PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONS HAROLD M WESSO PhD Acting Director-General 18 February 2011

PURPOSE To provide the PCC with a progress report on the implementation of the PCC resolutions and also to appraise the PCC on the proposed approaches to some of the resolutions. ___________________ 13 October 2010: …despair 18 February 2011: …excitement!

Contents Strategic Alignment Initiate a process of re-defining the DoC’s priorities so that it is consistent with the Minister’s performance and service delivery contract with the Presidency Human Resource Management Filling of vacant posts with suitably qualified and competent personnel, particularly at senior management level Report on how the DoC proposes to resolve the issue of irregular staff appointments Undertake a comprehensive skills audit Financial Management Prudently increase the level of spending on core operational programmes Take urgent steps to institute proper financial controls over departmental expenditure and to minimise irregular, fruitless and wasteful expenditure. Institutional Review Review the contract with the consultancy that was appointed to undertake an institutional review of the DoC. Consider the creation of a specialised division, adequately staffed with personnel with the requisite skills to manage its relationships with public entities

STRATEGIC ALIGNMENT DoC should initiate a process of redefining its strategic priorities so that it is consistent with the Minister’s performance and service delivery contract signed with the Presidency: Through the implementation of its 2010-2013 Strategic Plan, the Department of Communications contributes to the following outcomes: Improved Quality of Basic Education: schools connectivity. All People in South Africa are and feel safe: cyber security. Efficient, Competitive and Responsive Economic Infrastructure Network: broadband. Decent Employment through Inclusive Growth: set-top box manufacturing and SMME development. The DoC, is aligning its Strategic Goals and Objectives to various other government policy and strategy positions, including the Medium Term Strategic Framework, the New Growth Path and the State of the Nation Address. The Minister has contribute to a new focus in the Department through what has become known in the Department as the 11 November Statement (more about this when we table our 2011 – 2014 Strategy on 8 September).

HUMAN RESOURCE MANAGEMENT (1) Filling of vacant posts with suitably qualified and competent personnel, particularly at senior management Level: Applications for the Director-General’s post closed on 11 February. The Director-General to be appointed by 1 April. A selection committee will be appointed, under the chairpersonship of the Minister, assisted by two other ministers and a Director-General. Twenty four (24) critical/priority posts (out of +-150 funded and unfunded vacancies) have been advertised. The closing date for applications is 18 February. Appointments to be made by 1 April/May. The next round of advertisements will include the three vacant DDG positions. The above process will ensure that we build a solid foundation for a “Team DoC” – in an organised, orderly and well managed way, considering the guiding principles of non-racism, non-favoritism, gender sensitivity, etc.

HUMAN RESOURCE MANAGEMENT (2) Report on how it proposes to resolve the issue of irregular staff appointments: “Irregular” appointments exist/ed in the Department. These are the subject of thorough investigation and ongoing legal action. Irregular appointments include: - Appointments without contracts - Appointments of officials in posts of suspended staff - Non-compliance with head hunting policy - Officials appointed to the position that is not on the approved structure - An official not interviewed for the position he was appointed to The Department‘s approved Recruitment and Selection Policy, public service regulations and delegations of authority have been violated.

HUMAN RESOURCE MANAGEMENT (3) The Department has assessed the extend of the violations and there are processes in place to correct the above. Where serious, intentional transgression and negligence occurred from the side of staff, disciplinary action will be taken. All the above matters to be resolved by the end of March.

HUMAN RESOURCE Management (4) Undertake a comprehensive skills audit: A comprehensive skills audit will be undertaken once the institutional review process has been concluded. A questionnaire is under development. The research will be done during the month of March

FINANCIAL MANAGEMENT (1) Prudently increase the level of spending on core operational programmes:- The Departmental Bid Adjudication Committee (DBAC) has been re-constituted and is now fully functional. Alternate members have been appointed to ensure depth of expertise through training. Priority projects have been identified and the Bid Adjudication Committee has processed various tender requests from operational units. Spending in the Department has significantly improved – from 26% by the end of the 2nd quarter to +-70% currently Possible savings are being directed to critical job creation and other projects as per the approved DoC strategy.

FINANCIAL MANAGEMENT (2) Take urgent steps to institute proper financial controls over departmental expenditure and to minimize irregular, fruitless and wasteful expenditure:- Procurement is strictly done in line with the SCM policy. The sourcing of goods and services is centralized – previously it was the responsibility of individual units within DoC. The evaluation of all tenders is done in line with the Preferential Procurement Policy Framework Act regulations. Evaluation committees are formed as and when required by drawing people with relevant expertise from different Branches. Responsibility Managers have been trained and fully capacitated on Supply Chain Management procedures and PFMA requirements (It is now a requirement that Managers undergo this training prior to appointment as Responsibility Managers).

FINANCIAL MANAGEMENT (3) The Internal Audit Unit, in the Director-Generals Office is fully functional and has concluded an audit of critical areas such as Supply Chain Management. Delegations are in place. All finance policies have been reviewed. Reporting to National Treasury on procurement spend for R100 000 and above.

INSTUTIONAL REVIEW REVIEW (1) Review the contract with the consultancy that was appointed to undertake an institutional review of DOC: The contract could not be reviewed due to legal and financial implications, i.e. the drafting of the report was at an advanced stage, based on an agreed and an approved Terms of Reference. Howeve, we intervened w.r.t. the process, thus impacting on the outcome. The report of the Consultant, with structural design options, was discussed by the Steering Group and Unions. The report has been considered by the Minister. The final design structure will be submitted to the Minister of DPSA for concurrence by the end of February. The new Structure will ensure that the DOC is well capacitated to respond to government policy and SOE management challenges.

INSTITUTIONAL REVIEW (2) Consider the creation of a specialized division, adequately staffed with personnel with requisite skills to manage its relationships with public entities: The Department has a shareholder management division at the level of Chief Director. This division will be upgraded to the level of a DDG to ensure that the oversight function is strengthened. The oversight function will be further enhanced by introducing additional reporting requirements, including Monthly financial reports Reporting on contracts supporting the Government’s job creation initiatives, departmental strategy, etc. Reports on compliance with corporate governance prescripts

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