Report to the Portfolio Committee on Public Service

Report to the Portfolio Committee on Public Service and Administration EVALUATION OF THE DEPARTMENT OF TRANSPORT AND ITS AGENCIES 3 SEPTEMBER 2003 1

Background: Service Delivery Innovation Key aim of new democratic government in 1994 has been to transform the Public Service into an efficient, nondiscriminatory, accountable service delivery instrument. 2

Background: Service Delivery Innovation • In some cases, bureaucratic structures seen as – Ø unwieldy Ø unresponsive to certain service delivery challenges • Need: Alternative approaches to organisational & governance arrangements • Removing units from PS & Ministerial control has major governance implications 3

BACKGROUND: TRANSPORT MINISTER OF TRANSPORT advised COMMISSION that: • Previous processes of institutional reform denuded NDo. T of staff • NDo. T now unable to discharge its functions • NDo. T is not able to ensure delivery in the transport area • NDo. T not effectively monitoring agencies • Government shifted focus to development of transport in rural areas 4

Background (cont) MINISTER requested COMMISSION To review and evaluate the structure of the Department and its agencies in accordance with current needs 5

The commission & minister agreed on the terms of reference & that the two projects would be undertaken simultaneously 6

THE EVALUATION OF THE DEPARTMENT OF TRANSPORT 7

CORE BUSINESS OF DEPARTMENT To ensure that the basic transport needs of South African communities are met 8

Problem Areas In Addressing Institutional Limitations • Defining “transport” & role of Government • Identifying present organisational structures • Establishing, i. t. o. transport mandate, Minister’s/NDo. T’s role in transport • Identifying responsibilities & accountability of NDo. T for Ø Ø Ø executing functions; developing transport policy; guidance & coordination with provincial departments; role & relationship with agencies; and monitoring agencies. 9

Addressing Institutional Limitations (Cont) Identify the responsibilities of the agencies: Øexecuting functions; Ørelationship with NDo. T/Minister (SLAs); Øcoordinating with NDo. T; and Øreporting to the Minister. 10

Addressing Institutional Limitations (Cont) • Determining how transport should be “operated”: Ø functions (line & support); Ø structure & organisational framework; and Ø establishment/jobs needed to perform the work. • Determine the impact of transformation of the NDo. T on the service delivery process. • Evaluate the role of NDo. T & agencies in international context. 11

Expected Outcomes • Effectiveness To enable better planning, administration, use of resources, control and decision-making on transport delivery through good governance. • Efficiency & Economy To enable competent and improved service delivery to ensure efficient and economic use of resources and to obtain value for money. • Sustainability To ensure continuous accountability and service delivery in support of departmental and Government objectives. 12

Findings • Necessary to clear up inconsistencies in mandates: Ø Ø confusion in concurrent national & provincial legislative competence; overlap of functions NDo. T & agencies; revision of legislation on agencies; and management of international protocols/conventions/ agreements. 13

Findings (cont) 2. Confusion around role of Commissioner for Civil Aviation. 3. Enablement through delegations of powers. 4. Official lines of Ø Ø leadership; discipline; administration; and communication. 14

Findings (cont) 5. Areas identified by stakeholders in need of attention: Ø Ø Ø technical/legal support; administrative matters; and coordination. 6. Human resources: Ø Ø more posts; post levels; capacity & ability in technical/legal/financial areas; succession planning for senior/specialist posts. 15

Findings (cont) • Main functions identified: Ø developing national transport policy & strategy; Ø facilitating implementation; Ø promoting safety in the transport sector; and Ø regulating & coordinating the transport industry. 16

Recommendations Three Main Areas To Be Addressed Simultaneously: • • • Structure Establishment Other Organisational Matters 17

1. Structure To enhance capacity & ability it is recommended that proposed structure include Ø three branches; Ø strengthening of administration, technical expertise, coordination & monitoring; and Ø components of land transport for rail & roads. 18

2. Establishment To ensure effective, efficient, economic and sustainable provision of transport services, it is recommended that – • departmental posts be increased by 23 from 312 to 335 (7%); and • levels of posts be evaluated. 19

3. Other Organisational Issues • Legislation & agreements with agencies to be urgently revised. • Roles of NDo. T, provincial departments & agencies to be clarified & formalised. • Roles of different transport executors in global environment to be clarified. • Role & place of Commissioner for Civil Aviation to be re-evaluated. • Administration process re board appointments to be formalised. • Coordination of role players to be formalised. 20

3. Other Organisational Issues (cont) • National policies to be costed & funding models developed. • Proper delegations to be put in place. • DPSA’s report “The Use of Consultants in the Public Service” should be implemented. • Posts to be filled immediately on becoming vacant. • Management practices to be tightened up. • Control & Risk Management Procedures to be introduced. 21

Agencies As Service Delivery Innovation • • • OBJECTIVE OF THE STUDY Evaluate creation of agencies Lessons learnt from them Determine whether purpose of the innovation was achieved Ascertain whether accountability, efficiency & effectiveness of service delivery achieved Advise executive authorities on effectiveness of alternative organisational strategy 22

Agencies Studied • • Dept of Transport initiative in 1998. Following transport agencies (sample): Ø Ø Cross-Border Road Transport Agency South African Marine Safety Authority South African Civil Aviation Authority South African National Roads Agency Limited 23

Methodology • • Interview agency CEOs & senior officials. Questionnaires to stakeholders. Interview management of stakeholders including NDo. T. Study and analyze various documentation 24

Findings • • • General findings Primary findings Effectiveness of the monitoring of performance Effect of the creation of agencies on staff Other lessons learnt 25

1. General Findings • Appropriate mechanism - YES • Better or worse service – Substantially better, but room for improvement • Purpose of creation achieved - YES Overall the creation of agencies has benefited service delivery in the transport sector 26

2. Primary Findings • • Preferred model for service delivery Cost effectiveness Chain of relationships dysfunctional Failings in board operations 27

Primary Findings (cont) • Financial management overall good • Accountability & transparency weak • Lines on policy & international relationships crossed 28

3. Monitoring Of Performance • Internal reporting on performance by agencies on functional activities • No proper corporate /strategic planning for monitoring by NDo. T • Almost complete lack of capacity for monitoring by NDo. T • NDo. T should have, and use, an effective monitoring role of agency functions 29

4. Effect On Staff • • Majority of staff retained on creation. Organised labour consulted. All issues not resolved but trade-off for progress. Lower level posts redundant by NDo. T. Some supernumeraries still there after 4 years. Staff grievances due to unresolved issues. Skilled staff transferred led to vacuum in NDo. T. Job security utmost important to staff. 30

5. Other Lessons Learnt • Agencies are merely service providers for Minister (government); THUS • Broad strategy direction & policies remain with government (department). • Participation in international forums reside in government. • Proper management of boards necessary. • Relationship lines between Minister, department, Board, CEO important. 31

Criteria For Outsourcing Regulating Functions Outsourcing arrangement MUST • provide an excellent service to the public; • be possible to be identified to a specific entity with defined area of responsibility; • have a regulatory and not policy-making function; • be possible to deliver service on a commercial basis – user-pays principle; and • be subject to rigorous review and monitoring. 32

Recommendations • Clarify overlaps in functions by department & its agencies. • Department enabled to effectively monitor agencies. • Enabling legislation of agency regularly reviewed to ensure alignment with government policies. • Minister’s Stakeholder Forums to be created to ensure consultation/transparency. • Monitoring procedures to comply with PFMA & King Commission Report. • National department to provide strategic direction for the sector. 33

Conclusion Insofar as the Department of Transport is concerned, the innovative agency concept is an appropriate mechanism for alternative service delivery 34