Chapter 5

Contextualising Service Delivery

5.1 Introduction
5.2 Some socio-economic indicators for South Africa
5.3 Service priorities for government
5.4 Budget Review 2000
5.5 Some service delivery achievements over the past five years

5.5.1 Environmental Affairs and Tourism
5.5.2 Health
5.5.3 Home Affairs
5.5.4 Correctional Services
5.5.5 Water Affairs
5.5.6 Welfare
5.5.7 Land Affairs and Agriculture
5.5.8 Arts, Culture, Science and Technology
5.5.9 Housing
5.5.10 Communications
5.5.11 Conclusion

5.6 Progress in terms of setting up systems during the past five years
5.7 What does the public think?
5.8 Remaining challenges to improve service delivery


5.1 INTRODUCTION

On gaining power, the Government of National Unity inherited a society marked by deep social and economic inequalities, as well as serious racial, political and social divisions. In addition, the Constitution requires us to pursue a developmental agenda. The challenge for the government was far greater than simply delivering improved services as would have been the case in a normal society after a change in government.

The challenge was to formulate a whole new set of policies to give effect to the normative and value changes that went with the democratic transition. On the basis of these policies it had to extend service delivery to all its citizens – something unknown under the previous regime, while at the same time eradicating the inequities of the past which were a direct result of apartheid. Government had to undertake this exercise of redistributing and extending state services, and at the same time constructing a single nation from a deeply divided South Africa. At the same time it was faced by severe resource constraints, and watched eagle-eyed by that section of the population that since 1948 had been virtually the sole beneficiary of public goods. This part of the population controlled the media and had the capacity to create scandal and derive political gain out of the slightest mistake. They also controlled the economy and could do substantial damage to the international reputation of the new government.

The new democratic government inherited a situation where 40 per cent of the population was living below the poverty line. In the face of such desperate need, the undertaking of public sector transformation became a delicate balancing act. Tinkering with the racial composition of the public service, and changing ways of working may appear frivolous to some. However, transformation of the public service became the only lever that could dislodge the old way of doing things, the old choices of to whom to allocate resources, the old way of to whom to award common courtesy and to whom not. For South Africa the question is no longer: "Why change?" but rather ”how (and how fast and how much) can we change with greatest positive effect on service delivery?“

The purpose of this chapter is to capture the dilemma between the need for speedy service delivery to address extreme levels of poverty (while maintaining the country as a competitive, modern player in a global setting), and for transforming the public service, which is at the core of service delivery. To show the starkness of the dilemma, the chapter first presents some socio-economic statistics. It then reports on some services that have been, and are being, delivered. In the process of reporting on these services, we comment on the potential implications of delivering traditional government services through alternative means. The chapter ends by presenting some of the weaknesses still present in service delivery, concentrating on the experiences of selected provinces covered by the Integrated Implementation Plan (IIP) towards the end of 1999 as well as on some of the sectors currently covered under the DPSA review process.

5.2 SOME SOCIO-ECONOMIC INDICATORS FOR SOUTH AFRICA

In 1994 the African intellectual and political analyst Mandaza posed some perennial questions: ”How to rectify three centuries of colonial and racial domination without upsetting the very historical, political and economic bases upon which the Southern African sub-system has been built? How to address the problem of wages and improved conditions of living for the mass of the people while enduring that the rate of capitalist exploitation remains constant? In short, how to pursue the objectives of liberation. .. without falling victim to White males at home and abroad?” These issues are still prevalent today as demonstrated by the snapshots of our society as presented in Tables 5.1 and 5.2.

The above statistics, once again, demonstrate the stark realities of the daily lives of a large number of our citizens – no direct access to running water, extremely basic to inadequate arrangements for sanitation and no electricity for lighting purposes. This last indicator points to the fact that the electronic revolution, with its spin-offs in information technology is bypassing large components of our population. On a more mundane level, the absence of appropriate lighting also has a negative effect on establishing a culture of learning and reading, thus perpetuating the inequity in opportunity education. This results in us loosing the opportunity to wipe out inequality over time.

The sheer scope and immediacy of the needs for people are overwhelming, particularly if visualised against the resource pool in the country to meet these needs. A difficult balance has to be struck between meeting the bulk of the immediate needs and taking a medium- to longer-term perspective that may result in a better and more sustainable process. Public servants are not only responsible for product. They are also accountable for process. The mandatory requirements for some of these processes, e.g. inclusivity, equity and empowerment are contained in the Constitution and the RDP document. Apart from having to meet certain process requirements, the public service also has to deliver services on a massive scale. This in itself adds to the complexity of the delivery processes.

5.3 SERVICE PRIORITIES FOR GOVERNMENT

What does help, is that, over a considerable period of time now, the population has consistently identified priority areas in which they would like to see government concentrating its resources and efforts. Surprisingly these priority areas are not direct services to individual households to improve living conditions. The top priorities, job creation and a secure and crime free environment, rather point to the broader issue of creating a context within which households can provide better for themselves.

Government priorities over the past few years, i.e. job creation, a safe environment, meeting of basic needs, in a context of GEAR and the RDP, have proved to match the identified needs of the population at large. Surveys conducted since 1994 by Idasa and Opinion '991 have regularly tested public opinion on the following question: "What are the most important problems facing this country that government ought to address?" Table 5.3 on the following page captures the changing priorities since September 1994.

The Opinion '99 survey conducted from 6 April to 30 April 1999, revealed the following:

These surveys of opinions largely reflect what has already captured public concerns. On the margins are other key issues, the implications of which are just beginning to be fully appreciated by the majority of the populace. These include the scourge of HIV / Aids.

5.4 BUDGET REVIEW 2000

If the survey above constitutes the pattern of priorities of the residents of the country, then government’s response to these, in terms of the pattern of allocation of financial resources, is as follows:

Through the budget2, government is showing that it is responding to the need to address crime and other problems in the criminal justice sector. The Criminal Justice Sector, Justice, Police and Correctional Services, shows the strongest growth in the size of the budget allocation from 1996/7 to 1999/00 of all the services sectors. Although not quite on the same trajectory, significant growth for the Criminal Justice Sector is projected to continue over the next three years.

The largest components of expenditure in the budget has been and remains social services, which are so critical to human development and equity. The attempt to shift the pattern of expenditure from recurrent to capital is precisely to enable greater investment in services and infrastructure that promote human development and quality of life.

This is simply one example to show that the pattern of public expenditure has been led by policy priorities throughout, and the policy thrust has been to meet the basic needs.

5.5 SOME SERVICE DELIVERY ACHIEVEMENTS OVER THE PAST FIVE YEARS

Transformation in the public service is about maximising the impact of the state on society. In this way service delivery and related issues become useful indicators of whether the transformation process is succeeding or not. To provide an appropriate context for assessing the performance of the public service in delivering public goods and services, it is necessary to compliment financial indicators by equally focussing on output, quality, access, appropriateness, equity, sustainability and impact. If we have to draw up a report card in terms of progress with public sector transformation we can therefore pose the following questions:

The slow grinding away at backlogs, the time-consuming developing of new solutions, and the putting into place of adequate systems to support these new solutions are often forgotten when we read in media headlines of an individual whose gender got confused in the Home Affairs registration system, or when another prisoner escapes from prison. Traumatic as the effects may be on the individuals concerned, these types of incidents may not be the norm, but rather the exception.

Below is a set of examples of what the public service has actually delivered. By and large, the facts presented demonstrate the extension of services to new categories of users previously excluded and/ or the scaling up of the numbers of users. Departments have also started looking strategically at alternative ways in which services can be provided.

5.5.1 Environmental Affairs and Tourism

A 15 per cent increase in foreign tourists was set as a target for the end of the last century. By 1998, one year before the end of the forecasting period, this target had been achieved, contributing over R20 billion to the economy. The department has entered into an aggressive marketing effort that commands resources from both the private and public sectors to market South Africa as a top international tourist destination.

The department has also ensured South Africa’s role as a recognised player in the global environmental promotion effort. This will be crucial to the promotion of sustainable development in the country.

5.5.2 Health

5.5.3 Home Affairs

A significant proportion of the population annually relies on the services of the Department of Home Affairs. This department has a disproportionate influence on the perception that the citizens hold of the public service and government. To the extent that it is covered in the media, the department tends to be cast in a negative light. The rapid increase in the scope and coverage of some of the services the department delivers, if it were more widely understood, may elicit a more objective interpretation of the performance of this department. The summary of some of the services delivered by Home Affairs presented in Table 5.4 clearly shows a rapid increase in terms of the demands made on the department for services since 19943. They have managed to respond w without reducing service levels, notwithstanding vacancies of up to 28 per cent of the post establishment. A moratorium on filling staff vacancies had been effected in order to avoid overspending on the budget.

5.5.4 Correctional Services

Two prisons are currently being constructed through public-private partnerships. This effectively leverages capital funding which would otherwise have been unavailable, and ensures that infrastructure can be improved within resource constraints by spreading expenditure over a longer term. This has long term benefits of improved risk management, efficiency and effectiveness. The resultant decrease in prison over-crowding allows for better management of prisoners and better chances of promoting rehabilitation . Despite an increase in the number of awaiting trial prisoners and the overall prison population, the department has successfully reduced the number of escapees from prisons.

5.5.5 Water Affairs

The Department of Water Affairs has made good progress in terms of extending basic services to larger sections of the population. Table 5.5 captures the progress made since 1994, but also highlights the remaining challenges.

5.5.6 Welfare

The Department is transforming its approach from traditional welfare to developmental welfare,which focuses on facilitating opportunities for capacity development and self-help for those previously dependent on the state. Under this policy framework programmes such as the ”Flagship Programme for Unemployed Women with Children under Five“ have been conceived.

The Department also took the initiative in formulating the Non-profit Organisations Act to create an enabling environment wherein non-profit organisations can flourish and take up their role as full partners in future. service delivery endeavours. This Act also encourages transparency and accountability for these kinds of organisations that collect money from the public and that often receive substantial support from government and the donor community 5.5.7 Land Affairs and Agriculture

Since 1995 a total of 26 416 households have benefited from the transfer of close to 260 000 ha of land. A further 87 000 ha have already been approved for further redistribution. Obviously we recognise that if this is compared with the real land needs in the provinces, it is only a drop in the ocean. It is, however, a step in the right direction in a area where many countries have sought to make changes and have failed even after many years. The same can be said about the Land Restitution Programme. Since 1994, 784 land restitution cases have been resolved. These cases involved 14 899 claimant households, and a total of 89 518 beneficiaries. The total monetary value of restitution awards over this period was R78m. The downside is that a further 63 000 unverified land claims have not yet been resolved. This obviously represents a continuing challenge for the department.

5.5.8 Arts, Culture, Science and Technology

A significant shift in the policies of this department is contributing to a continuing change in societal conception of its identity and value system. The emphasis has moved away from ”Western“ art forms to a situation where multiple art forms, especially indigenous ones, are recognised and officially supported. This marks a reversal of the decimation of cultures and collective sense of identity by colonial invaders over centuries. To this effect, an effort is also made to establish infrastructure for arts and culture in communities previously ignored. Forty three new community arts centres have thus far been established with the majority of these to be found in Mpumalanga (seven), North West (seven), the Eastern Cape (six) and the Northern Cape (six). The s cope of heritage-related efforts has also been broadened. The histories and heroes of all population groups, rather than only Whites, are now honoured and their heritage equally conserved. The country has shifted from recognising two official languages to recognising 11 official languages and these are supported, inter alia, through translation services and capturing different languages in official correspondence, forms, and so on where requested.

The area of science and technology is also transformed by moving away from efforts that supports a ”siege mentality and economy“ to where the emphasis of science is on the contribution it can play in terms of development. For this purpose, the Innovation Fund has been set up, and the needs of communities are important criteria in deciding about resource allocation in the sciences. The department has completed a powerful ”Foresight“ exercise that firmly sets the scene for science and technology development o ver the medium term.

5.5.9 Housing

Significant improvements have been made in upgrading the housing stock since 1994. The comparisons of access to housing between 1996 and 1998 that are presented above in Table 5.6 capture this trend.

There is a sharp upward curve for the cumulative number of houses completed or under construction over the past five years as well as for subsidies issued during that time, with the number of subsidies now flattening out.

5.5.10 Communications

In 1997, Telkom installed 380 000 telephone lines. In any one year during apartheid, a maximum of 180 000 lines were installed. The Ministry provided 1,1 million new postal addresses in 1997. The Post Office handles eight million items daily. Over and above these achievements, progress has been made with regard to privatisation with massive spin-offs for universal telecommunication services.

5.5.11 Conclusion

In conclusion, these achievements are a result of many hours of intense dedication and commitment by public servants. Despite the frequent headlines that emphasise only the cases of ”doom and gloom“ we should always remember that the basic infrastructure of governance is operational every day. The things we take for granted, that make basic daily life and livelihoods possible need to be planned and managed by someone. The scale on which most of these things have to be provided mean there is enormous complexity to be managed through some public institution. This is not to make excuses for things that do not happen. Rather a plea that we recognise and acknowledge the things that do happen.

Of course, we all recognise the need to deal with the problems that still exist. We equally recognise that public servants who treat citizens like dirt, who do the least possible in a working day, who show callous regard for state property do exist. They show no sense of loyalty to the country and its people, and defraud the little resource pool from which we have to deliver services. Every one of them is one too many. Even one of them is a burden our development state can ill afford to bear. Even more, we recognise that there are managers and officials who let these things happen, by omission or commission. They too are as guilty as the people who defraud the state. They too are a burden to society’s progress.

5.6 PROGRESS IN TERMS OF SETTING UP SYSTEMS DURING THE PAST FIVE YEARS

Much effort over a relatively short period has gone into establishing appropriate systems, or improving existing systems, that can sustain the wider scope of service delivery. These systems can contribute to values of transparent and informed decision-making as well as improved accountability. Although this is relatively low-key work with little immediate visibility of success, investing in strong systems should pay off over the longer term.

Already we have seen that this approach has worked in the Department of Welfare where social grants and pensions are paid regularly to nearly three million beneficiaries. In its first year of operation, the newly established computer database of social welfare beneficiaries saved government about R96 million when 76 000 deceased beneficiaries were removed from the previous beneficiary list.

Other initiatives in improving systems include:

All these are contributing to the building of the infrastructure that make service delivery possible, on a scale that is required, with the quality that is expected.

5.7 WHAT DOES THE PUBLIC THINK?

One way of establishing whether or not we are making progress in terms of service delivery and transformation is to monitor the views of the population on how satisfied they are with government services. Much can be said about the efficacy of such tests in capturing the broad spectrum and diversity of views that exist in the broad populace. These surveys however represent one of the varieties of ways through which we can track the views of the population served by the public service on various issues.

There has been many examples of these surveys. For instance, the Human Science Research Council (HSRC) has been asking questions on what the public thinks to a randomly selected, representative sample of the South African population over a period of time. The survey of perceptions of citizens on the effectiveness of government over the period May 1994 to February 1998 shows a declining trend. In May 1994, 72 per cent of South Africans responded positively about the efficacy of government. By February 1998, the size of the population that thought government was effective has dropped to 43 per cent. The reverse trend was revealed in terms of those who thought government was ineffective. In May 1994, only six per cent of the population expressed an opinion that government was ineffective. By February 1998, this proportion of public opinion had swelled to 38 per cent.

However, since November 1998, this survey is reflecting different trends in the opinions of the population. The majority of the population either feels satisfied or very satisfied with the way South Africa is currently being governed, and this proportion of opinion is growing. Overall, the proportion of dissatisfied citizens is shrinking systematically. This trend is graphically represented in Figure 5.1.

Figure 5.1

A more nuanced form of feedback from the citizens was received in the Markinor survey conducted in May 1999. On being asked how government was handling a range of issues, the following percentages of respondents thought that the issues were being handled ” very well“ or ”fairly well“. In terms of direct service delivery that pertains to the developmental agenda the government is rated moderately well.

5.8 REMAINING CHALLENGES TO IMPROVE SERVICE DELIVERY

Although the overall sentiment of the population regarding service delivery in some spheres may be changing in a positive direction, much room remains for improvement, both in terms of structure, processes and systems. Two studies undertaken by the DPSA of offers more contextualised and specific information about actual systems and processes that are deemed important for greater success in public service management and administration. The DPSA initiatives in the first instance are collecting information about key departments in sectors in order to build up a picture for the annual Sectoral Reviews. The first rounds of reports are summarised below, using a number of key, general themes.

Pull Quotes The comfortable world of government and public policy of the 1960’s and 1970’s has been transformed into a much more anxious and treacherous place (Peters, 1988:72)

”As the saying goes: ‘One falling tree makes more noise than millions that are growing’. As such, for both good and bad reasons, occasional problems are seized upon by our detractors as the stock-in-trade of this government, indeed as the essence of democracy’“ Former President Nelson Mandela

”For the first time ever, millions of people had the dignity of a proper address, with the expectation that they would be able to receive mail, just like normal people“. Jay Naidoo, Former Minister of Communications

Footnotes

  1. A representative sample of over 3000 is periodically drawn.

  2. Chapter 6 of the Budget Review 2000 can be consulted for further information.

  3. A comparison with pre-1994 figures is not feasible, since the homelands had their own procedures and processes that do not facilitate unproblematic computation of services delivered under those dispensations.

Table 5.1 Distribution of services by population group of head of household, 1996

  African Coloured Asian White Unspecified/ Other Total
Energy source for lighting

Electricity direct from authority

Electricity: other sources

Gas

Paraffin

Candles

Unspecified / Other

 

43%

0.3%

0.5%

17%

38%

  0.9%

 

83%

0.4%

0.3%

4.4%

11%

   0.6%

 

98.5%

0.1%

0.1%

0.3%

0.6%

0.5%

 

98.5%

0.4%

0.1%

0.1%

0.2%

  0.7%

 

  73.8%

0.3%

0.2%

5.5%

6.2%

4%

 

57%

0.4%

0.4%

12.6%

128.5%

0.8%

Total in numbers 6533998 741206 243639  1482492 58237 9059571
Main water supply

Piped water in dwelling

Piped water on site or in yard

Public tap

Water-carrier/tanker

Borehole/rain water tank/well

Dam/river/stream/spring

Unspecified/other

 

26.7%

20.4%

26.3%

1.6%

5.9%

16.8%

2.2%

 

71.9%

18.5%

4.9%

0.5%

1.9%

1.6%

0.7%

 

97.2%

1.2%

0.38%

0.1%

0.6%

0.2%

0.4%

 

95.9%

0.6%

0.1%

0%

2.6%

0.2%

0.4%

 

66.3%

10.1%

8.7%

0.63%

2.7%

7.3%

4.3%

 

43.9%

16.5% 

19.5%

1.2%

4.9%

12.3%

1.7%

Total 6533998 741206 243639 1482492 58237  9059571
Toilet Facilities

Flush or chemical toilet

Pit latrine

Bucket latrine

None of the above

Unspecified/other

 

33.9%

43.5%

5.6%

16.4%

0.6%

 

79.7%

7.8%

7.1%

5.1%

0.3%

 

7.6%

1.8%

0.1%

0.2%

0.3%

 

99.2%

0.3%

0.0%

0.1%

0.4%

 

71.2%

14.9%

3.0%

7.1%

3.8%

 

50.3%

32.3%

4.6%

12.3%

0.5%

Total 6533998 741206 243639 1482492 58237  9059571
Refuse removal

Removed by local authorities at least once a week

Removed by local authorities less often

Communal refuse dump

Own refuse dump

No rubbish disposal

Unspecified/other

 

37.2%

2.8%

3.7%

41.6%

12.8%

1.9%

 

80.3%

1.2%

4.2%

10.8%

1.7%

1.7%

 

95.8%

0.4%

0.3%

2.2%

0.5%

0.8%

 

90.4%

0.5%

0.9%

6.2%

0.5%

1.6%

 

70.5%

1.3%

2.0%

15.2%

5.5%

5.4%

 

51.2%

2.2%

3.2%

32.1%

9.5%

1.8%

Total 6533998 741206 243639 1482492 58237 9059571

Source: Stats in brief 2000

Table 5.2 Type of dwelling by population group of head of household

African Coloured Asian White Unspecified/ Other Total
House or brick structure on a separate stand or yard 40.9% 61.0% 57.7% 69.8% 53.5% 47.8%
Traditional dwelling/hut/ structure made of traditional materials 24.7% 1.9% 0.5% 0.7% 10.2% 18.2%
Flat in a block of flats 2.3% 7.8% 14.1% 14.0% 8.0% 5.1%
Town/cluster/semi-detached house (simplex, duplex or triplex) 1.5% 13.3% 19.1% 9.1% 7.8% 4.2%
Unit in retirement village 0.1% 0.1% 0.1% 2.1% 0.3% 0.4%
House/flat/room, in backyard 6.1% 5.1% 5.6% 1.9% 4.7% 5.3%
Informal dwelling/shack, in backyard 5.7% 3.6% 0.3% 0.1% 2.9% 4.5%
Informal dwelling/shack NOT in backyard e.g. in an informal/squatter settlement 15.5% 4.2% 0.4% 0.1% 5.6% 11.6%
Room/flat not in backyard but on a shared property 1.6% 1.6% 1.3% 1.0%  2.6% 1.5%
Caravan/tent 0.2% 0.4% 0.0% 0.2% 0.3% 0.2%
None/homeless 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Unspecified 1.3% 1.0% 0.7% 1.0% 4.2% 1.2%
Total 6533998 741206 243639 1482492 58237 9059571

Source: The people of South Africa - Population Census, 1996

Table 5.3 ”What are the most important problems facing this country that government ought to address?“

  Sept-Oct 1994 Sept-Nov 1995 June-July 1997 September 1998 Oct-Nov 1998 Feb-March 1999 April 1999
Job Creation 67% 74% 68% 73% 75% 75% 79%
Crime and Security 6% 32% 58% 64% 61% 62% 65%
Housing 46% 54% 44% 22% 34% 32% 32%
Education 34% 20% 20% 24% 23% 28% 26%
Health Care 2% 7% 10% 13% 11% 14% 12%
Water 0%  5%  4% 6% 13% 13% 11%
Corruption 0% 2% 6% 6% 7% 8% 10%
General Economy 21% 10% 8% 18% 16% 12% 10%
Electricity 2% 4% 4% 11% 8%  7%
Poverty 9% 6% 3% 9% 12% 7% 9%
Violence 49% 32% 8% 8% 5% 4% 4%
Discrimination 19% 4% 2% 2% 4% 4%  3%
Immigration 3% 1% 4% 2% 1% 2%
Political Violence 7% 6% 1% 0%  1% 1%  1%

Source: Opinion ‘99 Survey

Table 5.4 Services delivered by the Department of Home Affairs 1994–1999

QUANTITY OF OUTPUTS

Services 1994/95 1995/96 1996/97 1997/98 1998/99
ID Documents issued 4 636 995 2 830 940 2 222 441 2 498 970 3 127 965
Passports and travel documents issued 31 523 53 994 459 135 889 340 1 035 116
Certificates issued (birth, marriage, deaths and driver’s licenses) 1 116 063 1 914 915 2 193 734 2 992 097 3 650 404
Persons cleared by immigration officers 19 760 394 24 534 765 26 951 219 26 877 074 29 200 642
Repatriation 90 692 157 084 180 713 176 351 181 286

Source: Public Service Commission, Batho Pele Survey in Department of Home Affairs, 2000

Table 5.5 Access to basic water supply since 1994

  1994  1999
RURAL Only 6 out of 18 million people had access Now 10.4 million out of  20.2 million people have access
  33% 51%
URBAN 17.6 out of 20.8 million people had access Now 21.6 out of 23.3 million people have access
  84% 92%
NATIONAL 23.6 out of 38.8 million people had access Now 32 out of 43.5 million people have access 
  61% 73%

  Source: Stats SA presentation to Cabinet, 2000

Table 5.6 Access to housing, 1996 – 1998

Type of housing % Urban dwellers % Non-urban dwellers Total population
  1996 1998 1996 1998 1996 1998
Back room 4.7 3.8 2.6 5.2 3.8  4.4
Informal  16.8 15.2 4.9 5.2 12.0  11.2
Traditional 2.5 2.3 43.9 29.3 19.1 13.2
Formal 76.1 78.6 48.5 60.0 65.1 71.1

Source: Stats SA presentation to Cabinet, 2000

Table 5.7 Positive ratings of Government performance

Policy issue %
Promoting equality between men and women 79
Uniting all South Africans into one nation 72
Delivering basic services, i.e. water, electricity 72
Improving basic health services 66
Encouraging international investment 66
Addressing educational needs of all South Africans 64
Ending political violence 62
Building houses 61
Bringing the police closer to the community 60
Narrowing the income gap between races 59
Maintaining transparency and accountability 55
Appointing the right people to lead government 49
Managing the economy 47
Fighting corruption in government 44
Controlling inflation 42
Reducing the crime rate 26
Reducing unemployment 24

Source: Markinor, 1999

Table 5.8 Summary findings of three review reports

THEME HOUSING TRANSPORT AND PUBLIC WORKS HEALTH
Strategic planning
  • Many provinces still do not have proper strategic plans
  • Now fully developed
  • No integrated strategic planning
Recruitment
  • Staff primarily skilled and managerial
  • Need more resources to deal with monitoring and skills attraction 
  • Employment highest in the least industrialised provinces 
  • Mostly lowly skilled employees
  • Lack of skills and capacity at senior level
  • The CEO concept trying to address management weaknesses
Personnel numbers
  • National, which deals with policy comprises 210 staff
  • Provincially, range from less than 100 to 750 in the case of Gauteng
  • Constitutes about 5% of the public service
  • Many at low skills, and
  • Decline of doctors worrying
Review conditions of service
  • Call for more flexibility
  • More skilled staff
  • Need for checks and balances
  • New powers as per New Regulations allow for flexibility
  • Need skilled staff
  • Incentives for doctors
  • Training for primary care nurses and attendant incentives
Supernumeraries
  • Would be determined by process of outsourcing after strategic planning
  • Declared after restructuring
  • Assist members with training, transfers and redeployment
  • Have been identified in some provinces
  • Need temporary retrenchment tool
Reduction of personnel expenditure
  • To move away from asset allocation, and make it an ASD mechanism process
  • Could outsource 2/3rd of staff in provinces, including low skilled
  • Many functions to be transferred to local government
  • Restructured, and unaccommodated staff was declared redundant
  • Works has out-sourced  and contracted out, including privatisation of prisons
  • Shrinking budgets have meant personnel  costs had  to be managed down without retrenching
  • Shrinking happens through  freezing of posts, VSPs and retirement
  • Overall increase  because of unfunded mandate initiated by DPSA – this includes rank and leg promotion, automatic notch increases and double pay for overtime
  • Personnel sometimes consumes 80% of budget as there is no adequate retrenchment tool
Employment Equity
  • There is awareness
  • Most management structures reflect demographics
  • Upper and middle management still predominantly white
  • Developing concrete affirmative action policy in restructuring phase
  • Development of targets and time frames to ensure representivity
More efficient workforce
  • Problem with regard to balance between time, cost and quality
  • Provinces are learning from process and keen to share  knowledge, in particular around strategic planning, ensuring “needs” and not “proposal” drivenness
  • Getting there through training, and incentives
  • Mostly unskilled which makes efficiency difficult
  • Mostly labour intensive, and need proper management of personnel
  • Mainly ill qualified and inexperienced
  • Need to develop staff
Performance management system for individuals  
  • Developing a salary progression framework and a supportive system
  • 6-12 month contracts reviewable monthly
  • Contracts pyramidal
  • Need to be based on transparency and responsibility for politicians and managers
  • Need defined outputs which are measurable
  • Need reporting systems/process
  • Need to monitor and evaluate budget and service delivery
Financial Management
  • Departments believe that they use funds uniformly and not towards the end of budget as originally thought
  • Time, cost and quality still a problem
  • Participatory financial management system,  which is transparent
  • Minimise space for corruption .'
  • Improved control measures, e.g. pre- checking documents
  • Centralised financial management
  • Influenced by Finance’s Borrowing Powers, MTEF Guidelines, etc
  • Need for phased implementation of Finance policies
  • Lack of capacity at provincial level
  • Information systems and managerial system are poor
  • Improved management for rapid auditing, and tighter financial accountability
Financial independence
  • National raises funds
  • Poor revenue collection, wide ranging non-payment
  • Mainly national government allocation
  • Huge savings by stopping payment for redundant buildings
  • Mainly comes from national allocation
  • Can get more revenue from e.g. rigorous collection  of revenue from hospitals
State Assets
  • Three provinces (Gauteng, KZN and W Cape) that retain assets are trying to devolve responsibility
  • Maintaining assets
  • Misdirected subsidies
  • Unaccounted assets 
  • Sometimes pay for useless services
  • In E Cape, redundant maintenance close to R75 million
  • Large scale theft of state in health sector assets
ASD options
  • Asset allocation outsourcing.
    Three provinces that still maintain assets wish to outsource non-core functions
  • Transferring functions to local government 
  • Buys 90% of its goods and services
  • Do not need huge department
  • Role could just be regulating fair play, safety and quality
  • Rest of the functions could be outsourced
  • Outsourcing emergency services, pharmaceutical services and other non- core functions
  • Need feasibility studies first
Core and non-core functions
  • Need to redefine and bench- mark in terms of a work model
  • Can help the ASD process
  • ASD process needs that core and non core functions be determined
  • Identified non-core functions to reduce personnel expenditure
  • Savings are being made/to be made Inter-provincial
Inter-provincial relations
  • Try to share good practices
  • Share good practices
  • Share good practices
Inter-governmental Relations
  • Good relationship between national and provincial tiers of  government, though accuse each other of slow pace
  • There are either “jurisdictional skirmishes or delusions” between provincial and local governments
  • Role of national department understood as that of policy, strategy, monitoring and regulation
  • Provincial powers given over activities but in line with national policy
  • National provides leadership and many responsibilities are devolved to provincial and municipal levels
  • District councils to be strengthened
Monitoring and management of quality
  • Very poor at this stage
  • But, National Housing Regulatory Council to monitor performance, effectiveness and efficiency
  • Skilled personnel needed, as per staffing model to be developed
  • Not very strong
  • Budgeting not aligned to business plans
  • Needs mechanism to monitor impact of policies, including public expenditure reviews
  • National provides norms and standards
  • Total Quality Management systems used
  • Need more mechanisms to monitor policy implementation
Co-ordination role
  • Particularly between local and provincial spheres
  • At national level, heads of housing committees and the  MINMEC play that co- ordinating role
  • Standing committees,  “effective mutually interrogative exchange between policy and implementation”
  • The SA Housing Development Board, advises Minister on housing policy and monitors implementation
  • Concurrent power, primary responsibility of provinces and local government is delivery
  • IT systems to help with  information sharing to all tiers of government
  • Do meet at different levels to discuss matters of mutual concern
  • Weak links at three levels of government
  • Developing a nation wide District Health System based on the Primary Health Care system
  • Do have meetings of National Minister and MECs
  • The provincial MEC for  Health to guide districts in concert with relevant authorities
IT Systems
  • HUIS data warehouse with decision support facilities
  • Housing subsidy system
  • Geographic Information  system
  • A Per-For Development system
  • Formulated strategy to deal with systems integration, user ownership and electronic communication
  • To be preceded by Master Systems Plan to guide achievement of goals
  • National Land Transport Information Plan for information
  • The IT systems are not helping in communication, both internally and externally
  • In some provinces, the capacity to manage IT systems is non-existent
  • Progress made though
  • PERSAL highly inaccurate and inflexible
Major External Challenges
  • Land availability for proper housing
  • Includes the rapid release of land and policies regarding the prevention of land invasion
  • Easing the release of funds  for low cost housing from the private sector
  • Bad planning from client departments
  • Frustration at local government level
  • Poor services from  subsidised transport sources
  • Municipal impediments for property allocation
  • Land acquisition for developing health facilities

The second DPSA initiative, the Integrated Implementation Programme, which was primarily undertaken to assist specific provinces with meeting the requirements in terms of the new Public Management Framework, resulted in quite rich information about the situation in these provinces. The findings of the various provincial reports are summarised in Table 5.9.

Table 5.9 Summary findings of the IIP process in selected provinces

THEME EASTERN CAPE KWAZULU-NATAL NORTHERN PROVINCE
Strategic planning
  • Sporadic
  • Disjuncture between budget process and activity planning
  • Limited strategic direction from the provincial centre
  • No systematic planning even at departmental levels
  • Great Provincial Growth and Development Strategy, but contains no indicators in terms of quality, quantity, time, cost and HR implications
  • Highly ambitious
  • Not properly aligned with departmental level
Backlog of personnel entitlements
  • Resource constraints means couldn’t deal with before 98/99.R180 m estimated in in 98/99 insufficient.Est. R23 m at present (excluding substitute teachers and other education personnel).
  • Accumulated leave, retirement benefits, etc. still to be quantified. R459 m   once-off arrears have been  paid. 
  • Budget Constraints have led to failure to grant rank promotions and second and third
  • Accumulated leave and retirement benefits still to  be quantified. notches.
  • Conditions of service not consistent for Departments and workplaces in the province.
  • National policy pronouncements have led  to millions of rands  backlogs (Health and  Welfare alone close to R75/85 million). Personnel entitlements such as rank/leg promotion not implemented.Legal action to force these entitlements cannot be ruled out. Morale has been severely affected leading to loss of key skills.
Recruitment
  • Moratorium results in departments having high numbers of junior and unskilled staff, but low numbers of managers and technical experts
  • Moratorium also means only internal promotions - no new blood/expertise coming into the system.
  • Lack of resources has led to failure to attract high level staff; high numbers of junior and unskilled staff and few senior managers and technical experts.
  • Proven difficult to attract people to the province and a simultaneously to retain them.
  • Key challenge is to reduce skills shortages in the more technical and professional fields
  • Financial austerity measures have reduced the province’s ability to attract and retain high quality personnel.
PERSAL
  • Unauthorised users still have access. Not all personnel appointments  captured by PERSAL since April 1998.
  • PERSAL ineffectively aligned with FMS.
  • Access controls non- existent or improperly practised.
  • Approved personnel established dramatically different from actual. 
  • Quality of information on  PERSAL is questionable
  • Personnel to run PERSAL inadequately trained.
  • Access controls improperly practised.
  • Not aligned with policy making and decision making.
  • Approved personnel established differs from actual.
  • Province needs assistance  to validate and update information on PERSAL..
  • Information highly unreliable. For instance, PERSAL data cannot be reconciled with head counts.
  • Double payments still being experienced. 
  • Severe financial and HR implications, and does not help managers take proper decisions.
Reduction of personnel expenditure
  • Over 65. Estimates conservatively R12 m saving p.a. Also sensitising campaigns to those over 55 for early retirement e.g.Health.
  • Specific classes of employees, e.g. doctors for  “sessions” and substitute  teachers (potential R27 m per annum saving) and beefed up teacher numbers through ghost learners (approx. 1,6 add. Teacher / school R589m p.a.)
  • Supernumerary – estimates saving of R900m (Agriculture alone R130m + Roads and   Public Works R60 m) Personnel cost for maintenance on R75m redundant properties.
  • Tighter control over PERSAL use and access
  • Remuneration of some not market related e.g. Hourly rate of road gangs in province R15/hr where private sector  pays R5,60 per hour.
  • 2nd and 3rd notch increases avoid. Rather effective performance management systems in all depts.
  • Do away with any duplication of functions e.g. land administration, Office of Premier& Roads and Public Works
  • Non-core functions e.g. gardeners and security guards
  • Potential for R6,6m saving p.a – out-source or reduce activity
  • Over 65 years; estimate saving of R10 million per annum (185 identified officials).
  • A process to regulate the position of 667 officials who receive housing allowances whilst also occupying official houses at low  rentals. An amount of R 50 077.76 per month is currently deducted from  their salaries whilst R507 757.00 per month is paid to them in the form of a housing allowance
  • Through PERSAL, abolish all posts that have been •vacant for more than six months. Though no  immediate savings it will make limit departments to make new appointments
  • VSP’s in Department of  Agriculture, a saving of R19, 071 can be made annually.
  • Start a process to determine whether the 3165 officials occupying official houses at low rental (between R8.30 - R200) are so entitled in terms of Collective Agreement No. 3 of 1999
  • Moratorium be placed on the staffing of vacancies in components not performing core functions
  • Synchronise functions to avoid unnecessary duplications
  • Abolish casual labour
  • Over 65s retired. Also undertaken with minor success was the early retirement initiative.
  • However, personnel  expenditure grew from 57%, to 78% in 1999/00. Improvements in conditions of service mainly accounts for this. Although provinces get compensated for the costs of these improvements in the year they are granted, provinces are not compensated for the carry through costs thereof .
  • Outsourcing of some activities. Public Works plans to outsource road and construction, security, roads and building maintenance and property management. Could affect some 10 3000 staff, and release resources for service delivery Local Government.
Supernumeraries
  • Supernumerary – estimates saving of R900m (Agriculture alone R130m + Roads and Public Works R60 m)
  • Agriculture – 3000 – plan 5 year phase out. Small scale farming – year 1 still salaried. After that salaries reduced incrementally 25% per annum.
  • Competent but organisation means no longer needed in respective grades - lower levels - not employable in other role in department. Too costly to transfer and personal considerations.
  • General assistants (casual) gradually absorbed Condition of Service amended  to permanent staff
  • Provincial supernumerary list. Departments have theirs
  • The major challenge faced by Departments is how to manage the process, in other words what to do with supernumeraries.
  • Expect a retrenchment too from the DPSA. Union presence makes it difficult event to redeploy, alone think of retrenchment
  • Initiates there,like the idea of Co-operatives pursued by the Public Works Department.
  • Supernumeraries identified in the Departments. Look at ways of dealing with their cases, and determine possible savings.
  • Like many provinces, still expecting retrenchment tool from the DPSA.
  • Deployment is easily complicated by the reluctance of staff to transfer to other areas.Or communities refusing to take staff from other areas. 
  • The province is also looking  at way of making sure supernumeraries have alternative sources of livelihood.
  • Provincial supernumerary database, but could not be used effectively through PERSAL for redeployment
Notch increases
  • Department of Finance and Provincial Expenditure believes notch increases applied inconsistently, abused as a means of averting management  responsibility / labour tensions.
  • System currently divisive as it can only be implemented by Departments that are financially healthy - others feel discriminated against The system is also flawed.
  • While moratoria on notch  increases often leads to divisions, it is important to note that giving it to some departments while denying it to others is highly discriminatory and demoralising
  • Look at ways of practicing this system so that it is seen to be fair and "anonymous"
Performance Management Systems for Individuals
  • No proper system.
  • No proper system.
  • Still trying to develop a proper system.
  • No systematic, objective and measurable.
  • Not aligned with strategic planning.
More efficient workforce/adjusting to challenges
  • Resist. Blaming Department of Finance and Provincial . Expenditure Focus on getting additional resources,  ”excessive“ overtime activity, etc.
  • No joint problem-solving – not grounded in reality
  • Attitudinally, staff prepared to work. Skills shortage a major impediment to efficiency maximisation
  • Do overfocus on getting additional resources
  • Failure to pay entitlements leading to demoralisation.
  • Skills shortage major obstacle to efficiency enhancement
  • Demoralisation also becoming a factor as a result of unfulfilled entitlements
  • Lack of " provincial consciousness" leading to narrow divisions.
Financial  management
  • Not adequate monitoring of spending and revenue collection Finance reverted to giving monthly ”envelopes“ of funds to spend against, in order to curb spending patterns
  • Slack collection practices of internal revenues
  • Collecting revenues not regarded as an important managerial duty – focus is on spending
  • Early warning systems reoverspending ignored
  • Budgeting quite problematic; capacity is not there in a number of Departments
  • Improper recording of revenue and inability to rectify mistakes
  • Poor financial management skills from senior managers
  • No, coherent, succint monitoring mechanisms
  • Warning schemes on over spending ignored
  • Constant reciprocal condemnation; between Departments and Finance
  • Finance now requires quarterly reports to guard against over-expenditure
  • Need to strengthen the province's capacity to manage its financial situation
  • Department of Finance has done well to remedy situation, hence no need for Section 100 as has been the case with many provinces
  • Individual departments requiring help in improving their budgeting and accounting
  • Department of Finance lacks capacity to help but would do so through organisational restructuring
  • Measures to meet revenue targets are inadequate, so are mechanisms to account for and collect monies due to departments from various sources
  • Revenue collection to be incorporated into HOD’s performance contracts
Budgets/provisions
  • Province under-provided in budget for personnel debt by more than R279m.
  • Seems as if 2000 more employees are budgeted or than the figures on PERSAL
  • Not adequately integrated with activity planning
  • Personnel expenditure, including salaries and benefits such as pensions,   allowances, etc. overwhelming share of  personnel expenditure – trend is increasing 1995/6 – 64% 1999/2000 – 87% (total budget – transfers) leaving less and less for other operational expenditures.
  • Increase of the percentage of the budget on personnel expenditure had increased twice as fast in EC compared to national average
  • Percentage used for personnel expenditure has increased after the interventions in 1st half of year under S 100(1)(a) intervention.Some departments close to 100%.
  • Most posts are unfunded
  • Not clearly integrated with activity planning
  • Inherited deficits of 1996/7 and 1997/8 existed at R1 071 216. Resources currently channelled into debt redemption
  • For 1999/2000, R10 871 with 053 million (represents, 57.05% of the total budget) was allocated for personnel expenditure. Leaves little for developmental purposes and for state investment
  • Excluding educators from the total personnel  figure, the ratio is 1:54 which is significantly lower than the national average of 1:97
  • Over provisioning of register that there is an personnel in non-core functions in the province
  • Since most posts are not funded, there are many vacant posts
  • Overspent in first three years: R155m in 95/6, activity planning R497m in 96/7 and R731 in 97/8
  • Consequence has been a significant budget overhang. National Department of Finance demand repayment of debts
  • Projected surplus of R130 in 98/99 as a result of tighter financial control and improved financial systems. Anti-fraud and  anti-corruption measures have also started bearing results
  • Whereas provinces spend an average of 61.7% of their budget on personnel,  the figure for the Northern Province is 68.4% – making the highest in the country
  • Personnel expenditure as a proportion of total expenditure grew from 56.92% in 1996/97 to 69.7% in 1998/99. This was one of the major
  • The number of public servants employed by the  province grew from 117 469 in 1997 to 119 465 at  December 1998. In the context of little or no increase in budget allocation, personnel expenditure likely to increase relative to total expenditure
State Assets
  • Maintenance on redundant property R75m p.a. Personnel cost excluded
 
  • Assets acquired at great cost cannot be properly accounted for. Invariably, some buildings are currently not properly utilised
Financial independence
  • Greater proportion of approved budget derived from National Department of Finance Internal revenue, not insignificant, and for state investment but small in comparison with other sources.
  •  
  • Mainly dependent on national allocation
  • A study shows that significant funds can be obtained internally through innovative initiative like rigorous collection of rent
  • In 1998/99, provincial revenue accounted for only 2%.
  • Province’s budget comes from National Department  of Finance 
  • Measures to account for and collect monies due to the Departments are weak. Revenue collection to be integrated in HOD’s performance agreements
ASD options
  • Using private sector labour, which in some instances are cheaper (e.g. roads)
  • Commercialise road “gangs” – but current high unit costs make it not viable
  • Devolution to district  councils (e.g. road maintenance) – especially where overlap (road maintenance)
  • Transfer of personnel & assets to local sphere  (roads) 
  • Outsource payment of pensions (Social Welfare has already done this)
  • Outsource non-core functions such as  cleaning, catering and security,
  • Transference to relevant Departments to avoid duplications and unnecessary personnel expenditure
  • Consider using private bodies in areas where skills are scarce, e.g. information technology
  • Outsource non-core  functions such as cleaning, security roads constructions, maintenance of buildings, etc.
  • Transfer relevant functions to local government
  • Where there are capacity and management problems and challenges, consider releasing functions to private bodies

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