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Report to the Portfolio Committee on Public Service and Administration
EVALUATION OF THE
DEPARTMENT OF TRANSPORT
AND ITS AGENCIES3 SEPTEMBER 2003
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Background: Service Delivery Innovation
Key aim of new democratic government in 1994 has been to transform the Public Service into an efficient, non-discriminatory, accountable service delivery instrument.
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Background: Service Delivery Innovation
• In some cases, bureaucratic structures seen as – unwieldy unresponsive to certain service delivery
challenges
• Need: Alternative approaches to organisational & governance arrangements
• Removing units from PS & Ministerial control has major governance implications
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BACKGROUND: TRANSPORT
MINISTER OF TRANSPORT advised COMMISSION that:
• Previous processes of institutional reform denuded NDoT of staff
• NDoT now unable to discharge its functions• NDoT is not able to ensure delivery in the transport
area• NDoT not effectively monitoring agencies• Government shifted focus to development of
transport in rural areas
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Background (cont)
MINISTER requested COMMISSION
To review and evaluate the structure of the Department and its agencies in accordance with current needs
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The commission & minister agreed on the terms of reference & that the two projects would be undertaken simultaneously
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THE EVALUATION OF THE
DEPARTMENT OF TRANSPORT
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CORE BUSINESS OF DEPARTMENT
To ensure that the basic transport needs of South African communities are met
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Problem Areas In Addressing Institutional Limitations
• Defining “transport” & role of Government• Identifying present organisational structures• Establishing, i.t.o. transport mandate,
Minister’s/NDoT’s role in transport• Identifying responsibilities & accountability of NDoT
for executing functions; developing transport policy; guidance & coordination with provincial departments; role & relationship with agencies; and monitoring agencies.
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Addressing Institutional Limitations (Cont)
Identify the responsibilities of the agencies:executing functions;relationship with NDoT/Minister (SLAs);coordinating with NDoT; andreporting to the Minister.
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Addressing Institutional Limitations (Cont)
• Determining how transport should be “operated”: functions (line & support);structure & organisational framework; andestablishment/jobs needed to perform the work.
• Determine the impact of transformation of the NDoT on the service delivery process.
• Evaluate the role of NDoT & agencies in international context.
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Expected Outcomes
• EffectivenessTo enable better planning, administration, use of resources, control and decision-making on transport delivery through good governance.
• Efficiency & EconomyTo enable competent and improved service delivery to ensure efficient and economic use of resources and to obtain value for money.
• SustainabilityTo ensure continuous accountability and service delivery in support of departmental and Government objectives.
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Findings
1. Necessary to clear up inconsistencies in mandates:
confusion in concurrent national & provincial legislative competence;
overlap of functions NDoT & agencies; revision of legislation on agencies; and management of international protocols/conventions/
agreements.
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Findings (cont)
2. Confusion around role of Commissioner for Civil Aviation.
3. Enablement through delegations of powers.
4. Official lines of leadership; discipline; administration; and communication.
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Findings (cont)
5. Areas identified by stakeholders in need of attention:
technical/legal support; administrative matters; and coordination.
6. Human resources: more posts; post levels; capacity & ability in technical/legal/financial areas; succession planning for senior/specialist posts.
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Findings (cont)
7. Main functions identified:
developing national transport policy & strategy;
facilitating implementation; promoting safety in the transport sector; and regulating & coordinating the transport
industry.
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Recommendations
Three Main Areas To Be Addressed Simultaneously:
1. Structure
2. Establishment
3. Other Organisational Matters
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1. Structure
To enhance capacity & ability it is recommended that proposed structure include
three branches;strengthening of administration, technical expertise,
coordination & monitoring; andcomponents of land transport for rail & roads.
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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.
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3. Other Organisational Issues
• Legislation & agreements with agencies to be urgently revised.
• Roles of NDoT, 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.
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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.
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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
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Agencies Studied
1. Dept of Transport initiative in 1998.
2. Following transport agencies (sample): Cross-Border Road Transport Agency South African Marine Safety Authority South African Civil Aviation Authority South African National Roads Agency
Limited
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Methodology
1. Interview agency CEOs & senior officials.
2. Questionnaires to stakeholders.
3. Interview management of stakeholders including NDoT.
4. Study and analyze various documentation
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Findings
1. General findings
2. Primary findings
3. Effectiveness of the monitoring of performance
4. Effect of the creation of agencies on staff
5. Other lessons learnt
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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
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2. Primary Findings
• Preferred model for service delivery
• Cost effectiveness
• Chain of relationships dysfunctional
• Failings in board operations
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Primary Findings (cont)
• Financial management overall good
• Accountability & transparency weak
• Lines on policy & international relationships crossed
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3. Monitoring Of Performance
• Internal reporting on performance by agencies on functional activities
• No proper corporate /strategic planning for monitoring by NDoT
• Almost complete lack of capacity for monitoring by NDoT
• NDoT should have, and use, an effective monitoring role of agency functions
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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 NDoT.• Some supernumeraries still there after 4 years.• Staff grievances due to unresolved issues.• Skilled staff transferred led to vacuum in NDoT.• Job security utmost important to staff.
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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.
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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.
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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.
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Conclusion
Insofar as the Department of Transport is concerned, the innovative agency concept is an appropriate mechanism for alternative service delivery