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20 November 2007

Honourable Chairperson

I am sure that we all agree that effective service delivery requires an efficient and accountable administration devoid of red tape with strong anti-corruption and compliance measures. The regulatory framework for the administration should, whilst embedding stability and certainty, also facilitate dynamic innovation to allow for the use of new institutional and technological instruments to enhance the provision of services.

The Bill before you today for a second reading provides an opportunity for Parliament to strengthen the democratic values and principles governing public administration in Chapter 10 of our Constitution with respect to national and provincial department. These values and principles include a high standard of professional ethics; efficient, economic and effective use of resources; a development-oriented public administration; the impartial, fair, equitable and unbiased provision of services and responding to the people's needs.

Honourable Chairperson, we need to recognise that certain organisational and human resource practices in the current Public Service Act, directly or indirectly hinder service delivery. In broadening access to services for the masses of our people, we must continuously identify innovative ways of delivering services. Currently, some government functions are provided by national or provincial departments away from the points of service delivery and without direct accountability and decision-making by those functionaries responsible for their delivery. Other government functions are provided by entities outside the public service without being directly accountable to a political functionary.

We have also come to recognise that compliance with public service prescripts does not meet the desired standards. This weakens human resource management and results in time-consuming and costly litigation.

Employees dismissed by departments for corruption-related and other types of misconduct, are often re-appointed by other government departments soon after dismissal, which means that misconduct does not carry effective sanctions.

Employees suspected of transgressions sometimes resign and are appointed in other departments without disciplinary steps being instituted or if they have been instituted, without being sustained.

The primary aim of the Amendment Bill is therefore to improve the organisational and human resource framework for national and provincial departments to address these obstacles to service delivery. This includes facilitating the easier day-to-day administration of the Public Service Act by addressing certain legal difficulties, simplifying or clarifying several provisions, removing obsolete provisions and aligning the Act with other legislation.

I will now highlight some of the key amendments in the Bill:

The Bill proposes the introduction of a new institutional form separate from departments, but within the public service, a "government component" as well as specialised service delivery units, ring-fenced within departments.

The heads of government components will serve as accounting officers in terms of the Public Finance Management Act. The component model is suitable for an institution, with a unique identity, that has specific measurable functions that can be logically grouped in terms of a particular service delivery model. Such a component may have original statutory functions or assigned or delegated statutory functions or a combination of these. The assignment of statutory functions of the executive authority to the head of a component, with accompanying shifting of accountability, is proposed to be subject to Parliament's approval. Government components may, however, not engage in socio-economic functions to give effect to the rights envisaged in sections 26 to 29 of the Constitution. A government component is partnered with a principal department, which will assist the executive authority of that department, i.e. the responsible Premier or MEC, in the case of an Office of the Premier or a provincial department, with oversight of such component.

The advantages of using this organisational form in the public service include the customisation of the administrative and operational arrangements designed to suit a particular service delivery environment. Better governance through direct accountability and decision-making as close as possible to the point of service delivery will be an added advantage. Political heads will also have more direct control and influence over service delivery outcomes without the need to necessarily create entities outside the public service.

While proposing this alternative service delivery model, however, it is important to stress that it is not intended to fragment the state. On the contrary, it responds directly to forms of fragmentation that have already occurred through the establishment of public entities. Indeed, the government component model will also be an institutional mechanism to reincorporate some public entities, where appropriate and if required, into the public service. The responsible Minister or political head of that component could also, if required, create an advisory board to advise on service delivery matters or to accommodate stakeholder interests.

In addition to the government component model, the Bill also proposes an enabling provision for the establishment of specialised service delivery units within departments. The features of these units are similar to those of government components, except that these units may, unlike such components, perform services pertaining to constitutional socio-economic rights. Moreover, these units will operate within departments while government components will be separate, accountable institutions outside departments. Provision is also made that when the executive authority or head of the relevant department delegates human resource functions affecting specialised service delivery units, these functions must be delegated to their heads. Subject to the Treasury's approval and special arrangements regarding accountability, the Bill also provides for compulsory financial delegations to the unit head.

To assist with the enforcement of the provisions of the Public Service Act, executive authorities are compelled to take disciplinary steps against heads of department transgressing its provisions, and heads of department to take such steps against transgressing employees. They are also required to report transgressions respectively to the Minister for the Public Service and Administration and the Director-General of the Department of Public Service and Administration. The Minister for the Public Service and Administration may also report transgressing national executive authorities to Cabinet and transgressing provincial executive authorities, through the relevant Premier, to the provincial Cabinet in question. That Minister must also annually report transgressions to the relevant committees of Parliament and of the provincial legislatures concerned.

A further important measure to improve compliance with the Public Service Act is the compulsory implementation by political and administrative heads of the directions of the Public Service Commission regarding certain human resource matters.

The Bill also proposes the institution of disciplinary steps against employees at their new departments for alleged transgressions at departments where they were formerly employed.

Anti-corruption measures to prohibit the re-employment of persons in the public service dismissed for specified kinds of misconduct, e.g. misconduct involving corrupt activities, are also contained in the Bill. It is proposed that the prohibition on re-employment should endure for a stipulated period and that different periods may be prescribed by regulation in respect of different types of misconduct.

A number of the amendments in the Bill will enhance employees' rights. These include:

* The compliance measures mentioned above which also extend to collective agreements. These measures will assist employees where departments to their employees’ detriment fail to comply with collective agreements and other public service prescripts.

* Provision is made for a fair process before employees may be transferred to other government departments in the public interest. An employee may make representations on why he/she does not want to be transferred. These representations must then be considered and weighed against the public interest (i.e. to better serve the needs of the people).

* Employees of government institutions outside the public service who voluntarily join a national or provincial department will be transferred in order to recognise his/her years of service and certain benefits (e.g. pension and leave credits).

* Under the current Act, employees need permission to undertake remunerative work outside of the public service. The Bill proposes criteria that the employer must consider when deciding whether to give such permission, namely that such outside work should not interfere with the relevant employee's functions or be in conflict with the Code of Conduct applicable to public servants.

* Certain restrictions on political rights of employees are removed and employees are permitted to participate as candidates in elections. They may be candidates without resigning from the public service during the election period – only if they are elected and they accept such election will their employment in the public service be terminated.

* Provision for disciplining employees moving from one department to another will enhance the morale of compliant employees, i.e. transgressing employees cannot avoid being disciplined by simply resigning and obtaining employment elsewhere in the public service.

* Similarly, the prohibition on the re-employment of employees dismissed for particular categories of misconduct (including misconduct related to corrupt acts) for a specified period, would assist with the morale of honest and otherwise compliant employees.

Honourable Chairperson, if this Bill is adopted by Parliament and signed into law by the President, I submit that it will contribute to the efficiency and effectiveness of the organisational and human resource framework for national and provincial departments, by introducing new service delivery models and enforcement mechanisms as well as by improving the day-to-day administration of the Public Service Act. While compliance in itself does not guarantee efficient and effective service delivery, it is a necessary step in ensuring the improved performance which all of us seek in public services. Indeed all the measures proposed in this Bill are designed to enhance governance, accountability and compliance that I am convinced will lead to better service delivery.

I would like to thank the Select Committee on Local Government and Administration for its vigorous engagement on the proposed measures in the Amendment Bill in order to ensure that these accord with the constitutional values and principles for public administration and also for facilitating public participation through the provincial legislatures.

As honourable members are aware, government intends to propose draft legislation to create a Single Public Service of administrations in the three spheres of government for consideration and debate by Parliament during 2008. I trust that all stakeholders participating in the consultative process preceding the introduction of such proposals; will constantly remind themselves that the overarching aim of a Single Public Service is not about centralising power. Rather it is about ensuring integrated, efficient, high quality, collaborative and accountable service delivery to promote social and economic development, in the spirit of co-operative government as recognised by Chapter 3 of the Constitution. I urge all stakeholders to analyse the provisions of the draft legislation for a Single Public Service to ensure that interest groups and the general public are correctly informed about its scope and purpose. We should all debate this legislative initiative in a robust, yet innovative and constructive manner in order to create the conditions for a better life for all of our people.

Issued by: Department of Public Service and Administration
20 November 2007