Performance Management Agreements Report

Meeting report

PUBLIC SERVICE AND ADMINISTRATION PORTFOLIO COMMITTEE
19 May 2000
COMMITTEE REPORT ON IMPLEMENTATION OF LEGISLATION AND POLICY

Chairperson: Mr N P Nhleko

Documents handed out:
1. Draft Code of Ethics for Members of the Cabinet and Members of the Executive Councils
2. Executive Members' Ethics Act 82 of 1998
3. Draft Committee Report on its inquiry into two aspects of the implementation of legislation and policy (Appendix 1)
4. Executive Summary of Report of Provincial Visits (Appendix 2)

The committee discussed and adopted the draft Report on the inquiry into the implementation of the performance agreements for HODs and senior managers, and the White Paper on Public Service Training and Education.

Mr A Taylor introduced and discussed the Draft Code of Ethics for Members of Cabinet and the Executive Council. The committee did not discuss SITA's [State Information Technology Agency] business plan, as the draft report was not complete.

Appendix 1:
DRAFT Report of the Portfolio Committee on Public Service and Administration on its inquiry into two aspects of the implementation of legislation and policy, dated .. May 2000.

The Portfolio Committee on Public Service and Administration, having inquired into the implementation of (1) performance agreements for HODs and senior managers and (2) the White Paper on Public Service Training and Education (WPPSTE), reports as follows:

Introduction
The first Parliament of 1994-1999 was dedicated to the consideration and passage of more than 500 laws and scrutiny of more than 100 new policy papers. In the Second Parliament of 1999-2004, greater emphasis must therefore be placed on ensuring that the new laws and policies are successfully implemented by government departments.

Section 55(2)(b)(i) of the Constitution, 1996 requires that the National Assembly provides mechanisms to maintain oversight of the exercise of national executive authority, including the implementation of legislation. Rule 201(1)(b)(i) of the Rules of the National Assembly requires that portfolio committees carry out this task on behalf of the Assembly.

The Committee has initially identified two key areas on which to commence its oversight activities in respect of the implementation of legislation and policy: (1) the implementation of performance management systems for senior management in the public service and (2) the implementation of the White Paper on Public Service Training and Education.

The Committee requested a report from the Department of Public Service and Administration (DPSA) on each of these areas, and the Director-General, Mr Robinson Ramaite, gave these reports at a meeting of the Committee on 1 March. Additional information on certain aspects of the Committee's two focal areas was also given by the Director-General of the Office of the Public Service Commission, Mr Mpume Sikhosana, at a briefing on 3 March, in response to questions from Members.

Performance management for senior managers
The relevant policy provisions
The new Public Service Management Framework (PSMF) is made up of the Public Service Act, 1994, the Public Service Regulations, 1999 and the Collective Agreements of the Public Service Coordinating Bargaining Council (PSCBC). One of the key policy goals informing the new framework, which commenced in July 1999, was to replace a hierarchical, highly centralised and rule-bound culture in the public service with one that is permits the maximum departmental autonomy while strengthening accountability for performance and delivery.

In order to steer departments at national and provincials towards greater autonomy while strengthening accountability, the Regulations stipulate that all executing authorities determine a system for performance management and development for employees in their departments by 1 January 2001.

However, it is evident that the establishment of a performance management system that can ensure that each and every employee in the public service will take some time to implement fully. The immediate focus of the new Regulations is therefore that performance management must become the basis of the relationship between executing authorities and their HODs, and in turn between HODs and their senior management staff.

The Act as amended accordingly includes a new dispensation for all HODs - including, in terms of an extended definition of the term "head of department", HODs at a provincial level. Section 12 of the Act requires that all HODs be employed on the basis of fixed-term contracts. The terms of such contracts may be five years or a lesser period, and may be extended.

In terms of section 3B of the Act, the power to appoint HODs is vested in the President in respect of national departments and the relevant Premier in respect of provincial departments, but these powers - including the power to enter into a performance-linked agreement with the HOD - are exercised in terms of delegations by the Ministers or MECs themselves.
In order to establish a strong incentive for senior managers (from director upwards) to follow suit and to enter into a performance agreement with their HOD (or their immediate superior), an agreement was reached in the Public Service Coordinating Bargaining Council (PSCBC), which made the award of the annual increase for 1998/1999 conditional upon the conclusion of such a contract (Resolution No. 13 of 1998).

The Minister is responsible for issuing guidelines on performance agreements on an annual basis. The guidelines included stipulations regarding the minimum and maximum salaries at each level, the percentage increase to be awarded and the maximum percentage cash bonus.

Report-back by Director-General on progress in respect of implementation
DPSA is currently undertaking a comprehensive survey of the conditions of service and employment practices of senior managers (including HODs) and as how to create stronger incentives for improved performance within the existing framework.

An initial report on the investigation into senior managers will be completed by the end of April 2000, and DPSA will at that stage be in a better position to report on and comment on the extent to which performance agreements are in place throughout the public service.

In the interim it may be said that performance agreements are now the basis for the awarding of bonuses and merit awards for all HODs and most senior managers. In the medium term, DPSA seeks to see a shift towards individual contracts for senior managers in addition to HODS who are already on fixed-term contracts. It is envisaged that their conditions of service will remain subject to the PSCBC in terms of benefits, but not in terms of salaries, which will be linked to performance criteria.

Experience has shown that the critical performance agreement between an executing authority and HOD is inoperable without key delegations from the Minister or MEC to the HOD. A problem has arisen where certain executing authorities do not delegate but nonetheless expect their HODs to perform.

DPSA is preparing a memorandum to Cabinet to recommend that the President in the national sphere and the Premiers in the provincial sphere issue instructions to their Ministers / MECs that they delegate the necessary powers. The aim in the medium to long term is to entrench the linkage between the delegations and the performance agreement.

All performance agreements between executing authorities and HODs are registered and kept by DPSA. Most agreements scrutinised by DPSA were too broad, and it was therefore difficult to evaluate whether performance criteria were being met. DPSA receives no feedback on evaluation, and can currently only assess their effectiveness in terms of the bonuses and awards granted to HODs.

In addition, it is apparent that not all executing authorities are evaluating their HODs on a regular basis. It must be said that some Ministers and MECs make a point of sitting down with their HODs every three months to conduct an evaluation of performance. DPSA has therefore identified the need for a support structure to be established for the evaluation of HODs.

DPSA accordingly requested the Public Service Commission (PSC) to assist, and the PSC has indicated that it would develop a methodology for evaluating HODs, based on comparative research, and would on an ongoing basis render advice to executing authorities on the evaluation of their HODs. DPSA will also be developing competency profiles for HODs and disseminating good practices.

The White Paper on Public Service Training and Education
1998 investigation by Committee
In 1997, the Committee approved the draft White Paper on Public Service Training and Education (WPPSTE) and the following year conducted an assessment of the implementation of the White Paper as an aspect of a broader enquiry into training in the public service.

Key findings from the Committee's report (ATCs, 17 December 1998) include the following:

Instruments aimed at facilitating improved strategic planning and budgeting for public service training and education (PSTE), such as the Capacity Development Standard (CDS) proposed by the WPPSTE, were not yet in place;

Most departments in the public service were already setting aside 1% of their wage bills for training, as was proposed in the Skills Development Bill (now Act 97 of 1998);

There was insufficient monitoring and evaluation of departmental training programmes - the only instrument available at the time, DPSA's Annual Report on Training, reflected incomplete and inconsistently presented (non-comparable) information from one year to the next;

The role of the South African Management Development Institute (SAMDI) needed to be reviewed and redesigned. The Director-General of SAMDI subsequently briefed (the Committee on the 'turnaround strategy' for the institute in February 2000. The Committee intends reporting on this as part of its 2000 Budget Review/Preview Report.)

Initial steps towards the establishment of a Public Service Training and Education Authority (PSETA), along the lines proposed by the WPPSTE and proposed in terms of the Skills Development Bill (now Act 97 of 1998) had been taken.

The relevant policy provisions
Skills development in both the public and private sectors is regulated by the Minister of Labour, who is responsible for determining policy in this area.

The South African Qualifications Authority (SAQA) Act, which came into operation in 1995, addresses the key issues of quality and access. The Skills Development Act, 1998 and the Skills Development Levies Act, 1999 focus on investment and prioritisation for economic growth and development. The SAQA Act and the Skills Development Act are regarded as 'mutually interdependent and fully compatible'. (Department of Labour homepage)

On 20 March 2000, the Minister of Labour formally established 25 Sector Education and Training Authorities (SETAs), as required in terms of the Skills Development Act, 1998. The SETAs are made up of representatives of business, labour and in some sectors, government representatives, in every sector of the economy. They will be tasked with designing and implementing skills development strategies to meet skills needs in their respective sectors. In terms of the WPPSTE, DPSA must establish a SETA for the public service.

In terms of the Skills Development Levies Act, which comes into effect on 1 April 2000, employers will have to pay a skills levy of 0,5% of their payroll. The levy increases from 1 April 2001 to 1% of payroll. The SETAs are to play a major role in the disbursement of these funds to employers as grants.

Report-back by Director-General on progress in respect of implementation
The role of DPSA in terms of education, training and development is to develop policy and strategy. DPSA is not responsible for training - each department has its own budget for training and carries out its own training programme. SAMDI, which is under the policy control of DPSA, is a training provider that focuses on management development.

The establishment of a Public Service Training and Education Authority (PSETA) has run into problems in terms of the envisaged scope of coverage. The Department of Labour requires that authorities be established for each 'economic sector', yet the public service is not homogenous and consists of more than one economic sector.
Only the regulatory departments (DPSA, Finance, State Expenditure, and Labour) do not fall into a predetermined economic sector, and the current legislation does not provide for dual membership. DPSA hopes to be finalising the steps required for the establishment of the PSETA very soon.

In addition there are funding problems in terms of the levy required by the Skills Development legislation. Departments cannot in fact contribute to it, although the requisite percentage of the wage bill has been isolated by departments. These obstacles will have to be negotiated in consultation with the Department of Labour.

In 1998, the Public Service Coordinating Bargaining Council (PSCBC) committed R10 million into sectors to finalise skills development plans. Some sectors have made progress in this regard, such as health and education, which have developed HRD strategies, but an integrated approach has not been adopted on HRD. The sectoral plans must be finalised.

DPSA will be registering with the South African Qualifications Authority (SAQA) as a service provider. Competencies for managers must then be prescribed in cooperation with SAQA. Targeted programmes for senior managers must result. Lower employees must however not be neglected, and a renewed effort must be made to ensure that departments give attention to their upliftment and advancement.

In addition, those skills where there are severe shortages (such as IT, project management) and training on the Public Finance Management Act (PFMA) must be fast-tracked. DPSA has commenced a process firstly to identify scarce skills and secondly to develop a strategy to build up the capacity of the public service in these areas.

DPSA will continue supporting the process of SAMDI's restructuring, and will be holding talks on the training fund for the public service, provided for in section 4 of the Public Service Act, and on SAMDI's readiness for and the appropriateness of commercialisation. SAMDI has also been requested to by the President to give attention to the development needs of Directors-General.

An important future focal area is the monitoring and evaluation of training taking place in the public service. Initially there is a need to identify the real status of training and development by carrying out a study to identify the baseline in each department.

Findings
Performance agreements
There is a need to review the content of performance agreements between executing authorities and HODs to ensure that they are giving effect to the (i) implementation of government policy priorities, (ii) coordinated priorities of Cabinet and Exco clusters and (iii) linkages between national departments and corresponding provincial departments (iv) priorities identified by the Minister/MEC for the department itself.

Even more urgent is the need to develop a mechanism to facilitate the regular and systematic evaluation of HODs by (or on behalf of) executing authorities. The Public Service Commission has undertaken to research and design an mechanism for the evaluation of heads of department. The Commission has undertaken to complete a report on the methodology for evaluating HODs by 31 June 2000. It has further undertaken to provide advice to executing authorities on an ongoing basis.

Implementation of the White Paper on Training
DPSA is not responsible for the provision of training, but is responsible for the development of a coherent and integrated HRD strategy, which by its own admission is not in place at this stage. The finalisation of the sectoral skills development plans must be a priority.

DPSA has a critical responsibility in terms of the PSETA or SETAs and the funding issues, which it has not yet discharged. The obstacles that remain in terms of the requirements of the Skills Development Act and Skills Development Levies Act must be removed in consultation with the Department of Labour as a matter of urgency.

The positioning and role of SAMDI has been fluid for almost two years since its descheduling in June 1998. A review of the policy and a full consultation with the relevant stakeholders should form core parts of a process towards the resolution and finalisation of SAMDI's future. The Financing Agreement between the European Community and the Government of the Republic of South Africa concerning the Public Service Management Development Programme (PSMDF; Project SA/96/73200/03) has been referred to the Committee(ATCs, 13 April 2000), and consideration of this Agreement presents a useful opportunity for further deliberations on the role and positioning of SAMDI, since SAMDI is a key beneficiary of the Agreement.

Recommendations
Performance Agreements
That DPSA report back to the Committee on its 'initial report' on its investigation into senior management on 21 June 2000 and on the finalised report towards the end of the third quarter;

That the first-mentioned report-back include a report on compliance levels and a review (assessment, commentary & recommendations) of the content of the performance agreements registered at DPSA in terms of the criteria listed in paragraph D.1.a of this report;

That the Public Service Commission present its report on a methodology for the evaluation of HODs to the Committee early in the third quarter of 2000 (the report is projected to be completed by 30 June, during recess); and

That the DPSA and the PSC submit to the Committee in writing an outline of those institutions' respective roles and responsibilities in respect of the performance of heads of department and related matters by Wednesday 21 June 2000.

White Paper on Training
That DPSA report back to the Committee on progress made towards the successful implementation of the White Paper on Training on 7 June 2000, focusing on:

The implementation of the Skills Development Act and Skills Development Levies Act in respect of its own duties in relation to the public service as a whole; and

The development of a more coherent HRD strategy for the public service (based on such considerations as a review of the White Paper proposals, the sectoral plans, the need to fast-track certain skills and the need to provide for the advancement of the lowest level workers in the public services);
and
That the DPSA and the PSC submit to the Committee in writing an outline of those institutions' respective roles and responsibilities in respect of the monitoring and evaluation of the training provided to public servants by 7 June 2000.

Appendix 2:
DRAFT Report of the Portfolio Committee on Public Service and Administration on the Provincial Visits of 27-31 March 2000, dated .. May 2000.

Executive Summary
The Portfolio Committee on Public Service and Administration, having sent delegations to six provinces in March 2000, reports as follows:

RATIONALE FOR PROVINCIAL VISITS
In terms of section 197(1) of the Constitution, 1996, the public service must function, and be structured, in terms of national legislation. In terms of the Public Service Act, 1994, the public service is made up of national departments, provincial administrations, provincial departments and organisational components.

In terms of the Act, the Minister for the Public Service and Administration is responsible for determining policy for the public service. Section 3(2)(a) of the Act outlines the key areas for which the Minister is responsible, including public service:-
· functions and organisational arrangements;
· employment and other personnel practices;
· salaries and other conditions of service;
· labour relations;
· information management and information technology; and
· transformation and reform.

DPSA is also responsible for the facilitation of the implementation of policy, through interventions in and partnerships with national and provincial departments.

The Portfolio Committee on Public Service and Administration exercises oversight of DPSA (in respect of both its dual role of policy formulation and the facilitation of implementation policy). The Committee also has an obligation to ensure that these policies are properly implemented by the public service (ie both national and provincial departments).

The Commmitee therefore conducts visits to the provinces with the following broad purpose:
· To evaluate the impact of DPSA policies in the provinces and its interventions and partnerships to assist provinces;
· To assess the extent to which national public service policy has been implemented by the provinces (and if not for what reasons); and
· To draw conclusions and make recommendations in respect of these areas.

The Committee's visits to provinces are therefore not so much 'tours of inspection' but rather fact-finding missions and are viewed by members as learning experiences. The Committee seeks to identify and explore tranversal problem areas towards findings solutions and to learn about and to publicize good practices in management and service delivery.

DPSA ACTIVITIES TO BE EVALUATED

1. Assisting departments with management plans
Cabinet took a decision in August 1999 that all departments at national and provincial levels must develop management plans by 1 December 1999. The management plans were to consist of the following outputs:

Strategic Plan
· Core objectives described
· Activities described
· Goals and targets of department described
· Programme for attaining goals and targets described, with costing
· Functions to be contracted out and abolished described

Organisational Structure and Post Establishment
· A detailed organogram, with indication of number of posts for each component and decentralised office and a description of the activities of each unit

Service Delivery Improvement Plan
· As specified in the Public Service Regulations
· Publication of Annual Statement of Public Service Commitment

Human Resource Plan
· Available resources assessed in accordance with the Public Service Regulations
· Needs specified
· Shortages/deficiencies/oversupply of staff and skills defined

In terms of the Integrated Implementation Programme (IIP), DPSA took an active role in assisting national and provincial departments to develop their management plans. Three DPSA teams gave focused, hands-on assistance to three provinces (Eastern Cape, KwaZulu-Natal and the Northern Provinces) and a further DPSA team assisted the remaining provinces and the national departments to develop their plans.

Not all of the national and provincial departments had completed their management plans by 1 December 1999 and the deadline has been extended to 31 March 2000. Information from the management plans and other sources was nonetheless utilised in the drafting of DPSA's Personnel Expenditure Review (PER) and the draft remuneration policy, which were considered by Cabinet in February 2000.

2. Following through on IIP assistance
Following on from the IIP was the Inter-Provincial Support Programme (IPSP), a partnership between DPSA and (initially) three provinces, supported by donor funding from various international donors (with a contribution of R30 million over three years from the UK Department for International Development). Additional provinces have joined the initial partners, and the budget for the three-year programme has expanded with the assistance of other donors to R50 million.

A central thrust of the IPSP was to create a learning network for the sharing of best practices, to be coordinated by DPSA. Other elements of the programme include funding for technical expertise to assist in the implementation of policies and programmes including performance management systems, Batho Pele, financial management systems and anti-corruption measures, amongst others.

3. Batho Pele (Service delivery policy)
The White Paper on the Transformation of Public Service Delivery (WPTPSD), subtitled 'Batho Pele' (a Sotho adage meaning 'People First') was approved by the Committee in September 1997 and promulgated by the Minister in October of that year. The policy required a radical change in the way departments were required to approach service delivery, an approach that incorporated concepts and processes previously unknown in the public service.

The implementation of the policy by departments has been 'variable'. The Department of Home Affairs, as one of the pilot departments, was the first to launch its service standards in terms of this policy in June 1998. Several departments, including provincial departments and provinces as a whole, have since launched their service standards.

4. Alternative service delivery mechanisms
DPSA has undertaken to develop an overarching policy framework for alternative service delivery mechanisms. Pressure on personnel costs has already led many departments towards establishing such mechanisms, including outsourcing and public-private partnerships.

C. SPECIFIC OBJECTIVES OF THE VISITS

1. Management plans
To be exposed to the practical working of the management plans in provinces in a concrete, focused way. The Committee adopted a sectoral approach, as follows:

2. Inter-Provincial Support Programme (IPSP)
To learn to what extent and with what success the follow-up programme to the IIP has been implemented in the provinces that have joined the programme.

3. Site visits - Batho Pele
To visit delivery sites in the provinces, and would like to focus on those initiatives that reflect the implementation of the Batho Pele policy in the province (such as 'one-stop shops', welfare paypoints, and clinics).

4. Case studies - alternative service delivery
To be exposed to the ways in which such strategies have been employed by provinces thus far, and with what success, by means of cases studies or site visits.

LOGISTICAL ARRANGEMENTS

The Committee selected the three provinces that were participants in the IPSP (Eastern Cape, KwaZulu-Natal and the Northern Province) and three provinces that were considering becoming participants in the IPSP (Northern Cape, Free State and Mpumalanga) for the visits.

Three delegations, encompassing all full members of the Committee who were availlable, visited two provinces each, as follows:

The delegation that visited the Eastern Cape and KwaZulu-Natal comprised Mr J Sitole (leader of delegation), Mr R Sikakane, Mr B Mkhize, Mr B Mthembu, Mr A van Zaarsveld, Adv Z Madasa and Ms Z Mene (Committee Secretary).

The delegation that visited the Northern Province and the Northern Cape Province comprised Mr R Baloyi, Ms C September, Mr P Mbongo, Mr P de Vos and Mr A Mamabolo (Committee Secretary).

The delegation that visited the Free State Province and Mpumalanga comprised Mr N Nhleko (Chairperson and leader of delegation), Mr L Modisenyane, Mr M Kgwele, Ms L Maloney, Mr M Da Camara, Mr Isaac Mfundisi and Mr R Shaw (secretariat).

All delegations visited the provinces during the week of 27 to 31 March 2000. The programmes for the delegation were drafted by the directors-general of the provinces in accordance with the requests made by the Committee regarding its objectives. In most cases the Premier of the province approved the programme and in some cases it was discussed in the province's Executive Council meeting.

The Committee utilised funds from its Department of International Development (DFID) project funds, which allowed for three full delegations to be sent and therefore for all interested members of the Committee to have the opportunity to be exposed to provincial government management and service delivery issues.

E. KEY FINDINGS

The level of compliance with the national requirement regarding management plans appeared to be satisfactory. In one province the delegation was presented with a full set of every department's plans as a demonstration of full compliance.

The Offices of the Premier in various provinces have almost all recently undergone restructuring and upgrading, and the establishment of some are quite considerable (350 posts). These structures should above all be giving effect to the coordinating role of the Premier in terms section 125(2)(e) of the Constitution, 1996 and of the Director General in terms of section 7(3)(c)(ii) of the Public Service Act, 1994.

The finance departments' strategic plans revealed concerns in almost all province regarding the provinces' ability to raise their own revenue, and that opportunities in this regard should be extended. It was further argued that individual departments who raise revenue should be entitled to retain all or a percentage of those revenues.

A related issue which emerged in meetings with finance departments and HODs in one province in particular was the restriction placed on the borrowing powers of provinces in respect of capital projects. The Committee is not convinced that the requirements of the Loans Coordinating Committee are unreasonable, however, especially in view of the high interest rates payable on such borrowing. Where this restriction impacts on PPPs, the public sector should seek to bring some other asset (other than capital for infrastructure development) to the table: ideally this would be the contribution of the private sector partner.

Many provinces' public works departments exemplify the current public service dilemma regarding an overabundance of unskilled staff (at levels 1 to 6, concentrated at levels 1 and 2). Productive work cannot always be found for these workers, and a subsidized transition to a new form of employment as a member of an employee-owned company or a PPP or another form of alternative service delivery would be desirable from the point of view of government, which can no longer afford such high proportions of personnel expenditure relative to capital expenditure. However, these state workers are paid at a rate that is often 50 per cent higher than their private sector counterparts, making such a transition less easy to negotiate. Where successful transitions have been made, the unions have been involved every step of the way, and very often five-year transitional periods with guarantees have been instituted.

The Committee believes that private sector involvement is highly beneficial in projects of a certain nature. The operation by government of vehicle fleets for one purpose or another has in many instances proved wasteful and even a breeding ground for corruption. Systems of leasing or outsourcing, where a private sector partner has a profit-related incentive to ensure that fraud and corruption are minimised and that costs are contained as far as possible, lead to savings for government and should be applied.

Public Works departments also appear to be the locus of an even older problem, the failure to integrate the employees of the former homelands with the rest of the provincial workforce. In such cases, under-employed workers are often not so much determined by sector as by geographical location. The problems in dealing with this problem include the lack of a retrenchment tool to serve as a means of forcing employees to choose between redeployment and termination of services. The relatively high costs of living in the urban centres lend a degree of support to claims that redeployment to the bigger cities should take place on favourable terms (ie involve a promotion). Primarily, however, the government must have the option, and a retrenchment tool is indispensable.

Infrastructure backlogs, particularly backlogs in the maintenance of roads, have reached crisis proportions in many provinces. There is an urgent need to spend more money on construction and maintenance of roads. The obstacles preventing provinces from establishing their provincial roads agencies should be removed.

In those provinces where retrenchment and the need for a retrenchment tool was discussed, the need for a social plan was also raised. In the poorer provinces, state employment is the sole source of income for many individuals, families and extended families. Retrenchments are likely to excacerbate the problem of poverty in those areas. A social plan including financial counseling and reskilling was essential.

While there is an oversupply of workers at the lower levels, the provinces across the board are finding it difficult to attract and retain managers and professionals in public service departments. Health professionals and technical professionals are scarce and many vacancies exist for these posts in provincial departments. A strategy is required to provide incentives that provinces may offer to such workers, particularly incentives for working in outlying areas as opposed to the main centres.

The Integrated Implementation Programme (IIP) greatly assisted the provinces in complying (particularly the substantial assistance provided to the Eastern Cape, KwaZulu-Natal and the Northern Province). Compliance is still not 100 per cent. The implementation of the follow-up programme, the IPSP, appears to have been subject to certain delays. It is essential that any obstacles to implementation of the IPSP be removed.

Managers who have responsibilities that extend to rural areas or small towns should be visiting them on a regular basis and interacting with the staff there. Greater interaction and coordination between departments at the small town and rural levels could result in the integration of some services, leading to greater efficiency and improvement in the level of service offered in those areas.

The Committee believes that one-stop shops are an exciting development and that they should be replicated where the conditions are appropriate, usually where public service offices have large geographical jurisdictions. It is important to develop one-stop shops in close cooperation with the community that uses the facility, and inter-departmental coperation is indispensable.

Another sound practice in provinces with large geograpahical expanses under its jurisdiction is the Cabinet Meets the People programme, in terms of which the provincial Executive travels to a town or city in the province every second week to hold meetings with the communities. This is a laudable practice, and all strategies aimed at bring government closer to the people are in keeping with the letter and spirit of the Constitution.

One of the provinces visited was a full participant with the State Information Technology Agency (Sita), which was established in 1998 to consolidate the State's IT interests. Sita was established to promote savings through bulk-buying and rationalisation of licencing agreements, and to ensure the inter-operability of state IT systems. Wastage has occurred in those government departments who have been relying on outside consultants owing to their own lack of expertise, and coordination has been poor. Those provinces that have not approached Sita should do so to investigate participation.

HIV/Aids was of serious concern in the provinces visited. The treatment of HIV/Aids is placing a strain on the resources of the province, in particular on the health and welfare budgets. National strategies and campaigns focusing on prevention are required to support the provinces' efforts to treat and care for victims of the disease.

Departments in those provinces that had been affected by the floods in March expressed dissatisfaction with the level of assistance they had received from national government.

RECOMMENDATIONS

That DPSA negotiate a retrenchment tool and social plan to assist provincial departments to address the problem of lower-level staff in excess of operational requirements;

That DPSA develop initiatives relating to the recruitment and retention of managers and professionals in the provinces, including the introduction of appropriate incentives for skilled personnel to take up posts outside the main centres, and report thereon to the Committee during the third quarter;

That DPSA provide a broad overarching policy framework for alternative service delivery, and in addition provide practical hands-on advice and assistance where feasible regarding the adoption of alternative service delivery mechanisms by departments and good practices regarding the implementation of such mechanisms;

That DPSA, in consultation with the Public Service Commission if necessary, ascertain the whereabouts of certain disciplinary appeal cases, submitted by the KwaZulu-Natal Department of Public Works in September, October and November 1999, and ensure that the proper directions and/or relief is given in this matter, and to report to the Committee thereon, by 31 July;

That DPSA through the Steering Committee of the Inter-Provincial Support Programme (IPSP) ensure:

That all obstacles to the implementation of the IPSP are removed as soon as possible, and that the participation of additional provinces is fast-tracked;

That the learning network of the IPSP convene meetings to share information and good practices regarding -

the elimination of ghostworkers from the system (other related meetings may focus on ghost pensioners, and the clean-up of the PERSAL system, in general);

the integration of services, specifically the one-stop shop concept (as pioneered in the Northern Cape); and

alternative service delivery in the infrastructure and 'agriculture and allied' sectors;

That the national and provincial coordinators of the IPSP report to the Committee on progress made in respect of the implementation of the programme, including the establishment of the learning network, by 31 July;

That the national Department of Health provide technical assistance and support to the Eastern Cape Department of Health regarding the most effective utilisation of its budget in addressing the increase in the incidence of HIV/Aids in the province;

That the Free State Department of Social Welfare table the details of its award-winning welfare payout system (and the re-registration procedure that precedes it), now that it is fully implemented in the province, at the Welfare MinMEC, and obtain leave to present such details, to facilitate a discussion on the relative efficacy of the systems and procedures utilised in the various provinces in the delivery of welfare payments, with a view to sharing knowledge and good practices, within a reasonable period;

That the Free State Department of Education table the details of the book-packing project (which provides temporary employment packing books for distribution to schools) at the Education MinMEC, and obtain leave to present such details, to facilitate a discussion on the replication of the project in other provinces, in the interests of the promotion of employment in the country, within a reasonable period;

That the KwaZulu-Natal Department of Health review the rental of R15 000 charged by the Dabeka Health Centre to the Botha Hill Clinic and report to the Committee on the matter, by 31 July;

That the KwaZulu-Natal Department of Health investigate and rectify inadequate provision of basic equipment and services at the Ndevana Health Centre and the training of its staff to manage budgetary matters, and report to the Committee on the matter, by 31 July;

That the KwaZulu-Natal Department of Public Works give urgent attention to the renovation of the place of safety in the Eastern Cape visited by the Committee delegation, and report to the Committee on the matter, by 31 July;

That the KwaZulu-Natal Department of Social Welfare table details of its Siyavuselela Project at the Welfare MinMEC, and obtain leave to present such details, to facilitate a discussion on the good practices which emerged from this project, with a view to sharing knowledge and good practices, within a reasonable period;

That Mpumalanga provincial departments, in particular the Department of Public Works, Roads and Transport, prioritise the integration, by redeployment or other means, of workers located in former homeland areas, as a matter of urgency;

That the Mpumalanga Department of Finance meet with Mpumalanga's revenue-collecting departments to draw up a plan of action to maximise and optimise revenue collection in the areas where it is currently permitted, and report to the Portfolio Committee on Finance on the matter, by 31 July;

That the Finance Departments of all provincial administrations table proposals at the Finance MinMEC regarding (i) the extension of revenue collection powers for provinces and (ii) the creation of a mechanism that would allow for the retention by a department in certain instances of savings or funds accruing to that department, and obtain leave to present such proposals at the Finance MinMEC, to facilitate a multilateral discussion on this matter, within a reasonable period;

That the Mpumalanga Department of Health report to the Committee regarding the the state of repair of the X-ray equipment at Rob Ferreira hospital and which department/s are responsible for such equipment's repair, by 31 July;

That the Eastern Cape Government Office of the Premier investigate whether the Eastern Cape Department of Welfare is provided with adequate infrastructural arrangements to carry out its duties effectively and efficiently, and report to the Committee on the progress the Government has made in furnishing suitable accomodation to the department, by 31 July; and

That the Northern Province Departments of Local Government and Housing and Education give serious consideration to the introduction of a vehicle leasing and maintenance scheme, with private sector involvement if appropriate, that will avoid the high incidence of misuse of vehicles, which has been highlighted as a result of the successful anti-fraud and anti-corruption campaign in the province;

That the Northern Cape Department of Transport, Roads and Public Works table details of its affirmative procurement plan at the Public Works MinMEC, and obtain leave to present such details, to facilitate a discussion on the replication of the project in other provinces, in the interests of the promotion of SMMEs in the country, within a reasonable period;

That the Committee on Public Accounts and the Portfolio Committees on Finance and Public Service review the matter of the implementation of the findings of the Judge White Commission, in the light of the work that has been done on this matter by the Auditor-General and Portfolio Committee on Public Service and Administration, once judgment on appeal has been handed down in the Yalezo case.

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