ATC220506: Report of the Portfolio Committee on Public Service and Administration on the APPs 2022/23 and the Budget Vote 11 of the Department of Public Service and Administration, Date 06 May 2022

Public Service and Administration

REPORT OF THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION ON THE ANNUAL PERFORMANCE PLANS (APPS) 2022/23 AND THE BUDGET VOTE 11 OF THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION, DATE 06 MAY 2022

 

  1. BACKGROUND

The Portfolio Committee on Public Service and Administration (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly to consider and report on the Strategic Plans, Annual Performance Plans and Budget allocations of the Department of Public Service and Administration, and Centre for Public Service Innovation tabled by the Minister of Public Service and Administrationin terms of the Public Finance Management Act (Act No 1 of 1999), reports as follows:

  1. INTRODUCTION

Parliament plays an important role in overseeing planning and performance of government departments and public entities as well as Chapter 9 and 10 institutions. The Public Finance Management Act, section 27 stipulates that the Minister must table the annual budget for a financial year in the National Assembly before the start of the financial year. Subsequent to that the Money Bills Amendment Procedures and Related Matters Act, No. 9 of 2009, section 10 (1) (c) clearly stipulates that the relevant members of Cabinet must table updated strategic plan and annual performance plan for each department, public entity or institution, which must be referred to the relevant Committee for consideration and reporting.

In considering the strategic and annual performance plans, the Committee ensured that the Department of Public Service and Administration and Centre for Public Service Innovation plans and budget allocations are in line with Medium Term Strategic Plan 2019/24. Budget allocation serves as a key instrument for government to promote socio-economic development. Budget allocation plays a critical role as an economic instrument of the government to reflect on the country’s socio-economic policy priorities by translating priorities and political commitments into expenditures. Budget serves as a vital tool to operationalise government activities towards the achievement of its intended priorities. Furthermore, the budget highlights the constraints and trade-offs in policy choices.

On 03rdMay 2022, the Committee considered presentation derived from the Annual Performance Plans and budget allocation of the Department of Public Service and Administration and Centre for Public Service Innovation. This report summarises the presentations received from the Department of Public Service and Administration and Centre for Public Service Innovation, focusing on the 2019/24 Strategic Plans and 2022/23 Annual Performance Plans and Budget as well as allocations over the MTEF.

  1. OVERVIEW OF THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION

The Department of Public Service and Administration is expected to implement and coordinate interventions aimed at achieving an efficient, effective and development-oriented public service which is an essential element of a capable and developmental state as envisioned in the National Development Plan (NDP) 2030. The Constitution of the Republic of South Africa envisages a Public Service that is professional, accountable and development-oriented.

The NDP identifies specific steps that need to be taken to promote the values and principles of public administration as enshrined in the Constitution. Furthermore, the NDP highlights the need for a well-run and effectively coordinated state institutions with skilled public servants who are committed to the public good and capable of delivery consistently high-quality services, while prioritising the nation’s development objectives.

Unevenness in capacity that leads to uneven performance in the Public Service is also acknowledged in the NDP. This is caused by a complex set of factors, including tensions in the political-administrative interface, instability of administrative leadership, skills deficits, insufficient attention to the role of the State in reproducing the skills it needs, the erosion of accountability and authority, poor organisational design and low staff morale. Steps are needed to strengthen skills, enhance morale, clarify lines of accountability and build an ethos of public service. These steps are guided by the need for long-term policy stability as well as awareness of potentially adverse effects of over-regulation.

The main objective of the Department is to put in place the mechanisms and structures that can support departments in developing their capacity and professional ethos. The Public Administration Management Act (PAMA) 11 of 2014was signed into law with an objective of establishing a uniform system of public administration to ensure that common norms and standards are achieved at all government levels. This effectively places DPSA at the centre of ensuring that all operating platforms and units to drive a compliant ethical public service areguided by norms and standards.

  1. LEGISLATIVE MANDATE

The Department is mandated by Section 195(1) of the Constitution, which sets out basic values and principles that the Public Service should adhere to and the Public Service Act (PSA) of 1994, as amended. In terms of the PSA, the Minister for the Public Service and Administration is responsible for establishing norms and standards relating to:

  • The functions of the public service.
  • Organisational structures and establishment of departments and other organisational and governance arrangements in the public service.
  • Labour relations, conditions of service and other employment practices for employees.
  • The Health and wellness of employees.
  • Information management.
  • Electronic government in the public service.
  • Integrity, ethics, conduct and anti-corruption; and
  • Transformation, reform, innovation and any other matter to improve the effectiveness and efficiency of the public service and its service delivery to the public.

 

  1. STRATEGIC PRIORITIES 2019/2024

The priorities for the Department of Public Service and Administration over the medium term period are informed by the National Development Plan objectives, which are therefore translated into the Medium Term Strategic Framework (MTSF) 2019-2024. The Department highlighted the following priorities to the Portfolio Committee:

4.1 Formulating and implementing the Public Administration Policy

The Minister for the Public Service and Administration makes regulations within and for the entire public service. In 2016, the Department developed the Public Administration Management Regulations on Conducting Business with the State, the Disclosure of Financial Interests and setting up the Ethics, Integrity and Discipline Technical Assistance Unit as well as the Office of Standards and Compliance Regulations, in terms of Section 18 of the PAMA.

The Department reported that there is insufficient data and information on the implementation of most administrative policy areas of the Public Service Act norms and standards, as historically standards were not structurally developed based on any critical success factors of capacity and capability across the public service, and which are therefore mainly not measurable. There is a need for an e-Enabled system for self-diagnostics and compliance audits through the measurement instruments of the Office of Standards and Compliance. The Organisational Functionality Assessment Tool is being consolidated to measure institutional governance, as well as organizational administration

4.2Regulating and improving Public Service Employment and Conditions of Service

The State, as the employer, is going through difficult financial times and as a caring Government, departments have to function within the available resources. Failure to exercise financial prudence will result in government borrowing money from the external institutions to finance government work. The State is cautious of borrowing to pay salaries at the expense of delivery. In 2019 already, outlining the fiscal outlook during his Budget Speech, Finance Minister indicated that in 2018/19 the tax revenue would be R1.3 trillion and that spending would be about R1.5 trillion, leaving government with a budget deficit of R215 billion, or 4.3% of the gross domestic product.

 

With respect to discipline management, the Department has noticed a high usage of legal representatives which is contrary to the Disciplinary Code and Procedure. Even though there has been an improvement on the average number of days taken to resolve disciplinary cases, departments are still delaying with the finalisation of disciplinary cases within 90 days and have suspensions that are longer than 60 days without holding disciplinary hearings. Such delays are in contradiction of the disciplinary code, which is costly to the government coffers.

 

4.3Improving Public Service Information, Communication and Technology (ICT)

 

The Public Service continues to rely on brick and mortar as the main channel or mechanism (service delivery points) through which the citizens can access public services. Furthermore, these service delivery centres operate within specified times of the day, referred to as office hours. The two issues introduce a huge limitation or hindrance on how the citizens’ access and experience public services as they often have to travel long distances to where these service delivery points are located. Importantly, they must do so within certain time limits or operating hours. It is important to further highlight that public services are requested and delivered through dis-integrated manual processes that are largely paper based, which does not allow government to have an integrated view of which citizens accessed which public services at which service delivery point.

 

With global trends clearly indicating that the public administration is mostly affected by 4IR trends owing to the old and often outdated ways of thinking, work and policies, the Department will be leading digital transformation of the public service.  Some of the key interventions in this regard will include developing the required prescripts to enable and support the digital transformation of the public administration. This will ensure that government is a key economic enabler and player positively benefits from the digital economy.

 

4.4Ensuring Service Delivery Improvement

A number of evaluation reports and studies on government service delivery indicate that, despite the existence of an enabling environment through regulatory frameworks and support mechanisms, some government services such as sanitation, water, electricity and housing are still not equally accessible to all South Africans (especially in rural areas) and delivery is not offered at the desired level. The persistent challenges that affect the service delivery value chain include, amongst others, poor and uncoordinated planning, spending of budgets allocated for delivery of services, lack of service standards, lack of technical skills, insufficient resources as well as lack of efficient and effective management of operations and frontline staff’s adherence to the provision of services in line with the Batho Pele principles. Compliance on the submission and implementation of Service Delivery Improvement Plans (SDIPs) still remains a challenge.

 

Improvement in service delivery also requires adherence to the Batho Pele policy and the Public Service Charter, and strict monitoring thereof. In addressing the gaps and weaknesses, the Department will over the MTEF period, institutionalise a number of integrated interventions which include, amongst others, the strengthening of the implementation of the Operations Management Framework and Service Delivery Improvement Plans as well as a revised Programme to strengthen the implementation of the Batho Pele Programme.

 

In line with Cabinet decisions, the DPSA will also during this MTSF, transfer the Community Development Workers and Thusong Service Centres Programme coordination and implementation functions to the Department of Co-operative Governance and Traditional Affairs (COGTA). The DPSA will retain the policy development function as delegated to the Minister for Public Service and Administration.

 

  1. STRATIGICFOCUS FOR 2022/23

The key priorities for 2022/23 are outlined below:

 

  1. Developing regulations to enable the full Implementation of the Public Administration Management Act (PAMA, 2014); reviewing the Public Service Act and related policies and developing the Single Public Administration Bill

The Act seeks to provide a legal framework across the three spheres of government for bringing some degrees of uniformity in the public administration pillars, transversal institutions, Human Resource, Information Communication Technology and systems. Regulations were drafted, which bring into effect the Act. To give effect to PAM Act, the Department institutionalised selected aspects towards the draft regulations for the Office of Standards and Compliance (OSC) was conducted through consultations held with national departments. The Department had further compiled business case on the structure and governance of the Office of Standard and Compliance. Finalising these aspects will see the second phase implementation of the Public Service Regulations, which is ongoing.

 

The Public Administration Ethics, Integrity and Disciplinary Technical Assistance Unit has been established to provide technical assistance and support institutions in all spheres of government regarding the management of ethics, integrity and disciplinary matters relating to misconduct in thepublic administration.

 

The three spheres of government are required to provide effective, transparent, accountable and coherent government for the country. This requires that the spheres respect each other’s powers and functions, while striving to work together in a meaningful way to maximise service delivery impact for the citizens. Structurally, government does not present itself as a single face for public administration, but as a myriad of national, provincial, municipal and public entities, each with a separate identity, each operating in its own silo. Consequently, there are governance and operational challenges that emanate from this state of affairs. The challenges include amongst others, the lack of integration and coordination, dissimilar experience of government services, as well as different conditions of service between the public service and local government, as well as public entities.

 

  1. Providing support to the National and Provincial departments to improve compliance with the Public Administration Legislative Prescripts and to enforce compliance where required

The core objective of the Department is to put in place the mechanisms and structures that can support departments in developing their capacity and professional ethos, while leaving departments with the ultimate authority for how their departments are run. The Department is mandated to foster good governance and sound administration in the public service.A critical priority over the current medium term expenditure period is to review and improve on the Department’s organizational culture to ensure that the organization is correctly positioned to meet the growing demands to provide strategic leadership, advice and implementation support to government departments and provinces in the pursuit of a public service that is well capacitated to discharge the mammoth task of delivering public services in a timely, speedy and efficient way to the citizens of South Africa.

 

  1. Improving the implementation of Batho Pele Principles

Adherence to the Batho Pele principles entails putting people first in the delivery of public services,which imply holistic implementation of the eight Batho Pele principles. As such, over the medium term, the Department will focus on monitoring the quality of public services and increasing its responsiveness to concerns and views raised by citizens. Such monitoring will include a detailed analysis of the extent to which departments promote and implement the Batho Pele Standards, which entails thorough evaluation of evidence of whether departments first consulted and agreed with the citizens in developing standards per each of the Batho Pele principles.

 

Training programmes such as Project Khaedu are designed to specifically equip public servants with the theoretical knowledge and practical skill to diagnose and address deep rooted service delivery challenges. The role of public servants therefore needs to broaden to include a nuanced understanding of the needs of citizens and to what extent these needs are met by their respective departments.

 

  1. Developing a District Development Model

The Department is developing a Service Delivery Model in line with the launched District Model for the Public Service and a framework for departmental service delivery modes. The Service Delivery Model will serve as a guideline for service delivery provision within the context of a developmental paradigm and provides a value chain for modes of implementation. This will enable government to work in an integrated manner and achieve its developmental goals. A roadmap has been developed on the institutionalisation and implementation of the Service Delivery Model, which sets out clear indicators and timeframes.

 

  1. Implementing measures to ensure efficiency and sustainability of running public administration, including cost effective operations, a sustainable wage bill

Public-service compensation had grown by about 40% in real terms over the past 14 years, and the wage bill remains the largest component of public spending. A wage renegotiation desired by government would reduce the share of compensation in total spending by just 1.5 percentage points, and give slightly more space for servicing debt. One big negative consequence of the bloated public payroll is that the Government is having to increase its borrowing to sustain its salary payments.

 

  1. Stabilising the Public Service by restoring stability and credibility in state institutions

The Department, will over the MTSF, implement policy and programmatic interventions, which include the Productivity Measurement and Organisational Functionality Assessment Tools, using indices for institutional governance as well as organisational administration. These tools will assist in identifying blockages to organisational efficiency and effectiveness and will act as an early-warning instrument that can detect factors that need to be addressed in relation to internal operational, governance and service delivery gaps and weakness.

 

  1. Ensuring collective bargaining

Over the Medium Term Strategic Framework (MTSF) the Department will continue to monitor and tracking the implementation of the resolutions in order to be able to resolve implementation issues before they materialise into disputes. Further, in order to have constructive conversations based on Government’s current problems, government and labour will need to institutionalise social dialogue as it is out of the quality of collective interactions that will culminate into a sustainable Social Compact that reflects common understanding on how to distribute the available resources in order to achieve social justice. Common understanding of challenges can address effectively the issue of the wage bill in the public service.

 

  1. Intensifying the fight against corruption

Corruption impedes service delivery, compromises development and undermines public confidence in the State. To strengthen the fight against corruption it is necessary to focus on limiting the scope for conflicts of interest. This is the area where there is little progress as some public service employees continue to do business with the State. Even funds allocated for social relief continue to be embezzled. Conducting lifestyle audits on selected categories of employees and monitoring implementation of the Financial Disclosure Framework by designated employees is improving discipline management. The Financial Disclosure Framework has been extended to other categories of employees in the Public Service, which includes officials working in the finance and supply chain environments. During the MTSF the Minister will designate further categories of employees to disclose their financial interests with the ultimate aim of applying this policy to all employees in the Public Service.

 

  1. STATE OF THE NATION ADDRESS (SONA 2022)

The priorities highlighted were:

  1. Intensifying the fight against corruption

SONA 2022 conceded that the country will not succeed in reviving the economy unless the challenge of corruption is addressed. To this end, it reiterated Government’s intention to intensify the fight against corruption and to ensure that those responsible are held accountable. It attributed the intensity of the fight against corruption to, amongst others, the outcomes of the Commission of Inquiry into State Capture and the implementation of new anti-corruption practices in the Public Service.

b) Anti-corruption practises in the Public Service

SONA 2022 committed Government to introducing tighter measures for the recruitment of public servants, continuous professional development through the National School of Government and partnerships between State bodies, professional associations and universities. It also confirmed that lifestyle audits will be implemented frequently to balance out the accumulation of wealth and assets and the salary structure of an employee in the Public Service.

c) Commission of Inquiry into State capture

SONA 2022 noted that the first two parts of the report submitted by the Commission of Inquiry into State Capture have confirmed that public institutions and state-owned enterprises, such as South African Airways, Transnet, Denel, the South African Revenue Service and Government Communications, were infiltrated by a criminal network with the aim of looting public funds for private gain. It further indicated that the Commission will submit the final part of the report to the President by the end of February 2022. SONA 2022 noted Government’s commitment to addressing issues of State capture emanating from the Commission’s report. To this end, the President will present an action plan to respond to the Commission’s recommendations by latest end of June 2022.

d) Protection of whistle-blowers

Whilst SONA 2022 acknowledged the crucial role played by whistle-blowers in the fight against corruption, at substantial risk to themselves, it was mindful of the possible shortcomings in the legislative framework to ensure the safety of whistle-blowers. It thus committed Government to, through its law enforcement agencies, taking the necessary steps to address this concern. This includes a review of all applicable legislation, as well as a comparative study on the protection of whistle-blowers in other jurisdictions.

To give effect to these commitments, the Department has set itself a number of strategic priorities for the 2022/23 financial year. The remainder of this section provides an overview of what those priorities are and assesses the Department’s performance in each of the focus areas over the past year.

  1. BUDGET ALLOCATION

The Department of Public Service and Administration’s overall budget allocation for 2022/23 is R540.3 million in 2022/23 financial year, compared to the adjusted allocation of R531.7 million in 2021/22. This represents an increase of 1.62 per cent in nominal terms. However, in real terms the total budget for the department decreased by -2.48 per cent between the 2021/22 and 2022/23 financial years.The main cost drivers of the Department are Programme 1: Administration (R245.2 million); followed by Programme 5: Government Service Access and Improvement (R102.3 million) and Programme 3: Negotiations, Labour Relations and Remuneration Management (R106.9 million). The Department’s total budget over the MTEF period is R1.7 billion. An estimated 54 per cent (R888.5) of this is allocated to compensation of employees and 8.3 per cent (R137.3 million) is earmarked for transfer payments to the Centre for Public Service Innovation. Additional R5.1 million in 2022/23 is allocated to compensation of employees to cover costs arising from the 2021/22 public sector wage agreement.

Whilst Programme 4: E-Government Services and Information Management consumes the smallest portion of the Vote, it experiences least growth of R-11.18 per cent in real terms, this is because the programme had a lesser allocation in February 2021, and during the June 2020 readjustment due to the COVID-19 pandemic, the programme’s allocation was reduced further. Priority Programme 3: Negotiations, Labour Relations and Remuneration Management, also experiences significant real growth of 4.90 per cent. This is due to the nature of negotiations on wage and conditions of service, which have a tendency to drag on and involve litigation.

Table 1: Main Appropriation 2022/23

Programme

                   Budget

Nominal Rand change

Real Rand change

Nominal % change

Real % change

R million

 

2021/22

Million

2022/23

Million

                  2022/23

 2022/23

2022/23

Programme 1: Administration

 

 

 

 245.4

 

245.2

 

0.8

 

-9.1

 

0.33 per cent

 

-3.92 per cent

Programme 2: Human Resource Management and Development

 

 

 

 48.0

 

53.6

 

5.6

 

 3.4

 

11.67 per cent

 

7.17 per cent

Programme 3:        Negotiations, Labour Relations and Remuneration Management

 

 

97.8

 

 106.9

 

9.1

 

4.8

 

9.30 per cent

 

4.90 per cent

Programme 4: E-Government Services and Information Management

 

 

 34.9

 

32.3

 

-2.6

 

 -3.9

 

-7.45 per cent

 

11.18 per cent

Programme 5:Government Service Access and Improvement

 

 

106.6

 

 102.3

 

-4.3

 

-8.4

 

-4.03 per cent

 

-7.90 per cent

TOTAL

 

 531,7

 526,2

8.6

-13.2

1.62 per cent

-2.48 percent

Source: National Treasury (2022)

 

 

  1. PROGRAMME PERFORMANCE
    1. Programme 1: Administration

The main purpose ofthe Programme is to provide strategic leadership, management and support services to the Department, and coordinate the Department’s international relations.The purpose of the Programme is to provide policy, coordinated strategic and overall administrative support services to enable the Ministry and the Department to deliver on mandates.

The budget for Programme 1 increased from R244.4 million in 2021/22 to R245.2 million in 2022/23 financial year. This represents a -3.92 per cent in real terms in the budget allocation between 2021/22 and 2022/23. The programme is one of the major cost drivers under this Vote, consuming 45 per cent of the overall allocation. The main cost drivers under this programme are the Office Accommodation (at R62.9 million); Ministry (at R27.7 million); Finance Administration (at R97.4 million) and Internal Audit (at R27.0 million) sub-programmes.

 

The strategic focus of the Programme is “Improved implementation of administrative policies”, which includes (i) monitoring fruitless, wasteful and irregular expenditure; (ii) table the Public Service Amendment Bill to Parliament; (iii) table the Public Administration Management Amendment Bill to Parliament and (iv) implementing Public/Stakeholder Participatory Strategies and Plan. The Department will ensure ICT Governance Strategy is implemented and business processes automated developed. f quarterly reports on the implementation of the APP submitted to the Executive Authority, National

  1. Programme 2: Policy Development, Research and Analysis

The main purpose of this Programme is to manage and oversee the setting and translation of public administration norms and standards into administrative policy instruments using research and policy analysis techniques. It is also responsible for managingorganisational functionality assessments of Public Service efficiency and effectiveness for public administration reform. 

The budget allocation for Programme 2 increased from R48.0 million in 2021/22financial year to R53.6 million in 2022/23. This represents a 7.17 per cent increase in real terms in the budget allocation between 2021/22 and 2022/23. The programme is one of the major cost drivers under this Vote, consuming 10 per cent of the overall allocation.The bulk of the Programme’s budget Office of Standard and Compliance (R16.0 million) and (R15.1 million)to the Human Resource Planning, Employment and Performance Management sub-programme. The Transformation and Workplace Environment Management sub-programme, at R10.0 million.

 

The programme’s strategic focus is “A stabilised Public Service”,with strategic targets being to issue directive on mandatory in-service training for the public service, Human Resource Management and Development and implementation plan. This will assist in enhancing skills development in order to transform public service and improve attitude commitment. In addition, the programme will spend budget on annual compliance monitoring report on selected PA norms and standards. This intends to strengthened accountability through implementation of HR Management and Development Norms and Standards. Furthermore, the programme will strengthen and address incompetence’s of employees in the public service.

 

8.3        Programme 3: Negotiations, Labour Relations and Remuneration Management

 

Programme 3: Negotiations, Labour Relations and Remuneration Management was formerly known asPublic Service Employment and Conditions of Service. The function of the programme is to manage, oversee and facilitate organisational development, job grading, macro organisation, remuneration, human resource information systems, conditions of service, labour relations and dispute management in the public service. It also administers the implementation of the Government Employees Housing Scheme and the macro organisation of the State, and ensures coordinated collective bargaining

Programme 3 is allocated a budget to the value of R97.8 million in 2021/22, which increased from a previous allocation with R106.9 million 2022/23 financial year. This represents a 4.90 per cent increase in real terms in the budget allocation between 2021/22 and 2022/23. The programme is one of the two major cost drivers under this Vote, consuming 20 per cent of the overall allocation.The Programme’s budget is the second largest allocation, as it caters for Management: Negotiations, Labour Relations and Remuneration; Negotiations, Labour Relations and Dispute Management; Remuneration, Employment Conditions and Human Resource Systems within the Department.

The programme’s strategic focus areas are “A stabilised Public Service; and Intensifying the Fight against Corruption”. The Department focus under this programme will be to review procedures and collective bargaining policy developed. Furthermore, review generic functional structure for programme 1: Administration functions and produce final report onPersonnel Expenditure Review.In 2021/22 financial year, the Department intended to develop a Job Evaluation System for the Public Service and in this current financial year, a final report on Job Evaluation System will be submitted.  The Department intends to develop and approve discipline management strategy. The programme will ensure efficient management of individual linked savings facilities as part of Government Employees Housing Scheme.

 

The Department during the course of the financial year will commence with the development of Job Evaluation System. The Technical Assistance Unit for Ethics and Integrity in the public service will carry out a number of measures to tackle corruption in the public service, which include amongst others: the implementation of interventions to support the timely resolution of disciplinary cases and the reporting of criminal conduct in the public administration to the relevant law enforcement authorities initiated. In 2021/22 financial year, the department planned to produce annual report on discipline management and issue guidelines on Conducting Lifestyle Audits to national and provincial departments, provide implementation support and assess implementation thereof.in 2022/23 financial year regarding Conducting Lifestyle Audits, the department will support all Justice, Crime Prevention, Security and Safety Cluster (JCPS) with regard to training to ensure implementation of lifestyle audits.

 

  1. Programme 4: e-Government Services and Information Management

The function of Programme 4: e-Government Services and Information Management (formerly known as Government Chief Information Officer) is to manage, oversee and facilitate ICT governance, eā€enablement, ICT infrastructure, information and knowledge management, and innovation in the public service and coordinate and facilitate ICT stakeholder management. Information and Communication Technology (ICT) is playing an ever-increasing role as a strategic enabler of public service delivery.

 

This programme continue to receive the smallest allocation, i.e. 6.0 per cent share or R32.3 million of the total Vote in 2022/23. This represents a -11.18 per cent decrease in real terms in the budget allocation between 2021/22 and 2022/23. The programme is one of the cost drivers under this Vote, consuming 6.0 per cent of the overall allocation.In this regard, the Department strategic focus of the programme is “Improving the implementation of administrative policies”. The strategic targets of the programme are to approve digital government policy framework and approve digital service standard in the public service. The programme will further approve Public Service Data and Information Management Directive. Furthermore, revise Corporate Governance of ICT Policy Framework and analyse ICT expenditure in the public service. The Department will compile catalogue of digital service in the public administration.

 

  1. Programme 5: Government Services Access and Improvement

Programme 5: Government Service Access and Improvement (formerly known as the Service Delivery Support Programme) manages and facilitates the improvement of service delivery in Government. As indicated in Table 1, the budget allocation for Programme 5 continue to decrease from R106.6 million in 2021/22 to R102.3 million in 2022/23, representing a nominal decrease of -4.03 per cent. In real terms, the budget allocation to the programme decreased by -7.90 per cent between 2021/22 and 2022/23.

 

Strategic focus areas of the programme are “A stabilised Public Service; Improved implementation of administrative policies; and Improved implementation of Batho Pele Programme”. Strategic targets of the programme are to issue the Organisational Functionality Assessment Tool to national and provincial departments and monitor the implementation of the Business Processes Modernisation Programme. Furthermore, support the implementation of the Business Processes Modernisation programme in three departments. The Batho Pele Revitalisation Strategy will continue to be implemented across the public service. The Department will continue to monitor the implementation of the Revised Batho Pele Programme.In 2021/22 financial year, theAfrican Peer Review Mechanism Country Review Report and the National Plan of Action for the country will be rigorously monitored, evaluated and validated. The Department will in this financial year, approve the African Peer Review Mechanism Country Review Report and the National Plan of Action.

 

The Department will continue to provide support to ten sectors in compiling Service Delivery Improvement Plan. The Department will develop and issue an approved SDIP circular on the compliance requirements of the SDIP building blocks with outlined submission dates and an annual support schedule. The Department after developing the SDIP will begin to assess and monitor implementation of the SDIP building blocks.  Moreover, conduct research study on the State of Public Service Delivery.

 

 

  1. ENTITY OF DPSA
    1. CENTRE FOR PUBLIC SERVICE INNOVATION
      1. Policy Priorities

The responsibility for the public sector innovation is vested in the Minister of Public Service and Administration, in terms of Section 3(1)(i) of the Public Service Act (1994). The CPSI is established in terms of Section7(a) listed in Schedule 3A of the Public Service Act, 1994, as amended and is an organ of state. The Act mandates the Centre for Public Service Innovation (CPSI) to unlock, entrench and nurture the culture of innovation within the public sector for improved performance and productivity. Therefore, the Act positions the CPSI to guide the process of unearthing and exploiting innovative, more efficient and effective solutions needed to ensure successful delivery on government priorities. The CPSI was in its formationestablished as a Section 21 Company. The strategic mandate that informs the functions of the CPSI include the following:

  • Advancing needs-driven research and development,
  • Unearthing, demonstrating, sharing, encouraging and rewarding innovation,
  • Testing, piloting, and incubating new innovations and supporting the replication of innovative solutions; and
  • Partnering with public, private, academic, and civil society sectors on supporting the mandate of the CPSI. 

The functions of the CPSI are to:

  • Provide the Minister with independent, diverse and forward-looking research findings and advice on innovative service delivery with a specific focus of government priorities
  • Enhance public service transformation and reform through innovation partnership and projects

Support the creation of an enabling environment for innovation within the structures and agencies of the South African Government (encouraging, learning and rewarding).

  1. Budget Allocation

The CPSI’s budget is located within the budget appropriation of the DPSA, as a transfer through Programme 5. The current budget allocation is according to the organisational mandate of the Centre. The CPSI has a representation of 63 per cent of women, 11.1 per cent of youth and 7.4 per cent of people living with disabilities. Due to budget cuts over the MTEF, the organisation has decided to review the centres commitments and the adoption of lower-cost solutions. These include embracing online training sessions and converting to a hybrid model for the Annual Public Sector Innovation Conference and Awards Programme. 

 

Table 2: Budget allocation to the Centre

 

 

 

R million

2021/22

Current Allocation

2022/23

MTEF

2023/24

MTEF

2024/25

Total

Total

Total

Total

Administration

        21.4

 

25.6

24.1

24.9

Public Sector Innovation

21.1

18.8

21.2

22.5

Total

42.5

44.4

45.3

47.4

Source: National Treasury (2022)

 

The overall budget allocation to the Centre is R44.4 million in 2022/23 financial year, up from an adjusted appropriation of R42.5 million in 2021/22. This represents a significant nominal increase of 4.47 per cent and a real increase of 0.26 per cent. The current staff establishment of the CPSI consists of 30 permanent posts. The CPSI establishment will increase to 37 posts in 2024/25 through Zero-Based Budgeting reprioritisation.

 

  1. PROGRAMMES
  1. Programme 1: Administration

The programme provides strategic leadership, overall management of and support to the organisation. There are three sub-programmes under programme 1, which are Strategic Management, Corporate Resource Management and Office of the Chief Financial Officer. The allocation to this programme is R25.6 million, which is 58 per cent of the overall budget. The allocation assists the Centre to run efficiently in executing its mandate.The spending focus on the programme intends to build capacity in promoting innovation in the public service. Over the medium term, the department will focus on promoting and unearthing innovation projects in the public service.

The Centre intends to review and submit the strategic plan and develop annual performance plan for the approval by the Executive Authority. The Centre intends to assess its performance and report to the Executive Authority, DPSA, DPME and the National Treasury. Review Corporate Resource Management policies, procedures and strategies. Furthermore, the Centre will ensure100% payment of all invoices paid within 30 days on receipt of valid invoice.

(b)Programme 2: Public Sector Innovation

The Programme drives service delivery innovation in the public sector in line with Government priorities. There are three sub-programmes under Programme 2, which are Research and Development, Solution Support and Incubation, and Enabling Environment.

This programme has an allocation to the value of R18.8 million, which is 42 per cent of the overall budget. The programme has three sub-programmes, namely: (i) Research and Development: This sub-programme establishes the knowledge base in support of the programme to inform the selection and development of potential innovative models and solutions; (ii) Solution Support and Incubation: Thissub-programme facilitates the testing, piloting, demonstration, replication and mainstreaming of innovative solutions for the public sector; and (iii) Enabling Environment: This sub-programme nurtures and sustains an enabling environment, which entrenches a culture and practice of innovation in the public sector through innovative platforms and products.

 

The focus in this Programme is on the Research and Development of potential models and new innovative solutions,working in partnership with stakeholders in the National System of Innovation. Service delivery solutions are developed in partnerships with other government departments, non-government organisations, the private sector, academia and international entities.New solutions are tested and piloted with the service owners. The Centre will identify knowledge platforms hosted to unearth, demonstrate, share, encourage and award innovation in the public sector. 

 

 

 

 

 

  1. OBSERVATIONS AND KEY FINDINGS

The Portfolio Committee identified the following matters in relation to the Budget Vote 11, to which the Department must respond accordingly:

Department of Public Service and Administration

  1. The Committee noted and welcomed the Annual Performance Plans (2022/23) of the Department of Public Service and Administration and the Centre for Public Service Innovation. The APPs reaffirm the Department’s mandate to implement and coordinate interventions aimed at achieving professional, ethical and development-oriented public service, capable to deliver on the objectives of the National Development Plan (NDP) 2030 and with the Centre facilitating and replicating new innovations to improve service delivery.

 

  1. The Committee noted developmentstowardsamendingthe Public Service Act of 1994, which among others, seeks to transfer powers of the human resource management from the Executive Authority to the Accounting Officers. The Committee acknowledged the delays caused by the stakeholders in the consultation process to finalise amendments tothe Public Service Act. 

 

  1. The Committee acknowledged that across the public service there is a lack of standardisation and Public Service Regulations are not complied with. Productivity in the public service is low and public service is seen as being unresponsive to the demands of the citizens.

 

  1. The Department has developed guidelines for lifestyle audits in the public service by March 2021. The Committee was not pleased with the progress thus far due to a lack of uniformity in terms of implementation among government departments. The Committee was anticipating that lifestyle audits guidelineswould be watertight about employees living beyond their means with consideration given to employees who inherit financial and property benefits from parents or other benefactors.

 

  1. The Department launched the Public Administration Ethics, Integrity and Disciplinary Technical Assistance Unit (PA-EID-TAU) established to improve ethical and anti-corruption policy, strengthen ethical infrastructure, discipline management and synchronisation of all three levels of public administration. The Committee was concerned about the impact of the new Unit in tackling corruption and improving discipline management in the public administration. A debate persists around its independence and whether it is well placed within the DPSA rather than positioned in the Public Service Commission,even as it was established through the PAM Act.

 

  1. The Committee welcomed and noted the development of the Job Competency Framework in the public service together with the outline on the Occupational Dictionary. The Committee anticipated that the Occupational Dictionary would prevent maladministration in job adverts for senior management positions designed to fit a particular candidate.

 

  1. The Committee was satisfied with the Department’s clarification pertaining to the Constitutional Court judgement in relation to section 38(2)(b) of the Public Service Act concerning unilateral deductions on employees’ overpayments by the State without their consent, which was ruled unconstitutional. The Committee was relieved that the Department is making efforts to amend the section 38 so that it is constitutional and in good practice.

 

  1. The Committee welcomed the Minister’s announcement that government is embarking on a process of aligning bargaining processes with the season of wage negotiations in the public sector. Also, it welcomed the near-conclusion process of wage negotiations for the 2022/23 financial year, set before the end of June 2022.

 

  1. The Department plans to revise the Human Resource Management and Development Strategy, which was lastly revised in 2002.

 

  1. The Committee was satisfied with the Department’s strides to reach employment of persons living with disabilities, which is presently at 2.56%.

 

  1. With regards to employment of women in senior management position, the Committee notes that the Department is lagging behind as it is at 43.2% by December 2021.

 

 

  1. The Department continues to lead in digital transformation in the public service. Business operations model has to be geared towards modernisation of its business by developing new digital innovations to transform administration of government services, such as paperless to digital services.

 

  1. Departments are sitting with a huge caseload of disciplinary matters whilst Government loses millions of Rand on suspended employees getting paid whilst at home.

 

  1. The Department will be conducting research study on the State of Public Service Delivery. The Committee welcomed the research study which aims at comparing international countries, which have digitised their e-services to be responsive to the needs of the citizens. The Committee noted that the Department is currently working with State Information Technology Agency on Business Process Modernisation.

 

Centre for Public Service Innovation

 

  1. TheCPSI has to derive value for money concerning the Knowledge Platforms, like the Annual Public Sector Innovation Conference and Webinars as well as the Innovation and Design Thinking Workshops.

 

  1. The Committee noted the impact of the Vulamanzi Water Filtering System towards helping communities with clean water.

 

  1. The Committee noted challenges the Centre is confronted with regarding the capacity constraints in the institution as well as insufficient budget to drive innovation in the public service.

 

  1. RECOMMENDATIONS

The Portfolio Committee recommends that the Department of Public Service and Administration undertake the followingactivities:

  1. Fast-tracking the amendments to all due legislation earlier than 2023 to ensure that all administrative, management and governance systems are streamlined. This will give Parliament ample time to finalise its legislation within its term.

 

  1. Amending the Public Service Act of 1994 should include the establishment of the roles and responsibilities of the Head of Administration as one of the interventions encapsulated in the National Development Plan to manage career incidences of Heads of Department and other senior positions.

 

  1. The Department should also finalisethe second phase of regulations on the Public Administration Management Act of 2014 in order to give effect to comprehensive implementation of the Act. The Department should, therefore, report on these activities at the latest by March 2023.

 

  1. Enforce implementation of the Public Service regulations across the public service to ensure uniformity and standardisation of government administrative business process. The Department should strengthen its monitoring capacity to monitor and enforce laws relating to sound administration and governance in order to make government responsive.  

 

  1. The Department should develop similar timeframe with the Financial Disclosure Framework on the lifestyle audits. Financial Disclosure Framework and Lifestyle audits should complement each other in order to address reluctance or slow pace of conducting lifestyle audits in the public service which will include other organs of state.

 

  1. The Department should provide more resources to the Public Administration Ethics, Integrity and Disciplinary Technical Assistance Unit (PA-EID-TAU) established to improve ethical and anti-corruption activities in the public administration. The TAU should be an independent body responsible for fighting corruption and assisting government departments who are unable to finalise disciplinary cases within 60/90 days.

 

  1. Regarding the finalisation of disciplinary cases within a timeline of 90 days and some suspensions taking longer than 60 days without holding disciplinary hearings, the Committee requested the Department to constantly monitor the trends in the departments and in provinces. Moreover, it must assist struggling government departments who are unable to resolve disciplinary cases within required stipulated period. The Technical Assistance Unit should play its role in this regard.

 

  1. Government as an employer and Public Service Co-ordinating Bargaining Council should swiftly finalise wage negotiations for the 2022/23 financial year to avoid delaying the process which impacts on the morale of the public servants. Government should adopt a new approach of wage negotiation for the forthcoming years in order to incorporate salary adjustments in the tabling of the national budget by the Minister of the National Treasury. 
  2. When revising the Human Resource Management and Development Strategy, the Department should consult with organised labour about the strategy before presenting it to Cabinet.  

 

  1. The Department is urged to improve targets in all programmes towards youth mainstreaming.

 

  1. The Department has to strengthen its monitoring to ensure all government departments are guided by the Job Competency Framework and Occupational Dictionary.

 

Centre for Public Service Innovation

  1. The Centre should develop innovative solutions to assist government to accelerate service delivery and replication where necessary;and to handover such solutions to the relevant departments for further implementation.

 

  1. The Centre should derive value for money concerning the Knowledge Platforms like the Annual Public Sector Innovation Conference and Webinars. The innovation solution discovered should assist government departments in unblocking service delivery challenges.

 

  1. The Centre should assist the Department of Public Service and Administration in developing innovative solutions to digitise government administration business model from manual business process.

 

  1. Replicating the Vulamanzi innovation project to areas affected by floods in KZN would help with the challenge of unclean water and to combat diseases.

 

  1. The Centre has to improve and strengthen stakeholder management to ensure that discovered innovative solutions are being replicated and utilized once handed over to the relevant government departments.

 

  1. The Centre has to play a role in assisting the Department of Public Service and Administration by developing innovative solutions to digitize most of the administration business process by moving away from manual application forms to paperless application, especially with regard to human resource business operations. 

 

 

  1. CONCLUSION

The Department of Public Service and Administration and its entities play a crucial role in building a State that is capable of realising developmental and transformative agenda. Professionalising the public service remains an integral part of the Department through reskilling and retraining of the public servants. The NDP highlightsthe key areas that the Department must focus on, such as stabilising the political-administrative interface and making the public service as a career of choice. The DPSA Strategic Plan and Annual Performance Plan are aligned towards achieving the goals and aspirations of the NDP. The Portfolio Committee noted the progress made in implementing and coordinating interventions aimed at achieving an efficient, effective and development oriented public service. The CPSI also plays a crucial role as a catalyst for radical transformation through developing innovation solutions to the public sector challenges.

 

The Portfolio Committee recommends as follows:

That the House adopt and approve the Budget Vote 11 of the Department of Public Service and Administration

 

Reportto be considered