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Institute of Social and Economic Research (ISER) Summer School

Derek Luyt (Director and PSAM Head)Yeukai Mukorombindo (Researcher)

Zukiswa Kota (Researcher)

11-15 September 2011

Rhodes UniversityGrahamstown

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The Role of Provinces: Governance and Accountability

INTRODUCTION

What is the CSA? Oversight of departments: which and why Public Resource Management (process and methods) Tools/Outputs – BA, SPE, ETR-PMR, SDR, Sources – EC Budget Statements (Feb/March), Annual

Performance Plans &Operational Plans, Service Delivery Improvement Plans (June/July), Annual Reports (Oct/Nov), Quarterly reports (released every 3 mnths)

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The Public Resource Management System

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CSA TOOLS AND SOURCES Promotion of Access to Information Act (PAIA) – Travelgate,

Stalled housing projects & water services in Makana (2010), performance agreements & SMS staff declarations, Rapid Assessment Survey (2007), Housing Fraud (2008)

Advocacy (media comments & press releases, TV/radio debates on relevant issues, Legislature & Executive )

Network and partnerships- (Provincial & national anti-corruption forums, Victim Empowerment Forum, DoHS, DoE (Research Units), ACCESS, LRC, TAC, Section 27, Black Sash, PolicyForum, AMODE, International Budget Partner’s Initiative (PI),

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The role of provinces To play an important role in monitoring and supporting local

government with regards to fulfilling their functions particularly in the delivery of basic services

Plays a integration and co-ordination role in terms of ensuring that the integrated development plans of the municipalities combine to form a viable development framework across the province

Promotes the development of local governments capacity in order to perform their own functions and manage their own affairs Sect 155 (6) of Const.

A fiscal role in terms of which province monitors the financial status of municipalities

Provinces can intervene in terms of section 139 of the Constitution.

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EC Department of Human Settlements: Governance and

Accountability

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SOUTH AFRICA’S HOUSING POLICY Minister sets broad national housing delivery goals, (Section 3.2.b

Housing Act)

Municipalities mandated role of developer (Housing Act, 107, Part 4,

Sect.9 (1) (a).

Developer applies to undertake all housing planning and project

activities and funding

Province to accredit municipalities, assist in planning housing multi-

years plans, IDP’s, housing provision, quality assurance

Provincial Dept approves /sets housing goals, project applications,

reserves, distributes, funds, assesses, monitors project processes

2011/12 ECDoHS total budget - R2.42 billion. 0.02% Budget decline

over MTEF. USDG valued at R21.8 million over the MTEF.

2011/12 municipal budget NMBM (R413 million) and BCM (512 million)

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PROBLEMS Lack of provincial and municipal human capacity to fulfil mandate

Few municipalities accredited (Only 2 municipalities accredited in the EC)

Inadequate monitoring and evaluation of municipal programmes and projects weak supervision and assistance in compiling multi year plans & IDP’s

Insufficient personnel – project managers, inspectors, quality, town planners, engineers, financial managers

Bulk infrastructure/basic services challenges and inflationary pressures

Lack of integrated and coordinated planning between DoHS & DLGTA

Insufficient funding- Equitable Share (outcomes based focus), MIG

Poor financial management, corruption & maladministration

PROBLEMS CONTD....

Accurate statistics on informal settlements/demand in EC (HSRC demographics) – Housing Needs Register

Land inventory (property register) & acquisition

Communication- Housing education & progress

Rural to urban migration- Rural housing policy vs Urban development

Housing typologies/styles- High rise vs RDP, Rental accomodation (Huge demand for rental housing- Mdantsane, Buffer Strip, Orange Grove & Katilumla)

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TRENDS

Blocked projects/ Slow pace of delivery

Delivery of poor quality houses- double handling/

rectification, blocked projects

Dept failure to pay creditors on time

Poor/insufficient planning & setting of targets (declining)

vs improved housing demand info

Poor financial management vs Improved financial

management (Hist of audit opinions from disclaimers to

qualified)

Quality of support and guidance given to municipalities in

implementation is disjointed and poor

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KEY AREAS FOR CONSIDERATION DoHS to increase support to municipality – more financial &

human resources at provincial level Improve financial management at municipal level – hiring skilled

personnel, filling vacancies Take corrective action in response to the misuse/abuse of public

resources by officials & service providers Increase project management and quality assurance personnel

and measures to ensure quality services CSO and legislature to engage with municipalities, awareness of

local by-laws, rules and regulations Implementation of anti-corruption strategies or whistle blowing

policy Enhance integrated working relations between DoHS & DLGTA

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Eastern Cape Department of Education

Governance and Accountability

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23 Eastern Cape School Districts (ECDoE 2009)

THE GOOD NEWS...

National priority: Schooling 2025 South Africa: high primary enrolment Eastern Cape: 90% universal access to basic education South Africa: high literacy rates Constitutional right (s.29) Improved access; national priority Improving quality......

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CSA TOOLS AND SOURCES

Outputs Sources used in outputs Challenges Promotion of Access to Information Act Advocacy (media, public, CSO) Network and partnerships

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CONTEXT

S.A.: 75% total child population in poverty (IDASA 2001)

E.C.: 2nd largest education establishment 2011/12 allocation; R24.6 billion High investment; poor outcomes achievements (5.7%

GDP)

Infrastructure poor; 395 mud schools National intervention: Section 100 1(b)

TRENDS

Fiscal management and capacity Adverse audit reports 2009/10 infrastructure under expenditure Leadership; management and political 2011 suspension of key social programmes Gross maladministration

ECDoE AUDIT OUTCOMES

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Financial Year Audit Opinion 1997/98 Disclaimer of Opinion 1998/99 Disclaimer of Opinion 1999/00 Disclaimer of Opinion 2000/01 Disclaimer of Opinion 2001/02 Disclaimer of Opinion 2002/03 Disclaimer of opinion 2003/04 Disclaimer of Opinion 2004/05 Disclaimer of Opinion 2005/06 Disclaimer of Opinion 2006/07 Adverse Opinion 2007/08 Adverse Opinion 2008/09 Adverse Opinion 2009/10 Disclaimer of Opinion

QUESTIONS

1. Is there a need for increased district-level governance in education?

2. How can accountability in the management of public funds in education be enhanced in the Eastern Cape context?

3. Are national-level interventions such as the Section 100 1b) effective and/or sustainable?

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GOVERNANCE AND ACCOUNTABILITY

Poor disciplinary record Reported financial mismanagement inter alia Lack of AG recommendation implementation Limited punitive action; long, drawn-out processes “Revolving Door Syndrome” Current example: Section 100 and accountability

... KEY AREAS FOR CONSIDERATION

Spending more vs. spending better Public investment in education and governance (Swaroop

& Rajkumar 2002)

Role of external accountability mechanisms Accountability, empowerment and poverty reduction

(2000/2001 WDR) Best models at local level (Ahmad 2008)

Participatory budgeting and PETS at local level

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KEY AREAS FOR CONSIDERATION

Improve capacity at district level SGB capacity: financial management and oversight Potentially powerful role of teacher unions Role of external oversight incl. legislature CSO involvement, engagement, partnerships Partnership in Advocacy

Thank you

24Photo: Port St. Johns learners