Department of Correctional Services Investigation and Reconstruction

PUBLIC SERVICE AND ADMINISTRATION PORTFOLIO COMMITTEE
16 March 2001
DEPARTMENT OF CORRECTIONAL SERVICES INVESTIGATION & RECONSTRUCTION

Chairperson: Mr N Nhleko

Documents handed out:
-Reconstruction of the Department of Correctional Services (included in the minutes)
-Investigation into the Department of Correctional Services by the Public Service Commission and the Department of Public Service and Administration: Information on findings and status report on the implementation of proposals (See Appendix)

SUMMARY
The Public Service Commission and the Department of Public Service and Administration submitted a joint report based on their investigation into the Department of Correctional Services. The Public Service Commission focused on the irregularities in human resource management practices.

The Department provided statistics on bribery, corruption, sexual harassment and incapacity in the Department of Correctional Services.

MINUTES
Introduction by Minister G Fraser-Moleketi
The Minister said that the involvement of the Department of Public Service and Administration (DPSA) was in accordance with the requirements of the Public Service Act. The functions of the DPSA in the present case are two-fold: Its first function is to identify problem areas with the Department of Correctional Services. Its second function is to look at the required intervention by the DPSA. At an early stage, the need for a multi-skilled team to assist with the reconstruction became evident.

While there were officials in the Department of Correctional Services (DCS) who were eager to assist in the process and to effect change, there were others who were determined to undermine the system. These people were part of the problem and action had already been taken against many of them.

Comments By Prof S Sangweni, Chairperson Of The Public Service Commission
Prof S Sangweni said that the context of the Public Service Commission (PSC)'s involvement is stipulated in S196 (4) of the Constitution. This section is further complemented by the Public Service Commission Act which requires the PSC to conduct investigations into Departments where the need arises.

After the departure of the former Commissioner of the Department, the Ministers for the Public Service and Administration and the Minister of Correctional Services ordered a Management Audit of the Department. The results of the Audit showed that the Department's human resource management system was deeply flawed and characterised by mismanagement and manipulation. The Minister for Public Service and Administration, in consultation with the Minister for Correctional Services, decided that allegations of :
-serious irregularities in respect of human resource management practices, be investigated by the Public Service Commission; and
-bribery, corruption, sexual harassment and incapacity, be investigated by the Department of Public Service and Administration (DPSA).

On 4 May 2000 the President appointed a multi-skilled Strategic Management Team (SMT) to assist with the reconstruction of the Department.

Findings, Proposals and redress resulting from the investigations
· Filing System
It was found the Department's filing system is outdated, inadequate and poorly managed. This had profound financial implications; for example there was not an adequate record of leave taken by and due to employees. The Department has already embarked on an investigation into a new filing system and an Assistant Director: Records Manager was recently appointed.
· Affirmative Action
The Department's Affirmative Action policy was found to be well-balanced, but its application was problematic. The Department often relaxed its requirements in an arbitrary manner, compromising in the process its ability to deliver on core services. There were insufficient training programmes to sustain its approach.
· Recruitment
There was a high incidence of officials allegedly involved in the appointment and promotion of relatives and friends. Although there is no prohibition on this it has the potential to evolve into nepotism and favouritism. Often people made it to the interview stage or were appointed without even having applied for the post. It was subsequently proposed that officials be obliged either to (i) declare being related to or a close friend of applicants to the Department, or to (ii) recuse themselves from processing relatives'/friends' applications.
· Verification of Qualifications
The Department did not follow up on the submission of qualification certificates or authenticate suspect qualifications. The assumption of duty is now subject to the submission of original certificates and all qualifications being verified.
Candidates' potential was often not evaluated in terms of the content and requirements of the posts. The identification and elimination of most candidates were ill-reasoned. there was a backlog in the filling of advertised posts. The Strategic Management Team dealt with the backlog within the first two months of their arrival. The Department has also developed a new policy on Post Advertisement.
· Bursaries
Bursaries were found to be awarded for qualifications not properly evaluated. The Department also did not follow up on examination results, thus compromising the management of these bursaries. It was proposed that examination results are monitored and that bursary debt is recovered.
· Disciplinary Action I Dismissals
The general quality of documents was so poor that review of cases proved impossible. Management was often not in control of dismissals and discipline and instead left it to lower level officials. Also, dismissal was used as a way of getting rid of unwanted employees who questioned the practices of the management. It was proposed that a circular be issued, stating the areas in which management erred and the disciplinary manual be updated. Unfairly dismissed officials should be reinstated.
· Transfers
These were often handled arbitrarily. The method of transfers was open to manipulation and transfers were often used as a disciplinary measure.
· Personnel Performance Assessment
Large numbers of officials received awards for which they did not qualify. Cash rewards in particular were used instead of merit awards and this often went to officials who towed the line.
· Compensation For Acting in Higher Posts
Although this matter was a once-off occurrence, in line with a resolution adopted in the Department's Bargaining Chamber, the Commission expressed concern that the control measures adopted may not have been foolproof. Many officials, who did not qualify in accordance with the laid down criteria for compensation, may have been compensated irregularly. Many cases were identified for review.
· Home Owners' Allowance
The State guarantees of a large number of former officials have not been redeemed. A sizeable number of officials occupy State quarters whilst still receiving home owners' allowances. It was proposed that these State guarantees be redeemed, and that homes be rented out. State quarters which are occupied should be monitored closely. There is a move toward getting management to relinquish these houses to custodial staff.
· Remunerated Overtime
It was clear that remunerated overtime was being abused on a large scale. This was evident in employees' practice of taking Mondays to Wednesdays off sick and then claiming overtime by working on weekends. The Commission reported on this to the Commissioner of the Department.
· Computerised Human Resource Management Information (PERSAL)
The Departments' records only contained basic personnel information. Audits were not regularly performed and control measures were not in place. A programme for redress was proposed.
· Trade Union Influence
Although many allegations were made of union influence over the Department, no conclusive evidence on this matter could be obtained due to time constraints. It is possible that union members may be following their own clique-inspired agendas, not necessarily with the blessing of their unions. It was proposed that the Department engage in a consultation process with trade unions to curb mismanagement and maladministration.
· General Management of Human Resources
Management often did not have the skills and knowledge of human resource management policies required to ensure sound decision-making. Submissions are generally scanty and ill reasoned. Some managers act in a "rubber-stamping fashion" and do not query obvious shortcomings in procedures followed. Policies and procedures are applied inconsistently. The SMT will mentor all inexperienced management until they reach maturity.
· Work ethic
All of the irregularities uncovered by the Commission can be linked to the transgression of the PSC's Code of Conduct. A programme to inculcate renewed awareness of work ethic was therefore proposed. The SMT is developing a departmental code of conduct.
· Corruption, maladministration, bribery and sexual harassment
279 cases of alleged corruption, maladministration, bribery and sexual harassment were reported. A breakdown of these figures is given in the document.

Redress outside the scope of the investigations
Prior to the completion of investigations the Strategic Management Team adopted the following turnaround strategies for the Department:
-Provincial Road Shows to Craft A New Culture: Visits were made to seven provinces.
Its purpose was to address the Department's culture of hostility and suspicion and to demonstrate their leadership's commitment to transform the Department.
-Reviewing the Organisational Structure: Changes took place in two phases:
Phase one was to review the Head Office structure and phase two aided by consultants, focussed on a complete business re-engineering process.
-Appointment of A Chief Financial Officer: The Department recently advertised a post of Chief Financial Officer within the Public Service and in the Media.

Discussion
Q: An opposition member asked what the purpose of the road show undertaken by the DG was in the light of media reports about the DG's misuse of loan facilities for members of the DCS.

A: The DG responded that the media reports had been mistaken in claiming that he did not qualify for the loan. In addition, he had already repaid the loan.

Q: Ms P Cupido (DP) asked if the Portfolio Committee on Correctional Services had been informed of the road show and if they had been involved in it.

A: The Commissioner stated that the Portfolio Committee had been informed. They were however not involved, as this was an activity that management had decided to embark on.

A member of the PSC suggested that members address questions and comments to the PSC and the DPSA and not ask questions to which the DG had to respond.

The Chair agreed, saying that this was not a hearing.
Q: An opposition member asked what happened once DCS rules of the previous government had been struck off (between 1996 and 1999). He asked whether new rules had been put into place or whether the Department had continued to function in the absence of rules.

A: Many legislative amendments had occurred between 1996 and 1998 after legislation had been reviewed. This had started with the white paper process and culminated in the new Act in 1999. Since 1999 the legislative framework had proven to be sound. However there is a need for greater intervention in this regard as all officials need to be brought up to speed on the new provisions.

Q: An ACDP member asked how the recovery of debts was progressing and wanted to know if the prescription periods were taken into account.

A: The Minister responded that in terms of the Public Finance Management Act it was government's legal duty to see that debts are recovered. A member of the PSC stated that they are working with the State Law advisor who will inform them if they were to run into difficulties with regard to prescription.

Q: Ms Cupido asked how many management posts have been vacant for more than two years.

A: Although a direct answer was not given, a member of the panel said these investigations were finalised last year. There will however be new appointments to these positions.

Q: Mr M Waters(DP) asked when the remainder of the cases of corruption would be investigated.

A: A member of the DCS said that this was dependent on the internal capacity of the department. There was a fully operational team who followed a systematic approach and reported to the Commissioner on an ongoing basis.

Q: An opposition member referred to the serious problems discussed by the Standing Committee on Public Accounts about the Chief Financial Officer of the DCS being unduly benefited. He asked how this was being addressed.

A: The Minister said that it does not help to look at financial interests without looking at human resource interventions if one wishes to ensure a 'turnaround'. She stated that the new Chief Financial Officer had been appointed during that week.

Q: Mr L Kgwele(ANC) said that in order to ensure greater service delivery it was necessary to improve co-ordination between the DCS and other departments in the Criminal Justice cluster.

A: A panel member stated that for the first time DCS was working closely with other agencies and departments. Although there were pockets of resistance and cover-ups, the majority of employees were co-operative. The Minister added that the issue of effective service delivery was not restricted to the DCS. It is therefore important for the Chair of the Public Service and Administration Portfolio Committee to interface with the other Chairs in order to decide on how to interface with the executive. The transversal issues should therefore be spearheaded by the Governance and Administration cluster.

Q: A member suggested that performance awards be used to ensure that the level of motivation is upheld.

A: The merits of this system were always recognised although the system had not been transparent in the past. The SMT is however introducing a new system that will serve the needs of the majority.

Q: Mr M Baloyi(ANC) asked whether there is a plan to prevent the recurrence of the past situation. He stated that anticipating loopholes would prevent them from being reactive instead of pro-active.

A: The Public Finance Management Act requires government departments to report any cases of fraud or risks that prevent government from reaching its target.

Q: Mr Baloyi asked what the extent was of the affirmative action problem.

A: A panel member said that statistics could be made available. The DCS and PSC have looked at how mentoring and coaching can bring officials who have been appointed on this basis up to speed. The Minister added that as one implements affirmative action it is important to provide training to build on existing competencies. This forms part of government's commitment to ongoing training.

The Minister said that the issues being grappled with in this meeting were not limited to the DPSA but were prevalent in government as a whole.

The Chair said that it was regrettable that the Portfolio Committee on Correctional Services was not present at the previous meeting of the Public Service and Administration Portfolio Committee. At this meeting the Vulindlela system was shown to be a very effective system and it would therefore have been valuable to have discussed this jointly.

The Minister extended an invitation to the DCS and all other government departments to attend an address on the Vulindlela system.

Ms C September(ANC) asked that the reports from the Bargaining Council be obtained for the Committee to consider. She suggested that the process be dealt with carefully as much could go wrong as a result of one irresponsible action.

The meeting was adjourned

Appendix:
INVESTIGATION INTO THE DEPARTMENT OF CORRECTIONAL SERVICES BY THE PUBLIC SERVICE COMMISSION AND THE DEPARTMENT OF PUBLIC SERVICE AND
ADMINISTRATION: INFORMATION ON FINDINGS AND STATUS REPORT ON THE
IMPLEMENTATION OF PROPOSALS
16 March 2001

INTRODUCTION
After the departure of the former Commissioner of the Department, the Ministers for the Public Service and Administration and the Minister of Correctional Services ordered a Management Audit of the Department. Following the completion of this Audit, which showed that Department's human resource management system was deeply flawed, characterised by mismanagement and manipulation, the Minister for the Public Service and Administration, in consultation with the Minister for Correctional Services, decided that allegations of -
- serious irregularities in respect of human resource management practices, be investigated by the Public Service Commission; and
- bribery, corruption, sexual harassment and incapacity, be investigated by the Department of Public Service and Administration (DPSA).

STRATEGIC MANAGEMENT TEAM
The President, in consultation with the Minister for the Public Service and Administration decided in April 2000 that an experienced and competent public manager be appointed as an interim arrangement to head the Department of Correctional Services for a defined period. The President also decided that a the Strategic Management Team of two or three persons, that are multi-skilled, from within or outside the Department of Correctional Services be established to assist the new Acting Commissioner. The Strategic Management Team was appointed by the President on 4 May.2000. Even as the investigations were ongoing, the Strategic Management Team was required to act decisively on issues emerging from these investigations.

REDRESS OUTSIDE OF THE SCOPE OF THE INVESTIGATIONS
Prior to the completion of the investigations by the Public Service Commission and the Department of Public Service and Administration, the Strategic Management Team set about on the following interventions as a turn-around strategy for the Department:

-Provincial Road Shows to Craft A New Culture
The strategic team had entered into an organization that was characterised by uncertainty and a culture of suspicion and hostility. To restore confidence the strategic team made direct
contact with the organization in order to demonstrate that there was a serious commitment from the leadership to transform the Department. Visits were made to seven of the nine provinces as a step to stabilise the organization and to craft a new culture in the Department.

-Reviewing the Organizational Structure
One of the first things the new management team did on arrival was to review the organizational structure. The team embarked on performing the changes in a two phased process. Phase one was to review the Head Office structure and phase two aided by consultants, focussed on a complete business re-engineering process.

-Creation of A Chief Directorate : Good Governance
By creating a Good Governance component, the new management team has embarked on a new approach to institute good governance and create synergy between all the investigative and monitoring resources in the Department. The component comprises an internal audit, inspectorate and anti-corruption directorate.

-Appointment of A Chief Financial Officer
The Department recently advertised a post of Chief Financial Officer within the Public Service and in the Media.

FINDINGS, PROPOSALS AND REDRESS ALREADY EFFECTED AS A RESULT OF THE TWO INVESTIGATIONS
The following findings and proposals were made by the Public Service Commission and the
Department of Public Service and Administration and action already taken by the Strategic
Management Team on key issues are also highlighted

-Filing System
Although not covered by the terms of reference of the investigations, numerous files at both national and provincial level had to be consulted and it was found the Department's filing
system is outdated, inadequate and poorly managed. The Department has already embarked on an investigation into a new filing system and an Assistant Director: Records Manager was recently appointed to oversee the rejuvenation of the Department's records. -Affirmative Action
Whereas the Department's Affirmative Action policy was found to be a well-balanced and complete document, the same cannot be said of its application. In practice, this policy has been insensitively applied with little regard to objectives such as achieving suitable levels of knowledge, skills and competencies and building the Department's capacity. The Department has frequently relaxed its requirements in an arbitrary manner, compromising in the process its ability to deliver on core services. This was further exacerbated by insufficient training programmes to sustain its approach. The operationalisation of affirmative action in the Department has already been revisited.
-Recruitment
The investigations revealed a high incidence of officials allegedly involved in the appointment and promotion of relatives and friends. Although there is no prohibition on this it has the potential to evolve into nepotism and favouritism if not managed sensitively.

It was subsequently proposed that officials henceforth be obliged to -
- declare being related to applicants for positions in the Department;
- declare being a close friend of an applicant; and
- recuse themselves from processing relatives'/friends' applications.

- Verification of Qualifications
The Department neglected to follow up on the submission of qualification certificates and to authenticate suspect qualifications Apart from certain case specific proposals that were submitted to the Department for attention, it was also proposed that assumption of duty be made subject to the submission of original certificates and that all qualifications be verified on candidates' appointment.

-Filling of advertised posts
The selection of candidates was frequently found to be approached in a generic fashion where, for example, candidates' potential was not evaluated in terms of the content and requirements of the posts for which they were considered. The identification of the most suitable candidates and the elimination of those found to be less suitable were ill-reasoned.

The Strategic Management Team found a backlog in the filling of advertised posts due to a moratorium that was placed on the filling of posts. This was immediately lifted and the team dealt with the backlog within the first two months of their arrival. The Department has also developed a new policy on Post Advertisement (Filling of promotion posts), which is also in line with prevailing legislation applicable in the Public Service.
-Bursaries
Bursaries were found to be awarded for qualifications not properly evaluated. The Department also did not follow up on examination results, as required, which has compromised the management of these bursaries in relation to contractual obligations and monetary implications. It was proposed that examination results be monitored and that bursary debt be recovered.

-Disciplinary Action I Dismissals
Although basic procedural steps in the management of discipline were generally followed, substantive fairness is compromised by a lack of preparation and planning for disciplinary hearings, long delays in finalising cases, and poor cross-examination of witnesses. The general quality of documents in relation to disciplinary cases was found to be unacceptable.

Apart from handling case-specific proposals submitted to the Department, it was proposed that a circular be issued in which management's attention is drawn to those areas in respect of which they erred. It was also proposed that the Department's disciplinary manual be updated and this is already receiving attention. A task team has already been appointed to attend to the re-instatement of officials who have been unfairly dismissed.

-Transfers
It was found that the manner in which the transfer and redeployment of officials had been handled was often arbitrary and did not contribute to organizational goals. The method of transfers was open to manipulation, and it was also found that transfers were used as a disciplinary measure.
-Personnel Performance Assessment
Large numbers of officials received merit awards, cash rewards and departmental specific awards for which they did not qualify. Cash rewards in particular were used instead of merit awards, where this was not permissible in terms of applicable prescripts.

After scrutiny of the performance measurement instruments in use in the Department, the team decided to suspend all existing instruments and advised that a separate performance measurement instrument be utilized in the current financial year for the granting of leg promotions, merit awards and notch increases. The Department also developed a new draft "Policy and Procedure Guidelines of a Personnel Performance Management System" aimed at the achievement of the vision and the Department's Strategic Business Plan.

-Compensation For Acting in Higher Posts
Although this matter was a once-off occurrence, in line with a resolution adopted in the Department's Bargaining Chamber, the Commission expressed concern that the control measures adopted may not have been foolproof. Many officials who did not qualify in accordance with the laid down criteria for compensation, may have been compensated irregularly. Many cases were identified for review.

-Home Owners' Allowance
Although not covered by the terms of reference of its inquiry, it was discovered during an analysis of the Department's Computerised Human Resource Data Base (PERSAL) on dismissals that the State guarantees of a large number of former officials have not been redeemed. A sizeable number of officials occupy State quarters whilst still receiving home
owners' allowances. It was proposed that the State guarantees of former officials be redeemed, and that homes rented out whilst state quarters are occupied be monitored closely. It was further proposed that participants' eligibility to participate in the scheme be audited.

-Remunerated Overtime
Since the inquiry revealed that substantial amounts of overtime were involved, the Commission investigated this matter as a precursor to a separate more thorough investigation on this matter and uncovered many control problems. It was clear that remunerated overtime was being abused on a large scale. The Commission reported on this separate in-depth investigation in full to the Commissioner of the Department.

-Sick Leave
A statistical analysis from PERSAL data over the period 1 April 1999 to 31 March 2000 revealed a staggering R68 005 256-00 lost to sick leave in the Department. A separate in-depth investigation into the management of leave in the Department was therefore conducted by the Commission and also reported on separately to the Commissioner.

-Computerised Human Resource Management Information (PERSAL)
The Department's PERSAL records were not covered by the terms of reference of the inquiry. However, after having been consulted quite extensively, the Commission felt itself compelled to also report on this matter. As an integrated personnel and salary system that enables the furnishing of comprehensive management information, the Department's PERSAL records were found to fall seriously short of what is required. Despite the capability of the system, the Commission found the Departments' records to only contain basic personnel information. Audits are not regularly performed and control measures on a variety of human resource practices are not in place to ensure cost-effective administration. A programme for redress was proposed.

-Trade Union Influence
Although many allegations were made of union influence over the Department, no conclusive evidence on this matter could be obtained within the time-frame and the terms of reference of the inquiry. However, the possibility had to be conceded that members of such unions may be following their own clique-inspired agendas, not necessarily with the blessing of their unions.

It was proposed that the Department engage in a consultation process with trade unions to co-plan a strategy to curb mismanagement and maladministration.

-General Management of Human Resources
The inquiry revealed that many role-players at management level, do not have the skills and knowledge of human resource management policies required to ensure sound decision-making. Submissions are generally scanty and ill-reasoned. Some managers act in a "rubber-stamping fashion" and do not query obvious shortcomings in procedures followed. Policies and procedures are deviated from without proper sanction and/or motivation and are applied inconsistently.

To overcome the aforementioned, the Strategic Management Team will be mentoring all inexperienced management until they reach maturity. All delegations within the Department were also reviewed with a view to ensure efficiency and effectiveness.
-Work Ethic
All of the irregularities uncovered by the Commission can be linked to the transgression of one or more clauses in the Public Service's Code of Conduct. A programme to inculcate renewed awareness of work ethic was therefore proposed. The Strategic Management Team also initiated the development of a departmental code of conduct as a visible move towards the commitment to good governance.

- Corruption, maladministration, bribery and sexual harassment
· Of the 279 cases of alleged corruption, maladministration, bribery and sexual harassment that were reported, 79 were investigated of which -
* 24 cases are still under investigation;
*30 cases were substantiated of which all do not necessarily require further disciplinary action or criminal investigation (in some instances allegations are founded in poor application of the Department's internal policies); and
*25 cases were not substantiated.

· Investigation into criminal matters, tender corruption and the Kulekani Sitole Scholarship Fund are still ongoing.

· The following were found to be problematic within the Department:
*The prevailing operational culture within the Department
* The application of the parole system
*Access of prisoners to the Office of the Judicial Inspectorate
*The powers of the Commissioner of the Department
*The role of senior managers in union activities

· It was also evident that the Department lacks a common vision, mission and cohesiveness, as well as a comprehensive strategy to address corruption within the Department.

FURTHER ASSISTANCE
The Department has, in accordance with the recommendations of the DPSA Report and in partnership with both the DPSA and PSC, developed the terms for an overall change strategy. This strategy will be underpinned by-
· a reconstruction of human resource management systems;
· a revision of the budgetary system and financial management arrangements;
· a reconstruction of the organisational structure to better suit the core business and management arrangements;
· the development of a comprehensive anti-corruption strategy; and
· the alignment of the Department's legislation, regulations and collective agreements with national norms and standards.

CONCLUSION
Both the Department of Public Service and Administration as well as the Commission will monitor the implementation of their proposals.