Subsidised Motor Transport Scheme: briefing; Committee Business Plan and Budget: adoption

Meeting report

PUBLIC SERVICE AND ADMINISTRATION COMMITTEE
10 November 2004
SUBSIDISED MOTOR TRANSPORT SCHEME: BRIEFING; COMMITTEE BUSINESS PLAN AND BUDGET: ADOPTION

Chairperson: Mr M Baloyi (ANC)

Documents handed out:
Department PowerPoint presentation on Report on Management of Subsidised Motor Transport Scheme
Report on the Management of the Subsidised Motor Transport Scheme (available at www.psc.gov.za)
Committee Business Plan 2004-2009
Proposed Committee 2005/6 Budget

SUMMARY
The Department presented a report on the Subsidised Motor Transport Scheme (SMTS) which had taken two years to complete. This concluded that the Scheme was administered and managed effectively and efficiently, but could be improved by applying the eight recommendations in the Report. Members were concerned about corrupt practices connected with the scheme as reported in the press, and about inconsistencies and rising costs revealed in the report.

MINUTES

Department briefing
Mr Fanie Hartzenberg (Deputy Director: Public Service Commission) summarised the objectives, methodology and recommendations of the investigation into the management of the SMTS. It was one of three existing structures for providing transport to officials, the other two being the Government Garage and the Senior Management Service scheme. The investigation had covered 22 government departments, two per province as well as four national departments. Out of 1.1 million public servants, about 10 000 were participants in the SMTS.

Professor S Sangweni (Chairperson: Public Service Commission) explained that the cost of the SMTS had rocketed from R81 million in 1999/2000, to R213 million in 2001/02. The investigation had taken two years to complete due to other demands on senior officials’ time in attending to major issues in the Eastern Cape.

Discussion
Members asked for clarification on the SMTS rules, such as the qualifying criteria for joining, the ratio of private/official use, the period of time and distance travelled per vehicle, the accuracy of the records, about and accidents/towing facilities, private passengers, and insurance.

Dr A N Luthuli (ANC) expressed concern about increasing abuse of the system as evidenced by press reports, and asked what was done. She suggested raised public awareness and that a telephone number for informers be made available.

Dr Norman Maharaj (Commissioner: Public Service Commission) replied that the public could not identify vehicles in the scheme because these actually belonged to the officials and were not marked to distinguish them from other privately-owned vehicles. The ratio for official: private use was 70: 30%. To a large extent they depended on the integrity of the official, but on fixed routes, transport officers could pick up abuse.

Professor Sangweni stated that ethical conduct was crucial. The suspicion of corruption in Kwazulu-Natal was partly based on the inordinate number of SMTS participants in the office of the Premier, as compared to other provinces.

Mr Hartzenberg explained that the criteria for participation were a valid driver’s licence; and a projected 21 000 to 29 000 km per annum driven on official business. The Government paid for capital costs, maintenance and fuel allowances; and after 32 to 38 months in use or 160 000 km travelled, transfer of ownership to the official. In instances where the official’s projected official kilometres were between 6 000 and 21 000 km, travel allowances were paid for the use of a private vehicle. However, in the Northern Cape with its bad roads and vast distances, officials were not prepared to use their own cars on that basis. Contracts could be revised if the ratio of private to official usage became too much. Insurance was with private insurance companies and the state had nothing to do with insurance claims. Travel to and from home to the work place was counted as private use.

Dr Maharaj stated that although policy came from national government, departments could allow for local conditions, as in the Northern Cape and the Department of Agriculture. Good management was crucial.

The Chairperson saw room for improvement at a practical level. He proposed that the 2004/2009 Business Plan and 2004/05 Budget be approved, which was duly voted on unanimously.

The meeting was adjourned.