1 / 22

PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE: TRADE AND INDUSTRY

PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE: TRADE AND INDUSTRY STRATEGIC AND ANNUAL PERFORMANCE PLANS OF THE NATIONAL CONSUMER COMMISSION-2013/ 14 18 APRIL 2013 Mr EBRAHIM MOHAMED ACTING COMMISSIONER. OUTLINE OF PRESENTATION BACKGROUND PROGRAMMES ALIGNMENT BUDGET

sricky
Download Presentation

PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE: TRADE AND INDUSTRY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE: TRADE AND INDUSTRY STRATEGIC AND ANNUAL PERFORMANCE PLANS OF THE NATIONAL CONSUMER COMMISSION-2013/ 14 18 APRIL 2013 Mr EBRAHIM MOHAMED ACTING COMMISSIONER

  2. OUTLINE OF PRESENTATION • BACKGROUND • PROGRAMMES • ALIGNMENT • BUDGET • STRUCTURE • RISK MANAGEMENT

  3. BACKGROUND • National Consumer Commission (NCC) is mandated by the dti to administer the Consumer Protection Act No. 68 of 2008 (CPA). • NCC established in terms of the CPA and began the exercise of its mandate since April 2011. • It attracted substantial interest from the broader public with the result that the incidence of complaints to NCC rose sharply within a short space of time. • Arguably there existed a substantial responsibility on the NCC to assist with the received complaints whilst still at institution building stage. • Emphasis was placed on resolution of complaints whilst corporate governance and due processes necessary for the operation of an efficient public entity was lacking.

  4. BACKGROUND Cont. An analysis revealed: • that much of the NCC’s work revolved around the resolution of complaints, primarily conciliating disputes between business and consumers. • In many instances where business were found to have acted unfairly, consent orders and compliance notices were issued. • In issuing such orders and notices, due process was not followed. • However many businesses settled in favour of consumers as it was not cost effective to oppose the orders and notices. • Certain businesses, however, successfully contested compliance notices. This resulted in adverse publicity for the NCC. • The CPA however specifically stipulates that the NCC “is responsible to…. promote the resolution of disputes arising in terms of this Act, but is not responsible to intervene in or directly adjudicate any such dispute”. • The NCC has acted ultra vires in a number of matters.

  5. BACKGROUND Cont. • A further analysis revealed that much of the complaints received by the NCC emanate from two distinct sectors, namely the general consumer goods industry (furniture, appliances etc) and from the motor industry. • These two sectors account for approximately eighty percent of the complaints received by the NCC. • The NCC cannot deal with all consumer complaints on its own as its key mandate in so far as complaints are concerned, is to investigate prohibited conduct. Not every complaint can be investigated. • To give effect to its mandate it must work closely with other key stakeholders to promote the resolution of consumer complaints. • the strategic framework (2012 to 2017) was to a large extent not aligned to the South African consumer policy prerogatives as espoused in the CPA. • Moreover, the strategic, annual performance and business plans were all highly ambitious given the fact that the NCC is a public entity still in its infancy and with very limited resources, including relevant skills. • It was established that consumers are primarily interested in having their disputes resolved and within a very short space of time.

  6. BACKGROUND Cont. • The NCC was unable to deliver as per its plans over the last financial year- 2012-13. It would appear that the plans were based on an unrealistic budget. • Moreover, the Minister of Trade and Industry recommended that the NCC: • Formulate a strategy to deal with complaints handling, including the backlog; • Ensure that proper compliance notices are issued; and • Revise the strategic and annual performance plans • It is against this background, albeit brief, and the impossibility of performance the NCC has revised its strategic and Annual performance plans

  7. REVISED APPROACH Whilst conciliation is a means of dealing with complaints, the constant opposition by business to this approach taken by the NCC coupled with the threat of court action and limited jurisdiction in this regard, the NCC decided to: • Shift conciliations to the respective industry bodies through a process of accreditation of ombud schemes (where expertise and capacity in such matters reside); • Advise industry that the NCC will cease with conciliations incrementally until the conciliation mechanisms are operational; • Approach the provincial consumer protection authorities to prepare to deal with consumer disputes that arise within their respective provinces. The intention with this approach is to: ensure that the NCC is firstly adhering to the policy espoused in the CPA and no longer acting ultra vires; secondly, to ensure that it uses its resources appropriately and thirdly to ensure that the consumers do not approach the NCC as a forum of first instance and thereby alleviating the complaints burden.

  8. Revised Strategic plan • In pursuance of its strategic mandate as enshrined in the Act, the vision of the Commission is: “To be the leading institution in consumer protection that is professional, responsive and effective. • The mission of the Commission is: “To promote compliance with the Consumer Protection Act through advocacy and enforcement, in order to ensure fair business practice and to uphold the social and economic welfare of consumers”. • Values are common traits and attributes, which guide the manner in which the organisation will operate and relate with its stakeholders. They are intended to define and shape the culture of the Commission and guide how staff members interact both internally and with stakeholders. • The Commission’s value statements relate to: Professionalism and Ethical conduct ; Efficiency & effectiveness; Non- discrimination and Fairness; Responsiveness;Accountability; Transparency; People focused and Teamwork

  9. Revised Strategic plan 14 weaknesses of the NCC have been highlighted by staff: • Inadequate information and communications technology (“ICT”) systems • Inadequate human resources • Internal & external communication • Job descriptions (Not all positions are covered) • Lack of clear processes (business/ internal) • Inaccessibility of NCC to Consumers (contact centre) • Skills and capacity building • High work-load • Working in silos • Leadership continuity • Low work output • Low staff morale • Differing interpretation of the Act • Poor reputation and negative publicity

  10. Strategic plan The diagram below outlines the roadmap followed to ensure strategic alignment of all processes. The mandate is in terms of the Consumer Protection Act and as per Section 1.4.2. MANDATE  STRATEGIC OBJECTIVES Strategic objectives (outcome statements) have been identified and aligned to vision and mission as well as the objectives of the dti (Consumer & Corporate Regulation Division) KEY OUTPUTS In order to bring granular measurability to strategic goals, measurable strategic objectives were identified for each strategic goal. (annual performance plan) KEY PERFORMANCE INDICATORS Standards for performance against areas of output were agreed. The key performance indicators are included in the Annual Performance Plan and Business Plan. TARGETS Linked to the key performance indicators, specific targets per reporting period were identified as detailed in the annual performance plan and the business plan.

  11. Strategic plan The strategic plan of the NCC is aligned with that of the dti • The main objective of the dti’sConsumer and Corporate Regulation Division is to create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner and promote a professional, competitive and customer-focused working environment that ensures effective and efficient service delivery.   • In line with the prescripts of the Act, the Commission contributes to the dti’s growth path by freeing up / increasing funding in the SA economy for investment / productive purposes through promoting compliance with the Consumer Protection Act and thereby curtailing incidences of prohibited business practice. Moreover, enforcing the said Act consistently, certainty is created which adds to confidence amongst suppliers/business.

  12. Strategic plan • The strategic objectives were arrived at through careful assessment of the environment in which the Commission operates. The planning workshops that resulted in the production of this strategic plan gathered up-to-date information about the organisation’s internal strengths and weaknesses, and its external opportunities and threats (challenges). The analysis also considered political, economic, social, environmental and technological aspects applicable to the Commission. Through this exercise, the NCC was able to refine and reshape the list of critical questions facing it and thus defining the critical strategic tasks facing the Commission over the next five years. • The following are the strategic objectives that will be pursued by the Commission over the next five years. • To promote compliance with the Consumer Protection Act • To be a well governed and capacitated organisation • Each objective is supported by specific key outputs, which are in turn supported by key performance indicator and targets, which will be detailed in the annual performance plan and business plan of the organisation.

  13. Strategic Objective: To promote compliance with the Consumer Protection Act

  14. Strategic Objective: To promote compliance with the Consumer Protection Act continued

  15. Strategic Objective: To be a well governed and capacitated organisation cont.

  16. Strategic Objective: To be a well governed and capacitated organisation cont.

  17. Budget: MTEF, Allocations and appropriation of funds by Parliament of SA • Following the Medium Term Expenditure Framework(MTEF), budget allocations for the 2013/14 were granted, adjusting the baseline upwards to cater for the effect of inflation. • As a result, the budget allocation for 2013/14 grew to R44.8 million (from R41, 5 million- prior year) i.e. by 8% • This allocation falls within the Vote of the Department of Trade and Industry. • It must be noted that the dti had indulged the NCC by providing R6.719.490 in addition to R41.5 m last year in order to enable the NCC to meet expenses incurred. • Similarly the dti and NCC will be liaising with one another on any additional budgetary requirements.

  18. Nature of Budget • The top three spending drivers are: Compensation of Employees 58% ( NCC is a service driven & human intensive entity) • Professional Services 12% (Litigations, audit fees, consultants etc) • Lease 12% • These make up 82 % of the total spending thus only 18 % (+/- R8.1m) is relatively variable. This is strictly prioritized to cover all office and projects costs. • Project costs are however limited to R1.4m this year.

  19. Strategic risks The strategic risks facing the Commission and which are being managed on an on going basis in relation to Strategic objective: promotion of compliance with the Consumer Protection Act are • The NCC may have no control over consumer choice • Industry and suppliers may influence consumer choice through advertising of products or services “considered” harmful • Negative perceptions and resistance from customers to the NCC advocacy, education and awareness programmes • Negative perceptions of industry • Lack of understanding by the general public about the NCC processes • Drastic legislative reforms • Litigation, review and appeals • Relationships or agreements entered into between consumers and suppliers may have legal implications; law suits and counter industry reactions to the enforcement and compliance of the NCC consumer protection laws • Mismatch of the NCC innovation (R&D) in respect of consumer marketplace demands or expectations • Unrealistic customer and stakeholder expectations • Non-compliance and resistance to compliance with the Act

  20. Strategic risks The strategic risks facing the Commission and which are being managed on an on going basis in relation to Strategic objective: To be a well governed and capacitated organisation • Lack of institutional support to deliver on the NCC mandate • Failure of adopted systems and their higher cost implications • Loss of specialist skills and expertise to the marketplace • Perceptions of lack of accountability and poor governance structures from stakeholders; loss of stakeholder confidence • Negative publicity • Ineffective service delivery • Rapid developments in technology and slow adaptation to new technologies • Escalating law suits (legal costs) • Ineffective financial management processes and systems • Inadequate optimisation of resources to respond to marketplace demands

  21. Thank You

More Related