The objective of the study was to investigate challenges affecting the effective implementation of the Public Finance Management Act, 1999 (Act No. 1 of 1999 as amended by Act No. 29 of 1999) in the Eastern Cape Province with specific reference to the Provincial Department of Public Works. The research study has been conducted in such a manner that the reason to send a team of experts by the DPSA on approval by the President to come to the Eastern Cape and assist the ailing administrations of four departments is determined. The four departments that had a problem were: 1. Department of Roads and Public Works 2. Department of Health 3. Department of Education and 4. Department of Social Development The roads function of the Department of Roads and Public Works was later transferred to the Department of Transport and the Department of Roads and Public Works changed the name to Department of Public Works in September 2004. The team that was sent to the Eastern Cape together with the Director-General of the Province and the Superintendent-General of the Provincial Treasury formed up the IMT. The objective was to introduce turnaround strategies that would enable the four departments to effectively and efficiently implement the PFMA to the best interest of the South African Government. The PFMA is part of the broader strategy on improving public financial management in the public sector in the Republic of South Africa. It prescribes measures to ensure responsibility, accountability and transparency in national and provincial departments. Qualified Auditor-General’s reports for the previous financial years compelled the President in 2002 to establish Interim Management Team (IMT) in the Eastern Cape, comprising of experts from national government, to assist the ailing administration in four provincial departments, including the Department of Roads and Public Works. Questionnaires to employees, Auditor-General, Provincial Director-General, Superintendent-General of Provincial Treasury and as well as to the Accounting Officer of the Department of Public Works, were designed and issued out for completion. Interviews were also conducted to some of the employees. The assumption is that the majority of employees do not understand policies and procedures of the department and they displayed this by remaining neutral in questions asked and disagreed with some of the statements. During the interview process, the majority emphasised their protest against over usage of consultants by the department. Preference given to candidates from outside the department when senior posts are advertised instead of looking for excellently performing candidates from the internal ranks of serving employees, has been outlined as one of the elements contributing to low moral and low productivity in the workplace. Over usage of consultants and a big number of employees who disagreed with statements and remained neutral signify incapacity of the management to perfectly implement the PFMA for sound public financial management in the department. It has been established that regular risk assessments are not conducted, poor organisational structure with many posts that are not filled, no Anti-Corruption Unit to implement Public Service Anti-Corruption Strategy and, no clear managerial lines of accountability due to poor planning, ineffective internal controls and procedures, all render the department incapable of becoming one of the best provincial departments that get unqualified audit report from the Auditor-General. The findings provide clear indication that drastic transformation of the department into an institution that can perfectly implement the PFMA is necessary. The implication is that mismanagement of financial resources and fraud and corruption defeat service delivery objectives. Strategic objectives of the department are not achieved. The Eastern Cape Provincial Departments are obliged to align their strategic plans to the Provincial Growth and Development Plan (2004 – 2014). Therefore the implication is that, poor performance by the Department of Public Works impacts negatively to this provincial objective. Lack of effective control systems has negative implications on the administration of the department and renders it vulnerable to fraud and corruption.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8252 |
| Date | January 2007 |
| Creators | Buso, Luthando Gilbert |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Arts |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MPA |
| Format | x, 123 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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