1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONS
Evaluation of values and principles governing public administration in the Department of Communication and selected entities
21 October 2014

2. PRESENTATION OUTLINE Introduction
Evaluation of selected values and principles governing public administration, contained in section 195 of the Constitution
A High Standard of Professional Ethics
Efficient, Economic and Effective Use of Resources
Services must be provided Impartially, Fairly, Equitably and without Bias
People’s Needs must be Responded to
Public Administration must be Accountable
Transparency must be Fostered
Good Human Resource Management and Career Development Practices
Public Administration must be Broadly Representative of the South African People
Concluding remarks

3. INTRODUCTION
The Public Service Commission (PSC) was requested to provide an evaluation of the extent to which the values and principles governing public administration, contained in section 195, are complied with in selected departments and entities.
Departments/entities covered in the presentation:
Department of Communications (DoC), now Telecommunications and Postal Services
Government Communications and Information System (GCIS), now Communications
Brand SA
Media Development and Diversity Agency (MDDA)
South African Broadcasting Corporation (SABC)
Independent Communications Authority of South Africa (ICASA)
Film and Publication Board (FPB)

4. INTRODUCTION (2)
Section 196 (4) of the Constitution sets out the powers and functions of the PSC. Read with the PSC Act, 1997, it stipulates that the PSC’s mandate shall apply in respect of the public service, and in particular the administration in the national and provincial spheres of government.
The PSC’s mandate does therefore not extend to constitutional institutions and public entities.
Although Parliament has resolved that the PSC should report on the implementation of section 195(1) of the Constitution by the administration of all spheres of government, organs of state and public enterprises, the necessary legislative amendments have not been effected to implement Parliament’s decision. The initial draft of the Public Administration Management Bill included the extension of the PSC’s mandate to the local sphere of government. However, the clause was removed from the Bill passed in the National Assembly in March 2014.

5. INTRODUCTION (3)
The PSC therefore does not have information on the public entities reporting to the Portfolio Committee.
However, where available information on public entities has been included in this presentation.
Data used in the presentation-
Annual reports for the 2012/13 and 2013/14 financial years.
Other data available, e.g. PSC tools, Vulindlela, DPME and National Treasury
The Annual Report for the MDDA for 2013/14 was not available.

6. HIGH STANDARD OF PROFESSIONAL ETHICS
Financial Disclosure Framework
All members of the Senior Management Service are required to disclose the particulars of all their registerable interests (e.g. companies and properties) to their respective Executive Authorities by not later than 30 April each year.
Overall in the public service, the compliance rate by the due date of 31 May of each year has improved.
Only 100% compliance is acceptable!
DoC 0%
10/11
11/12
12/13
100%
13/14
GCIS
100%
10/11
11/12
12/13
96%
13/14

7. HIGH STANDARD OF PROFESSIONAL ETHICS (2)
Financial Disclosure Framework (cont)
Management of potential conflicts that the senior managers may have between their private business interests and their official responsibilities.
Department of Communications for the 2011/12 financial year
Forms received
Forms outstanding
Non disclosure of Financial Interests
Potential conflicts of interest
Actual conflicts of interest 46
Companies
Properties 83 2 42 4 27
The GCIS financial disclosure forms is being scrutinized.
The Annual Reports for 2013/14 of the Brand South Africa, ICASA and the SABC reflect that processes are in place to minimize and manage conflicts of interest.

8. HIGH STANDARD OF PROFESSIONAL ETHICS (3)
National Anti-Corruption Hotline (NACH)
The NACH ( ) was established in September 2004 for reporting corruption in the Public Service and is managed by the PSC.
Cases received by the NACH since its inception up to 15 September 2014:
Department
Cases Referred
Feedback Received
% Feedback Received
Cases Closed
% Cases Closed
Outstanding Cases
DoC 11 7
64% 6
55% 5
GCIS 4
100% 0%
No complaints have been lodged with the NACH in respect of the entities covered in this presentation. The FPB subscribes to the Hotline.
The SABC has a Whistleblowing mechanism, as well as a Hotline.

9. HIGH STANDARD OF PROFESSIONAL ETHICS (4)
Financial Misconduct
The PFMA, read with the Treasury Regulations, require national and provincial departments to, amongst others, report on finalized financial misconduct cases to the PSC.
In the case of public entities, such cases are reported to the Executive Authority, Auditor-General and the relevant treasury.

10. HIGH STANDARD OF PROFESSIONAL ETHICS (5)
Fraud Prevention in entities
The Treasury Regulations require public entities to put in place a risk management strategy, which must include a fraud prevention plan, to direct internal audit effort.
An analysis of the 2013/14 Annual Reports indicates the following fraud prevention mechanisms are in place:
Entity
Code of Conduct
Fraud Prevention Plan
Risk Management Framework
Internal Audit capacity
DoC ☺
GCIS
Brand SA
MDDA
Annual report not available
SABC
ICASA
FPB

11. HIGH STANDARD OF PROFESSIONAL ETHICS (6)
Management of precautionary suspensions
Discipline is not managed effectively, due to inadequate capacity to chair disciplinary hearings and represent departments. This results in long periods of precautionary suspension.
Public entities are not required to report on suspensions.
Department
Financial year
Number of employees on suspension
Average number of days suspended
DoC
2013/14 4
150
2012/13
GCIS 1
321
131
FPB 43

12. EFFICIENT, ECONOMIC AND EFFECTIVE Achievement of targets
USE OF RESOURCES
Expenditure vs performance - Departments
Financial year
Allocated funds
R’000
Expenditure R’000
% Spent
Achievement of targets
DoC
2012/13
99.8%
54%
2013/14
99.6%
57%
GCIS
90.6%
Not available
100.8%
93%
There was a slight improvement in the achievement of targets in the DoC. The reliability and usefulnees of performance information improved.
The GCIS’ budget allocation increased by R40.5 mil during the AENE, yet it had incurred overspending.

13. EFFICIENT, ECONOMIC AND EFFECTIVE USE OF RESOURCES (2)
Financial performance vs performance in entities
Entity
Revenue
R’000
Expenditure R’000
Surplus/ (Deficit)
Achievement of targets 2013/14
SABC
Statement of Financial Performance not included
Material findings in respect of performance information
MDDA
No Annual Report available
Brand SA
30 077
34 544
(10 524)
No material findings on the annual performance report concerning the usefulness and reliability of information
33% of the targets were not consistent with Strategic Plan and APP
ICASA
44 595
FPB
87 114
81 681
5 434
70%

14. EFFICIENT, ECONOMIC AND EFFECTIVE USE OF RESOURCES (3)
Expenditure trends 2014/15 financial year
Depart-ment
Allocated funds
R’000
31/07/’14
31/08/’14
Expenditure
Norm
% spent
DoC
33.3%
35.7%
41.4%
50.3%
47.4%
GCIS
33.6%
Overspending has increased in the DoC, and was 8.7% above the norm in August 2014.
The GCIS had an overspending at the end of the 2013/14 financial year. Spending trends shows that as at 31 August 2014 it was overspending by 6%.

15. Invoices older than 30 days not paid
SERVICES MUST BE PROVIDED IMPARTIALLY, FAIRLY, EQUITABLY AND WITHOUT BIAS
Invoices over 30 days that had not been paid
The Public Finance Management Act, read with the Treasury Regulations stipulates that “unless determined otherwise in a contract or other agreement, all payments due to creditors must be settled within 30 days from receipt of an invoice”.
Department
Month
Invoices paid
after 30 days
Invoices older than 30 days not paid
Rand value
No of invoices
DoC
Jan
6,105,771 31
2,381,816 7
Feb
216,726 6
2,416,199 10
Mar
195,855 8
3,709,356 53
Apr
4,095,081 79
241,982
GCIS
1,064,025
No additional invoices paid after 30 days or older than 30 days reported

16. PEOPLE’S NEEDS MUST BE RESPONDED TO
Presidential Hotline
The Presidential Hotline was established for the purpose of offering to the citizens of South Africa and the public, an effective way of providing accurate information, counselling and precise referrals to government institutions at all levels and spheres. It serves as a platform for the public to communicate their concerns and frustrations about how they were treated when seeking help from different tiers of government.
As at 31 May 2014, the DoC had resolved 92.15% of the cases referred to them. All cases referred to the GCIS had been resolved.
Depart-ment
No of Open Calls
No of Resolved Calls
Avg. Time to Resolve (Gov. bus. hours)
Total Calls
% Resolved 31 May 2014
% Resolved 30 April 2014
DoC 15
176
1 216
191
92.15%
94.09%
GCIS 8
790
100%

17. ACCOUNTABILITY Entity ‘11/12 ‘12/13 ‘13/14
Audit Outcomes of departments and entities
Regression in audit outcomes had occurred in the 2013/14 financial year in respect of the departments/ entities under review.
Unqualified
Unqualified with findings
Qualified
Disclaimer
Entity
‘11/12
‘12/13
‘13/14
Comments in respect of ‘13/14
DoC
GCIS
Brand SA
MDDA
Annual Report not available
SABC
ICASA
Material underspending of conditional grant to the amount of R
FPB

18. ACCOUNTABILITY (2) Filing of Performance Agreements by HoDs
If accountability is to be practiced in the public service, Eas, HoDs and senior managers should visibly support performance management processes and ensure that these cascade down to other levels in the SMS.
Submission of the PA of the HoD by the due date:
Department
2012/13
2013/14
2014/15
DoC
Not submitted
DG appointed w.e.f 1/9/2012
GCIS
Acting CEO
The current HoD of DoC did not qualify for evaluation for the 2011/12 evaluation cycle, as she was appointed w.e.f. 1 June 2011.
The former HoD of the GCIS qualified for the 2011/12 cycle, but no evaluation was conducted.
The submission of the HoD’s PA on time is a positive indication of the example set from the top.

19. Total number of SMS members Total number of signed PAs
ACCOUNTABILITY (3)
Filing of Performance Agreements by SMS members
Department
Total number of SMS members
Total number of signed PAs
% of signed PAs by 31 May 2014
DoC 86 40
46.5%
GCIS 47
100%
The DoC indicated that –
no valid reasons were received for late or non-submission of PAs; and
disciplinary steps were not taken against non-compliance in the 2013/14 financial year.
In the DoC no performance assessments of SMS members were finalised.
The GCIS paid performance rewards to 28.6% of SMS members, amounting to R

20. HR and/ or Remuneration Committee
ACCOUNTABILITY (4)
The Accounting Authority/ Board of public entities
The Board of Directors is the accounting authority of a public entity.
Apart from a charter setting out its responsibilities, the board should also establish committees to attend to all matters effectively.
There is overall compliance regarding the establishment of committees,
Entity
Board/
Governance Charter
Audit & Risk Committee
HR and/ or Remuneration Committee
IT Committee
Brand SA ☺
Not mentioned
MDDA
AR not available
SABC
ICASA
FPB

21. TRANSPARENCY MUST BE FOSTERED
Annual reports of entities
The annual report is a key accountability mechanism, but it only serves to promote transparency if it is readily available and provides adequate information.
National Treasury publishes an Annual Report Guide for public entities.
Entity
Performance information
Human Resources
SABC
The table provided for in the Guide not fully implemented ☺
MDDA
Annual Report not available
Brand SA
ICASA
FPB

22. GOOD HUMAN RESOURCE PRACTICES
Vacancy rate in departments
Department
2012/13
2013/14*
July 2014*
Period to fill posts
March ‘14
No of posts
Vacancy rate
DoC
464
37.10%
413
19.4%
382
15.7%
8.8 months
GCIS
478
1.50%
485 6%
515
6.4%
Not available
There is a steady improvement of the vacancy rate in the DoC. However, it takes the Department an average of 8.8 months to fill vacancies.
* Vulindlela: HR Oversight report

23. GOOD HUMAN RESOURCE PRACTICES (2)
Vacancy rate in entities as at 31 March 2013 and 31 March 2014
Entity
2012/13
2013/14
No of posts
No of posts filled
Vacancy rate
Brand SA 43 33
23.3% 31
27.9%
MDDA 32 23
28.1%
SABC
3705
3641
1.7%
3750
3620
3.5%
ICASA
 Not available
399
331
21%
FPB 75 58
21.6% 77 65
16%

24. REPRESENTIVITY Employment equity in departments
Public administration must be broadly representative of South African people, with employment and personnel management practices based on ability, objectivity fairness and the need to redress the imbalances of the past to achieve broad representation.
Department
2012/13
2013/14
July 2014*
Top/Senior management female
% people with disabilities
DoC
36%
1.4%
38%
0.6%
GCIS
53%
2.3%
49%
2.2%
46%
* Vulindlela: HR Oversight report

25. REPRESENTIVITY (2) Employment equity in entities Entity 2012/13
2013/14
Top/Senior management female
% people with disabilities
Brand SA
38%
3.0%
63%
MDDA
25%
0.0%
Not available
SABC
60%
2.4%
36.4%
2.3%
ICASA
Not reported 
41.2%
Not reported
FPB
46%
1.3%
38.5%
2.5%

26. CONCLUDING REMARKS
Although there are continued signs that the global economic outlook is improving, the forecast for South Africa’s budget deficit is of concern.
Greater accountability is required to manage the scarce resources of government. The audit outcomes shows that financial management has generally been sound. Although the SABC received a qualified audit opinion, its Annual Report displays that active steps are being taken to address shortcomings.
Spending trends in the DoC and GCIS in the current financial year should be addressed to curb the possibility of overspending.
This analysis shows that the departments and entities have the necessary mechanisms in place to address governance issues. However, governance is essentially about effective leadership. Efforts to build and maintain strong and stable leadership is therefore essential.

27. CONCLUDING REMARKS (2)
In the past two financial years there has been noticeable improvement in addressing compliance issues in the DoC and GCIS. In this regard reporting on performance information has improved and complaints lodged through the Presidential Hotline and NACH are being addressed.
In the DoC all financial disclosure forms were submitted by the due date and the vacancy rate is declining.
Representivity in respect of females at SMS level and people with disabilities, the management of precautionary suspensions, the payment of invoices within 30 days and the non-disclosure of financial interests requires further attention.
Performance management in the DoC also appears problematic, as the compliance rate of the submission of PAs by the due date was low and SMS members’ performance were not assessed.

28. CONCLUDING REMARKS (3)
The relatively low percentage of organizational targets achieved can be related to this, as there seems to be inadequate accountability.
In 2012/13 the GCIS had materially misstated significantly important targets. In the 2013/14 financial year, 93% of targets were met and many of them exceeded. It may point that the GCIS was too conservative in setting targets.
The Portfolio Committee may wish to analyse the Corporate Governance arrangements of the entities with greater scrutiny. In this regard, the PSC has developed a questionnaire for the use of the Committee.
The PSC appreciates the opportunity to make the input to the Committee.

29. Thank you Siyabonga PSC Website: www.psc.gov.za
National Anti-Corruption Hotline for the Public Service:
National Anti-Corruption Hotline for the Public Service: