ASGISA Deliverables, Electricity Distribution and Skills Enhancement: briefings

PUBLIC SERVICE AND ADMINISTRATION PORTFOLIO COMMITTEE
05 June 2006
ASGISA DELIVERABLES, ELECTRICITY DISTRIBUTION AND SKILLS ENHANCEMENT: BRIEFINGS

Chairperson: Mr P Gomomo (ANC)

Documents handed out:
Department of Public Service and Administration presentation
Eskom Distribution presentation
Department of Minerals and Energy presentation
Public Service Commission presentation

SUMMARY
The Department of Public Service and Administration, Eskom, Department of Minerals and Energy and the Public Service Commission met with the Committee to provide information on Accelerated and Shared Growth Initiative of South Africa (ASGISA), related plan of action, electricity distribution and related issues and skills enhancement within the public sector. Challenges related to ASGISA were highlighted. Various proposed government interventions were explained. Dead assets would be revitalised to drive economic growth. A progress report on Eskom’s electrification programme was outlined. Projects to improve electricity infrastructure and power generation were discussed. Detail was provided on electricity distribution at the provincial level. The Public Service Commission sought to increase skills capacity in the public sector through various programmes.

Members asked numerous questions including entities responsible to monitor implementation of ASGISA, the role of local government in ASGISA, capacity shortfalls at the senior management level, enhanced research and development to drive economic growth, the need for flexible implementation of ASGISA, plans to reduce electricity supply disruptions, the need for a single electricity distribution system, evaluation of heads of department on a regular basis and the imposition of professional ethical frameworks.

MINUTES
Department of Public Service and Administration (DPSA) Briefing
Mr R Levin (Director-General) and Mr K Govender (Deputy-Director-General) outlined the challenges identified with regard to the ASGISA. Various task teams had been established to drive the process. ASGISA was not regarded as an economic policy but rather as a set of initiatives to achieve the desired objectives. The unbalanced growth path had to be reduced to allow the second economy to benefit from the expanding productivity. Binding constraints were discussed and sector strategies outlined. The role of DPSA with regard to ASGISA was explained and important intergovernmental relations presented. The strategy would focus on identifying dead assets that could be used to promote individual economic growth.

Discussion
The Chairperson asked which entities would be responsible for monitoring the implementation of ASGISA.

Mr K Khumalo (ANC) asked how a set of interventions could be monitored and how local government could be involved in the process in a meaningful way. He asked whether appropriate plans were in place at the local level to drive ASGISA.

Mr B Mthembu (ANC) sought more detail on the capacity deficiencies at the public sector management level. Research and development had to be encouraged by increased financial contributions to facilitate economic growth and job creation. A sound monitoring mechanism was required to evaluate implementation and maintain momentum.

Mr M Baloyi (ANC) noted that targets tended to be set by assumptions that reduced the relevance of strategy and research. Targets had to be identified by objective research and realistic needs. He asked whether Asgisa allowed for initiative at the local level to meet the overall objectives. The initiative should be introduced in a flexible manner. The results of a skills audit should be made known to Members. Micro-finance to emerging companies was crucial and he asked which entity was responsible for monitoring the provision of finance.

Ms L Maloney (ANC) stated that an effective monitoring mechanism was needed to ensure implementation across the board.

Mr Levin responded that the overarching responsibility for monitoring implementation lay with the Presidency. Monthly Cabinet committee meetings would be held to evaluate progress. Various monitoring mechanisms were in place such as the Public Management Watch. Monitoring would occur at different levels to check outputs and evaluate desired outcomes. The initiative would seek to create a national focus for desired growth outcomes. Human resource capacity assessments had to be improved within the public sector. A skills information system had now been put in place. The difficulty lay in ensuring compliance with the Public Service Act across the board to improve service delivery. Adequate systems were needed that contained synergies between National Treasury, DPSA and the Sector Education Training Authority (SETA). Particular entities had to manage organograms in a competent manner. Unfilled posts should be abolished to avoid the presence of unfunded posts that contributed to high vacancy rates. Effective structure would be created by the identification of necessary functions. The structure should adequately reflect the needs of the service delivery model.

Mr Govender declared that tasks had been assigned to various entities to ensure implementation. For example, the National African Chamber of Commerce had been approached to establish new businesses. A Service Level Agreement was in place with the Department of Labour. The Industrial Development Corporation and the National Empowerment Fund were involved in the creation of small and micro businesses. Labour laws would be reviewed under the supervision of the Minister of Labour. Adherence to timeframes would have to be monitored. A flexible approach to projects would be maintained

Eskom Briefing
Mr I Sokopo (Project Manager) and Mr T Skinner (Programme Manager) provided detail on Eskom’s electrification programme and the business model for the distribution division. Various challenges were outlined and the strategy to improve rural development recounted. Projects per area were explained including type of projects funded. Programmes for social upliftment were explained. The National Electrification Fund Allocation Principles and process were presented. Key features of the national RED were discussed. The list of 12 municipalities with service delivery facilitators was provided. Action plans to address the Western Cape distribution disruptions were relayed.

Department of Minerals and Energy Briefing
Ms N Magubane (Deputy Director-General) explained the electricity system and the distribution process. Various pieces of legislation would be introduced to govern electricity distribution. Key challenges facing distribution were outlined. The rationale behind REDs was discussed and a progress report provided. Provincial figures for free basic electricity were disseminated including certain associated challenges.

Discussion
The Chairperson noted the capacity shortfalls within government and asked whether measures were in place to alleviate the problem. The ongoing concerns about electricity disruptions had to be ameliorated to foster investment and economic growth.

Mr Baloyi referred to recent oversight trips to certain provinces and concurred that concerns regarding electricity provision were well-founded. He asked whether effective co-ordination and communication was in place to produce meaningful infrastructure development. A communication gap currently prevailed between Eskom and government. Clarity was sought on the role of the Department of Minerals and Energy in terms of monitoring progress. A legislative framework was required to govern electricity distribution restructuring. A concerted effort between relevant departments was needed to drive ASGISA.

Mr Mthembu noted the reliance of local government on revenue generated by electricity provision and asked how the removal of this source of income could be resolved. A single electricity distribution system should be established.

Ms Magubane replied that Integrated Development Plans at the local level had to identify the number of electricity connections needed that adequate plans would seek to address. Eskom would approach DME with requests for connections. The National Electrification Advisory Committee would consider the criteria of each request. KwaZulu-Natal, Limpopo and the Eastern Cape were the priority provinces. The committee would consider whether infrastructure was in place and the expected costs. The Minister would make final approval. The Department had to chase targets and request additional finance where needed. More funding was difficult to obtain due to other government priorities. Allocated funds were identified in accordance with the number of connections needed. Better co-ordination between government departments was necessary to render expenditure meaningful. Additional funding was required to ensure that the transitional target for 2012 was met. Local government had to use finance for infrastructure for its intended purpose rather than expend the money in other sectors. The tariff for electricity had to be normalised between urban and rural areas to create a single distribution system.

Mr M Ntsokolo (MD-Distribution) stated that two projects at Atlantis and Mossel Bay to provide peak distribution would help to address the shortage in the Western Cape. A focus on demand-side management would be a priority. A new coal-based power station would be constructed and the possibility existed for the Western Cape to acquire more local generation facilities. The erection of a new transmission line from Mpumalanga to the Western Cape would be considered. Current infrastructure would have to be doubled to meet the challenge of ASGISA and the Universal Access Plan.

Public Service Commission Briefing
Ms O Ramsingh (Director-General) presented information on the state of the Public Service Report 2006. The background and purpose of the report and the methodology used were recounted. The intention was to strengthen the public service with the appropriate capacity to provide effective service delivery. Nine values and principles were outlined.

Discussion
Mr K Minnie (DA) asserted that urgent steps were needed to reduce the 30% of senior public sector managers not declaring financial interests.

Mr Mthembu noted a concern that most departments failed to comply with the requirement to evaluate heads of department on an annual basis. Executive authorities had to enter into performance agreements. The Committee should consider the mandate of the PSC and make suitable recommendations where appropriate. 

Mr Baloyi asked how departments could adhere to gender legislation if no suitable candidates with the required skills were available.

Ms P Mashangoane (ANC) asked what measures were in place to ensure compliance with professional ethical frameworks for executive authorities and Heads of Departments.

Mr Khumalo stated that some departments lacked adequate understanding of the Public Administration Justice Act. He recommended that all departments be subjected to a training course on the intricacies of the Promotion of Access to Administrative Justice Act (PAJA).

Ms Ramsingh stated that the PSC managed the process of declaration of financial interests by senior managers. Practical challenges remained and reports should be simultaneously submitted to all stakeholders. The Head of Department had to comply with the current legislation. The 50% gender target would now be in operation until 2009. Departments would strive to attract women managers and a revised employment equity plan would be formulated in consultation with trade unions and other stakeholders. Research had to be conducted to establish the skills pool available to the public sector. The promotion of PAJA remained a concern not only for senior public sector managers but also for the general public. Reasons for decisions had to be clearly explained and requested information provided. The Department of Justice would enhance its information databases and improve the monitoring and evaluation system. 

The meeting was adjourned.