Public Service Commission Bill: PSC briefing; with Deputy Minister

Public Service and Administration

04 September 2024
Chairperson: Mr. JN De Villiers (DA)
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Meeting Summary

The Public Service Commission (PSC) briefing the Committee on the Public Service Commission Bill. During the meeting, the mandate of the PSC was discussed in terms of Section 196 of the Constitution, clarifying that it applies to all three spheres of government and not just public service or administration commissions. That provision ensured local government was also covered under the PSC's jurisdiction, addressing concerns regarding its scope.

The Committee received a broad spectrum of written comments when the Bill was initially drafted at the ministerial level before reaching Parliament. Inputs came from constitutional bodies, civil society, and employees, with concerns primarily focusing on service conditions. Extensive consultations were held with the South African Local Government Association (SALGA) and regional bodies to gather relevant insights. The PSC has indicated its willingness to present the final draft to the Committee, which reflected those extensive consultations and inputs.

On financial matters, the PSC reported a spending rate of 99.5% for the 2023/24 budget, utilising R299 million of its R301 million allocation. The PSC expressed its concerns regarding underfunding and highlighted that it had consistently lobbied National Treasury for a more sustainable budget. Despite being a small institution, the PSC had benchmarked its operations against other Chapter 10 institutions and was confident in maintaining its current expenditure levels, especially for procuring integrated systems to manage HR, payroll, and general operations.

After the briefing, Members asked about the transitional arrangements for the inclusion of municipalities under the PSC’s oversight. The existing rules and procedures were noted, ensuring that grievances must first be addressed at departmental and municipal levels before being escalated to the PSC. The Commission acknowledged that changes to those rules might be necessary but emphasised that current processes would be applied to ease the transition.

The Committee explored the financial implications of implementing the Bill, particularly concerning municipalities. The PSC assured Members that it had thoroughly costed the model and was working closely with the Treasury to finalise funding. The transitional provisions were also examined, specifically the staggered implementation approach for municipalities based on resource availability.

Regarding the PSC's integration into the broader oversight ecosystem, Members discussed how the Bill fit into existing accountability frameworks alongside Parliament, the executive, and constitutional bodies. A proposal was made to coordinate PSC findings with other reports, such as those from the Auditor-General (AG), to ensure that issues like non-implementation were flagged across the system, preventing departments from requesting future budgets without addressing recurring problems.

Another topic discussed was the importance of gender representation within the PSC and related institutions. The Committee noted that there had been limited female representation over time, and it was suggested that future nomination processes consider that to promote diversity. The Speaker's Forum was mentioned as a potential platform for addressing gender and demographic profiles across provinces.

Finally, concerns were raised about the definition of "person" in the Bill, particularly regarding its application to politicians or municipal officials protected by the Immunities and Privileges Act. The PSC clarified that its reach was limited to public servants and did not extend to executive authorities, but it had established mechanisms to address issues with ministers and MECs through monthly meetings and engagements with the deputy president. Those channels have been effective in addressing non-compliance within departments.

Meeting report

Public Service Commission Bill: PSC briefing

Prof Somadoda Fikeni, Chairperson, PSC, began his briefing by underscoring the significance of the Public Service Commission Bill in reinforcing the PSC's role within the public sector. He highlighted that the Bill seeks to enhance the Commission's ability to uphold ethical standards and ensure efficient service delivery. The reforms proposed in the Bill were designed to address existing challenges in public administration and to promote greater accountability.

The presentation touched on the expansion of the PSC's oversight capabilities, particularly concerning local municipalities. He noted that the Bill would grant the PSC increased authority to monitor and evaluate performance at the municipal level, where governance issues had been most pronounced. This expansion aimed to improve service delivery and accountability in local governments.

He also detailed the new investigative powers that the Bill would confer upon the PSC. Those powers were intended to facilitate more thorough and effective investigations into misconduct and corruption within the public service. He emphasised that those enhanced powers were crucial for addressing systemic issues that had hindered public sector performance.

In addition to the oversight and investigative enhancements, the Bill proposed reforms to streamline the reporting process within the public sector. He explained that the new mechanisms would simplify handling complaints and grievances, enabling a more efficient response from the PSC. The introduction of digital reporting platforms was expected to further improve the transparency and speed of the PSC’s operations.

He addressed concerns about the additional resources required for implementing the Bill's provisions. He assured the Committee that the PSC had engaged with National Treasury to secure the necessary funding. He also outlined a phased approach to implementation, designed to manage the transition smoothly and avoid overburdening the existing infrastructure.

Prof Fikeni reaffirmed the PSC’s commitment to maintaining its independence and avoiding political interference. The Bill included specific safeguards to protect the Commission’s autonomy, ensuring that it could operate impartially and effectively.

The briefing concluded with Prof Fikeni urging the Committee to support the Bill, emphasising its potential to transform public service governance and enhance the PSC's ability to uphold public sector standards. He thanked the Committee for their engagement and expressed optimism about the Bill’s positive impact.

See attached for full presentation

Remarks by Deputy Minister of Public Service and Administration

Ms Pinky Kekana, Deputy Minister of Public Service and Administration, provided a brief overview of the Department's role in supporting the implementation of the Bill. She echoed Prof Fikeni's sentiments on the importance of expanding the PSC's oversight to local municipalities. She highlighted the Department's commitment to working with the Commission to ensure effective governance at all levels.

She also emphasised the need for capacity building within the PSC, particularly in terms of human resources and technological infrastructure, to support the expanded mandate. The Department, she noted, would work closely with the PSC to ensure that the necessary training and tools were provided to staff.

Briefing on Plans and Programmes of the Department

The Department of Public Service and Administration (DPSA) provided a comprehensive overview of their plans and programmes concerning the Public Service Commission Bill.

The Department’s briefing emphasised the structural reforms proposed by the Bill. Those reforms were designed to address inefficiencies within the public service and to enhance the PSC’s role in ensuring accountability. The Department highlighted that the Bill would provide the PSC with expanded investigative powers and greater oversight responsibilities, particularly at the municipal level.

One of the key components of the Bill, as outlined in the presentation slides on the Public Service Commission Bill, 2023 [B30-2023], was the introduction of new mechanisms for handling public service complaints. Those mechanisms aimed to streamline the reporting process and improve the efficiency of the PSC’s operations. The slides illustrated how those changes would be implemented and the expected outcomes.

The briefing provided additional details on the Bill’s provisions, including the proposed timelines for implementation and the areas where the PSC’s oversight would be strengthened. The briefing underscored the importance of those changes in improving governance and service delivery within the public sector.

The Department also addressed the need for capacity building within the PSC to support the expanded mandate. That included enhancing human resources and upgrading technological infrastructure. The Department assured the Committee that discussions with the National Treasury were ongoing to secure the necessary resources for those developments.

In addition, the Department’s plans included the development of a centralised digital platform for reporting and tracking complaints. That platform was expected to improve transparency and facilitate more efficient handling of cases by the PSC. The Portfolio Committee on Public Service and Administration meeting notice highlighted the Department’s commitment to implementing that platform effectively.

The Department also emphasised the importance of promoting diversity and gender equality within the PSC. Future appointments to the Commission would be made with an emphasis on reflecting the country’s demographics and ensuring inclusivity in public service roles.

In conclusion, the Department reiterated its commitment to supporting the PSC in implementing the Bill’s provisions. It assured the Committee that the necessary measures would be taken to ensure a smooth transition and effective operation of the new regulations.

See the attached documents for the full presentation

Discussion

The Chairperson highlighted the significance of the Public Service Commission (PSC) Bill. His opening remarks emphasised the Bill’s potential to enhance public service efficiency and the crucial role of the PSC in overseeing government activities. The Chairperson’s focus was on the Bill’s ability to tackle issues of non-compliance and enforce recommendations effectively. He stressed the need for a robust mechanism that ensured adherence to PSC guidelines and recommendations to improve overall governance.

Ms S Gcilishe (EFF) raised important questions regarding the inclusivity of the PSC’s mandate. She inquired whether the Bill adequately covered all three spheres of government—national, provincial, and local—as stipulated in Section 196 of the Constitution. Her concern highlighted the necessity for the Bill to address the entire public service landscape without creating gaps in oversight, ensuring that local government entities were also held to the same standards of accountability and transparency.

Mr JS Malinga (MK) directed attention to the PSC’s financial management, specifically its spending rate and budget allocations. Despite the PSC spending 99.5% of its budget for the 2023/24 financial year, he noted the presence of perceived shortfalls. His comments underscored the need for improved financial planning and management strategies to ensure that budgetary constraints do not undermine the PSC’s operational effectiveness or its capacity to fulfil its mandate.

Mr MJ Matutu (MK) followed up by questioning the proposed integrated system for human resources and payroll management within the PSC. He sought assurances that the procurement process for such systems would be conducted with transparency and adhere to budgetary limits. His inquiries reflected broader concerns about the PSC’s ability to manage its resources effectively while meeting the demands of its operational needs, emphasising the importance of maintaining financial discipline.

Ms MB Pholwane (ANC) addressed the issue of the PSC’s role in municipal oversight. She stressed the importance of having well-defined rules and procedures for regulating interactions between the PSC and municipal entities. Her comments highlighted the need for clear mechanisms to ensure that municipalities comply with PSC recommendations and effectively address issues of non-compliance at the local level.

Mr P Ndamase (ANC) raised concerns about the Bill’s impact on public employees’ service conditions. He was particularly interested in understanding how the Bill would address the issues raised by civil society organisations and employees regarding their working conditions. His comments reflected a broader concern about ensuring that the Bill aligned with employee welfare and service conditions, ensuring that public employees’ rights and conditions were adequately protected.

Ms LR Potgieter (DA) expressed interest in the PSC’s consultation process. She sought clarity on how feedback from constitutional bodies and civil society organisations was incorporated into the Bill’s final draft. Her comments underscored the need for a transparent and inclusive consultation process to ensure that diverse perspectives were considered in shaping public policy and that the Bill reflected a broad range of stakeholder input.

Mr KP Sithole (IFP) raised questions about the Bill’s potential impact on the broader framework of accountability and oversight. He inquired about how the Bill would fit into the existing system of parliamentary and executive oversight. His remarks highlighted the need for the Bill to complement and enhance existing oversight mechanisms, ensuring that it integrated effectively into the current governance structure.

Ms W Tikana-Gxothiwe (ANC) sought information on the PSC’s approach to implementing the Bill’s provisions. She was interested in understanding the transitional arrangements for integrating municipal entities and the potential challenges involved. Her questions reflected a concern for practical implementation and the readiness of the PSC to manage the transition smoothly.

Ms P Xaba-Ntshaba (ANC) highlighted the need for gender representation in the appointment of PSC commissioners. She urged that the Bill incorporate provisions to ensure equitable gender representation within the PSC. Her comments underscored a broader commitment to diversity and inclusivity in the public service sector, ensuring that the PSC reflected the demographic diversity of the country.

As the discussion progressed, Members debated the Bill’s provisions related to non-compliance and enforcement. Concerns were raised about the PSC’s authority to address instances where recommendations were not implemented. Members discussed the need for clear mechanisms to ensure compliance and accountability, emphasising the importance of having effective enforcement provisions within the Bill.

The dialogue also covered the PSC’s financial management in greater detail. Members scrutinised the details of the PSC’s budget and expenditures, discussing the challenges of managing a limited budget while striving to meet the demands of its mandate. This discussion emphasised the need for financial prudence and effective resource management to ensure the PSC’s operational success.

In terms of implementation, Members explored the PSC’s strategy for rolling out the Bill’s provisions. They discussed the timeline for implementation and the steps necessary to ensure that all relevant entities were integrated into the PSC’s oversight framework. This conversation highlighted the practical considerations involved in enacting the Bill and ensuring that all entities comply with its provisions.

The meeting concluded with Members expressing a range of opinions on the Bill’s effectiveness and potential impact. While there was general agreement on the need for reform, Members remained divided on specific provisions and their implications for public service oversight. This reflection underscored the importance of further review and refinement of the Bill to address the concerns raised during the meeting.

The Chairperson summarised the discussion, noting the key concerns raised by Members and the need for further examination of the Bill’s provisions. He emphasised the importance of addressing the issues highlighted to ensure the successful implementation of the Bill. His summary reinforced the commitment of the Committee to improving public service oversight through the PSC Bill.

Members reiterated their commitment to enhancing public service governance through the PSC Bill. They acknowledged the need for continued dialogue and refinement to address the concerns raised during the meeting, ensuring that the Bill effectively contributed to better public service management and oversight.

Responses

Prof Fikeni addressed the Committee’s concerns by acknowledging the Chairperson’s emphasis on the PSC Bill’s potential to improve public service efficiency. Prof Fikeni agreed that the effectiveness of the Bill in addressing non-compliance and enforcing recommendations was crucial. He assured the Committee that the PSC was committed to strengthening mechanisms to ensure adherence to its guidelines and recommendations. He emphasised that the PSC’s role was not only to provide oversight but also to support and guide public entities in implementing its recommendations effectively.

Regarding Ms Gcilishe’s concerns about the inclusivity of the PSC’s mandate, Prof Fikeni confirmed that the Bill was designed to cover all three spheres of government. He reiterated that the PSC's mandate, as outlined in Section 196 of the Constitution, indeed extended to national, provincial, and local government entities. He assured Ms Gcilishe and the Committee that the PSC was dedicated to ensuring that local government entities were integrated into the oversight framework and that no part of the public service was excluded from scrutiny.

On the issue raised by Mr Malinga about the PSC’s spending rate and budget allocations, Prof Fikeni acknowledged the concerns about perceived shortfalls despite a high expenditure rate. He explained that the PSC was continuously working on improving its financial planning and management. He stated that while budget constraints pose challenges, the PSC was committed to maximising the impact of its available resources and was exploring ways to enhance its financial strategies to ensure more effective utilisation.

Addressing Mr Matutu’s queries about the integrated system for human resources and payroll management, he assured the Committee that the PSC was committed to transparency in its procurement processes. He highlighted that the PSC was working within budgetary constraints and was focused on ensuring that any new systems or technologies were procured transparently and in line with financial limits. He assured the Committee that the PSC’s financial oversight mechanisms were in place to manage those processes effectively.

On Ms Pholwane’s concerns about municipal oversight, he emphasised that clear rules and procedures were being developed to regulate the PSC’s interactions with municipal entities. He assured Ms Pholwane that the PSC was working to establish effective oversight mechanisms for municipalities, ensuring that they were held accountable and that their compliance with PSC recommendations was closely monitored.

He responded to Mr Ndamase’s concerns about the implications of the Bill on public employees' service conditions by affirming that the PSC was committed to aligning the Bill with employee welfare concerns. He assured the Committee that the PSC had engaged with civil society organisations and employees to address their concerns and that the Bill aimed to improve service conditions while ensuring fair treatment of public employees.

Regarding Ms Potgieter’s inquiry about the PSC’s consultation process, Prof Fikeni confirmed that feedback from constitutional bodies and civil society organisations was integral to the Bill’s development. He assured the Committee that the PSC had incorporated diverse perspectives to ensure that the Bill reflected a broad range of stakeholder inputs and that the consultation process was transparent and inclusive.

Mr Sithole’s questions about the Bill’s impact on the broader ecosystem of accountability and oversight were addressed by Prof Fikeni with an emphasis on integration. He assured the Committee that the PSC Bill was designed to complement and enhance existing oversight mechanisms. He highlighted that the PSC aimed to strengthen the overall framework of accountability and ensure that its role was well-integrated with existing parliamentary and executive oversight structures.

He responded to Ms Tikana-Gxothiwe’s concerns about the implementation of the Bill by detailing the PSC’s strategy for rolling out its provisions. He acknowledged the potential challenges and assured the Committee that the PSC was preparing for a smooth transition, with plans to integrate municipal entities effectively and manage implementation challenges proactively.

On Ms Xaba-Ntshaba’s call for gender representation in the appointment of commissioners, Prof Fikeni expressed support for inclusivity. He assured the Committee that the PSC valued diversity and was committed to ensuring equitable gender representation in its appointments. He highlighted that the Bill included provisions to promote diversity and ensure that the PSC reflected the demographic diversity of South Africa.

The discussion on non-compliance and enforcement was addressed by Prof Fikeni, who emphasised the importance of clear mechanisms for ensuring compliance with PSC recommendations. He assured the Committee that the PSC was working to develop robust enforcement provisions that would enable it to address instances of non-compliance effectively and hold entities accountable.

He also addressed the scrutiny of the PSC’s financial management, acknowledging the challenges of managing a limited budget. He assured the Committee that the PSC was committed to financial prudence and effective resource management, and was actively seeking ways to improve its financial strategies to ensure that its mandate was fulfilled efficiently.

In terms of implementation, He provided details on the PSC’s strategy for rolling out the Bill’s provisions. He outlined the timeline for implementation and the steps necessary to integrate all relevant entities into the PSC’s oversight framework. He emphasised that practical considerations were being addressed to ensure a successful enactment of the Bill.

Prof Fikeni concluded his response by summarising the key concerns raised by the Committee and reaffirming the PSC’s commitment to addressing those issues. He emphasised the importance of continued dialogue and refinement to ensure that the Bill was effectively implemented and that public service oversight was strengthened.

Deputy Minister Kekana briefly addressed the Committee, acknowledging the detailed responses provided by Prof Fikeni. She emphasised government’s support for the PSC Bill and its objectives. She highlighted that the Bill aligned with broader goals of enhancing public service efficiency and accountability.

She also reiterated the commitment to addressing the concerns raised by Members of the Committee. She assured the Committee that government was focused on ensuring that the Bill was implemented effectively and that any issues identified during the discussions would be addressed in the final draft of the Bill.

She expressed appreciation for the Committee’s thorough examination of the Bill and their constructive feedback. She emphasised the importance of collaborative efforts to refine the Bill and ensure that it meets the needs of the public service sector.

The meeting was adjourned.

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