloted in three districts, and the results were deemed satisfactory. The official also mentioned that a policy framework plan was previously shared with the Portfolio Committee, aiming to promote better coherence and harmonisation for improved development outcomes. Additionally, revision work has been conducted on the National Development Planning Framework Bill, which is soon to be presented to Cabinet. The primary purpose of this Bill is to strengthen the planning and monitoring capabilities of the Presidency's ministry.

Dr Annette Griessel, DDG: National Planning Coordination, DPME, commented on the lack of coherence across different government spheres and the need for enhanced professional capacity.

Ms Mmakgomo Tshatsinde, DDG: Sector Monitoring, acknowledged the challenges faced by the Department, particularly in relation to the Early Childhood Development (ECD) programme. She reassured the Members that their feedback and comments would be considered to drive necessary improvements. Ms Tshatsinde emphasised the Department's commitment to actively incorporating contributions from all stakeholders during the review process, aiming to enhance accountability and overall effectiveness.

Dr Thabo Mabogoane, DDG, DPME, addressed the concern regarding installing subjects in laptops. He clarified that schools are responsible for downloading the subjects, as they have already been made available on the Department of Basic Education's cloud. Additionally, districts are expected to provide CDs that facilitate the uploading of subjects onto laptops.

The Chairperson thanked everyone for attending the meeting.

The meeting was adjourned.