PUBLIC SERVICE COMMISSION ANNUAL REPORT FOR THE 2015/16 FINANCIAL YEAR OCTOBER 2016

PRESENTATION OUTLINE Introduction Summary of performance Programme Performance Programme 1: Administration Programme 2: Leadership and Management Practices (LMP) Programme 3: Monitoring and Evaluation (M&E) Programme 4: Integrity and Anti-Corruption (IAC) Conclusion 2

INTRODUCTION The Public Service Commission (PSC) had a budget of approximately R229.3 million. It is supported by a National Department, the Office of the PSC (OPSC) which comprised of 268 employees. During the period under review we witnessed the appointment of Commissioner George Mashamba in Limpopo Province, Commissioner Mpilo Sithole in KwaZulu-Natal Province as well as the re-appointment of Commissioner Moira Marais-Martin in the Northern Cape Province and Commissioner Ben Mthembu at National level. In its endeavour to improve efficiency, with effect from 1 April 2015, the PSC implemented the new Governance Rules. Delegations to the Provincially Based Commissioners and assignment of duties to Commissioners and employees of the OPSC were also approved with the hope of improving the effectiveness of the PSC in realising its mandate. 3

INTRODUCTION (2) Since the implementation of the new Governance Rules, the PSC has witnessed a significant improvement in the manner in which the work of the PSC through its work streams had been carried out. The decentralisation of the majority of the work of the PSC to Provincially Based Commissioners and nationally based Commissioners to specific cluster departments has also contributed to increased efficiency. In an effort to increase its visibility, during the reporting period under review, the PSC conducted service delivery inspections at selected schools on the availability of Learner Teacher Support Material, as well as at selected hospitals and border posts. The PSC and the University of South Africa signed a Memorandum of Understanding (MoU), which provides a framework for collaboration on selected areas of research, monitoring and evaluation, and development of public administration. 4

OVERALL PERFORMANCE FOR 2015/16 The PSC achieved 88.7% of its outputs in the 2015/16 financial year as compared to 88% in the 2014/15 financial year Although the performance has only improved slightly, it is encouraging that 16.1% of the outputs were achieved earlier than planned. 5

ACHIEVEMENTS FOR 2015/16 Although the number of grievances lodged with the PSC increased, the finalisation rate improved due to the review of internal processes. 89% of grievances were finalised, as compared to 75% in the previous financial year Similarly, the rate of finalisation of complaints increased from 59% in the previous financial year, to 73% in 2015/16 The PSC developed a framework for the promotion of the Constitutional Values and Principles (CVPs) governing public administration. This framework will in future provide Parliament and provincial legislatures with trends on the performance of the Public Service against these CVPs In its effort to contribute towards building of an integrity-driven and ethical Public Service, the PSC continued to manage senior managers’ conflicts of interest through the Financial Disclosure Framework (FDF). For the second year in a row, the PSC managed to scrutinize 100% of all financial disclosure forms received 6

ACHIEVEMENTS FOR 2015/16 (2) The work of the PSC requires strong analytical, research and project management capacities. Therefore, the PSC prioritised strengthening of its own capacity through various initiatives such as developing and rolling out of a customised training course on research in partnership with the University of South Africa (UNISA) as well as offering training on legislative drafting, investigations and project management The PSC continued to contribute effectively in public administration through its research. To this end, various presentations were to support Parliament in its oversight function The PSC maintained its unqualified audit record The PSC’s visibility programme has raised the profile of its work. An example is the successful hosting of a Joint Public Lecture between the PSC and UNISA on Building a Capable, Career-Oriented and Professional Public Service and the media coverage around the event 7

CHALLENGES FOR 2015/16 Due to its limited financial resources, the PSC decided to prioritise selected mandatory projects such as the investigation of grievances and complaints and to prioritise other outputs with greater impact for implementation. Its financial constraints impacts negatively on the PSC’s ability to respond effectively to its stakeholders Some outputs were delayed or had to be re-prioritized due to capacity constraints or the need for additional research. The re-prioritisation was mainly to facilitate ad hoc requests from key stakeholders, such as Parliament and the Presidential Remuneration Review Commission The relocation of the National Office of the PSC to temporary accommodation also had a negative impact on the operations of the PSC. The accommodation is not conducive and has an impact on employee morale The research work conducted by the PSC is largely dependent on inputs from departments. The incomplete or late submission of required information by departments had an impact on the timely finalisation of some outputs. To mitigate this, nationally based Commissioners were assigned to specific cluster departments 8

PROGRAMME 1: ADMINISTRATION

PROGRAMME 1: ADMINISTRATION (1) FINANCIAL MANAGEMENT The PSC spent 99.81% of its budget allocation and achieved 88.7% of its predetermined objectives Through its stringent financial management process, the PSC again received an unqualified audit for the 2015/16 financial year PROGRAMME Final Appropriation Actual spent (Over)/Under Expenditure R’000 Programme 1: Administration 108 167 107 947 220 Programme 2: LMP 38 308 38 164 144 Programme 3: M&E 36 184 36 155 29 Programme 4: IAC 47 093 47 053 40 Total 229752 229 320 432 10

PROGRAMME 1: ADMINISTRATION (2) FINANCIAL MANAGEMENT Share of budget per economic classification Share of budget per budget programme Functions are centralised in Programme 1 (includes rentals for national and provinces, SITA costs, communication costs, training and bursaries ) 11

PROGRAMME 1: ADMINISTRATION (3) FINANCIAL MANAGEMENT The PSC has been notified that the NT has decided to cut its budget for the 2016/17 financial year with R5 million following an analysis of its spending trends MTEF R’000 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2013 196 324 207 379 199 647 2014 226 031 211 031 224 413 2015 229 321 234 233 253 397 2016 229 233 243 017 259 933 12

PROGRAMME 1: ADMINISTRATION (4) FINANCIAL MANAGEMENT Overview of the budget for 2016/17 financial performance as at 31 August 2016: Item Allocated Budget (R’000) Expenditure to date Percentage Spending (%) Percentage Variance (%) Compensation of Employees 187 869 74 386 39.59% 2.08% Goods & Services 46 121 21 579 46.79% (7.19)% Transfers and subsidies 206 332 161.17% (119.50)% Payments for capital assets 37 269 727.03% (685.36)% Payment for financial assets 40 441 - Total 234 233 96 566 41.23% 0.44% 13

PROGRAMME 1: ADMINISTRATION (5) FINANCIAL MANAGEMENT Due to financial constraints and the reduction on its budget, the PSC implemented a limited number of projects Furthermore, the PSC took a decision to delay the filling of certain posts as well as to abolish certain posts in order to generate savings for its operations The PSC also introduced further cost containment measures in areas such as travelling, which has for example generated savings of an estimated amount of R3 million as compared to the 2014/15 financial year Although the PSC did attempt to cut costs, other unexpected costs arose. A case in point is that the National Office of the PSC relocated to temporary accommodation whilst the Department of Public Works was in the process of procuring permanent accommodation. The temporary office building had a huge and unexpected rental increase This is also worsened by the fact that selected provincial offices also relocated, which also resulted in increased costs for office accommodation 14

PROGRAMME 1: ADMINISTRATION (6) VACANCY RATE AND EMPLOYMENT EQUITY As at 31 March 2016, 31 posts in the Office were vacant (10% vacancy rate) Some posts had to be re-advertised as suitable candidates were not identified Employment Equity profile of the Office: Race Africans 85% Coloureds 5.3% Indians 3% Whites 7.5% Females at management level SMS 13 - 16 51.2% MMS 11 to 12 43% People with disabilities 1.87% 15

PROGRAMME 1: ADMINISTRATION (7) COMMUNICATION AND IT A successful Joint Public Lecture between the PSC and UNISA on Building a Capable, Career-Oriented and Professional Public Service for a Developmental State as stated in the National Development Plan Vision 2030 was held With regards to internal communications, a communiqué by the Director-General, Mafhungo which is aimed at keeping officials abreast of developments in the organisation was issued on a monthly basis. Likewise, bi-annual newsletter, Izwi lase OPSC was also issued every second month The Office prescribed to the Corporate Governance of Information and Communications Technology (ICT) Policy Framework by appointing a Governance Champion and implemented a IT Governance Charter To enhance productivity and the effective utilisation of network resources, a network monitoring tool was implemented  In line with cost cutting measures, the Internet Protocol Telephony was fully implemented at the National Office and in 8 provincial offices 16

PROGRAMME 2: LMP

LABOUR RELATIONS IMPROVEMENT PROGRAMME 2: LMP LABOUR RELATIONS IMPROVEMENT Grievances Management As at 31 March 2016, the PSC received a total of 682 cases of which 484 grievances were properly lodged and an additional 198 received grievances were not properly referred and the PSC had no jurisdiction in some A total of 605 (89%) grievances were finalised   18

LABOUR RELATIONS IMPROVEMENT PROGRAMME 2: LMP (2) LABOUR RELATIONS IMPROVEMENT On its own accord, the PSC conducted two studies with a specific focus on critical functions that are located within the DoJCD. The studies were designed to assess the effectiveness and efficiency of the Office of the State Attorney and the Office of the Chief State Law Advisor. The two reports were submitted to the Minister for Justice and Correctional Services and the DG for the DoJCD As part of its oversight and monitoring function, the PSC produced a Factsheet on Grievance Resolution in the Public Service for the 2014/15 financial year To promote sound labour relations in the Public Service and information sharing with labour relations practitioners and employees in general, the PSC published a Grievance Management Communiqué 19

LEADERSHIP AND HUMAN RESOURCE REVIEWS PROGRAMME 2: LMP (3) LEADERSHIP AND HUMAN RESOURCE REVIEWS The PSC continued to monitor compliance with the signing and filing of performance agreements by Heads of Departments (HoDs) and conducted an inquiry into the implementation of the HoD evaluation deviation that was issued by the MPSA Research was also conducted in key areas related to human resource management, such as- the Assessment of the Handling of Disciplinary Cases in the Public Service Factsheet on Irregular Appointments in the Public Service Assessment of the management of service terminations and pension pay-outs in the Public Service An audit was conducted on recruitment and selection processes in the Gauteng Department of Finance and a skills and competency audit of human resource and financial management senior managers was conducted in the Western Cape The PSC also provided extensive inputs to the Presidential Remuneration Review Commission following their call for submissions 20

PROGRAMME 3: M&E

GOVERNANCE MONITORING PROGRAMME: M&E GOVERNANCE MONITORING The main focus was to prepare material for the promotion of the nine values and principles in Section 195 of the Constitution and a framework for the evaluation of departments against the values. The framework defines each of the values, spells out the scope and content of each of the values and proposes a number of indicators that will be used for the evaluation of departments The concept design of a data warehouse that will store the data that will be used in evaluations was completed. Such data will provide the evidence for any evaluative comment of the PSC about the Public Service Since annual reports are a valuable source of information on the performance of departments, the PSC has developed guidelines on analysing strategic plans and annual reports. As the PSC cannot only evaluate departments but must also propose measures to improve performance, it has strengthened its methodology for diagnosing the underlying causes of problems and developing implementable solutions 22

GOVERNANCE MONITORING PROGRAMME: M&E (2) GOVERNANCE MONITORING The PSC also engaged with other Portfolio Committees and Committees in Parliament; e.g. Portfolio Committee on Agriculture for their Strategic Planning Session Portfolio Committee on Health on the PSC’s report on the distribution of medicines Standing Committee on Appropriations on the Appropriations Bill Human Settlements about the capacity of the Department to spend its budget Standing Committee on Public Accounts on the annual report of the Department of Correctional Services Standing Committee on Appropriations on The Medium Term Budget Policy Statement Standing Committee on Appropriations on the national departments performance vs. expenditure The PSC also hosted a Roundtable Discussion on the 2014 State of the Public Service Report 23

SERVICE DELIVERY AND COMPLIANCE EVALUATIONS PROGRAMME: M&E (3) SERVICE DELIVERY AND COMPLIANCE EVALUATIONS The PSC conducted 16 inspections of service delivery sites, including inspections of- hospitals to assess the availability of medicines, border posts to assess the state and nature of compliance with immigration prescripts Schools to assess the delivery of Learner and Teacher Support Material. The inspections provided the PSC with valuable information on practical service delivery challenges at the coal face In particular, following the inspection at the Pelonomi Regional Hospital in the Free State to determine the challenges experienced by the hospital in respect of patient treatment, safety and security services and availability of medicines and medical equipment, the Department of Health set aside an additional R170 million for the Hospital’s goods and services in 2015/16 24

SERVICE DELIVERY AND COMPLIANCE EVALUATIONS PROGRAMME: M&E (4) SERVICE DELIVERY AND COMPLIANCE EVALUATIONS Following the application of the Citizens Forum Toolkit in Mpumalanga Province in the – Msukaligwa Local Municipality a site for the building of a clinic was identified Thembisile Hani Local Municipality progress was made towards the building of a new school (Vezikgono Secondary School) 25

PROGRAMME 4: IAC

PUBLIC ADMINISTRATION INVESTIATIONS PROGRAMME 4: IAC PUBLIC ADMINISTRATION INVESTIATIONS A Factsheet on completed disciplinary proceedings for the 2014/15 financial year was compiled The Complaints Rules and Guidelines were reviewed to improve efficiency The PSC also conducted investigations and assessments of the awarding of higher salaries on appointment and counter offers in the national Departments of Transport and Labour Complaints investigated As at 31 March 2016, the PSC had 510 complaints, of which 265 were carried over from 2014/15 and 245 were lodged during the 2015/16 financial year. A total of 371 complaints were finalised and 139 are pending   27

PROGRAMME 4: IAC (2) PROFESSIONAL ETHICS The PSC developed a three year strategy in promoting professional ethics in the public service. Following on this, the PSC hosted various workshops with a particular focus on selected departments in the Western Cape and North West provinces as well as with the Departments of International Relations and Cooperation and Labour. This included workshops relating to the management of conflicts of interests, the Code of Conduct and financial misconduct During the 2015/16 financial year, the PSC received 48 424 calls on the National Anti-Corruption Hotline. Out of 48 424 calls, a total of 2 499 case reports were generated 28

PROGRAMME 4: IAC (3) PROFESSIONAL ETHICS Compliance with the Financial Disclosure Framework in the Public Service Compliance date: 31 May 2016 31 March 2016 National 4 264 (74%) 4 834 (83%) Provincial 3 949 (95%) 4 152 (99.7%) Overall 8 213 (82%) 8 986 (90%) The PSC scrutinised a 100% (8 986) of the financial disclosure forms received to assess compliance and whether the involvement of officials in any activities of the companies could lead to potential and/or actual conflicts of interest. The financial interests of SMS members who did not submit their financial disclosure forms were also scrutinised to assess their involvement in any activities of the companies that could lead to potential and/or actual conflicts of interest. Where applicable, the PSC conducted consultations with SMS members who were found to be involved in activities that could be construed as posing conflicts of interest. 29

ACHIEVEMENTS FOR 2016/17 The PSC’s visibility programme ensured that during the reporting period the media extensively covered the following reports of the PSC: Assessment of the management of service terminations and pension pay-outs in the Public Service Assessments of the effectiveness and efficiency of the Office of the Chief State Law Adviser Assessment of the effectiveness and efficiency of the Office of the State Attorney Availability of Learner and Teacher Support Material The PSC is required in terms of Section 196 (4)(e), read with Section 196 (6), of the Constitution to give a detailed report to the National Assembly on its activities, including any finding it has made and any direction and advice it has given, and to provide an evaluation of the extent to which the values and principles in Section 195 are complied with. For the first time, the PSC will submit such a report in 2016 and the report will provide an overview of the purpose and outcome of the activities of the PSC and the contribution of the PSC to public administration 30

ACHIEVEMENTS FOR 2016/17 (2) The PSC has commenced with inspections in Health Facilities in the Eastern Cape, Free State, KwaZulu-Natal and North West provincies It has also commenced with inspections at Border Gates and Police Stations Inspections were concluded to conduct an evaluation of the level of adherence to the Constitutional values and principles in district hospitals in the Western Cape Reports on an investigation and evaluation of the awarding of higher salaries on appointment and counter offers in the national Departments of Transport and Labour were finalized The submission rate of financial disclosure forms by the due date of 31 May 2016 was as follows: National departments (5 838 - 98%) Provincial departments (4 161 - 97.8%) Overall (9 999 - 98%) Status of 16832 NACH cases on the database as on 30 September 2016: Feedback received: 16832 (92%) Closed: 16626 (91%) Outstanding: 1597 (9%) 31

CONCLUSION The PSC will continue to execute its mandate through conducting its oversight work in the Public Service It is however severely constrained by its limited resources The PSC is a knowledge based organisation and does not outsource its work. The bulk of the PSC’s budget is allocated to compensation of employees. This has created an imbalance in the PSC’s budget in the sense that an average of 81% is allocated to compensation of employees and 19% to goods and services The process of correcting the imbalances more permanently has commenced, and to this end, 11 posts were abolished as at 31 March 2016 The purpose of abolishing the posts was to have a sustainable solution to address the shortfall in the goods and services budget and avoid being dependent on savings from compensation of employees 32

CONCLUSION (2) The baseline allocations for 2017/18 and 2018/19 has also been reduced with R5 mil. National Treasury was informed that the reduction will have a further adverse impact on the PSC’s ability to execute its mandate effectively In order to ensure improvement in the performance of the Public Service, continuous engagements will need to be held with departments and partnerships will need to be further strengthened In response to the demands of its stakeholders and its financial constraints, the PSC will have to identify vacant posts to be abolished and re-prioritise its work 33

PSC Website: www.psc.gov.za National Anti-Corruption Hotline for the Public Service: 0800 701 701