CHAPTER 1

INTRODUCTION

 

1.1 DEVELOPING A CULTURE OF GOOD GOVERNANCE

This report contains the main findings and recommendations of the Presidential Review Commission (PRC) in relation to the operation, transformation and development of the South African Public Service, and in particular to the creation of a new culture of governance. Our view of such a culture, taking account of world-wide experience, is that it should help:

• To protect and enhance representative and participatory democracy;
• To support civil society and its interaction with government;
• To promote economic and social development and the advancement and empowerment of disadvantaged people and communities;
• To shift power and authority from central government to provincial and local government, within a framework of national norms, standards and values;
• To locate responsibility for achieving efficient and effective delivery of services to the lowest possible level;
• To ensure that ethical and professional standards are developed and maintained throughout the public service and all other organs of state;
• To ensure that the functions and records of government are open to public view and appraisal;
• To secure accountable and transparent stewardship of public resources, so as to build the kind of society envisaged in the 1996 Constitution;
• To reward achievement, acknowledge failure and give redress to grievances.

It is our hope that this report will assist in moving the public service in this direction. However, the final responsibility for implementing our recommendations, if accepted by the President, rests with the Office of the President to appoints officials or establish an agency to oversee their implementation.

1.2 MANDATE AND TERMS OF REFERENCE OF THE PRC

The need for the PRC was first highlighted in The White Paper on the Transformation of the Public Service (WPTPS), published in 1995. The WPTPS proposed the creation of a number of new and additional structures to add impetus to the transformation process, and to ensure in particular that it was "founded upon effective consultation with public service staff and unions, and civil society stakeholders" (WPTPS, para 6.2 ). These structures included a Presidential Review Commission, to be established as a matter of urgency, together with a number of other structures such as the Public Sector Transformation Forum and Departmental and Provincial Transformation Units.

The PRC was officially titled The Commission of Inquiry Regarding the Transformation and Reform of the Public Service. Its terms of reference were published on 8 March 1996 (Government Gazette No. 17020), with the specific mandate to:

"(a) inquire into the structures and functions of the public service and its statutory bodies;

(b) conduct an internal audit and review of each ministry, department, provincial administration, organisational component, office and agency concerning its objectives, structure, function, staffing, financing and related matters; and

(c) conduct a review and revision of the systems, routines and procedures of planning, budgeting and financial execution in the public service, to increase public accountability.with a view to making recommendations and proposals regarding the transformation and reform as envisaged in the White Paper on the Transformation of the Public Service, Notice No. 1227 of 1995, published in the Government Gazette No. 16838 of 24 November 1995."

1.3 BACKGROUND AND CONTEXT

The underlying principles and purpose of these terms of reference were derived from the WPTPS, as well as the core democratic values governing public administration as contained in the Interim Constitution and the present Constitution (Chapter 10, para. 195:1 of Act 108 of 1996). Together these documents constitute the framework of the Commission's remit to provide for the creation of what the mission statement of the WPTPS describes as a "people centred and people driven public service... characterised by equity, quality, timeousness and a strong code of ethics" (WPTPS, para 2.1). This mission was in turn based on a redefinition of the role of the state and its relationship to civil society, encompassing a partnership between the two rather than the essentially antagonistic relations which prevailed in the past.

The PRC's key role, therefore was to assist in the processes of transforming the state and its principal executive arm, the public service, from an instrument of discrimination, control and domination to an enabling agency that would consolidate democracy and empower communities in ways that were demonstrably accountable and transparent (WPTPS, para 2.3). This would involve, among other things, making recommendations for overcoming many of the serious challenges and constraints facing the transformation process, many of them inherited from the previous regime. These included:

• The lack of racial, gender and occupational representativeness;
• The lack of clarity and communication in respect of the vision for change;
• Centralised control and top-down management.
• Poor productivity;
• The low level of service delivery, especially to the majority population;
• A disempowering work ethic;
• The absence of clearly defined roles and responsibilities;
• The lack of effective co-ordination and communication among the key agencies of transformation.
• The persistence of rule-bound practices and culture.

The WPTPS sought to address these and other challenges by proposing programmes that required both radical institutional change and far reaching transformation, not all of which could be effected incrementally. The establishment of the PRC in March 1996 was intended to support and consolidate these initiatives, and to recommend viable changes that would facilitate the transition and provide a framework for more fundamental transformation.

For a variety of reasons the early stages of the Commission's work (between March 1996 and April 1997) was marked by a number of bottlenecks which seriously delayed progress. At the same time the process of public service reconstruction and development had acquired its own momentum. This was partly due to the pressure of events and partly because there were now a number of positive departmental responses to the White Paper and important regulatory initiatives that enabled a representative number of competent officials to be appointed at senior levels in government who could respond to the new challenges.

It therefore became increasingly apparent to the Commissioners, the Minister for the Public Service and Administration, his senior officials and the international partners that the public service context within which the Commission was working was itself changing rapidly. The pressure of events between 1994 and 1997 required action by the government on a number of specific issues on which, given time, it would have been appropriate for the Commission to have made recommendations. These included:

• The establishment and development of the new Department of Public Service and Administration DPSA), and its assumption of many of the executive duties formerly associated with the Public Service Commission (PSC) and Provincial Service Commissions established by the Interim Constitution;
• The changing role, powers and duties of the PSC, under the new Constitution;
• The publication of a range of important policy documents from the DPSA, designed to take the WPTPS process further^;1
• The proposed reduction of 300,000 in the number of public service posts;
• The Audit by the DPSA of the performance of provincial governments (published as The Provincial Review Report in 1997);
• The development of a strategy for utilising information technology; and
• The revision of the massive, complex rule-book of public service regulations, particularly as contained in the Public Service Staff Code (PSSC).

The products of these initiatives by the Minister and his department have been made available to the PRC and where appropriate these have been commented on in the Report.

In addition, the work of the Commission was also informed by the new Constitution that was introduced in 1996, as well as by the RDP and other policy initiatives and legislative changes that impact on the public service. Of particular importance was the introduction in June 1996 of the Government's Macro-Economic Strategy for Growth, Employment and Redistribution (GEAR), which imposed new fiscal constraints on the public sector. Other important initiatives included the new Labour Relations Act (1996), the Department of Labour's Green Papers on Employment and Occupational Equity (1996) and A Skills Development Strategy for Economic and Employment Growth in South Africa (1997), and the Open Democracy Bill.

1.4 REVIEWING THE MANDATE AND RECONSTITUTING THE PRC

Against this background it became increasingly obvious that the original work programme of the PRC was too ambitious to complete, especially given the delay caused by the administrative obstacles that prevented the Commission from proceeding beyond November 1996. It was therefore no longer feasible to follow the original business plan and strategic design within what remained of the statutory timeframe of the Commission, particularly in the light of the Commission's logistical capacity and the ancillary activities of the DPSA and PSC.

The original business plan was therefore suspended at the end of 1996. The Chairperson, Professor Bax Nomvete resigned and the Commission was itself reconstituted with Dr Vincent Maphai and Professor Norman Levy appointed as Chairperson and Deputy Chairperson respectively. A new Business Plan was adopted in June 1996, constructed around two key components:

• The conducting of a series of public sessions of the Commission at which ministries, departments, provinces, the PSC and other relevant stakeholders were invited to give evidence and make comments on the progress of the transformation process;
• The establishment of four small, professional task teams to consider the key areas of structures, human resource development, financial planning and management, and information management and technology.

In support of the Task Teams, a number of process and specialist studies were also commissioned (see later). As before, support was generously provided by the Commission's international collaborators, not least the Commonwealth Secretariat. And as can be seen from the schedule of briefings (in Appendix 4 of this report), the key areas of government were examined following full presentations from departments, provinces, ministers and their deputies, amongst others.

At the outset, the strategies and methodologies adopted by the Commission were defined by how it perceived its role. The Commission aimed at fair and sound judgements which displayed a practical awareness of the many difficulties encountered in the public service. At the same time, it wanted to provide a vision underpinned by practical and implementable recommendations. Specifically, the Commission did not perceive itself as a tribunal investigating crime or misdemeanour. Its fundamental role was to understand the problems that many committed people within the service were trying to grapple with, and to advise the President on the strategic direction of the public service. This attitude facilitated the Commission's work immensely. Departments and ministries were less defensive than might otherwise have been the case.

1.5 REVISITING THE PRIORITIES: TOWARDS THE DEVELOPMENT OF A CULTURE OF DEMOCRATIC GOVERNANCE

Since the inception of the PRC, significant change has been effected in terms of representivity, policy formulation, and institutional re-engineering at national and provincial levels of government. Such changes have, however, been implemented unevenly. To a considerable extent, therefore, the essential ingredients of good governance are still missing, including the development of an effective culture of democratic governance.

These essential elements include:

• Effective service delivery;
• Coherent organisational structures, including the organisation and design of ministries, departments and quasi-independent units of government;
• Appreciably transformed human resource practices;
• Acceptable levels of financial planning and management;
• Viable forms of inter-governmental relations
• Appropriate arrangements for the functioning of political and administrative personnel.

While plans for the development and introduction of more effective systems of information management and technology are currently on the drawing board, they have not as yet been fully agreed, let alone implemented - hence the Commission's additional concern in this regard.

The deficiencies of the public service were less visible as long as it performed the routine tasks that sustained apartheid. The new political dispensation and the consequent need to deliver services efficiently, equitably and cost-effectively to the whole population, has provided the greatest challenges and severely constrained its capacities.

The focal question for the PRC was therefore how to make the public service a legitimate and effective development-oriented instrument of long-term transformation, capable of bringing services to the whole population on an equitable basis, and of facilitating the development of service excellence and public sector democratisation in the medium and the long-term in all sectors and regions.

This focus provides a basis for the interpretation of the spirit of the WPTPS and the formulation of the Commission's tasks for the reform and transformation of the Public Service. The key themes envisaged by the WPTPS for reform and transformation included:

• Improving the quantity, quality and equity of service delivery to all citizens;
• Changing the racial, gender and disability composition of employment in the Public Service;
• Creating an integrated and unified framework for the operation of the public service at national and provincial levels;
• Determining the right size for a productive public service, involving the re-prioritisation and optimal allocation of human and other resources;
• Promoting a cost-effective public service, capable of achieving an appropriate balance between effective services and an environment of fiscal constraint;
• Improving the strategic prioritisation and planning processes;
• Ensuring effective systems for the monitoring and review of public service performance;
• Improving co-ordination and communication;
• Ensuring effective consultation and participation (by employees, customers, and the public as a whole) in the planning and operation of the new public service ;
• Promoting internal democratic work practices and external accountability;
• Building new management and leadership practices, as well as new organisational cultures reflecting the diversity of South African society;
• Prioritising individual and institutional capacity building through the development and introduction of appropriate programmes of human resources planning, development and training;
• Ensuring that financial control mechanisms work;
• Developing a professional work ethic;
• Eliminating corruption.

Together such measures, if effectively implemented, should help to ensure the development of a new and effective culture of democratic governance in South Africa.

1.6 REVISED METHODOLOGY AND APPROACH

Following the interruption of its inquiries and the temporary cessation of its activities, the detailed work of the PRC only effectively resumed in June 1997 after the adoption of its revised Business Plan. However, the Commission still needed to complete its work timeously (by early 1998), cost-effectively and with due regard to quality, relevance and an acceptable level of sampling. This placed obvious constraints on its work-plan. These were reflected in the revised methodology adopted by the Commission in its June 1997 business plan, particularly in relation to:

• The determination of its core inquiries and an appropriate organisational design;
• Proposed outcomes;
• The scope of the Commission's activities;
• Process;
• Sampling;
• Specialist, Process and International Comparative Studies;
• Written Submissions;
• Focus Groups;
• The appointment of a Strategic Team of knowledgeable persons to assist the Commission in the performance of its core functions.

1.6.1 Core Inquiries and Organisational Design

As the aim of the PRC was to establish medium to long-term frameworks and performance assessment criteria for strategic interventions in key areas decisive to the on-going process of restructuring and reform, the core inquiries of the commission were re-classified under four main headings or themes. Self-contained but nevertheless cross cutting and inter-related, these four themes were:

• Structures and Functions of the Public Service;
• Human Resources Management and Development;
• Budgeting and Financial Management;
• Information Management, Systems and Technology.

It was felt that these four key areas would capture the substantive issues under inquiry and provide optimal opportunities for an interactive process of debate by commissioners, task team leaders and members, members of the strategic team, and other important role-players. For each of the four areas a convenor and task team was commissioned. The four convenors were represented on the strategic team which was set up to plan and oversee progress. Each of the four task teams were allocated one or more commissioners to assist in the supervision and carrying out of their work.

For the work of the four task groups a common but flexible methodology and format was adopted to guide their inquiries.

This methodology and format included:

• The macro-Institutional context of Public Sector Management
• Problem statement
• The mission, vision and goals of the department or agency;
• The machinery of government decision making
• Management Systems, Culture and Practices;
• Operational and Service Delivery Issues
• Monitoring and evaluation.
• Recommendations

1.6.2 Proposed Outcomes

Methodologically, the inquiries would be expected to have as their outcome a number of recommendations that would seek, amongst other things:

• To transform the management and organisation of government and its structures to best support the implementation of the policies of the government of the day;
• To enhance the capacity of personnel and institutions to deliver governmental services in an efficient, effective and well-targeted fashion;
• To improve the public ethos;
• To promote further representivity in the public sector;
• To improve the performance of line departments;
• To improve financial planning and management systems;
• To promote the development of capacity in the utilisation of electronically-enabled information systems to more effectively assist in the processes of governance and public management.

1.6.3 Scope

In the light of the broad definition of public administration contained in the 1996 Constitution, the Commission felt that it would have been within the scope of its terms of reference to include local government and the parastatals within its inquiries. However, given the large size of the public service² and the short timescale for the completion of its work, the Commission decided to confine its investigations to the public service as defined in the 1994 Public Service Act, and therefore to exclude both local government and public enterprises.

This decision was arrived at in the interests of sustaining the manageability and quality of the Commission's final report. In view of the importance of local government in respect of the local delivery of services, and its relationship to the other tiers of government, the Commission nevertheless recommends that a separate inquiry be undertaken into this area by an independent Commission appointed for this purpose. Such a Commission, if appointed, might choose of course to be guided in its work by the methodology, findings and recommendations of the PRC.

1.6.4 Process

In compiling the findings and recommendations contained in this report, the Commission, its strategic team and its four main task teams made use of the following investigative techniques and sources of information:

• Original research and investigations carried out by the members of the strategic team and the four task groups;
• Verbal presentations before the Commission by government departments, agencies, provincial administrations and other interested stakeholders, including business and labour (see Appendix 4).
• Written submissions by government departments, agencies, provincial administrations and other interested stakeholders and individuals, including business and labour (see Appendix 5);
• Specialist and process studies commissioned from local and international experts;
• Focus groups with politicians, senior management and other interested stakeholders.

Additional details on these processes are provided in subsequent sections of this introductory chapter of the report.

1.6.5 Sampling

In its original terms of reference the Commission was charged with carrying out an in-depth investigation into the operation of each ministry, department, provincial administration, organisational component, office and agency. Given the constraints under which the Commission has operated since June 1997, when its real work effectively started, this would have been an impossible task. The Commission therefore agreed that it would be necessary to concentrate its work on a sample of such organisations and agencies. Providing such a sample was sufficiently comprehensive and inclusive, and backed-up by additional research, focus groups and written submissions, the Commission felt that the significance and integrity of its findings and recommendations would not be unduly compromised.

To this end the following organisations and agencies were invited to make presentations at public hearings of the Commission (see Appendix 4 for more detail):

• 19 out of the 32 national departments (see Appendix 4). Presentations were made in most cases by both the political and administrative heads of these organisations;
• 5 out of the 9 provinces (Eastern Cape, Gauteng, Kwa-Zulu Natal, Northern Province, Western Cape). Again presentations were made by both political and administrative heads;
• The Offices of the President and Deputy President;
• The Provincial Secretariats for Safety and Security in Gauteng, Mpumalanga and the Western Cape;
• Three organisational components (South African Revenue Services, Central Statistical Services, and SAMDI);
• Two statutory agencies (The Public Service Commission and the Finance and Fiscal Commission);
• COSATU;
• Business (were invited to make a presentation, but chose to submit a written commentary instead).
• Consultations with the Deputy President and with the Ministers for Justice, the Public Service and Administration, Safety and Security, and Trade and Industry;
• Consultations with the Offices on the Status of Women and Disabled Persons, the South African Chamber of Business, and the Public Servants Association of South Africa.

To ensure as inclusive a coverage as possible, departments were grouped according to their direct involvement in the following four functions:

• Asset delivery (such as Land, Housing and Water Affairs);
• Service delivery (such as Education, Health and Welfare);
• The indirect provision of services (such as Finance, Justice and Safety and Security);
• General administration (such as the DPSA and State Expenditure).

This classification assisted the Commission in the selection of departments for more detailed study and investigation.

Those national departments, agencies and provinces that were not selected for formal presentation of their transformation strategies were required to submit written documentation in respect of these as well as provide details of their core activities to the Specialist and Process Study teams appointed by the Commission (see in more detail below).

1.6.6 Specialist, Process and International Comparative Studies

The Commission's Final Report reflects the research contributions of the Commissioners and members of the Strategic and Task Teams, as well as those of a number of specialist consultants specifically commissioned to augment expertise within the Commission. The overall impact of these specially commissioned empirical studies has been to strengthen, and in some instances modify, the conclusions reached by the Commissioners and members of the Strategic and Task teams.

1.6.6.1 Specialist Studies

Specialist studies provided a more focused and detailed analysis of departmental structures, composition, organisational design, human resource management and financial administration. The specialist statistical analysis of the racial, gender and occupational distribution of public service employees in the provincial and national departments, complements the other specialist studies by providing a detailed audit and evaluation of progress towards representivity and employment equity. Seven specialist studies were carried out on the following topics:

• Human Resources
• Inter-Governmental Relations
• The Use of IT in the Public Service
• Planning and Budgeting in South Africa
• Budgeting and Financial Management
• Financial Transfers
• Procurement

1.6.6.2 Process Studies

The process studies served to conduct a targeted audit of selected provincial and national departments. These were of an operational and structural kind, mapping the processes and establishing the bottlenecks at the core of service provision. They were effective in assisting Commissioners in the analysis of key process-bottlenecks which impede the quality of service and impact upon the cost effectiveness and efficiency of whole line departments and public service personnel.

Five process studies were carried out on the following topics:

• Recruitment and Selection
• Service Delivery
• National and Provincial Budget Processes
• Procurement
• Process Analysis of Transactions ( Data-Flow in the Public Service)

1.6.6.3 International Studies

The utilisation of international specialists has likewise been productive in providing in-depth descriptions of current best practice and international perspectives in respect of their specialist themes. International specialist teams were utilised from the Commonwealth Secretariat and the UK Department for International Development (DFID), as well as a further two specialists from Canada with long-term experience in the public service. Five studies were carried out on the following topics:

• Ideas and Practice in Public Management Reform
• Human Resources Management: International Comparative Experience and Benchmarking
• Financial Planning, Accountability and Management in the UK
• Transforming the South African Public Sector using IT: A Core-Periphery Approach
• Managing Reform Processes: Some Ideas from the Commonwealth

In addition to the specially commissioned studies, the internationalist specialists made available a number of documents to the PRC that were particularly relevant to its work. These included:

• Governing Strategically: The New Zealand Experience
• New Zealand: Chief Executive Performance Agreement
• OECD: The Changing Role of the Central Budget Office
• Budgetary Institutions and Expenditure Outcomes: Binding Governments to Fiscal Performance -- A Study of Ghana, Uganda and Malawi

1.6.7 Written Submissions

An important part of the process followed by the Commission was to secure a fully representative sample of the views of the public regarding the core themes of the PRC. The mechanism adopted was to request written public submissions from both the public and private sectors in response to advertisements placed in representative and accessible selections of the mainstream media. The process followed was to classify the submissions according to the following seven categories and to analyse and incorporate the content, where appropriate, in the report.

The seven categories were:

• Public Sector respondents
• Business
• Labour
• Non-Governmental Organisations
• Professional Associations
• Tertiary institutions
• Individual submissions

In the event, over 70 written submissions were made, covering a wide range of themes. A list of such submissions, together with a summary of the contents, is provided in Appendix 5. In addition, written submissions were also received from a number of departments and agencies in response to questions from the PRC following their presentations to the Commission.

1.6.8 Focus Groups

In general, the research process sought to gather information from a range of sources and to synthesise that information into preliminary findings which could then be discussed with key state personnel in focus groups. These served to assist Commissioners and the members of the Strategic team in identifying current examples of best practice. Focus groups were used particularly by the task teams on Financial Planning and Management, and Information Technology.

1.6.9 The Appointment of a Strategic Team

The work of the Commission was facilitated by the establishment of Strategic Team. Members of this team were selected in terms of Schedule 8 (1) of the Commission's Regulations which allows for the appointment of knowledgeable persons in a capacity other than commissioners to assist the Commission in its work. The members selected were specialists in the fields of public sector management, financial planning, human resources development and information systems. To a large extent they constituted the main instrument to drive the work of the Commission.

The team comprised a convenor and 8 other members. Three of these were technical specialists, sponsored by the UK, Swedish and Canadian Governments respectively. The remaining 5 were South Africans. Their function was to facilitate the process of the inquiry, to advise the Commissioners on all their deliberations, to formulate appropriate research questions, and to contribute to the analysis of issues raised during the course of the public presentations and regular strategic sessions of the Commission. An equally important undertaking of the Strategic Team was the elaboration of a detailed work strategy and participation in the four substantive task teams of the Commission. As such, their responsibilities included carrying out empirical investigations of a qualitative and quantitative nature, maintaining oversight of the specialist researchers, and developing (in conjunction with participating departments) a set of public sector benchmarks. Finally they were tasked with assisting the Commission in compiling the composite draft and final reports for approval by the full membership of the Commission. Although the final responsibility for the Report rests with the Commissioners, the part played in the process by the Strategic Team was in many ways crucial.

1.6.10 International Commissioners

In drawing on the international experience the Commission benefitted enormously from having four members with substantial experience of public service reform and modernisation in other countries. The four International Commissioners have, however, wished it to be recorded that, their contribution having been made, they see this Report as essentially South African, written by and for citizens of the new South Africa, and worthy to be received as such. They commend it accordingly.

1.7 STRUCTURE OF THE REPORT

In addition to this introductory chapter, the following report contains six main chapters. These are:

• Chapter 2 which provides an overview (entitled "How Government is Working") of the Commission's main findings, observations and recommendations.
• Chapter 3 which focuses on issues, findings and recommendations related to structures and functions within the public service.
• Chapter 4 which focuses on issues, findings and recommendations related to human resources management and development.
• Chapter 5 which focuses on issues, findings and recommendations related to financial management and planning.
• Chapter 6 which focuses on issues, findings and recommendations related to information management, systems and technology.
• Chapter 7 which sets out the Commission's conclusions and a summary of key recommendations.

1.8 ADDITIONAL REPORTS BY THE COMMISSION

In addition to this composite report, the Commission also plans to publish a number of the specialist, process and international studies outlined above. Together with the Commission's business plan and a detailed statistical analysis of public service personnel, these will be attached as annexures to the main report, as follows:

• Annexure 1 - Business Plan
• Annexure 2  - Statistical Analysis of Public Service Personnel
• Annexure 3 - International Comparative Studies
• Annexure 4 - Inter-Governmental Relations
• Annexure 5 - Human Resources
• Annexure 6 - Finance, Budgets and Procurement
• Annexure 7 - Service Delivery in the Public Service
• Annexure 8 - Information Management, Systems and Technology

Several of these annexures contain more than one study on the topic. For full details on the contents and authors, see Appendix 2 in this report.

1. These include the White Paper on Service Delivery (1997), the White Paper on Public Service Training and Education (1997), the Draft White Paper on a New Employment Policy for the Public Service (1997), the Green Paper on a Conceptual Framework for Affirmative Action and the Management of diversity in the Public Service (1997), and the Green Paper on A New Law for a New Public Service: Policy Proposals for a New Public Service Statute (1996)

2. The public service currently comprises approximately 26 ministries;  the Offices of the President and Deputy President; the Public Service Commission; 32 departments aligned to the various ministries; 5 quasi-independent organisational components, including the South African Revenue Services (SARS), the Centre for Statistical Services (CSS); the Independent Complaints Division, the South African Communication Services (SACS) and the South African Management and Development Institute (SAMDI); and the nine provincial administrations, each with a wide range of departments interfacing with each other, and inter-acting at inter-governmental levels.

Contents Chapter1 Chapter 2 Chapter 3 Chapter 4
Chapter 5 Chapter 6 Chapter 7 Appendicies