STANDING COMMITTEE ON APPROPRIATIONS ON THE APPROPRIATION BILL PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS ON THE APPROPRIATION BILL 13 April 2011

INTRODUCTION The Public Service Commission (PSC) is an institution created by the Constitution and vested with a custodial oversight responsibility for the Public Service. The PSC has been requested to brief the Committee on the capacity of government departments to spend budgets allocated according to their business plans and annual performance plans. In providing comment, it should be noted that the annual reports and financial statements of departments in respect of the 2010/11 financial year have not yet been published. However, trends in performance in public administration will provide the Committee with adequate information to decide whether departments are geared to take on the new budget provided for in the Appropriation Bill. 2

INTRODUCTION (cont) This presentation provides an overview of some key focus areas in the following national departments over the medium term: Education Health Justice and Constitutional Development Correctional Services South African Police Services Rural Development and Land Reform These departments were identified due to their responsibility in respect of the five priorities of government, namely education, health, creation of decent work, rural development, food security and land reform and fight against crime and corruption.

EDUCATION With effect from the 2010/11 financial year, the Department of Education was split into the Departments of Basic Education and Higher Education and Training. The information with effect from the 2010/11 financial year will therefore be in respect of the Department of Basic Education.

APPROPRIATION STATEMENT EDUCATION FINANCIAL MANAGEMENT APPROPRIATION STATEMENT 2007/08 R’000 2008/09 2009/10 2010/11¹ 2011/12¹ Final appropriation R16 386 752 R19 749 370 R21 848 857 R6 171 999² R13 868 100 Actual expenditure R16 241 326 R19 709 070 R21 361 210 R5 157 5473 Variance R145 426 R40 300 R 487 647 R 1 014 452 Expenditure as % of final appropriation 99.1% 99.8% 97.8% 83.6%4 % Increase in budget 20.5% 10.6% -71.8%5 124.7% Notes: Information on the Department of Basic Education Adjusted Estimates of National Expenditure 2010 As at 28 February 2011 Benchmark at 91.7% Decrease due to split into Departments of Basic Education and Higher Education and Training. In the 2007/08, 2008/09 and 2009/10 financial years the Department of Education obtained unqualified audit opinions.

EDUCATION (cont) PERFORMANCE INFORMATION (2009/10) The AG highlighted the following in relation to performance information provided by the Department For some programmes in the quarterly reports, the Department did not track progress against outputs, indicators and targets 107 of the 225 outputs were achieved, which constitutes 48% achievement of service delivery outputs Reasons for non-achievement include- Changes in structures and the splitting of the Departments Financial constraints Lack of human resource capacity Reliance on provinces to provide funding, which did not materialise

EDUCATION (cont) HUMAN RESOURCES MANAGEMENT VACANCY RATE 31 MARCH 2009 No of posts 1095 1137 No of posts filled 890 918 Vacancy rate 18.8% 19.26% SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS 2008/09 2009/10 Total no of funded SMS posts 102 Total no of SMS members 91 88 Total number of signed PAs 85 Signed PAs as % of total no of SMS members 100% 97%¹ 3 SMS members’ job descriptions were changed No disciplinary action was taken against non-compliant SMS members

Yes (Basic Education only) EDUCATION (cont) EVALUATION OF HoD FY PA SUBMITTED REMARKS EVALUATION 2006/07 Yes 2007/08 No Evaluation documents received. However, no date was communicated 2008/09 Evaluation documents not submitted 2009/10 Acting HoD HoD not qualifying 2010/11 Yes (Basic Education only) -

EDUCATION (cont) LABOUR RELATIONS DISCIPLINE 2008/09 2009/10 No of disciplinary hearings 6 (1 dismissal) 6 No of people suspended 1 2 Average number of days suspended 13 68 Cost (R’000) of suspensions R 9 R63 GRIEVANCES 2008/09 2009/10 2010/11 No of grievances lodged 13 5 14¹ No of grievances referred to the PSC 3 4 ¹ First six monthly report for the financial year submitted to the PSC The majority of grievances (50%) relate to performance assessment.

EDUCATION (cont) ETHICS AND ANTI-CORRUPTION FINANCIAL DISCLOSURE FORMS 2008/09 2009/10¹ No of SMS members 100 68 No of FDF received 83 61 Compliance rate 83% 90% ¹ Basic Education NATIONAL ANTI-CORRUPTION HOTLINE CASES Financial Year 04/05 05/06 06/07 07/08 08/09 09/10 10/11 No of cases referred 2 3 1 4 Feedback received  0 Cases closed

APPROPRIATION STATEMENT HEALTH FINANCIAL MANAGEMENT APPROPRIATION STATEMENT 2007/08 R’000 2008/09 2009/10 2010/11 2011/12 Final appropriation R13 091 136 R 15 851 169 R18 423 459 R21 661 5121 R25 731 600 Actual expenditure R 12 762 733 R 15 464 470 R17 966 210 R19 302 8572 Variance R 328 403 R 386 699 R457 249 R 2 358 655 Expenditure as % of final appropriation 97.5% 97.6% 89.1%3 % Increase in budget 21.1% 16.2% 17.6% 18.8% Notes: Adjusted Estimates of National Expenditure 2010 As at 28 February 2011 Benchmark at 91.7%

HEALTH (cont) FINANCIAL MANAGEMENT (cont) In the 2007/08 and 2008/09 financial years the Department had qualified audit opinions. In the 2009/10 financial year the Department had an unqualified audit with findings. Findings made in the 2009/10 financial year relate to the following: The department has materially underspent the budget on programme 5 to the amount of R402,388,000. As a consequence, the department has not achieved its objectives in terms of the Hospital Revitalisation Conditional Grant. Irregular expenditure to the amount of R13, 639, 000 (2009: R7, 854, 000) was incurred, as proper supply chain management processes were not followed. Contrary to the requirements of the PFMA the accounting officer did not ensure that full and proper records of revenue received by the Medical Control Council (MCC) were maintained in the accounting records of the department.

HEALTH (cont) PERFORMANCE INFORMATION (2009/10) The AG highlighted the following issues in relation to performance information The accounting officer did not ensure that the department has and maintains an effective efficient and transparent system and internal controls regarding performance management, which describe and represent how the institution’s processes of performance planning, monitoring, measurement, review and reporting will be conducted, organised and managed 55 of the 178 measurable objectives were achieved, which constitutes 31% achievement Reasons for non-achievement include- High staff turnover and high number of vacancies Limited resources Severe shortages of pharmacists

HEALTH (cont) HUMAN RESOURCES MANAGEMENT VACANCY RATE 31 MARCH 2009 No of posts 1 832 1715 No of posts filled 1 373 1296 Vacancy rate 25.1% 24% SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS 2008/09 2009/10 Total no of funded SMS posts 131 138 Total no of SMS members 97 106 Total number of signed PAs Not available 901 Signed PAs as % of total no of SMS members 85% Lack of guidance and understanding of the PMD System Lack of clear understanding of roles and responsibilities Warning letters were issued to SMS members that did not submit

HEALTH (cont) EVALUATION OF HoD FY PA SUBMITTED REMARKS EVALUATION 2006/07 No Reminder letter was sent Evaluation documents were not submitted 2007/08 Evaluation was can-celled (PA signed after the financial year ended) 2008/09 Yes Received incomplete evaluation documents. Verification statement not received 2009/10 HoD Acting HoD not qualifying 2010/11 -

HEALTH (cont) LABOUR RELATIONS DISCIPLINE 2008/09 2009/10 No of disciplinary hearings 8 (6 dismissals) 4 (2 dismissals) No of people suspended 6 2 Average number of days suspended Not available 90 Cost (R’000) of suspensions GRIEVANCES 2008/09 2009/10 2010/11 No of grievances lodged 13 34 13¹ No of grievances referred to the PSC 3 8 6 ¹ First six monthly report for the financial year submitted to the PSC The majority of grievances (69%) relate to salary problems.

HEALTH (cont) ETHICS AND ANTI-CORRUPTION FINANCIAL DISCLOSURE FORMS 2008/2009 2009/2010 No of SMS members 105 110 No of FDF received 83 Compliance rate 0% 75% NATIONAL ANTI-CORRUPTION HOTLINE CASES Financial Year 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 No of cases referred 6  7 1 Feedback received  1 Cases closed  0

HEALTH (cont) ETHICS AND ANTI-CORRUPTION (cont) Financial Misconduct FINANCIAL YEAR 2007/08 2008/09 2009/10 No of finalised cases 9 4 Cost of financial misconduct R100 991.00 R 16 752.76 Amount recovered/ No loss to the State R100 991.00 (100%) R 850.00 (5%)

SOUTH AFRICAN POLICE SERVICES FINANCIAL MANAGEMENT APPROPRIATION STATEMENT 2007/08 R’000 2008/09 2009/10 2010/11 2011/12 Final appropriation R36 770 184 R41 875 999 R47 621 995 R52 556 4401 R58 061 500 Actual expenditure R36 410 913 R 41 505 758 R47 621 967 R47 879 3982 Variance R 359 271 R370 241 R 26 976 R 4 677 042 Expenditure as % of final appropriation 99% 99.1% 100% 91.1%3 % Increase in budget 13.9% 13.7% 10.4% 10.5% Notes: Adjusted Estimates of National Expenditure 2010 As at 28 February 2011 Benchmark at 91.7%

SOUTH AFRICAN POLICE SERVICES . FINANCIAL MANAGEMENT (cont) In the 2007/08, 2008/09 and 2009/10 financial years the SAPS had unqualified audit opinions. Findings made in the 2009/10 financial year relates to the following: fruitless and wasteful expenditure to the amount of R1 127 000 (2009 – R3 015 000) was incurred and this was mainly due to the late payment of licence fees and dormant fuel cards irregular expenditure to the amount of R3 399 000 (2009 – R15 482 000) was incurred. The department incurred this mainly as a result of non-compliance with the supply chain management process

SOUTH AFRICAN POLICE SERVICES (cont) PERFORMANCE INFORMATION The AG highlighted the following issues in relation to performance information (2009/10): Not all supporting source information was provided to validate the completeness of the reported target Completeness of reported targets could not be verified Reported indicator not reliable, as no supporting source information was provided In 2008/09, 22 of the 32 outputs were achieved (69%) In 2009/10, 12 of the 19 outputs were achieved (63%) In 2009/10, the reasons for non-achievement include- Manufacturer could not reach the targeted delivery date More cases were received compared to the same period last year Commercial crime cases are of a more complex nature and requires longer investigation period Diminished fingerprint expert capacity

SOUTH AFRICAN POLICE SERVICES (cont) HUMAN RESOURCES MANAGEMENT VACANCY RATE 31 MARCH 2009 31 MARCH 2010 No of posts 135 920 192240 No of posts filled 135 711 190199 Vacancy rate 0.2% 1.1% SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS 2008/09 2009/10 Total no of funded SMS posts 706 743 Total no of SMS members 644 631 Total number of signed PAs Not available 498 Signed PAs as % of total no of SMS members 79% No disciplinary action was taken, as- Senior managers were deployed as part of the African Union peacekeeping initiatives A generic performance agreement was provided to Cluster Commanders and signed after the due date

SOUTH AFRICAN POLICE SERVICES (cont) EVALUATION OF HoD FY PA SUBMITTED REMARKS EVALUATION 2006/07 No Reminder letter sent Documents were received, but the Commissioner was suspended 2007/08 Yes Commissioner on special leave 2008/09 2009/10 Evaluation Documents not submitted yet 2010/11

SOUTH AFRICAN POLICE SERVICES (cont) LABOUR RELATIONS DISCIPLINE 2008/09 2009/10 No of disciplinary hearings 3 479 (366 dismissals) 4136 (506 dismissals) No of people suspended 650 771 Average number of days suspended 86 80 Cost (R’000) of suspensions R 5, 417 R 8, 739 GRIEVANCES 2008/09 2009/10 2010/11 No of grievances lodged 1 361 1 664 617¹ No of grievances referred to the PSC 6 8 15 ¹ First six monthly report for the financial year submitted to the PSC. The majority of grievances (37%) relate to performance assessments.

SOUTH AFRICAN POLICE SERVICES (cont) ETHICS AND ANTI-CORRUPTION FINANCIAL DISCLOSURE FORMS 2008/2009 2009/2010 No of SMS members 656 728 No of FDF received 655 722 Compliance rate 99.8% 99.1% NATIONAL ANTI-CORRUPTION HOTLINE CASES Financial Year 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 No of cases referred 26 72  54 144 50 43 Feedback received 21 64 39 55 8 4 Cases closed 20  20 40 7 2

SOUTH AFRICAN POLICE SERVICES (cont) ETHICS AND ANTI-CORRUPTION(CONT) Financial Misconduct FINANCIAL YEAR 2007/08 2008/09 2009/10 No of finalised cases 29 8 21 Cost of financial misconduct R 99165 R102 825 R 702 735 Amount recovered/ No loss to the State R 27 322 (27%) R 62 774 (61%) R 349 (0.05%)

JUSTICE AND CONSTITUTIONAL DEVELOPMENT FINANCIAL MANAGEMENT APPROPRIATION STATEMENT 2007/08 R’000 2008/09 2009/10 2010/11 2011/12 Final appropriation R 6 943 919 R 7 991 730 R9 197 958 R10 787 3451 R13 517 700 Actual expenditure R 6 698 024 R 7 963 267 R9 289 311 R9 333 5772 Variance R 245 895 R 28 463 R -91 353 R 1 453 768 Expenditure as % of final appropriation 96.5% 99.6% 101% 86.5%3 % Increase in budget 15.1% 17.3% 25.3% Notes: Adjusted Estimates of National Expenditure 2010 As at 28 February 2011 Benchmark at 91.7%

JUSTICE AND CONSTITUTIONAL DEVELOPMENT (cont) FINANCIAL MANAGEMENT In the 2007/2008, 2008/09 and 2009/10 financial years the Department had qualified audit opinions. In respect of the 2008/09 financial year- Irregular expenditure amounting to R69 million was incurred mainly as a result of proper tender procedures that were not followed. Possible fruitless expenditure amounting to R18 million was being investigated. In respect of the 2009/10 financial year- Unable to obtain sufficient appropriate audit evidence as to the completeness of irregular expenditure amounting to R812 million Fruitless and wasteful expenditure amounting to R2 million was incurred that could have been avoided, had reasonable care been exercised.

JUSTICE AND CONSTITUTIONAL DEVELOPMENT (cont) PERFORMANCE INFORMATION The AG highlighted the following issues in relation to performance information The reported performance information included in the annual report was not presented in a simple, accessible format, relevant and useful to the intended user, and in accordance with the requirements of the Treasury Regulations and the relevant guidance applicable to reporting for the financial year-end. In respect of Programme 2 (Court Services), 22% of the targets were not specific in clearly identifying the nature and the required level of performance 6.5% of the targets were not measurable in identifying the required performance 29% of the planned and reported indicators were not clear, with an unambiguous definition to allow for data to be collected consistently

JUSTICE AND CONSTITUTIONAL DEVELOPMENT (cont) HUMAN RESOURCES MANAGEMENT VACANCY RATE 31 MARCH 2009 31 MARCH 2010 No of posts 21 039 20 160 No of posts filled 18 181 17 997 Vacancy rate 13.58% 10.73% SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS 2008/09 2009/10 Total no of funded SMS posts 222 288 Total no of SMS members 221 Total number of signed PAs 144 114 Signed PAs as % of total no of SMS members 65% 51.6% No formal disciplinary actions were taken, but the non-compliance was brought to their attention and they were warned about the consequences of their actions.

JUSTICE AND CONSTITUTIONAL DEVELOPMENT (cont) LABOUR RELATIONS DISCIPLINE 2008/09 2009/10 No of disciplinary hearings 178 181 (49 dismissals) No of people suspended 27 18 Average number of days suspended 252 203.9 Cost (R’000) of suspensions R 8 791 064 R3 302 987 GRIEVANCES 2008/09 2009/10 2010/11 No of grievances lodged 421 287 193¹ No of grievances referred to the PSC 66 49 43 ¹ First six monthly report for the financial year submitted to the PSC. The majority of grievances (36%) relate to performance assessments.

JUSTICE AND CONSTITUTIONAL DEVELOPMENT (cont) EVALUATION OF HoD FY PA SUBMITTED EVALUATION REMARKS 2006/07 Yes 2007/08 2008/09 No Evaluation documents not submitted 2009/10 The DG occupied the post for less than 12 months 2010/11 -

JUSTICE AND CONSTITUTIONAL DEVELOPMENT (cont) ETHICS AND ANTI-CORRUPTION FINANCIAL DISCLOSURE FORMS 2008/2009 2009/2010 No of SMS members 234 136 No of FDF received 224 133 Compliance rate 95.7% 98% NATIONAL ANTI-CORRUPTION HOTLINE CASES Financial Year 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 No of cases referred 25 12 14  48 57 37 22 Feedback received 10 8  10 13 Cases closed 9 5 4

JUSTICE AND CONSTITUTIONAL DEVELOPMENT (cont) ETHICS AND ANTI-CORRUPTION Financial Misconduct The Department reported the highest number of finalised financial misconduct cases in respect of national departments over the three financial years. FINANCIAL YEAR 2007/08 2008/09 2009/10 No of finalised cases 113 121 93 Cost of financial misconduct R 3 159 524 R 31 194 231 R 2 191 935.32 Amount recovered/ No loss to the State R 1 024 215 (32.4%) R 502 466 (1.6%) R 198 395.99 (9.1%)

CORRECTIONAL SERVICES FINANCIAL MANAGEMENT APPROPRIATION STATEMENT 2007/08 R’000 2008/09 2009/10 2010/11 2011/12 Final appropriation R 11 384 409 R 12 338 820 R13 834 545 R15 427 4651 R16 559 200 Actual expenditure R 11 122 379 R 12 822 641 R13 687 343 R12 769 9802 Variance R 262 030 R-483 821 R 147 202 R 2 657 485 Expenditure as % of final appropriation 97.7% 103.9% 98.9% 82.8%3 % Increase in budget 8.4% 12.1% 11.5% 7.3% Notes: Adjusted Estimates of National Expenditure 2010 As at 28 February 2011 Benchmark at 91.7%

CORRECTIONAL SERVICES (cont) FINANCIAL MANAGEMENT In the 2007/08, 2008/09 and 2009/10 financial years the Department had qualified audit opinions. In respect of the 2008/09 financial year – The existence and valuation of assets with an approximate value of R236 million could not be confirmed. Unauthorised expenditure to the amount of R483 million was incurred . In respect of the 2009/10 financial year – Fruitless and wasteful expenditure to the total value of R86 619 was incurred. The cases are pending investigation. Material losses to the amount of R9 million was incurred. This was as a result of significant loss in state vehicles amounting to R5 million and from claims amounting to R3 million and from other sources amounting to R1 million.

CORRECTIONAL SERVICES (cont) PERFORMANCE INFORMATION (2008/09 FY) The AG highlighted the following issues in relation to performance information The accounting officer did not ensure that the department has and maintains an effective efficient and transparent system and internal controls regarding performance management, which describe and represent how the institution’s processes of performance planning, monitoring, measurement, review and reporting will be conducted, organised and managed. The quarterly reports of the department did not track progress against targets as per the approved strategic annual performance plan and therefore did not facilitate effective performance monitoring and evaluation. In total 68% of the reported targets with major variances had inadequate explanations for those variances.

CORRECTIONAL SERVICES (cont) HUMAN RESOURCES MANAGEMENT VACANCY RATE 31 MARCH 2009 31 MARCH 2010 No of posts 46 305 46 880 No of posts filled 41 344 40 985 Vacancy rate 10.7% 12.6% SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS 2008/09 2009/10 Total no of funded SMS posts 196 Not available in Annual Report Total no of SMS members 172 Total number of signed PAs Not available Signed PAs as % of total no of SMS members

CORRECTIONAL SERVICES (cont) EVALUATION OF HoD FY PA SUBMITTED REMARKS EVALUATION 2006/07 No Reminder letter sent The DG was occupying the post for less than 12 months 2007/08 Yes 2008/09 2009/10 DG on special leave and an Acting DG appointed DG on special leave and Acting DG appointed 2010/11

CORRECTIONAL SERVICES (cont) LABOUR RELATIONS DISCIPLINE 2008/09 2009/10 No of disciplinary hearings 3 008 (144 dismissals) 3784 (124 dismissals) No of people suspended 423 392 Average number of days suspended 77.6 294.2 Cost (R’000) of suspensions R 12 094 R 13,992,360.00 GRIEVANCES 2008/09 2009/10 2010/11 No of grievances lodged 411 1204 1459¹ No of grievances referred to the PSC 21 7 19 ¹ First six monthly report for the financial year submitted to the PSC The majority of grievances (26%) relate to salary problems.

CORRECTIONAL SERVICES (cont) ETHICS AND ANTI-CORRUPTION FINANCIAL DISCLOSURE FORMS 2008/2009 2009/2010 No of SMS members 176 194 No of FDF received 165 Compliance rate 0% 85% NATIONAL ANTI-CORRUPTION HOTLINE CASES Financial Year 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 No of cases referred 31 83 102 198 165 112 68 Feedback received 29 57 66 158 90 51 2 Cases closed 24 45 54  106 89 50

CORRECTIONAL SERVICES (cont) ETHICS AND ANTI-CORRUPTION Financial Misconduct The Department reported the second highest number of finalised financial misconduct cases in the 2009/10 financial year. FINANCIAL YEAR 2007/08 2008/09 2009/10 No of finalised cases 54 13 48 Cost of financial misconduct R 1 395 306 R 36 368 R 1 396 522 Amount recovered/ No loss to the State R 1 070 206 (76%) R 34 457 (95%) R 580 095 (41.5%)

RURAL DEVELOPMENT AND LAND REFORM FINANCIAL MANAGEMENT APPROPRIATION STATEMENT 2007/08 R’000 2008/09 2009/10 2010/11 2011/12 Final appropriation R 5 928 269 R 6 659 396 R 6 391 091 R7 293 3821 R8 124 200 Actual expenditure R 5 897 497 R 6 654 636 R5 854 721 R6 249 2142 Variance R 30 772 R4 760 R536 370 R 1 044 168 Expenditure as % of final appropriation 99.5% 99.9% 91.6% 85.7%3 % Increase in budget 12.3% -4.0% 14.1% 11.4% Notes: Adjusted Estimates of National Expenditure 2010 As at 28 February 2011 Benchmark at 91.7%

RURAL DEVELOPMENT AND LAND REFORM (cont) FINANCIAL MANAGEMENT In the 2007/08, 2008/09 and 2009/10 financial years the Department had qualified audit opinions. In the 2008/09 financial year- There were significant shortcomings in the management and control of lease revenue. Irregular expenditure amounting to R74,96 million was incurred. In the 2009/10 financial year – Irregular expenditure of R4.177 million was incurred, as a result of non-compliance with supply chain management procedures and overpayments of restitution commitments. Fruitless and wasteful expenditure of R3.324 million was incurred, as a result of interest paid to suppliers and instances where the normal procurement processes were not adhered to.

RURAL DEVELOPMENT AND LAND REFORM (cont) PERFORMANCE INFORMATION The AG highlighted the following in relation to performance information: The accounting officer did not ensure that the Department has and maintains an effective, efficient and transparent system and internal controls regarding performance management, which describe and represent how the entity’s processes of performance planning, monitoring, measurement, review and reporting will be conducted, organised and managed, as required in terms of the PFMA. For the selected programmes (Restitution and Land Reform) the planned and reported targets were not: specific in clearly identifying the nature and the required level of performance and measurable in identifying the required performance.

RURAL DEVELOPMENT AND LAND REFORM (cont) PERFORMANCE INFORMATION (cont) 4 of the 21 outputs were achieved, which constitutes 19% achievement of service delivery outputs. A further 38.1% (8) outputs were partially achieved Reasons for non-achievement include- Budget deficit experienced by the Programme, as a result most land claims could not be settled. Delays in resolving people’s land rights Lack of capacity

RURAL DEVELOPMENT AND LAND REFORM (cont) HUMAN RESOURCES MANAGEMENT Highest vacancy rate amongst Architects (31.6%) and Cartographers and Surveyors (19.1%) VACANCY RATE 31 MARCH 2009 31 MARCH 2010 No of posts 4 965 4 890 No of posts filled 4 136 4 137 Vacancy rate 16.7% 10.2% SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS 2008/09 2009/10 Total no of funded SMS posts 125 Not available in Annual Report Total no of SMS members 105 Total number of signed PAs Not available Signed PAs as % of total no of SMS members

RURAL DEVELOPMENT AND LAND REFORM (cont) EVALUATION OF HoD FY PA SUBMITTED REMARKS EVALUATION 2006/07 No Reminder letter sent Evaluation documents were not submitted and DG was dismissed 2007/08 The DG resigned before the end of Financial Year 2008/09 Evaluation documents not submitted 2009/10 Yes 2010/11

RURAL DEVELOPMENT AND LAND REFORM(cont) LABOUR RELATIONS DISCIPLINE 2008/09 2009/10 No of disciplinary hearings 5 14 (3 dismissals) No of people suspended 7 10 Average number of days suspended 42 41 Cost (R’000) of suspensions R 125 R551 GRIEVANCES 2008/09 2009/10 2010/11 No of grievances lodged 29 56 26¹ No of grievances referred to the PSC 14 11 8 ¹ First six monthly report for the financial year submitted to the PSC. The majority of grievances (31%) relate to salary problems.

RURAL DEVELOPMENT AND LAND REFORM (cont) ETHICS AND ANTI-CORRUPTION FINANCIAL DISCLOSURE FORMS 2008/2009 2009/2010 No of SMS members 107 119 No of FDF received 81 Compliance rate 0% 68% NATIONAL ANTI-CORRUPTION HOTLINE CASES Financial Year 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 No of cases referred 3 4 13  17 9 16 7 Feedback received  5 Cases closed

RURAL DEVELOPMENT AND LAND REFORM(cont) ETHICS AND ANTI-CORRUPTION Financial Misconduct FINANCIAL YEAR 2007/08 2008/09 2009/10 No of finalised cases 1 3 5 Cost of financial misconduct R102 000 R97 811 R 24 989 Amount recovered/ No loss to the State R3000 (2.9%) R40 322 (41%) R 16 006 (64%)

CONCLUSTION This presentation has highlighted red flags that impact on the performance of the various departments in respect of key issues. An assessment of departments’ readiness to take up the new budget will be much more involved, and will, amongst others, take into consideration the strategic interventions in place in such departments to pursue their mandate. The PSC trusts that the information highlighted in this presentation will enable the Standing Committee to make more informed decisions.

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