Public Service Act and challenges faced in its implementation with the Public Finance Management Act Presentation to Portfolio Committee on Public Service and Administration - 9 November 2011 1

Content Role of political and administrative heads under Public Service Act (PSA) Challenges in implementation Way forward 2

PSA - EA & HOD (1) Executive Authority (EA) - political head President/Minister/Premier/MEC/Chair-person of PSC iro OPSC Appointed by President/Premier ito Constitution Normally serve term of government, but may be replaced by President/Premier during term 3

PSA - EA & HOD (2) Head of department (HOD) – administra-tive head Director-General in case of national departments and Offices of Premier Appointed by President/Premier ito applicable legislation unless delegated Maximum renewable term – 5 years Provisions of PSA and/or sector specific employment legislation apply to terms & conditions 4

PSA - EA & HOD (3) EA of department ito PSA responsible for organisational structure and establishment strategic planning service delivery improvement programme 5

PSA - EA & HOD (4) EA vested with bulk of HR powers iro employees HR planning creation & abolition of posts appointments, performance manage-ment, transfer, dismissal (except for misconduct) and other career incidents of employees 6

PSA - EA & HOD (5) HOD ito PSA responsible for efficient management & administration of department, including effective utilisation & training of staff maintenance of discipline promotion of sound labour relations proper use & care of state property implementing sanctions for misconduct 7

PSA - EA & HOD (6) PSA enables EA (not obliged) to delegate PSA powers and duties to HOD May only delegate to HOD and not to other employees in department EA may impose conditions when exercising delegated powers & duties HOD may further delegate these powers & duties 8

CHALLENGES IN IMPLE-MENTATION OF PSA WRT PFMA (1) EA’s decision ito PSA having financial impli-cations must be in writing & within limits of authorised funds AO or delegated official to approve expenditure Examples of decisions Expanding post establishment Appointments additional to establishment Upgrading of posts Higher salaries awarded to recruit or retain 9

CHALLENGES IN IMPLE-MENTATION OF PSA WRT PFMA (2) Possible conflict between EA & HOD (as AO) wrt their different powers under PSA and PFMA limited by measures in PFMA, e.g. monthly expenditure reports by HOD to EA requiring written directives by EA, processes to deal with unauthorised expenditure delegation by EA of certain powers & duties under PSA to HOD 10

CHALLENGES IN IMPLE-MENTATION OF PSA WRT PFMA (3) Lack of, or inadequate, delegation of HR powers may, especially in large departments, result in slow decision-making Conflict may arise if HOD refuse to approve funds because seen as outside budget vote (scope of department’s mandate) resulting in irregular expenditure or fruitless and wasteful expenditure, e.g. EA makes appointment that does not accord with PSA prescripts One is refusing to approIf not sound interpersonal relations 11

CHALLENGES IN IMPLE-MEMTATION OF PSA WRT PFMA (4) If conflict between EA and HOD arises in this regard Could sour or even result in breakdown in trust relationship One using powers to obstruct other, e.g. HOD frustrating financial approval, EA withdrawing HR delegations 12

WAY FORWARD - POSSIBLE CHANGES TO STRENGTHEN PSA Consider advantages/disadvantages of locating HR management functions in HOD, subject to EA’s policy directives exception for top management appointments (i.e. DDG level) - to be made by EA or with concurrence of EA DPSA developed principles and templates for PSA delegations for departments Propose to seek Cabinet’s approval as standard for PSA delegations Trust and professionalism play key role in political-administrative interface – these matters are not matters that can always be regulated by legislation 13

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