Briefing on the implementation of the Directive on Other Remunerative Work to prohibit public servants from doing business with the State Presentation to Portfolio Committee on Public Service & Administration as well as Monitoring and Evaluation 14 June 2017

Presentation Outline Purpose; Background; Measures put in place: remunerative work; Remunerative Work: Status as at 30 April 2017; Measures put in place: doing business with organ of state; Doing business with organ of state: Status as at February 2017; Conclusion

Background 01 August 2016 - Minister for Public Service and Administration (MPSA) issued Public Service Regulations, 2016 (PSR, 2016). Public Service Regulations, 2016: Prohibits employees from conducting business with an organ of state (regulation 13 (c)); and Confers the power to MPSA to determine the form and process for application for remunerative work (regulation 24)

Measures put in place: remunerative work November 2016: Directive on Other Remunerative Work was issued. The Directive prescribes: The application form; Application process; Certificate for approval; Reporting obligation by Heads of Departments (non-compliance and corrective measures to be reported to DPSA by 30 April of each year); and Compulsory capturing of applications on PERSAL system The Directive also prevents employees from using approved remunerative work to undertake business with an organ of state.

Measures put in place: remunerative work A new function on PERSAL was created to capture new applications for remunerative work in line with the Directive; This new PERSAL function was implemented with effect from October 2016; Different categories of remunerative work were created on PERSAL system; Training on capturing is done at least once a month to Ethics Officers and Human Resource officials; Both DPSA & National Treasury continue to monitor all registrations on the Central Supplier Database and screen it against PERSAL information; Any employees detected are flagged; Those flagged have to provide proof that he or she is not an employee, before the registration is allowed.

Remunerative Work: Status as at 30 April 2017 20 National Departments using PERSAL system to capture new applications; 17 Provincial Departments (from 6 provinces) using the PERSAL system to capture new applications (6 month window period for cancellation of all approvals came to an end on 30 April 2017); 979 applications were captured (433 National and 546 by Provincial Departments, 550 approved; 39 deemed approved; 13 not approved; 377 are still pending.

Remunerative Work: Status as at February 2017 Most common approvals are in the following categories: Sales and marketing (12%) Consultancy work (8%) Training, research and development (7%)

Measures put in place: doing business with the state January 2017: Directive on Conducting Business with an Organ of State. Clarifies the definition of an organ of state; Excludes certain activities that should not be considered as doing business with organ of state, e.g. lecturing and examination markings. In collaboration with National Treasury, DPSA identified employees currently registered on the Central Supplier Database and those who were conducting business with an organ of state.

Doing business with the State: Status as at February 2017 11 516 registered on Central Supplier Database (they were not conducting business, but would be able to do so in future) 893 contracts were in place involving public service employees conducting business with an organ of state 2 536 employees who were registered on the Central Supplier Database but resigned from the Public Service by end of February 2017

What have we done to address the issue? In January 2017, MPSA informed executive authorities of all those employees on the Central Supplier Database; and In February 2017, DPSA informed Heads of Departments to report on employees who have either terminated their employment in the public service and those who continue to do business with the state; and DPSA is currently consolidating a report on the feedback received from departments.

Conclusion DPSA is currently consolidating information regarding actions taken against employees who are still conducting business with an organ of state; Departments will be reminded that it is compulsory to capture new applications for remunerative work on PERSAL; DPSA will continue to work with SITA to ensure that departments are trained on how to capture data on PERSAL; MPSA has issued draft Regulations under Public Administration Act, 2014 for comments, which covers: Prohibition of special advisors from conducting business with the State; Requirements for designated employees to disclose financial interests of spouses; and Criminalisation of conducting business with the state by employees.

End Thank you