Statistics South Africa Annual Report 2006/7: briefing
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Meeting report
FINANCE
PORTFOLIO COMMITTEE
17 October 2007
STATISTICS SOUTH AFRICA ANNUAL REPORT 2006/7: BRIEFING
Chairperson: Mr N
Nene (ANC)
Documents handed out:
Statistics South
Africa Annual Report 2006/07 presentation
Statistics
South Africa Annual Report 2006/07
Audio recording
of meeting
SUMMARY
Statistics South Africa briefed the committee on their annual report. The briefing focused on their strategic
overview, organizational performance, supporting initiatives, financial
performance and their objectives for the future. They outlined strategic themes, aims and
achievements with regard to some surveys, challenges they were faced with and
the surveys that would be focused on in the next two years.
The committee commended Stats SA on their presentation but noted that there
were many challenges and issues that would be discussed. The committee focused on incomplete projects,
under spending, the lack of good leadership within the department, job
vacancies and security issues. The
committee and Stats SA thereafter discussed their progress and how they would
overcome these challenges.
MINUTES
The Chairperson welcomed the committee and Stats SA and informed them that
there were certain members who were not able to attend the meeting.
Presentation by Statistics South Africa (Stats SA)
Mr P Lehohla (Statistician-General) said that the meeting was an occasion
for Stats SA to account for their actions.
They would focus on problems previously encountered. Mr Lehohla wanted
the committee to see that they were moving in the right direction. The report consisted of five strategic themes.
Strategic Overview
Mr Lehohla said the vision was for Stats SA to be the preferred supplier of
quality statistics. They aimed to
provide relevant and accurate statistics to inform users about the economy and
society.
The five strategic themes consisted of providing relevant information to meet
user needs, enhancing the quality of products and services, developing and
promoting statistical coordination and partnerships, building human capacity
and enhancing effective governance and accountability.
Organisational Performance and Current Surveys
Mr Lehohla touched briefly on the Consumer Price Index (CPI) saying
that the aim would be to indicate price changes over time. The key achievement was the roll-out of
direct price collections from outlets in 2006/07. Stats SA had also developed a plan to
reweight the CPI.
Mr Lehohla also discussed the Income and Expenditure Survey. He reminded members that the aim of the
survey was to provide information on income and spending patterns in SA and to
update the basket of goods and services for the CPI. A key achievement was the finalisation and
collection of data collection. The results
would be released in November 2007 and would enable them to inform the public
of their performance.
The Community Survey would provide service delivery information at the
municipal level. Mr Lehohla told members
that a key achievement had been to mobilise 6000 field workers to visit
approximately 280 000 households. The Community
Survey would be used to build technical and human capacity for Census 2011.
The Labour Force survey would measure the dynamics of the labour market. He focused on improvements commenting on reviewed
concepts and definitions of key indicators, frequency, timeliness, the
redesigned questionnaire and the process.
Supporting Initiatives
This section focused on improving quality. Lehohla discussed the business frame and
dwelling frame; as well as statistical coordination and partnerships focusing
on the Data Management and Information Delivery Project.
The aim was to manage, monitor and assess the quality of all elements of the
statistical cycle. Mr Lehohla informed
members of some achievements had been realised due to implementing the project.
Stats SA developed a Statistical Data Management Framework for standardised
data production and retrieval. Another
achievement was the development of the South African Statistical Quality
Assessment Framework (SASQAF).
Explaining the National Statistics System (NSS), Mr Lehohla said that the
rationale for the system was that demand for statistical information outweighed
supply. Mr Lehohla informed members that key achievements had been the review
of registers and administrative records for Departments of Education and Home
Affairs and capacity audits conducted to assess statistical capacity requirements. The business frame and dwelling frames were
important issues to focus on when improving statistical information. However, many dwellings did not have
addresses and that it was a challenge that Stats SA would have to see to.
Financial Performance
Mr Lehohla commented that Stats SA has spent 94.3% of its
budget.
Future Plans
Mr Lehohla informed members of the direction that Stats SA was heading
in. He focused on the need for accurate,
relevant and reliable statistics, transparent methods, highly skilled
professional staff, a numerate society and consolidation and sustainability.
He told members that Stats SA would focus on poverty and tourism surveys in
2008. In 2009, the focus would be on the
reweighted CPI, the Statistical Training Institute and the International
Studies Institute.
Discussion
Mr K Moloto (ANC) said that Stats SA had some challenges to address and
that he was interested to know how they would overcome them. He also commented on wasteful expenditures
and asked about the circumstances surrounding that expenditure. Moloto stated that there were some projects
that had not been completed. He wanted
to know what the justification was for incomplete projects when the department
was under-spending their budget. He commented
on the debt amount that had been written off and wanted to know why it could
not be recovered.
The Chairperson stated that there were many issues that the committee would
have to discuss and asked for clarification with regard to resource
constraints.
Mr M Johnson (ANC) thanked Stats SA for a comprehensive report. There were many
discussions about updating the CPI and he wanted to know what problems had previously
been encountered with it. Mr Johnson, referring to the Stats SA website,
enquired as to the number of people using the site, and if this had any significance
to Stats SA.
Mr S Marais (DA) stated that there were issues in the report that were of some
concern to him. Staff were the greatest
asset and if they was not treated correctly there would be no return on the asset.
Mr Marais said that he had identified many vacancies in the report. There was
an absence of leaders, shortage of skills and incompletion of courses. This was
alarming and had to be corrected. He
also noticed that there were not as many disabled workers as there should have
been. There was under-spending in most departments, which meant that there was
a problem as departments were either not spending adequately or that planning
was being incorrectly managed, resulting in bad spending. He warned that under-spending could lead to
under-performance and a skills shortage, which could result in their downfall.
Ms N Mokoto (ANC) commented on the re-weighting of the basket of goods for the
CPI. She wanted clarification as to what
elements were taken into account asked for clarification on the issue of the skills
shortage within Stats SA. Ms Mokoto wanted to know what constraints they had
experienced and the reasons for the incompletion of projects. Also, the report showed that funds were
shifted from one program to another. She wanted to know if this was permissible
and if it helped them to reach their objectives. Ms Mokoto raised issues
related to the poverty line and poverty survey.
She queried the indicators of extreme poverty.
The Chairperson told Stats SA that the explanations in the report were
inadequate. He wanted to know if
programs suffered from the shifting of funds and if the shifts were an
indication of poor planning.
Mr Marais questioned the issue of financial resources and human resources. He commented that they had incomplete
projects but that they were under spending.
He wanted an explanation as to why they were using consultants and
contractors. Mr Marais spoke about the improvement of the business
register. He wanted to know what
information would be used and how up-to-date it would be.
Ms J Fubbs (ANC) commented on the Stats SA website, saying that it would enable
them to take note of the number of people who required information and would
allow them to engage faster and more efficiently. However, she warned that the information was
not easily available or helpful. Ms Fubbs also commented on the resignations
within Stats SA. She wanted to know what
skills were missing and why projects had not been completed.
The Chairperson announced that there were many questions that related to human
resources (HR) and that Stats SA would have to answer them completely.
Mr Lehohla responded to issues that were raised. He admitted that the organisation should have
planned better and that it was an issue that they would have to face.
He said that the question of wasteful expenditure concerned management and was an
issue with accommodating contractors. He
informed members that the problem had been remedied. He responded to the issue of resignations,
saying that there were sufficient funds but not enough people to do the
work. There were specific areas that
were in short supply of workers but that other areas had improved.
Mr P Kelly (Acting DDG: Economic Statistics) said that they had started
collecting data for surveys and research for the other surveys was almost
complete.
The Chairperson reminded them that there were areas that did not deliver and
wanted to know if there was a tracking system in place to ensure that projects
were on track.
Mr Kelly spoke briefly about the CPI basket. The current CPI basket held just
over 1020 items. They had developed a
method of finding new items for the basket.
He stated that they were using a province by province approach and the
aim was to exclude expensive products that were used by few people. Kelly announced that only 400 items would be
proposed for the new CPI basket and that this would be announced in January
2009. Fewer items would allow the new
CPI to be more streamlined, reflecting more accurately the expenditure of the
average household.
Mr J Arrow (DDG: Quality and Integration) said that the velocity of information
for the business register was based on the assumption that people pay or register
their taxes and would therefore be known to Stats SA. Information on classification was based on standards
given by the Department of Trade and Industry.
Ms K Masiteng (DDG: Population and Social Statistics) commented on the HR
issue. Stats SA had acquired resources and were awaiting the results. Tackling poverty issues, she informed members
of a report launched with the National Treasury which spoke about the
methodology of the poverty line. They
were also looking at subjective poverty and its implications.
Ms E Gavin (DDG: Statistical Support and Informatics) responded to issues
concerning the Stats SA website. She
agreed that the site did not provide all information but said that the actual “clicks”
on the site could be significant as it was an effective and efficient way of
providing insight. She said that they
knew that the vacancy page was the most popular page and could provide
information on the type of people harvesting the information. The most popular download was the Labour Force
Survey. Stats SA also harvests
information by getting users to subscribe to the site.
Mr Lehohla informed members that Stats SA had also used user satisfaction
surveys and that there has been progress.
Ms N Mokoena (DDG: Corporate Services) stated that vacancies occurred because
of the skills shortage. It was difficult to obtain skilled people for temporary
posts but they were looking into permanent posts. Stats SA was also working to identify
problems regarding the shortage and were attracting many people; however these
lacked the appropriate skills. According
to Mokoena, people were resigning because there were other organisations that
were attracting them by offering better benefits. A new strategy would be to concentrate on
young learners, and they would offer bursaries to people who were interested in
studying statistics. It was their intention to double the amount of internships
offered to people.
Ms A Henning (CFO: Stats SA) informed members that a post audit review was to
be completed. She addressed the issue of
wasteful spending saying that she commended management for their decision
regarding accommodation for contractors.
She added that there was no financial reason for the lack of
skills. Ms Henning also addressed the
issue of debt that was not recovered.
She said that there was no positive feasibility in recovering funds and
that they were small loans. She informed members that it was a question of how
to spend tax payer’s money efficiently and effectively. Stats SA worked on a basis of an accrued
accounting practice and they had actually spent almost their entire allocated
budget with the result that under-spending was not such an issue. Henning also responded to the issue of
vacancies. She stated that surveys were
sporadic and did not last all year and so the result was that they could not
employ field workers permanently.
Ms C de Klerk (Strategic Planning) informed members that Stats SA had developed
a comprehensive economic statistics strategy.
She stated that quality and data gaps had been identified and that it
was a priority for Stats SA. She also
said that there could be a lack of coordination between skills and timing.
Mr Johnson queried their actions for the following year. He said that he found it difficult to relate
to the report and wanted to know how he could remedy that if members have not
seen copies if any of the surveys.
Johnson told Stats SA that they would need to improve.
Ms Fubbs questioned security. She said
that it was a reality that they were dealing with highly sensitive issues and
that a breach could have a negative impact on the country. She said that statistics was critical to the
country as many people needed it. Fubbs
also wanted to know if they had placed the most competent people in positions
of importance. She then commented that
the audit committee had not met regularly and wanted to know what they would do
about this.
Mr Marais stated that there were areas that were critically under-spent on and
areas that were critically over-spent on.
He pointed out goods and services as an area that they had over-spent on
and queried whether this was a result of the shifting in funds. Mr Marais also
wanted to know about the employment of disabled workers. He informed them that the government had set
out a target for them to comply with.
Mr Lehohla replied that there was a strategy in place to counter the issue and
that somebody was appointed to deal with issue of employment of the
disabled. They would be receiving
regular updates from the appointed person.
He said that he did not think that the percentage of employed disabled people
would increase this year but that there would be an improvement in the
future.
Mr Lehohla stated that many people did not trust statistics because they did
not know how to use them. He stated
however, that Stats SA was making progress in this regard and that the number
of people using statistics was on the rise.
Ms Gavin emphasised on transversal systems, saying that they did not have
enough people to do the required work, but they were working on this. They had recruited interns and were
monitoring their skills. She also
addressed the issue of security, saying that they had not experienced any
breaches in security as yet and had not been hacked for years. Information security depended on the internal
people and they had taken oaths of security.
Ms Gavin also spoke about the issue of dwellings. The first step to remedy the problem would be
to acquire imagery via satellite or photography. She informed members that there were areas
where there was very little information and where information was very poor. They would be going in to places to collect
data and understand the dwelling dynamics. She said that they had been working
with the private sector for two years and were ready for that transition. They would look internally at their fieldwork
force in order to build internal capacity.
Ms Henning responded to the audit committee attendance issue. She explained that the chairperson had been
suffering from heath issues but that there had been feedback from him and
members fro time to time. However, she
agreed that there should be greater attendance and compliance at meetings.
Ms Henning also replied to the comments on under- and over-spending. She said that the most funding had been
allocated to the Community Survey but that there were many roll overs related
to the survey that could explain spending patterns. She explained that 3000 people were recruited
last year. These were temp workers who
would fall in to the recruitment line item.
She also explained that operating leases were related to regional
offices to accommodate field operators for the community survey. Venues and facilitators were linked to
training for field operators all over the country. This would also contribute to the explanation
on the expenditure trends.
Ms Mokoena looked at the issue of recruitment.
She informed members that they were looking at training teachers. They would also focus on children at a
primary level so that they could encourage them to go in to the field of
statistics. Bursaries would also be
awarded to learners. They had already
appointed coordinators in each province to take on this responsibility.
Ms Mokoena addressed other management issues, telling members that Stats SA had
started a leadership project to focus on the lack of leadership in the
department. They would also look at the working
environment and encourage awareness programs.
They were implementing training programs as a way of encouraging people
to remain. She did not think that there would be an increase in the employment
of disabled people that year but there would be an improvement the following
year.
The Chairperson thanked members and Stats SA for their participation and
attendance.
The meeting was adjourned.
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