ATC121024: Report of the Portfolio Committee on Public Service and Administration on their oversight visit to Gauteng (24 – 26 July) and Limpopo (31 July – 02 August), dated 24 October 2012
Public Service and Administration
Report of the Portfolio
Committee on Public Service and Administration on their oversight visit to
The Portfolio Committee on Public Service and Administration,
having undertaken an oversight visit to
1.
INTRODUCTION
1.1
The mandate of the Portfolio Committee
on Public Service and Administration is to, amongst others, consider
legislation referred to it; conduct oversight of any organ of state and
constitutional institutions falling within its portfolio; facilitate appointment
of candidates to entities; consider budget allocations to the respective
departments and entities falling within the ambit of public service and
administration.
1.2
The mandate is achieved through passing
legislation, overseeing Government action, and facilitating public and
international participation.
Section 42(3) of the
Constitution of the
1.3
In line with its constitutional
responsibility of overseeing executive action, the Portfolio Committee on
Public service and Administration (the Committee) undertook an oversight visit
of entities falling within its oversight portfolio, to assess the state of
provision of services to the people of
For the
1.
Mrs. JC Moloi-Moropa, ANC (Chairperson and Leader of the
Delegation)
2.
Mr D
Ximbi
, ANC
3.
Ms MC Mohale, ANC
4.
Mr E Nyekemba, ANC (Acting Whip)
5.
Ms
Maluleka
, ANC
6.
Ms D
Boshigo
, ANC
7.
Mr SJF Marais, DA
9.
Mr L Ramatlakane, COPE
Committee Support Staff
1.
Mr
TR
Maleeme
(Acting Committee Secretary)
2.
Mr
E
Bazier
(Committee Assistant)
3.
Mr
M
Biyela
(Committee Researcher)
4.
Mr
L Johannes (Ms.
Mohales
Aide)
For the
1.
Mrs. JC Moloi-Moropa, ANC (Chairperson and Leader of the
Delegation)
2.
Ms MC Mohale, ANC
3.
Ms
Maluleka
,
ANC
4.
Ms D
Boshigo
, ANC
6.
Mr L Ramatlakane, COPE
Committee Support Staff
1.
Mr
TR
Maleeme
(Acting Committee Secretary)
2.
Mr
E
Bazier
(Committee Assistant)
3.
Mr
M
Biyela
(Committee Researcher)
4.
Mr
L Johannes (Ms.
Mohales
Aide)
This report encapsulates the engagements of the delegation
with the stakeholders the Committee interacted with during its oversight visit.
2.
BACKGROUND
2.1
The Portfolio Committee on Public
Service and Administration undertook an oversight visit to
2.2
The briefings by the officials from the
Department and entities within the public service and administration sector,
during this past term necessitated the Committee to prioritise the following
areas as part of its oversight work for this period:
-
Visit
to Government Employees Medical Scheme
-
Visit
to Government Pension Administration Agency
-
Visit
to Public Service Sector Education Training Authority (PSETA) -
-
A
joint visit with the Deputy Minister of Women, Children and People with
Disabilities to
-
A meeting
with the Premier of Limpopo and his executive, Auditor-General, Public
Service Commission, Department of Public Service and Administration and
National Treasury on progress made in respect of departments placed under
administration in
2.3
In most cases, the Committee conducts
its engagements within the parliamentary precincts. It was therefore of
interest to the Committee to verify information provided with site visits to
ascertain the challenges and achievements within these institutions in their
attempt to provide service delivery to ordinary people of
2.4
The Portfolio Committees oversight
visit was therefore essential to begin to clarify, and critically engage the
relevant stakeholders on, complex issues to get a balanced and holistic
framework on which to base their future work.
3.
OVERVIEW OF THE ENTITIES
3.1
The
Government Pensions and Administration Agency (GPAA)
3.1.1
GPAA is a government component, established
in terms of Section 7A (4) of the Public Service Act (1994) with effect from 1
April 2010. Its mandate is to render pensions administration and other
relevant services to the Government Employees Pension Fund (GEPF) and the
National Treasury, in accordance with the administration and service level
agreement concluded by GPAA with the GEPF and the National Treasury. It has a
responsibility to ensure effective, transparent, accountable and coherent
governance of the pension funds currently administered.
3.1.2
GPAA has about five benefit and
administration management programmes on which it operates/conduct its business.
These includes
inter alia
:
(i) Civil Pensions Programme -
which deals largely with military and special pensions, post-retirement medical
subsidies and injury on duty (IOD) payments and benefits
(ii) Employee Benefits - which
is all about Government Employees Pension Fund (GEPF) as per the Government
Employees Pension (GEP) Law
(iii) Customer Relationship
Management - which deals with the relationship with stakeholders and clients,
employer education and client and employer liaison management. There are
current 13 regional walk-in centres across the country to deal with concerns
and queries of clients.
(iv)
Support
Services
which is responsible for strategy and policy including monitoring and
evaluation of services provided. The other important aspects of this programme
encompass the risk audit, legal and ICT services.
(v)
Modernisation
programme this programme replaces the service delivery improvement programme
(SDIP)
3.1.3
In terms of governance, the
GEPF operates under its own Act, the Government Employees Pension Law of 1996
(as amended). The law defines the legal framework of the fund, including how it
should be managed, its rules, who its members are, including how benefits ought
to be funded, when actuarial valuations must be held and how the financial
statements must be audited. The fund is managed by the Board of Trustees, who
are
accountable for the
GEPFs
administrative and investment performance.
3.1.4
The fund invests in different sectors of
the economy. It remains by far the most powerful investor in the South African
economy with significant holdings in government bonds, including more than 50%
of the government inflation-linked bond portfolio; corporate bonds; listed
equity, including 10% of the Johannesburg Stock Exchange All Share Index;
unlisted equity; and property. The fund has tremendous power at its disposal to
be a responsible and positive investor looking for healthy returns for its
members and pensioners, while directly contributing to
3.1.5
Investments by the pension fund are carried
out under the Developmental Investment (DI) policy of the Fund, which was
introduced by the board of trustees, the executive staff of the fund, the
National Treasury, the Public Investment Corporation (PIC), senior members of
Government, the business community, labour, academia, the financial industry,
and development agencies. The objective of
GEPFs
developmental investment policy is to earn good returns for the members and
pensioners of the fund, while also supporting positive, long-term economic,
social and environmental outcomes for
3.2
Key
Observations - GPAA
3.2.1
The Committee was concerned that, despite
the assertion by GPAA that it processed claims on
time,
members were inundated with calls in their respective communities of pension
claims that had not been processed for over 365 days. A huge number of
beneficiaries have not had access to their pension funds over the years. The
Committee heard that employer departments have also had their fair share in the
problem, as they do not submit exit documents on time and, if they did, there
were a lot of errors supplied to the GPAA.
3.2.2
Client calls (prospective pensioners and
pensioners) are not taken on time, until the client drops the call. GPAA
reported that it takes an average of two minutes to take up a call, but many
calls were dropped, because it had taken more than two minutes for client to be
received.
3.2.3
It was commendable that there are currently
13 regional offices across the country; however, there has not been much
improvement in accessibility to information and benefits, despite the
establishment of these regional offices in all nine provinces.
3.2.4
The unclaimed benefit and tracing policy,
which was approved by the board of trustees in December 2012, has not been
implemented yet - it was scheduled to be implemented as from 01 April 2012
3.2.5
The delay in the processing of claims could
be as a result of the unlegislated working relationship with employer
departments. This concerned the Committee, as it hampered, or made it difficult
for, the speedy payment of claims. The lack of a Memorandum of Understanding
with government departments was a grey area, especially with the Department of
Public Service and Administration as the employer.
3.2.6
The Committee was concerned about the money
that was paid to fictitious bank accounts. Even though 12 cases against GPAA
employees were opened, this was a cause for concern.
3.2.7
There were backlogs that spanned from 2005.
GPAA had to process 20 000 documents.
3.3.
Government
Employees Medical Scheme (GEMS)
3.3.1
The mandate of GEMS is to provide public
service employees with healthcare cover that is efficient, cost-effective and
equitable, while affording additional choices to those employees that wish to
purchase more extensive cover. The Scheme is governed and managed in accordance
with the Rules of GEMS (articles of association), which are duly registered by
the Registrar of Medical Schemes in accordance with the Medical Schemes Act.
The Scheme reports to the Council for Medical Schemes and is defined as
a body corporate that undertakes liability related to its members healthcare
benefits in exchange for contributions.
3.3.2
The Committee was informed that GEMS
commenced enrolling members from 1 January 2006. As GEMS is registered under
the Act as a restricted membership medical scheme for public service employees,
only persons employed in public service or by employers approved as participating
employers by the Board of Trustees may become principal members of GEMS. In
this regard, the Scheme also provides cover to employees of 13 other government-related
employers who were admitted as participating employers since the establishment
of the Scheme, such as the Council for Medical Schemes.
3.3.3
GEMS offer its members five different
benefits options, namely Sapphire, Beryl, Ruby, Emerald and Onyx. GEMS
contracts with operational service providers to deliver services to its
beneficiaries.
GEMS governance structure consists
of a Board of Trustees that directs the Schemes activities; a Principal
Officer, who implements the directives of the Board and is responsible for the
day-to-day management of the Scheme; and executives that support the Principal Officer
in monitoring and managing the service levels and adherence to contractual
obligations by contracted service providers
3.3.4
.The Rules of GEMS provide for a Board of
Trustees comprising 12 persons who are deemed fit and proper to be trustees. A
total of 50% of the trustees are
elected by members,
while 50% are appointed by the Minister for the Public Service and
Administration. The Board of Trustees exercises the powers and performs the
duties provided for in the Act and the registered Rules of GEMS, including the
determination of Scheme benefits and contributions
3.3.5
The procurement of services by the Scheme
is governed by a rigorous Supply Chain Management Policy. In accordance with
the policy, various controls were put in place to protect the integrity of the
procurement process and to ensure that it will be able to withstand rigorous
scrutiny.
3.4
Key Observations GEMS
3.4.1
It was interesting to note that, as at 30
June 2012, the Scheme had registered
641,
922
principal members and covered over
1.7 million
beneficiaries. The Scheme is the largest
restricted medical scheme in the country.
3.4.2
The Scheme recorded an expected deficit of
R100.3 million due to increased claims incurred in the period under review due
to seasonality. The reserve ratio as at 30 June 2012 stood at 5.03% and is
better than the budgeted reserve ratio of 6.09%.
3.4.3
The Committee noted that the scheme now
covers over 57% of all employees in the Public Service.
3.4.4
The Schemes complaints and compliments
experience over time is monitored rigorously and the Board of Trustees receives
detailed reports on the Schemes complaints trends on a quarterly basis.
3.4.5
Non-healthcare expenditure (operational
costs) at the end of the reporting period was 6.34% and is significantly lower
than the industry benchmark of around 12 to 13%.
3.5
Public Service Sector and Training
Authority (PSETA)
3.5.1
The
Committee is grateful to have met with the PSETA board led by its Chairperson,
Ms
Koko
Mashigo
. She led
the presentation and highlighted key issues with regard to PSETA. It was
indicated that PSETA was
established in terms of the Skills
Development Act (SDA) and listed as a Schedule 3A public entity reporting to
the Minister of Higher Education and Training (MHET), as the Executing
Authority. Its legislative mandate is derived from the SDA, Skills Development
Levies Act (SDLA), the Public Finance Management Act (PFMA) and National Skills
Development Strategy (NSDS) III.
3.5.2
PSETA is primarily responsible for the facilitation and co-ordination of
the provision of transversal skills in the Public Service and those skills that
are exclusively the business of Government. Its core business is to support the
development and promotion of skills and competencies.
Operationally, the PSETA is mandated to identify skills shortages,
facilitate training, and accredit constituent training providers. It also has a
major responsibility to improve employment opportunities for the unemployed.
3.5.3
The
relationship between PSETA and the Department of Public Service and
Administration (DPSA) was explained in detail.
PSETA was
established in March 2000 as a SETA; however in November 2001 it was
delisted
and was placed under DPSA as a Chief Directorate
within the Department. It was then later listed as a public entity in terms of the
PFMA in February 2001. This was meant to ensure that it operated independently
and accounted separately from DPSA. However, in April 2006, it was
relisted
as a public entity. DPSA merely acted as
administrative and corporate management agent which saw staff from DPSA being
seconded to PSETA. It was only in April 2011 that PSETA assumed full
operational independence from DPSA. However, PSETA continues to be funded
through a Treasury allocation via DPSA, with quarterly transfers being made to
PSETA.
3.5.4
The Committee was further informed that the Minister of Higher Education
and Training, together with the Minister of Public Service and Administration, had
established an Inter-Ministerial Task Team to develop a viable funding model
for PSETA, consisting of representatives from DHET, DPSA and National Treasury.
The budget allocation of PSETA for 2011/12 was R21 million. PSETA is currently
awaiting the finalisation of the funding model which will
impact on the implementation of their strategic plan. The
funding model proposes that government departments utilise the 1% of training
budget by allocating 30% of 1% to
SETAs
(10% of 30%
for operations, 20% for discretionary grants). A cabinet memo in this regard
was expected to be finalised by end of July 2012.
3.5.5
Despite its challenges, the PSETA has successfully
achieved
its core business objectives which entails
,
amongst others, the updated evidence-based Sector Skills Plan.
It has also disseminated the updated Career
Guide, implemented career guidance initiatives in rural areas through the
Shared Services Mobile Career Guidance Campaign
,
implemented capacity building of Skills Development
Facilitators and members of Training Committees
,
developed a priority plan for PIVOTAL programmes (NSDS
III Outcome 4.2)
,
engaged with FET Colleges and Higher Education Institutions
,
registered three
learnerships
, and
provided mentorship training for 91
mentors in Gauteng, Limpopo, North West, Northern Cape and Free State.
3.6
Key
Observations PSETA
3.6.1
There seems to be a conflict in the
roles of Public Service Sector Education and Training Authority (PSETA) and the
Public Administration Leadership and Management Academy (PALAMA).
3.6.2
The Committee was gravely concerned
about whether the mission statement of PSETA was achievable given their limited
budget allocation and the fact that they have such a huge mandate to achieve. Due
to funding constraints, PSETA acts more like a reporting agency, collating data
on training interventions carried out by government departments.
This results in more of a monitoring
function, which effectively dilutes its mandate.
3.6.3
The Committee heard that PSETA
existed as a chief directorate under the Department of Public Service &
Administration, dependent on DPSA for corporate services and operational budget.
This was concerning, and the Committee resolved to attend to this matter.
DPSA would be contacted for a better
understanding of the situation.
3.6.4
The fact that PSETA appeared in
front of the SCOPA on two occasions during 2011/2 to address previous
governance lapses and the Auditor-Generals disclaimer opinion talked to the
urgency of the appointment of a permanent Chief Financial Officer for PSETA.
3.6.5
A lease agreement which the previous
board entered into without following proper Supply Chain Management procedures in
July 2010, had led to irregular expenditure of R5 million per annum. The
Committee learned that the very same building was too big, too expensive and
not disability friendly. The process to negotiate an exit agreement in an
amicable way had not yielded positive results.
3.6.6
The Committee is concerned that a
number of challenges within PSETA may not have been resolved. PSETA, as an
entity, was placed under Administration for six months
between
17 September 2010 6 April 2011
.
4.
Meeting
with
4.1.1
The
principal, Mr JR
Dooka
, welcomed all present at the
meeting. He then requested everyone present to freely participate in the
discussions and to be at home. The Chairperson, Mrs J Moloi-Moropa, gave a
detailed background on the mandate of the Portfolio Committee on Public Service
and Administration. She highlighted the reasons behind the Committees visit to
4.1.2.
Bosele
(which means dawn) is a school situated in deep
rural area of
Sekhukhune
land (a Presidential nodal
point) in Nebo district about 45km north-east of Groblersdal, in
Mpudulle
Village. The vision statement of
Bosele
is to create an educative environment, free from
prejudice, which will ultimately create opportunities for learners with
disabilities to realise and release their full potential in order to
participate productively in the economy of the country.
4.1..3
The
school was established in 1957, after research studies revealed a need for the
establishment of such an institution due to the high concentration of people
with visual and hearing disabilities in the area. The school opened with nine
blind learners and five staff members. The school admits learners who are blind
or whose visual acuity is such that they cannot benefit from the mainstream
schooling. It will also consider admission of learners with severe learning
disabilities based on the professional assessment and assessment by the
admission panel and the availability of competent human resources,
qualifications and skills to deal with the learning barrier in question.
4.1.4
The
school currently caters for learners from nearby provinces such as
4.1.5
The
management and the governance arms of the school are headed by the School
Management Team (SMT) and the School Governing Body (SGB). Parental involvement
in the school was inadequate and worrisome. This is because the school has quarterly
meetings, feedback sessions with educators and parents. It is in these meetings
where various policies are formulated for operational and administrative
compliance and efficiencies. These include, amongst others, religious policy,
curriculum management, sports policy et cetera.
The Committee was informed about support structures to the school, which
play a major role in the smooth running of the school: the South African
National Council for the Blind, Deaf Federation of South Africa, Blind SA, SA
Library for the Blind, Tape Aids for the Blind, Autism South Africa,
School-Based Support Team, Circuit-Based Support Team, District-Based Support
Team and regular meetings held by the General Manager and Senior Manager of
inclusive education.
5.
Key Observations -
5.1.1
The subsidy allocation of R2 146 000 to the
school for 2012 is not enough to cater for students living with various
disabilities. The allocation translates into a mere R17.16 per learner per day
for this current financial year. The Committee is more concerned that this
meagre allocation is expected to cover learning and teaching support material,
food, cleaning material, payment of bills, travelling costs and maintenance of
the school. What concerns the Committee more is that parents are expected to
contribute R800 per learner per annum in the form of school fees to augment the
subsidy,
5.1.2
The
School cannot maintain their scholar transport, which includes servicing of the
available fleet, renewal of licences and the grounding of vehicles over
weekends and public holidays posed serious problems
..
5.1.3
The
school has at present only 46 computers, 21 of which are out of order. As a
result of having few computers, currently the school does not have functioning
Braille translation software to translate word documents into Braille. As a
result, the Committee was informed that special schools in
5.1.4
The
environment in and around the institution is not accessibility-friendly to the
disabled community. This is not in line with the prescripts and requirements of
a resource centre.
The Committee was
shocked to learn that even the geyser system was not sufficient to provide hot
water to all learners at one particular moment.
5.1.5
The school does not have professional
support staff such as nurses, speech therapists, orientation and mobility
instructors, sign language instructors or social workers.
5.1.6
The current model of redeployment of
educators to special schools has negative consequences. Teachers without
experience and proficiency in special education are redeployed to special
schools.
5.1.7
In
terms of hostel supervisory duties, the Committee was informed that a number of
teachers who had done supervisory duties during the week and over the weekends
had not been compensated at all for these sacrifices since January 2012.
6.
MEETING WITH THE
6.1.1
The
Committee had arranged a panel discussion with the leadership of the
6.1.2
There is increasing concern about the lack of
relevance and effectiveness of many training courses and school curricula. It
is well known that training, particularly in natural resource management,
sometimes fails to meet the needs of different stakeholders and can be of poor
quality, resulting in unsustainable outcomes. Participatory curriculum
development is an emerging approach which builds on our experience of
participation in rural development programmes and is becoming recognised more
widely as a critical element in the success of education and training.
6.1.3
Curriculum development provides an
opportunity for institutionalising a systemic approach to learning. It aims at
integrating the recognition of the needs for learning, the ways in which
learning is organised and delivered, and the way in which learning is monitored
and evaluated within a particular context of location, values and beliefs. If
curriculum development is carried out efficiently and effectively, the learning
needs of learners will be met, teachers will teach more effectively, using
suitable, relevant methods and materials, a good service will be delivered,
satisfying the demands of different stakeholders, and the goals and aims of the
education and training programme will be achieved
6.1.4
The
University of
6.1.5
The
University responds to issues raised by the Auditor-General, especially in
municipalities. It is clear that there is a skills shortage in municipalities.
Furthermore, there is a collaboration/working relationship between the
University and the South African Broadcast Corporation (SABC) with regard to
media studies. The University has a competency-based curriculum, where the
University approaches the community-based organisation to find out how they can
assist to cater for societal ills within the community. As a result of that
process, the University develops a curriculum that aims to resolve the societal
anomalies
7
Key Observations
7.1.1
The
management of the
7.1.2
There was also a concern on
whether the proposed legislation by the Ministry of Higher Education around the
contentious issue of administrators had the interest of historically black
universities at heart. The Minister of Higher Education needed to have a
thorough discussion with the University leadership around this matter.
8.
MEETING WITH THE PREMIER OF LIMPOPO AND MEMBERS OF THE
EXECUTIVE COUNCIL (
MECs
) ON THE STATE OF
8.1.1
The
Portfolio Committee had resolved to visit Limpopo Provincial Government after a
meeting with National Treasury and the Department of Public Service and
Administration to assess the state of public service and administration in that
province. This was after it had been placed under administration by the South
African Cabinet since 5 December 2011.
8.1.2
Section
100 (1) (b) of the Constitution, 1996, provides for the national executive to
assume responsibility for the relevant obligation in that province to the
extent necessary to: a) maintain essential national standards or meet
established minimum standards for the rendering of a service; b) maintain
economic unity; c) maintain national security or d) prevent that province from
unreasonable action that is prejudicial to the interests of another province or
to the country as a whole.
Sub-section 100 (3) of the Constitution, 1996, refers to national
legislation that may regulate the process established by section 100. It
should be noted that such national legislation currently does not exist.
8.1.3
The approach of the Portfolio Committee on
Public Service and Administration was to assess whether there has been
improvement since the South African Cabinets intervention in terms of section
100 (1)(b) of the Constitution, 1996. The Committee requested the Public
Service Commission, Auditor-General, National Treasury and DPSA to give their
view on the current state of public service and administration in that province.
8.1.4
The Public Service Commission highlighted
the following issues with regard to the state of the Public Service in
8.1.4.1
In terms of the National Anti-Corruption
Hotline (NACH), cases received from the
8.1.4.2
Out of the 358 cases on which feedback
was received, 61% are not finalized and closed on the Case Management System
(CMS) as at 31 March 2012.
It was reported that
40% of the reported cases in the province related
to fraud and bribery, and 19% to procurement irregularities.
8.1.4.3
In terms of financial misconduct, in the
8.1.4.4
One of the contentious issues was around
the expenditure versus the performance of the province. The PSC found that in
most cases the entire budget was almost spent, yet the achievement of the
predetermined outputs was low.
8.1.5
The
National Treasury highlighted the following issues since its intervention in
8.1.5.1
The National Treasury indicated that financial
stability in the province had more or less being achieved. The liquidity risk had
been reduced significantly. There were now month-on-month spending trends for
departments which were in line with other provinces. In an attempt to control
growth in headcounts, there were processes in place to manage recruitment
across the province. It was further indicated that recovery plans for the
affected departments had been drafted by the various administrators and were presented
for sign-off to national departments.
8.1.5.2
The Committee was informed that there has been interference by the
Office of the Premier in issues related to HOD appointments, redeployment of
senior staff, creation of parallel programmes to intervention, and duplication
of treasury functions within OTP under 'what is called provincial protocol.
However, there were
p
ositive outcomes observed as a result of the commendable
posture and strong support of the intervention staff from some national Directors-General.
It was under these circumstances that even a relatively small intervention team
deployed had a significant impact.
8.1.5.3
The National Treasury was of the view
that a resolute stance was needed in respect of the appointment of
administrators and accounting officers and practical support for existing
deployees
. There was a need for unequivocal endorsement of
recovery plans by Ministers, including the Finance Minister, for each
provincial department over which they are directly responsible. This will
clarify the pre-eminence of national project plans over all other initiatives
in provinces. There was a need for a panel that includes representatives of the
Minister of Finance, to concur with all appointments of
HODs
for departments placed under intervention.
8.1.6
The
Auditor-General highlighted the following issues with regard to the state of
the Public
Service in
8.1.6.1
T
he
departments and entities that have achieved the goal of clean audit outcomes
(unqualified opinion with no findings) are characterised by having sound
internal financial management and control systems that function effectively
throughout the financial year. A high incidence of leadership involvement in
monitoring these in-year processes was also noted.
8.1.6.2
On the other hand, the departments and entities that are still
struggling to achieve to clean audit outcomes do not have effective continuous
processes to ensure that information on financial performance is maintained and
monitored throughout the period. Such information is only compiled at year-end
and areas that need corrective action can consequently not be identified and
addressed during the year. The financial information on which decisions are
based must be credible and verified by the audit committee and internal audit
on a quarterly basis.
8.1.6.3
The
8.1.6.4
The Premier and his leadership team must act decisively to
implement corrective measures and address non-performance. It was further
explained that departments should focus on addressing shortcomings in controls
over capital assets, both moveable and immoveable. The A-G was concerned that
the province, which has been without an asset management system for the past
four years, faces a significant risk in sustaining positive audit outcomes,
specifically around asset management. This is already evident in the 2011-12
financial
year
, where the Department of Roads and
Transport faces a possible new qualification on assets, due to deficiencies
identified around asset management.
8.1.7
The
response by the Limpopo Provincial Government highlighted the following issues
with regard to the state of the Public
Service in
8.1.7.1
The presentation was led by Dr.
Pheme
on behalf of the director-general who had apologised
due to the directors-generals workshop that was taking place in
8.1.7.2
One of the eight
principles of Plan of Action on Women Empowerment is equality in the work
place, promoting employment equity status of women based on the NEDLAC mandate
of reaching 50% target. The Committee was informed that the provincial treasury
is the best performer in this area wherein they are at 49% for female SMS and
2.4% for persons with disabilities at SMS level.
8.1.7.3
The Committee heard
that a
ll
departments in
8.1.7.4
The provinces overall performance has
improved by 10.23% between 23 April 2012 and 06 July 2012.
It was further
indicated that the province had received 28 corruption-related cases for the
1st Quarter, of which six cases were completed.
Feedback to the public on anti-corruption hotline cases is provided
through the Provincial Communication Services during the Limpopo
Anti-Corruption Forum, as well as to complainants who are not anonymous.
8.1.7.5
In terms of the
payments within 30 days,
the
rand value of invoices
paid
within 30 days has decreased from 82.94% in May 2012 to 78.96% in June 2012. The
Office of the Premier is the best performer in this category, achieving 100% in
June 2012.
Leadership
,
financial
and performance management
, and
governance
have been identified as key areas in which action needs to be taken to improve
audit outcomes.
8.1.
Key Observations
Meeting with
8.1.1
The Committee was gravely
concerned that, since the South African Cabinet announced its intervention in
the
8.1.2
The issue of lack of
textbooks had not been cleared, despite the intervention of the administrators.
The Committee was concerned at slow progress in this regard.
8.1.3
The lack of a Memorandum
of Understanding (MOU) is a cause for concern. Indeed, there is no law that
governs how the intervention should be processed. But the Committee found it
totally unacceptable that, despite promises by Cabinet to have the MOU in
place, by the time the Committee undertook its oversight visit, the MOU had not
been signed, and thus there was no clear indication of roles between
MECs
and the Administrators.
12.
CONCLUSION AND RECOMMENDATIONS
12.1.1
Unclaimed benefits go back as far as
2004/05
pensionable
year, totaling R658 billion. The
GPAA should devise a strategy to trace pensioners and their beneficiaries,
given the fact that there were so many magnetic-tape rejections (R128 million)
from beneficiaries banks for 2011/12 alone. The unit responsible for tracing
beneficiaries should be capacitated with more staff.
12.1.2
The DPSA should ensure the
availability of an MOU which will foster a working relationship between
employer departments and GPAA to ensure speedy payments of claims. The lack of
a Memorandum of Understanding with employer departments was a grey area,
especially with the Department of Public Service and Administration as the
employer.
12.1.3
The Department of Public Service and
Administration should address what appears to be a conflict with regard to the
roles of PSETA and PALAMA.
12.1.4
The lease agreement, which PSETA
signed and cannot get out of, is taking a huge chunk of their limited budget,
DPSA and NT should work with PSETA to find a solution to this problem through
engagements with the landlord.
12.1.5
The Department
of Education should make resources available for
Bosele
to have a media centre which will incorporate a Braille production unit. The
unit should be capacitated with a full time Braille translator and thus
alleviate the shortage of Braille books for students.
This will go a long a way to ensuring that
learning is not disrupted.
12.1.6
The
movement of educators between mainstream and special schools needs to be
overhauled.
12.1.7
The Minister of Higher Education
should consider a meeting with the
12.1.8
The South African Cabinet, which
took a decision to place
It is requested that the
Minister of Public Service and Administration should attempt to ensure
the
implementation of all of the above recommendations.
Report to be considered.
Documents
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