PRESENTATION TO PORTFOLIO COMMITTEE AG REPORT ON CONSULTANTS CIVILIAN SECRETARIAT FOR POLICE PRESENTATION TO PORTFOLIO COMMITTEE AG REPORT ON CONSULTANTS

AG REPORT W.R.T. SAPS 2008/09 to 2010/11 R4, 039 billion was spent on consultants. The amount spent on consultants peaked in 2009/10 but declined in 2010/11 (although during this same period agencies and support outsourced services increased significantly) Projects audited by AG include: Firearms Control System (Waymark) Refurbishment of 200 Nyala vehicles ABET Project Contracting related to Internal Audit

AG GENERIC RECOMENDATIONS FOR DEPARTMENTS General Findings Improvement of internal processes and structures w.r.t. to accounting officers, BAC, HR directorates, and staff involved in appointing and managing consultants adjudication (focus on compliance & value for money). Sanctions implemented for non-compliance. National Treasury & DPSA should monitor compliance and enforce action where deviations occur Use of consultants should be included in reports and plans submitted to PC (including Plans and Annual Reports) Quarterly oversight by PCs and SCOPA Planning and Appointment Type and extent of services to be outsourced needs to be analyzed Permanent capacity required vs non-core nature of services Cost of outsourcing vs cost of permanent capacity Proper planning must be done before issuing the request and tenders must be detailed, clear and unambiguous

AG GENERIC RECOMENDATIONS FOR DEPARTMENTS Internal Capacity Internal vacancies must be assessed regularly & internal processes in filling vacancies reviewed. - Updating HR plan - Staff retention strategies and priority post plans Training & Transfer of Skills Contracts must provide for transfer of skills and agreed upfront. Staff to whom skills must be transferred must be made available. Performance Management and Monitoring Competitive bid process must be followed and reasons for deviation recorded Sections central to the process should pay specific attention to compliance Contracts should take cognizance of General Conditions of Contract as prescribed by National Treasury. (Contracts be clear and detailed with clearly defined roles and responsibilities) Proper contract management and monitoring including price, deliverables etc must be in place Regular progress meetings must occur & evidence kept of these meetings (follow up action taken promptly) Period of consultants contract should be managed and monitored

AG GENERIC RECOMENDATIONS FOR DEPARTMENTS Extension of Contracts Extensions should only occur in exceptional circumstances and deliverable must be met before extending contracts Compliance to prescripts must be adhered w.r.t. extensions Closure & Finalization of Projects Ensure timeous implementation of contracts deliverables. Retrospective analysis done on each project to determine whether proper processes were followed and whether desired objectives were achieved.

GENERAL ISSUES W.R.T. CONTRACT WITHIN THE DEPARTMENT OF POLICE Need to draw a distinction between consultants & service providers. Need to address core role of police (police focus on core functions) vs need not to be dependent on consultants. There will be areas where police may need to make use of expertise not readily available but the issue is ensuring the department is not dependent on consultants & department is able to manage the outcome of the project Operational staff need to be more involved in the projects (both regarding the needs & w.r.t. implementation and assessment of deliverables & whether objectives are being met). Drafting of the contract needs to be addressed (the contract should not be prejudicial to SAPS). Project plans needs to ensure proper maintenance of objectives after the consultants depart. Monitoring mechanisms must be properly established & involve clients (ie operational personnel) Monitoring mechanisms established upfront Clear reporting on contracts and objectives needs to be implemented Non Compliance should be reported on in ¼ review reports. Internal audit to play role in monitoring overall processes

TECHNOLOGY MANAGEMENT TSM requires specific attention: This section of SAPS speaks to the need to ensure smarter policing Also because the technology budget of SAPS is extensive: Internationally, technology, in a very real sense, is transforming policing in fundamental respects. New & emerging technologies are playing an increasingly crucial role in the daily work of frontline police officers. Although technology can improve policing, if not properly planned, accessed & implemented it can not only lead to waste of resources and also provide a blockage preventing the police from operating effectively. Need greater operational involvement in solutions and understanding of project and deliverable Technology projects must be pre planned & reported on Proper project plans developed and interface with operational arm regarding these plans Regular reports on progress of plans submitted Skills transfer to operational staff essential Systems properly understood by operational teams Impact assessment conducted Post contract planning must be included in costing

SUPPLY CHAIN MANAGEMENT Greater involvement of operations in the planning stage and deliverables Expert assistance could be included during the planning process, where required Project plans must be known to the people for whom the service is aimed Projects should specifically address sub-contracting and associated fees Ensure better contract management with clear milestones and deliverables Clear monitoring teams should be established and should involve operational persons Consequences must be implemented for non delivery

ROLE OF THE CSP CSP needs to be able to monitor the existence of such contracts CSP is not the accounting authority for SAPS but rather oversight Review of reports submitted by CSP CSP focus should be on impact of contract on SAPS CSP should look at overall systems in place Assessment of processes to improve use of consultants

SPECIFIC INTERVENTION ON AG FINDINGS SIU and DPCI are currently involved in investigation into some of the contracts identified by the AG. Based on the investigation action may have to be taken.

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