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Transformation of the National Department of Public Works

Transformation of the National Department of Public Works. Presentation to Public Works Portfolio Committee on 10 September 2003 by James Maseko, Director-General. Presentation Outline. Introduction and Background Previous phases of Transformation Current Phase of Transformation

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Transformation of the National Department of Public Works

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  1. Transformation of the National Department of Public Works Presentation to Public Works Portfolio Committee on 10 September 2003 by James Maseko, Director-General

  2. Presentation Outline • Introduction and Background • Previous phases of Transformation • Current Phase of Transformation • Challenges • Way Forward • Conclusion

  3. Introduction • Presentations were made to the Portfolio Committee in 2001 and early 2002 on the Transformation Programme of the NDPW. • To ensure an understanding of the broad context, the constitutional and broader policy frameworks guiding Transformation in the public service in general and the NDPW in particular are shared with you first, before the transformation of the NDPW is covered.

  4. Previous Phase of Transformation in NDPW • Transformation started in 1995 when Deloitte & Touche were appointed to assist the NDPW . • Labat Anderson was then appointed in 1997, but once again the process was stopped about a year later, due to non-compliance with State Tender Board regulations in appointing Labat Anderson.

  5. Previous Phase of Transformation in NDPW cont’d • Cabinet approved, in principle, in May 1999 that a State Property Agency be established • XKM McKinsey appointed in Feb 2001 to conduct “As-Is” or situational analysis, after Cabinet Secretariat inquired about the SPA • In October 2001 Bluepeter Management Consulting appointed to develop a business case for the SPA – later changed to SPMC.

  6. Previous Phase of Transformation in NDPW cont’d • Draft SPMC Bill and business case submitted to G & A Cabinet Committee in March 2002 • Referred back to change SPMC back to SPMA, as this was Cabinet’s mandate, and consultation with National Treasury and DPSA • Joint DPSA/NT Technical Committee engaged from May 2002 • NT wanted us to go through a trading entity process of about 2 years first • DPSA in favour of creation of a public entity, the SPMA– but process not taken further

  7. Current Phase of Transformation • In October 2002 all departments and provincial administrations had to implement PSCBC Resolutions 7 and 8 to restructure • NDPW decided on the “Greenfields approach, but due to wide-spread dissatisfaction the Minister and new DG stopped the process in mid-February 2003 and asked for a DPSA investigation

  8. Current Phase of Transformation cont’d • New organisational structure creates: - 3 new Branches e.g. Policy & NPWP, Asset Management and Regions; - Chief Operations Officer post; - Separation of policy & custodianship and service provision roles; - Key Account Management approach; - Decentralisation of all service delivery functions to Regions.

  9. Current Phase of Transformation cont’d • DPSA reported back in mid-March and found that process had been in conflict with PSCBC Resolutions 7 and 8, and recommended it be redone. • Matching and placement of about 4 500 employees completed by end of August 2003 • Currently recruitment drive in progress to fill rest of vacancies

  10. Challenges • Improved service delivery adversely affected by staff shortages • Possibility that not all critical vacancies will be filled – dire built environment skills shortage in local labour market • Core mandate of NDPW being challenged as a result of confusion in interpretation of Section 38(1)(d) of the PFMA – e.g. NT and SAPS • Current organisational culture not sufficiently business-like • 844 Vacancies

  11. Challenges cont’d • Bureaucratic red tape, silo effect and cumbersome business processes and systems also hamper efficient and effective delivery of services • Resolution 7 and 8 prevented freedom to replace current managers and other staff not performing satisfactorily • Vacancies will be filled in phases

  12. Way Forward • Move to new organisational structure on 1 Oct 2003 • Achieve smooth transition from current to new structure • Implement Batho Pele/Key Account Management approach, including unique client value propositions, service delivery improvement programme and service level agreements with clients and Asset Management across Government

  13. Way Forward cont’d • Reinforce the NDPW’s custodianship role by means of Government-wide Immovable Asset Management policy framework and legislation • Acquire and implement new and integrated business processes and systems • Develop and implement new business policies • Develop and implement business-like culture

  14. Conclusion • Government is committed to transform the public service and service delivery to citizens through Batho Pele • The NDPW provides the platform for service delivery of national departments • Likewise the Minister and I are equally committed to transform the NDPW into an agile and efficient operation to fulfill its constitutional and legal mandate

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