PSC Q1-3 2024/25 Performance; PSC Bill: finalisation

Meeting report

Adoption of Public Service Commission Bill [B30-2023]

Adv Fatima Ebrahim, Parliamentary Legal Adviser, took the Committee through the Public Service Commission (PSC) A list and B Bill, clause by clause and page by page, respectively [see attached for further details]

Ms L Potgieter (DA) wanted to know if the Commission would be able to summon witnesses who were not in the employ of the state.

Adv Ebrahim agreed in the affirmative, and indicated the Commission had every right to summon any witness.

The Chairperson said the adoption of the Bill was an important step in the fight against cadre deployment, professionalising the state, and creating a merit-based public service because the government could not deliver the services people needed without professionals. As historically a part of the Department of Public Service and Administration, this hamstrung the PSC from fulfilling its constitutionally mandated function of being an independent oversight body that looks after personnel and staffing issues in the public service without fear, favour or prejudice.

He said that up to now, the PSC had had to rely on national government to ensure that it had both an adequate staffing component and a budget. This had impacted on the functioning and perception of the independence of the PSC. Now, the Bill had introduced a Secretariat as a separate staffing mechanism for the PSC, divorced from national government, to strengthen the independence of the entity.

He commented that it was not lost on him that throughout the process in the Committee, the Committee had been non-partisan and there had been no objection from any Committee Member in terms of what they were trying to do, and that had shown there were certain issues they could all agree about.

The Committee considered and adopted the entire Public Service Commission Bill and Committee Report on the PSC Bill. https://pmg.org.za/tabled-committee-report/6085/

PSC Q1-3 2024/25 Performance

Dr Somadoda Fikeni, Chairperson of the Commission, in his introductory remarks, commended the Committee because the Commission had never had a vacancy for the national commissioners in many years, except for the North West Province. The PSC had institutionalised good governance because that had been part of the culture change of the organisation. The approach of the PSC had been on the oganisation of the state -- not only to receive grievances, but to make the state effective and efficient. The idea behind the bill was to deal with deficiencies within the state departments.

He said the Africa Public Service Commission had also been revived in the last year, and the PSC had facilitated the setting up of the Southern African Development Community (SADC) Public Service Commission's Forum during August 2024. The entity convened a strategic workshop on the implementation of the professionalisation framework in October 2024, focusing on progress and clarification of roles among various key stakeholders. The entity had also had engagements for resource mobilisation and partnerships with the World Bank and the United Nations Development Programme (UNDP) on the professionalisation framework and public service reform.

The freezing of posts in the PSC due to austerity measures by the Department of Public Service and Administration (DPSA) had put the PSC in a difficult position. The cutting of budgets had led to delays in the completion of bills and the demise of the Citizens' Forum.

Dr Fikeni stated the budget-cuts were an indication that in ten years’ time there would be zero budget, and a need to close some Chapter Nine institutions and cancel the annual performance plans.

Ms Yoliswa Makhasi, Director-General (DG), DPSA, took the Committee through the five programmes of the Commission. She said the performance of the entity had progressed from 75% to 94% during the quarters under review. 77% of the budget had been spent.

Administration programme

The Commission had participated in the parliamentary processes and hearings on the Public Service Commission Bill. It had achieved an unqualified audit outcome for the 2023/24 period. The vacancy rate had been maintained at a maximum of 10%. Vacancies could not be filled due to budget constraints. Three reports on stakeholder outreach programmes had been produced. The Commission had facilitated the setting up of the SADC Public Service Forum during August 2024.

Leadership and management practices programme

Engagements were held with various national and provincial departments on human resources management, grievance rules, unlawful instruments, and other labour relations related topics. The Commission provided advice and direction on issues of discipline management and precautionary suspensions. The draft report on the "Utilisation of Categories of Leave in the Public Service: Facts, Observations and Recommendations" had been finalised and shared with DPSA officials for comments. Five focus group sessions and site visits to ABSA and AG were conducted as part of data collection for the hybrid work arrangements project. Efficiencies in the handling of grievances had resulted in over-achievement of the target.

Monitoring and evaluation programme

The Commission convened a strategic workshop during October 2024 on the implementation of the professionalisation framework, focusing on progress and the clarification of roles among various key stakeholders. Engagements for resource mobilisation and partnerships with the World Bank and the United Nations Development Programme (UNDP) on the professionalisation framework and public service reform were held. The Commission participated in the processes of the digitalisation of government, in support of the Department of Communication and Digital Technologies (DCDT). The Commission researched, sourced and verified organisations working with people with disabilities as the starting blocks for the Chairperson’s project to “Facilitate Engagement with National Organisations of People with Disabilities on Service Delivery in the Public Service.” It had also engaged in consultations by the Presidency and the Department of Planning, Monitoring and Evaluation (DPME) on the State Information Technology Agency (SITA) proposal for a new tracking system for the Special Investigating Unit (SIU).

Integrity and anti-corruption programme

The Commission had convened the International Anti-Corruption Day Commemoration Dialogue days on 9 and 10 December 2024. Several engagements and workshops were conducted on the ethics framework. It held promotional engagements on upholding, and adherence to, the constitutional values and principles (CVPs) by public servants. An assessment of compliance levels with the financial disclosures framework was undertaken.

Provincial coordination programme

The Commission had conducted two citizen forums in Limpopo and the Northern Cape. Seven reports on provincial service delivery inspections were approved. These inspections were done in the Eastern Cape, KwaZulu-Natal, the Northern Cape, the Free State and Gauteng. Capacity constraints in Gauteng were due to resignations, and other delays were due to performance management processes.

(Tables and graphs were shown to illustrate budget allocation and expenditure, analysis of compensation of employees, annual projected spending, and analysis of operational expenditure – see attached)

Discussion

Mr P Ndamase (ANC) asked what the Commission had meant when it said it was done with grievances and that, given its financial constraints, it was trying to massage mandatory items without compromising the annual performance plans (APPs).

Dr Fikeni, replying on the issue of grievances and complaints, said the PSC had established a rapid response unit which had not been reflected in the presentation. For example, if a person had not been paid for two months, the PSC would pick up the phone, talk to the minister or premier, and then make a follow-up. The same applied to service delivery complaints, where they had been tackled on the spot and resolved.

He pointed out he had been asking whether South Africa was a Treasury-driven country or strategy-driven country, because a strategy-driven country was given a budget to drive its strategies. The presidents and ministers had spoken about strategies and plans, but an official from Treasury would indicate such things would not happen and money would not be released. That was why the country ended up having many pilot projects. Countries with developed economies pronounce strategies and plans, and the budget would be made available to execute those strategies or be tailored to meet the strategy, but in South Africa it appeared the officials in Treasury were calling the shots.

It had been reported to ministers that PSC interventions had saved some departments millions of rands, and could potentially save other departments money as well. For example, PSC interventions had reduced backlogs in the forensic laboratory by 10%. They had indicated to the minister that if the PSC could be given R10m, for example, it would return R1 billion to the coffers. There had been no integrated approach in the way the state had been doing things. Even with the matter of helping the Commission to get more budget, there would be a need for an integrated way of doing things with other relevant committees, like finance, and state the problem and then indicate that the more funds the PSC gets, the more money would be returned to the coffers. When the South African Revenue Service (SARS) got a financial injection, it was able to bring R10 billion more to the coffers in three years.

Mr Zweli Momeka, Chief Financial Officer, PSC, said they were trying to do their best with limited funds. It had become impossible for the entity to do its work with budget cuts.

Mr J Malinga (MK) suggested the Commission should provide detailed information about the nature and status of the cases the next time it briefs the Committee about its integrity and anti-corruption programme.

Ms Makhasi assured the Committee that next time more information and details would be provided on the nature and status of the cases.

Mr J Matutu (MK) commented that the information presented to the Committee would make the public realise there were changes in the country and make them aware of what the government was trying to do, because people had been complaining about corruption, nepotism, non-service delivery in municipalities, and sewerage spills in schools. Hopefully, more would be seen so that they could deal with the issues and allow the government to take the necessary steps.

Ms Potgieter said she did not understand the justification behind the budget cuts by Treasury and the appointment of Commissioners, and wondered how monitoring work in local government was going to be carried out with such a small budget. She asked what the actual costs for the programmes were.

Dr Fikeni explained the matter between treasury and commissioners was a bizarre arrangement. There had been cases where some institutions did not have a commissioner, and the chief executive officer (CEO) had to double as a commissioner and CEO at the same time, something which was not acceptable. The Pan South African Language Board (PANSALB) had been one example of this. They had met Treasury regarding the commissioners, and Treasury had asked if the number of commissioners could not be reduced to five. The PSC had had to explain to Treasury that this was constitutionally mandated. He said some people had no understanding of the priorities of the state or that there was a new administration in place -- instead, they were looking at the figures and algebra of mathematics.

On money for local government, he indicated they would not move forward with the Bill until they had got resources, especially for local government, because if there was corruption at the national level, then one had to multiply that 50 times at the local level.

Ms S Gcilishe (EFF) asked the Commission what the Committee could do to assist it, seeing that its work and compensation of employees was affected by budget-cuts; wanted to know how the outcome of the findings by the Citizens Forum in the Northern Cape was influencing the work of the Commission; enquired how the partnership with the UNDP and World Bank had contributed to the work of the Commission; asked what the plan on the reduction of vacancy rate was; and commended the Commission for exceeding its targets.

Dr Fikeni indicated the Committee could assist by meeting other relevant committees of Parliament to amplify the issue of building a capable state and professionalisation as a national priority. Building a capable state would be an enabler to make all other programmes happen. Capacity was much needed to meet the challenges that were being faced.

On partnerships with the World Bank and UNDP, he said this had helped a great deal. It had allowed the PSC to backdate some of its activities and enabled them to do other things. An international body had helped them to do their APPs. He also emphasised that fundraising needed funding to do the work of raising funds. One of the ways of fundraising had been to ask entities like the South African Local Government Association (SALGA) to pay the PSC money when they wanted it to come for meetings or engagements. Regarding vacancies, he stated they would be approaching the sector education and training authorities (Setas) to see if they could get more people, especially for the provinces, and there were on-going discussions with Treasury.

Mr Ashley Searle, Western Cape Commissioner, PSC, referred to the impact of reduced citizens' forums, and said they had partnerships with the Western Cape provincial departments of the Premier and local government, and continued to work with municipalities even though the PSC was an impartial organisation. He indicated they were piggybacking on the existing citizens' forums of the departments, non-profit organisations (NPOs) and non-governmental organisations (NGOs), and municipalities to see where the challenges were. He said the Western Cape had had a citizens' forum during the 2023/24 period, and it had proved to be beneficial for the people.

Ms Makhasi said they were working with ethically-oriented organisations and moral regeneration movements, and forging partnerships with them.

Mr Momeka indicated they would continue to focus on funded vacancies.

Ms M Pholwane (ANC) asked if the Commission was making use of communal venues and facilities, seeing that it was experiencing financial difficulties.

Dr Fikeni replied that they were asking municipalities to allow them to use community halls, and they would ask premiers or mayors to assist with refreshments/lunch when the PSC had been asked to visit communities. The PSC had never used specialised venues, or places like hotels. On three occasions, they had had to use their own personal money. The budget shortfalls of the entity could be covered by such activities. He said a new Bill would help to assist the PSC with a new funding model. If certain things were made mandatory in the annual report, one would begin to see major changes, and departments would realise why the PSC needed to be paid for its services.

Ms W Tikana-Gxothiwe (ANC) commended the Commission for its progressive work and for exceeding targets, and wanted to find out how long it would take for Gauteng to turn things around, seeing that it experienced capacity constraints and other delays due to budget cuts, performance management processes, and resignations.

Ms P Xaba-Ntshaba (ANC) commented that the Commission had done much with little resources. She urged Members to work together and put their political differences aside in trying to get more money from the National Assembly so that the Commission could continue to work independently and achieve good governance. She asked if the Commission could not have powers like the SIU and the Department of Home Affairs to deal with corruption matters in state departments.

Dr Fikeni said they had a memorandum of understanding (MOU) with the Public Protector, the SIU, Home Affairs, and many others. The PSC would approach one of these organisations for collaboration on relevant matters, and that had enabled it to fast-track some of the matters.

The Chairperson said the Committee had noted the efforts of the Commission, even though it was experiencing financial constraints. At a certain stage, these constraints would deeply affect its performance. It was the duty of the Commission to expose all the wrongs in state departments -- like ghost employees, for example, because there had been wastages in the wage bill of the public sector. He wanted to know if there were no other revenue-generating streams that could be pursued by the Commission, like billing state departments for the work it was doing, such as drawing up of organograms of the departments, the handling of HR related services, mediation services, etc. For example, the Auditor General of South Africa (AGSA) bills government departments for its services. He suggested that the Committee should start looking at legislative changes to allow the PSC to charge for its services to generate revenue, instead of relying on the national budget.

Dr Fikeni indicated there were many ways of getting money. Firstly, one needed to improve the efficiencies. He did not believe there was no money in government, but there was no will to deal with inefficiencies. For instance, in international conventions, South Africa had larger delegations than the United States, China and other big countries. There was no analysis of the delegation and briefing about what would be done during the visit. There was no national coherent position or way of doing things. South Africa, in his opinion, was the only country that just rocked up at a meeting. Fragmentation had been killing the country, because state departments did not talk to each other.

Commissioner Searle said the adoption of the Bill would provide solutions to the problem of revenue generation opportunities, because it empowered the PSC to charge management fees to state institutions and municipalities to meet its funding challenges. Another possibility was to make use of the corruption funds that had been recovered, because the PSC had played a role in those processes in some way or another.

Ms Makhasi added the PSC had resolved that for special requests from departments and entities, it should be given funds to carry out the work. It had already indicated to the Department of Communications and Digital Technologies (DCDT) it would need funds to carry out the investigation the PSC had been asked to do.

The meeting was adjourned.