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PROGRESS REGARDING THE INSTITUTIONAL FRAMEWORK FOR PUBLIC ENTITIES (PEs) 24 Aug 2001

PROGRESS REGARDING THE INSTITUTIONAL FRAMEWORK FOR PUBLIC ENTITIES (PEs) 24 Aug 2001. Slide 1. Overview of Presentation. 1. Defining a PE 2. Concerns of Cabinet 3. Cabinet decision of 4 April 2001 4. Implementing Cabinet decision Provincial presentations Guide to create national PEs

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PROGRESS REGARDING THE INSTITUTIONAL FRAMEWORK FOR PUBLIC ENTITIES (PEs) 24 Aug 2001

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  1. PROGRESS REGARDING THE INSTITUTIONAL FRAMEWORK FOR PUBLIC ENTITIES (PEs) 24 Aug 2001 Slide 1

  2. Overview of Presentation 1. Defining a PE 2. Concerns of Cabinet 3. Cabinet decision of 4 April 2001 4. Implementing Cabinet decision • Provincial presentations • Guide to create national PEs • Formalise PE evaluation panel 5. Progress PE Project

  3. Defining a Public Entity (PE) A PE represents a government business enterprise, board, commission, company, corporation or fund and has one or more of the following characteristics: • under the ownership/ control of nat or prov exec • Assigned fin & oper auth to carry on bus activity • Operates on business principles • Financed fully or substantially from NRF/PRF or by way of tax, levy or other money imposed in terms of nat/prov legislation • Established in terms of legislation • Accountable to Parl/prov legislature

  4. LOCATING PUBLIC ENTITIES PUBLIC ENTERPRISES (For Profit Public Entities) PUBLIC ENTITIES (Non-Profit) PUBLIC SERVICE DEPARTMENTS Slide 4

  5. Concerns of Cabinet 1. Bring creation, management and review of PEs under strategic direction of government 2. Need for more rigorous financial controls and policy framework for remuneration structures 3. Ad-hoc creation - risk of horizontal fragmentation within SD machinery

  6. Concerns of Cabinet 4. Own legislation - inflexible review and repositioning 5. Fragmentation in PE establishment undermine requirement for a single public service. 6. Large number of institutions fall outside the scope of the Public Service Management Framework

  7. Some Statistics to Note 1. PEs consumption & generation of R warrants proper management & control. For national PEs • total transfer payments - R10,2 billion (2000/2001) • total net income - R15,2 billion (31 March 1999) • 288,983 staff employed 2. Tremendous growth in 1990’s esp in eco and infrastruct sectors. 201 PEs listed in the PFMA: • 10 were created in the 1980’s • 60 were created in the 1990’s (43 - 1994 +)

  8. Cabinet Decision of 4 April 2001 1. Development of an institutional framework 2. Broad interim process for creating national PEs & Evaluation Panel 3. MPSA & MoF • Approach the PECs to adopt the broad process • Finalise guidelines to elucidate the broad process to create PEs & staff transfers. 4. DPSA, NT & DPE launch PE project - • Remuneration framework • Accountability framework • Design MIS

  9. Implementing Cabinet DecisionProvincial Presentations 1. Made to the PCC, the Govern & Admin cluster of FOSAD and the KZN Prov Cabinet 2. Planned presentation - next meeting of the provincial DG's forum

  10. Interim Process • Executing Authority prepares business case • Business case is assessed by joint panel (MPSA and MoF) • Executing Authority and reports to relevant portfolio com and approaches Cabinet for approval of legislation • PE implementation

  11. Implementing Cabinet DecisionGuide to Create National PEs 1. Draft guide developed, supported and inputs provided by DPSA, DPE, NT (incl PPP unit & GEPF) & consortium 2. Guide to be submitted to - • MPSA for approval by 31 Aug 2001 • MoF for approval by 14 Sep 2001 • Cabinet for notification by 30 Sep 2001

  12. Implementing Cabinet DecisionFormalise Evaluation Panel 1. Convened at least at Dir (Manager) level & co-opt other officials 2. CP & convener - NT & DPSA 3. Meet as and when required 4. DPSA representatives - GICS/RCoS 5. Secr services rendered by dep whom the CP represents 6. Panel decides further working arrangements

  13. Progress PE Project 1. DFID funding R1 mil 2. Consortium contracted 21 Jun • KPMG • Global Edge • Mchunu Mashinini and Associated • Representivity ratio 55% 3. Scope ... 4. Project scheduling ... 5. Project organisation … 6. Current project activities ...

  14. Progress PE Project 1. Steering Committee approved on 25 Jul 2001 • Scope of project • Project completed by 30 November 2001 • Project organisation, roles and responsibilities 2. Had meetings/discussions with • Accountant General & Budget Office - NT • Vulindlela co-ordinator • Institute of Directors • National Agricultural Marketing Council • 2 workshops with DPE on info requirements

  15. Project Scope Remuneration Framework

  16. Project Scope Accountability Framework

  17. Project Scope Management Information System

  18. Project Scheduling

  19. Project Organisation Roles & Responsibilities

  20. Progress PE Project Current project activities 1. Finalising research into PE legislation 2. Research international best practice 3. Preparing for meetings with selected depts & PEs 4. Drafting & sending out questionnaire to depts & PEs 5. Investigate current MIS systems & needs

  21. Way Forward 1. MPSA & MoF approve Guide on creating national PEs • Inform Cabinet and national departments 2. DGs of DPSA & NT formalise evaluation panel - in process 3. Provincial presentations continue 4. Project team continue information gathering & research

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