State of the Public Service Report 2008

1. State of the Public Service Report 2008 A Mid-Term Review of the Public Service Transformation

2. Outline of presentation • Purpose of report • Focus and format of report • Presentation of Mid-Term review according to the 9 values and principles of public administration • Conclusion 2

3. Purpose of report • The State of the Public Service (SOPS) Report is an annual production in a series of oversight reports produced by the PSC. • It provides incisive commentary on how the Public Service is performing against the 9 values and principles for public administration as enshrined in the Constitution. • The reports reinforce the principles of transparency, and they highlight progress and challenges faced in the Public Service. • It also serves an important advocacy and learning function, as the debate that emanates from these reports focus attention on what needs to be done to improve public sector performance. 3

4. Focus and format of report • This report is the 7th edition, and focuses on how well government has fared in the period 2004-2007, hence the Mid-Term Review. • The key Public Service Transformation Phases since 1994 are identified and discussed. These are: • Rationalisation and Policy Development (1994-1999) • Modernisation and Implementation (1999-2004) • Accelerating implementation (2004-to date) • The report is both retrospective and forward looking. It highlights issues that should be addressed by the current and new government, and is rooted in a solid evidence based analysis. 4

5. Continued… Each principle is discussed according to the following framework: • Each value and principle is introduced in terms of its contribution to good governance. • A Mid term review captured significant events pertaining to that principle. • A synopsis of findings from previous SOPS reports. • Issues that still warrant attention is elaborated upon. • Points for consideration in terms of accelerating service delivery towards 2009 and beyond are made.

6. Principle 1: A high standard of Professional Ethics must be maintained • Government has taken a proactive approach to fighting corruption by promoting integrity-driven forms of administration in order to achieve good governance. • Its success is evident in that by 2004 a range of key policy instruments, normative frameworks and commitments to several multi-lateral anti-corruption agreements were in place. • Despite these strides implementation must improve, as there is a sense that the standard of ethics is deteriorating rather than improving. Unless addressed, public confidence may impact on social cohesion and nation building. 6

7. Principle 1: A high standard of Professional Ethics must be maintained (cont…) • The National Anti-Corruption Hotline is the most visible, accessible and widely used facility to support collaborative efforts to fight corruption. A clear action-oriented programme has emerged from the National Anti-Corruption Forum to improve collaborative efforts to fight corruption. • There has been renewed debate on conflicts of interests, but limited movement has happened on the policy options proposed by the PSC. • The country was voluntarily reviewed through the African Peer Review Mechanism. Whilst its institutions and legislation on anti-corruption was commended, it was cautioned that this could be compromised due to capacity constraints. 7

8. Principle 1: A high standard of Professional Ethics must be maintained (cont…) • The overall low rate of feedback from departments (36%) is concerning, despite some provinces performing well. • All departments have not met the minimum anti-corruption requirements, and given the high number of unresolved cases perceptions of a corrupt Public Service remain. PSC studies show genuine capacity constraints. • The rate of returns for Financial Disclosure Frameworks at 85% falls short of the 100% required and points to poor political and administrative leadership which puts the Public Service at risk around potential conflicts of interest. • Further strengthening of policy is required. 8

9. Principle 1: A high standard of Professional Ethics must be maintained (cont…) • At the heart of the many gaps that exist is the lack of a national integrity system, which prevents a proper reflection on how each element to fight corruption relate to the other. • Going forward, it is important that a 100% return rate of Financial Disclosures takes place and that unethical conduct be identified and dealt with. • Policy gaps around dual employment must be dealt with, and the forthcoming Anti-Corruption Summit should inspire a concerted effort to address shortcomings and emphasise the implementation of anti-corruption interventions 9

10. Principle 2: Efficient, Economic and effective use of resources must be promoted • The pursuit of social objectives (such as equity) may result in spending that seems inefficient but necessary to address past inequalities. • The introduction of nationally uniform sector-specific budget structures has helped to simplify budget structures and facilitate comparisons of performance. between provinces. • There has been a shift away from narrow compliance based performance reporting towards one focused on assessment of value delivered. • There has been a decrease in the level of under spending, which suggests that departments are progressively overcoming their spending difficulties.

11. Principle 2: Efficient, Economic and effective use of resources must be promoted (cont…) • The reliability of performance data must improve as inconsistencies leads to a loss in confidence in reports provided. • Material over and under-spending represent a gap between planning and implementation and is not in the interest of efficient and effective service delivery. The country cannot afford to have funds being returned unspent given the backlog. • The ability to spend is reliant on the capacity and conduct of public servants. It requires a mindset which is alert to the risks of lack of financial discipline, and if personal funds are poorly managed there can be doubts about the honesty and integrity with which public funds will be managed.

12. Principle 2: Efficient, Economic and effective use of resources must be promoted (cont…) • Given the forthcoming 2010 Soccer World Cup with the 2007 budget projecting a R416 billion the country cannot afford to have funds managed inappropriately. • The PSC has observed a big increase in the cases of misconduct reported by departments, which stood at 1042 in 2006/7 and amounted to R45 million in 2005/6. • Given the growing importance of credible performance data it is crucial for institutions that place reporting demands on departments to coordinate and streamline their requirements. • In order to bring an end to the practice of unauthorised, fruitless, irregular and wasteful expenditure, departmental performance management and disciplinary processes should decisively deal with unacceptable forms of expenditure.

13. Principle 3: Public Administration must be Development Oriented • This principle of development orientation requires state institutions to ensure that in their programmes and policies they prioritise the creation of a better life for the people. This orientation has been promoted since the RDP and taken on a new urgency through the Millennium Development Goals and their accompanying targets. • Certain pillars on which growth and development rests is being challenged, such as electricity and water supply and the capacity to monitor and maintain existing infrastructure. • Addressing poverty has been a critical objective, and the economic growth of the country since 2004 has enabled an increase in public expenditure by over 9% per annum since 2004. • There is a firm focus on meeting the MDG targets of halving poverty by half by 2014.

14. Principle 3: Public Administration must be Development Oriented (cont…) • The momentum for reducing poverty has been boosted by the Expanded Public Works Programme which created 854 406 net work opportunities, which is a 77% achievement rate. The programme realised 23% of its goal in providing person-days of training. • About 25% of the population benefits from social grants, with the rapid increase in the beneficiaries suggesting that what was intended as a safety nets is now a highly resourced intervention. Questions remain about its sustainability. • There is debate on how to measure poverty, and a matrix line is being finalised to measure progress against the MDGs. It should however not lead to oversimplifications of the lived experiences of the poor.

15. Principle 3: Public Administration must be Development Oriented (cont…) • PSC studies show that active beneficiary participation and alignment of projects with local development plans remains a problem, as well as the co-ordination of poverty reduction programmes. • A problem of inequality prevails, with intra-community inequality increasing as poverty is reduced. • Attention needs to be paid to the infrastructure that government has created to support development, with work done on poverty reduction accelerated.

16. Principle 4: Services must be provided impartially, fairly, equitably and without bias • Achieving this principle creates tensions as equality considerations have to be managed against interventions aimed at redressing inequality caused by apartheid. • There have been important achievements, with inequality between races having dropped to 41% in 2006 (compared to 45% in 2004). Black households in 2007 have a larger share of disposable income (46%) than whites (40%), which is a turn around from 1960 when whites earned 69%. • The economic prospects of previously disadvantaged individuals were improved by Broad-Based Black Economic Empowerment (BBBEE). In 2006 mergers and acquisitions of BEE amounted to 15% and totalled R56 billion. However, there are growing sentiments that it has exacerbated intra-racial inequality.

17. Principle 4: Services must be provided impartially, fairly, equitably and without bias (cont…) • Improvements have also been noted with regard to access to education, with African comprising 60% of university and university of technology students. • The review of the Institutions Supporting Democracy has been welcomed so that its purpose would not be compromised. • The debate around the transformation of the judiciary is important, and what is critical is that there is no erosion of confidence in their independence. • There have been efforts to improve PAJA compliance through training offered by the Dept of Justice and Constitutional Development. However, after 7 years it is a concern that progress remains slow and procedures are not adhered to. This may be due to the lack of sanctions for non compliance. • It is important that fear of victimisation held by members of the public does not force them to pull back and not exercise their role. More training of the public on knowing their rights is required.

18. Principle 5: People's needs must be responded to and the Public must be encouraged to participate in policy making • Given the country's history, citizens are expect to participate in public affairs. When avenues are not found through the state, other forms of activism occur, evident in the unprecedented activism witnessed. • It is necessary that government-community relations are stabilised in the interest of good governance. • Izimbizo have been used to strengthen relations with communities, and whilst opening opportunities for communities to communicate directly, the lack of a proper feedback loop is a concern. • The 3000 Community Development Workers are now deployed in all participating municipalities (about 2000), and play an important role in supporting communities. They also participate in local development initiatives, but their impact needs to be monitored. • A recurring problem remains the lack of guidelines prescribing minimum levels of consultation which is important given the experience of engendering a common understanding of participatory governance.

19. Principle 5: People's needs must be responded to and the Public must be encouraged to participate in policy making (cont…) • A further recurring challenge is the lack of redress mechanisms in terms of the Batho Pele Principle of Redress. A very small proportion (3-5%) of departments respectively rate themselves as excellent in this area. • Since 2003 the PSC conducted 4 Citizen satisfaction surveys and the average satisfaction level was 67%. However, the follow-up on reporting crime was low (44%). The reported annual murder rate of 20 000 and rape of 52 000 should serve as a wake up for strengthening collective action against crime. • The uptake of guidelines to improve participation must improve, and there is a need to revisit the experience of public participation during the early “green” and “white” papers.

20. Principle 6: Public Administration must be accountable • Accountability involves an obligation on the part of public officials to be answerable for what they deliver and for how this performance takes place. • To facilitate accountability various instruments, such as the Promotion of Access to Information Act (PAIA) and PAJA allows citizens certain levels of unfettered access to information held by departments. • A key instrument for accountability is the system for performance management with the Performance Management and Development System requiring senior managers to incorporate all of the Batho Pele principles into their work plans. • Accountability has been extended to accounting officers who are denied bonuses if they do not meet budget performance. The Auditor-General has expressed concern about qualified audit opinions and EA and HODs need to be called to account.

21. Principle 6: Public Administration must be accountable (cont…) • It is concerning that many departments receive repeated qualified audits. • Problems have been experienced where bonuses were granted without performance agreements. The problem extends to HODs where in 2006/7 only 16% of national and 13% of provincial entered into agreements and filed PAs with the PSC. • There has been a low level of compliance with HODs being evaluated, and despite interventions no improvement was noted. • There is no reason for the cycle of qualified audits and poor performance management not to be broken decisively. • The organisation performance should also be considered to provide further insight into the performance of departments.

22. Principle 7: Transparency must be fostered by providing the public with timely, accessible and accurate information • The transparent sharing of information enables the public to participate from an informed perspective in policy making and implementation. • Annual Reports are important but should be augmented by in-year reporting mechanisms. The Programme of Action is published on the governments website and progress on implementation updated every two months. • For information to be usable it should be organised and availed in easily accessible forms. The electronic Directory of government lists services according to specific categories of users. • Whilst progress has been made in terms of Annual reports, there are still weaknesses with full adherence to the Treasury Guidelines.

23. Principle 7: Transparency must be fostered by providing the public with timely, accessible and accurate information • Many of the weaknesses in departments lie in not complying with requirements of policy, such as appointing a Deputy Information Officer. • Departments should appreciate that mechanisms that promote access to information in return also boost public confidence in government institutions. The Annual Citizens reports could help. • Public confidence is also influenced by the transparency with which government manages the private contributions that members of the public may want to offer public servants. • Only 4 in 10 departments keep gift registers, and considering the magnitude of some of the gifts received, a case to require more transparency. • The development of Annual Citizens` Reports should be something each department commits to. There is no reason why departments work plans and quarterly plans are not published on departments websites.

24. Principle 8: Good Human resource management and career development Practices, to maximise Human Potential, must be cultivated • As interpreters and implementers of policy, public servants are critical and their potential should be optimised. • There has been a shift away from past management practices that were compliance driven to approaches that harness human potential and support good performance. • One of the key developments post 2004 has been the introduction of complementary policy instruments such as creating a meaningful balance between centralised and decentralised functions. This is being re-examined, in light of discrepancies, starting with the process of organisational restructuring.

25. Principle 8: Good Human resource management and career development Practices, to maximise Human Potential, must be cultivated (continued) • The Accelerated Development Programme is a useful initiative and targets middle managers from designated groups to prepare them for the challenges of functioning in senior management. The Khaedu training helps to keep senior managers in touch with implementation. • A stable environment is required and collective bargaining has been used to reach agreement on a wide range of issues. The massive strike of 2007 should lead to honest reflection on what went wrong. • The long time taken to fill posts remains a problem. Skills development must be prioritised. The HIV/AIDS pandemic is a problem and likely to have a profound supply on educators. • Managers need to play a more active role in Human Resource management and it is important that the Accelerated development programme is supported and monitored.

26. Principle 9: Public Administration must be Broadly representative of the South African People, with Employment and Personnel Management practices based on Ability, Objectivity, fairness and Need to Redress the Imbalances of the past to Achieve Broad Representation • It is important that the Public Service mirrors the South African population in all its diversity. The effectiveness of measures such as Affirmative Action needs to be carefully considered at this juncture as there are debates around whether AA is still necessary and whether it is in fact not perpetuating class divisions. • The most visible success has been the extent to which the Public Service reflects the demographic composition of the country. Race representativity has continued to improve with the figure for African employees increasing from 74% to 80% in 2007. • There is concern that since it took departments such a long time to achieve the gender representativity target of 30% it may take longer to reach the revised target of 50% at SMS level. The Minister of Public Service and Administration has suggested 8 principles on women empowerment to support departments.

27. Principle 9 (continued) • The greatest challenge has been in improving disability representativity, which at 1,79% is below the target of 2%. The hearings by the PSC attempted to provide a grounded appreciation of the challenges faced by departments in the achievement of disability representativity. • The development of a central database for people with disabilities should assist, and strategic partnerships in this regard are important. • To improve gender mainstreaming focus needs to move beyond numeric targets to also consider issues of family friendly policies and improved gender relations in the workplace. • It is important that representativity continue to be monitored or hard earned gains could be lost. It is also important that diversity management receive attention and that efforts to create dynamic, co-operative and productive work place cultures are genuine.

28. Conclusion • The public service has now had sufficient operational experience in implementing new policies and the problems that emanated from this process have been raised in previous SOPS reports. • It is important that the Public Service continue to monitor its performance, which can only happen if monitoring and evaluation systems are sound and produce reliable data for decision-making.

29. THANK YOU!