2019 2020 ANNUAL PERFORMANCE PLAN - Leading Development with Excellence and Integrity - Eastern Cape
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ANNUAL
PERFORMANCE PLAN
2019 – 2020
Leading Development
with Excellence and Integrity
Annual Performance Plan
2019/20
March 2019FOREWORD
In the past 25 years, the provincial government working with the people of our province has
recorded significant milestones in pursuit of the vision of a Better Life for All. Five administrations
that undertook this journey since the dawn of democracy have made it possible for us to say the
Eastern Cape we live in today, is better than the Eastern Cape we inherited from the apartheid
regime. The End of the Fifth Term Performance Report, the 25 Year Review Report and the Stats
SA survey confirm that we have improved the standard of living for our people with basic services
such as water, electricity reaching more people than before 1994. We have also seen improved
outcomes in health and education, the apex priorities of our government.
The 2019/20 financial year is the last year of the 2014/19 Medium Term Strategic Framework and
therefore this Annual Performance Plan (APP) seeks to conclude the business of fifth term of
government in preparation for the Sixth Administration. The APP takes into consideration the
achievements made by the Provincial Administration and the strategic role that the OTP has
played towards the realisation of the priorities set in the 2014/19 Provincial Medium Term Strategic
Framework.
The 2019/20 APP reflects an increased focus on building resilient and agile institutions for
transformation, strengthening integrated planning, building capability for monitoring and
evaluation and improving the reputation of the Provincial Government. Citizen participation and
empowerment will remain a focal area for the Department in line with the Provincial Medium Term
Strategic Framework.
I am therefore, pleased, to table this Annual Performance Plan; which is one of the means by
which the OTP will continue to lead the entire government machinery to strive towards improving
the quality of service delivery and to ensure that we build on the massive strides already made to
build the Eastern Cape we want.
Hon L O Mabuyane
Premier and Executing Authority
Date: 27 June 2019
3OFFICIAL SIGN-OFF
It is hereby certified that this Annual Performance Plan:
Was developed by the management of the Office of the Premier (OTP) under the guidance
of the Premier;
Was prepared in line with the current Strategic Plan of the Department which takes into
account all the relevant policies, legislation and other mandates for that the OTP is
responsible;
Accurately reflects the performance targets which the OTP will endeavour to achieve over
the period 2019/20 within the resources made available.
Ms NTM Mbina-Mthembu
Accounting Officer
Date: 20 June 2019
Approved by:
Hon L O Mabuyane
Premier and Executing Authority
Date: 27 June 2019
5TABLE OF CONTENTS
FOREWORD ................................................................................................................................................................ 3
PART A: STRATEGIC OVERVIEW .......................................................................................................................... 9
UPDATED SITUATIONAL ANALYSIS ............................................................................................................................... 9
PERFORMANCE DELIVERY ENVIRONMENT ................................................................................................................ 9
ORGANISATIONAL ENVIRONMENT ........................................................................................................................... 21
LEGISLATIVE AND OTHER MANDATES .......................................................................................................................... 22
EXPENDITURE ESTIMATES ....................................................................................................................................... 22
SUMMARY OF ECONOMIC CLASSIFICATION ............................................................................................................. 23
RELATING EXPENDITURE TRENDS TO STRATEGIC OUTCOME ORIENTED GOALS ................................................. 23
PART B: PROGRAMME AND SUB-PROGRAMME PLANS ............................................................................ 25
PROGRAMME 1: ADMINISTRATION ......................................................................................................................... 27
STRATEGIC OBJECTIVE AND ASSOCIATED OUTPUTS APPLICABLE TO THE PROGRAMME ................................... 28
STRATEGIC OBJECTIVES AND ANNUAL TARGETS FOR 2019/20 ........................................................................... 28
PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR 2019/20 .............................................. 30
QUARTERLY TARGETS 2019/20 ............................................................................................................................. 32
RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF ............................................................. 34
SUMMARY OF ECONOMIC CLASSIFICATION ............................................................................................................. 34
RELATING EXPENDITURE TRENDS TO STRATEGIC OUTCOME ORIENTED GOALS ................................................. 34
PROGRAMME 2: PLANNING, POLICY CO-ORDINATION, MONITORING AND EVALUATION ..................................... 37
STRATEGIC OBJECTIVES AND OUTPUTS APPLICABLE TO THE PROGRAMME........................................................ 37
STRATEGIC OBJECTIVES AND ANNUAL TARGETS FOR 2019/20 ........................................................................... 38
PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR 2019/20 .............................................. 41
QUARTERLY TARGETS 2019/20 ............................................................................................................................. 43
RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF ............................................................. 45
EXPENDITURE ESTIMATES ....................................................................................................................................... 45
SUMMARY OF ECONOMIC CLASSIFICATION ............................................................................................................. 45
RELATING EXPENDITURE TRENDS TO STRATEGIC OUTCOME ORIENTED GOALS ................................................. 45
PROGRAMME 3: INSTITUTIONAL DEVELOPMENT & ORGANISATIONAL SUPPORT ..................................................... 48
STRATEGIC OBJECTIVES AND OUTPUTS APPLICABLE TO THE PROGRAMME........................................................ 48
STRATEGIC OBJECTIVES AND ANNUAL TARGETS FOR 2019/20 ........................................................................... 49
PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR 2019/20 .............................................. 51
QUARTERLY TARGETS 2019/20 ............................................................................................................................. 55
RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF ............................................................. 58
EXPENDITURE ESTIMATES ....................................................................................................................................... 58
SUMMARY OF ECONOMIC CLASSIFICATION ............................................................................................................. 58
RELATING EXPENDITURE TRENDS TO STRATEGIC OUTCOME ORIENTED GOALS ................................................. 58
7PART C: LINKS TO OTHER PLANS ..................................................................................................................... 60
Links to the long-term infrastructure and other capital plans .................................................................... 60
Conditional grants .................................................................................................................................................. 60
Public entities .......................................................................................................................................................... 60
Public-private partnerships .................................................................................................................................. 60
Provincial e-Government Plans ........................................................................................................................... 60
Changes to the Strategic Plan ............................................................................................................................. 61
Definition of Performance Indicators for Strategic Objectives ................................................................... 61
8PART A: STRATEGIC OVERVIEW
UPDATED SITUATIONAL ANALYSIS
PERFORMANCE DELIVERY ENVIRONMENT
The situational analysis in the 2017/18 APP which is based on the 2016 General Household
Survey is still relevant for planning purpose for 2019/20. In summary, the GHS (2016) indicates
that the Province, with more than 6.6million people is the third largest in the country and its
population has been gradually increasing nominally but proportionally decreasing over the years.
There are 1.727 million households in the Province. On average there are 3.89 people in a
household which is higher than the average in Gauteng at 2.82. Access to basic services has been
on the rise with more and more children accessing schools and public health facilities despite the
many documented challenges that government still faces in this regard. Unemployment remains
relatively high at 38.9% (Labour Force Survey, 2016) and youth is the most affected. Vulnerability
to hunger and access to food continues to be the reality for some 28% of households in the
Province. This context has shaped government programmes as envisaged in the National
Development Plan (NDP), The Provincial Development Plan (PDP) as well as the Medium Term
Strategic Framework (MTSF) with a clear intention to set the Province on a different development
trajectory. The responsibility of the Office of the Premier, as the centre of governance and
leadership in the Province, is to coordinate efforts of government with a firm focus on the triple
challenges of inequality, poverty and unemployment.
It is vital to take stock of some of the highlights achieved by the Department by the end of the
Second Quarter of the 2018/19 financial year in order to inform our future plans:
1) Broadband Connectivity: Progress in delivering the APP target of 1 400 sites was severely
hampered by the pending SITA court case. The strategy was thus to carry out preparatory
work that would allow the acceleration of the project at a later stage. To this end all the
planning and design was done as well as the build of the core network by the service
provider.
The project status is now systems go as SITA has accepted it role as the ECPG’s prime ICT
systems integrator, and is tasked with providing a comprehensive set of broadband services
that match and exceed their delivery of broadband service in the Western Cape. This, after
the court-order judgement that the ECPG and SITA would work together, building upon the
work that has been completed during ECPG’s participation in the SITA RFB 1161/2013
Western Cape contract.
In parallel to our main project there is another project with DTPS (department of post and
telecommunications). DTPS are the owners of SA Connect under which broadband sits. DTPS
has been busy and is busy building approximately1400 sites over the next few years in the
Eastern Cape. These sites eventually have to be managed by the ECPG and we also have to
ensure interworking and reuse of infrastructure to optimise costs. The first phase of this project
was the evaluation of the work done to date by USAASA, an agency of DTPS, in the O R
Tambo region. This was completed and a report submitted.
9An essential element of this project is the Local Economic Development. The R2.89 billion
piggy back contract has a stipulation that 30% of the money spent has to be on LED. The
ECPG has consulted at length with the Liquid Telecom on how best to achieve this and
strategies to adopt. We are seeing some of this taking effect now that the project is truly
underway. We will be measuring and reporting on this parameter in future.
2) Strengthening M&E: As part of strengthening the Monitoring and Evaluation, the Department
is moving towards an electronic monitoring and evaluation system through development of a
Provincial Business Intelligence portal. This multi-year project is planned to start in 2019/20.
In the meantime an EXCEL based manual system has been developed and capturing of the
2018/19 1st Quarter 2018 Programme of Action Performance has commenced. Further to this
all indicators contained in the Programme of Action have been analysed and there will be
interaction with Clusters through working groups. This will ensure that in the 2019/20 financial
year indicators will be compatible with the planned electronic system.
3) Strengthening provincial governance structures: To ensure the strengthening of provincial
governance structures, the PME sub programme manages and coordinates the sitting of and
functionality of 14 working groups which feeds into the cluster system. Furthermore, PME
facilitates the timeous consolidation of Quarterly POA performance reports to the Clusters to
ensure provincial priorities are discussed and prepared for political review and decision
making.
4) Achievement of ‘clean audit’: The Provincial Treasury is currently driving the Operation
Clean Audit programme supported by COGTA which is also responsible for supporting
municipalities towards being viable. Further, the three co-ordinating departments, (OTP,
COGTA and PT), will develop an integrated support plan to facilitate that departments and
municipalities consolidate the gains made with improving corporate governance which is a
step towards achieving clean audits.
5) Strengthening IGR including functionality of war rooms: The steps taken towards to
strengthen IGR including ensuring functionality of War Rooms include the following:
Resuscitation of the Provincial IGR Forum which is used as a platform to oversight over
ISDM rollout and to discuss common issues or matters of interest for all the Provincial IGR
Practitioners from Municipalities, Provincial and National Departments and State Entities.
This forum is also aimed at improving the Provincial IGR mechanisms and aligning agenda
setting for the existing IGR structures. As a result the following improvements will be
implemented:
i. Revision of the Provincial IGR Strategy to support the revised PDP.
ii. Development and implementation of the Forum’s terms of reference, the PCF
engagement protocols,
iii. Review of the ISDM policy framework to include a chapter on the framework
institutionalisation.
iv. Utilisation of departmental field workers to ensure functionality of war rooms.
Conducting of “Operation Masiphathisane Roadshows” the main objective of which were
to resuscitate the Institutionalisation of Operation Masiphathisane and functionality of ward
10war rooms at local government as such four district road shows were concluded in OR
Tambo, Amathole, Alfred Nzo and Joe Gqabi Districts.
Training of the ORT District Municipality Leadership - including a fair representation from
all local municipalities).
ISDM Training for Amathole District Municipality DITT & LITT and Buffalo City Metropolitan
Municipality MITT in preparation for the rollout of ISDM and establishment of ward and
Local war rooms as well as to improve functionality of war rooms.
6) Ensure viability of amalgamated municipalities: Raymond Mhlaba and Enoch Mgijima
municipalities are being supported under Government Support Programme II (GIZ) where
operational plans where developed for enhancing planning, monitoring and organisational
capacity for management of service delivery (institutional strengthening); improving financing
of and procurement for service delivery; and improving accountability and oversight of service
delivery. Chris Hani Municipality, Amathole District and Inxuba Yethemba Municipalities,
though they are not an amalgamated, are also benefiting from this programme because of
their dire situation.
The Executive Council approved the intervention and delegated its authority to the Member of
Executive Council (MEC) responsible for COGTA to invoke section 139(1) (b) and 139(5) of
the Constitution. Subsequent to this, Administrators were contracted by COGTA for Walter
Sisulu, Great Kei and Enoch Mgijima Municipalities.
7) Improving Water and Sanitation in Prioritised Areas
a) Ndlambe Local Municipality: Monthly Water and Wastewater treatment plant inspections
were conducted as part of Capacity building to improve green Drop and Blue drop
compliance. Process Audit draft report was discussed with the Municipality.
b) Kirkwood: All asbestos cement water mains are being replaced with PVC and capacity
upgraded. A pilot of prepaid water meters is being installed. Sewerage capacity of the Enon
Pump Station is being upgraded to avoid constant overflowing and pollution of the
environment.
c) Willowmore: Boreholes are being drilled and commissioned to provide sustained supply of
potable water to the town inclusive of adequate storage.
d) Alice: A new outfall sewer pump station is being constructed to provide much needed
capacity and to avoid pollution of the environment. The water treatment and potable water
provision is being analysed with the intention of augmentation of treatment, storage and
distribution capacity.
e) Mount Fletcher: Water reticulation and sewage conveyance is being augmented. The
sewage treatment facility is being augmented.
8) Integration of water and sanitation plans in the Province: During the period under review
focus was on the Water and Sanitation capital grant performance as part of the collaboration
between OTP, DWS, COGTA and Human Settlement. Particular focus was on unblocking
challenges experienced by sector department while improving integrated planning.
119) Electrification Projects
f) Makhatlanyeng –Elundini: The project is proceeding well and at this stage the
municipality is awaiting outage from Eskom in order to energize.
g) Makaula substation-Umzimvubu/Matatiele: The 22 Kv lines are back on track and the
platform will also soon be on track once the new service provider has been appointed
subsequent to the dismissal of the previous contractor for non-performance.
h) Ward 4 Ludeke Village-Bizana: The Department of Energy organised funding for this
project and the municipality endorsed the funding model i.e. locating savings from within
and compensated through budget adjustments. The municipality is proceeding with this
but still insists that Department of Energy should the agreement in writing.
i) Lukholweni Village-Matatiele: An agreement has been reached between the Municipality
and the Department of Energy to fund the Project.
j) Jojweni Village-KSD: There is no progress at all in finalizing this project by COGTA. There
is still no progress on site at all. The municipality has approached Eskom to complete this
project on their behalf albeit Eskom’s commitment to assist had not yet been received at
the end of the period under review. Eskom will be engaged towards finding means to
resolve the matter.
k) Isiqhingeni – Umzimvubu: The municipality appointed a new contractor who speeded up
the process and at this stage they are still awaiting for the delivery of meters by Eskom.
l) Bizana: inspection was not done due to COGTA unpreparedness.
m) Ntabankulu projects have been completed and energized.
n) Enoch Mgijima Local Municipality: critical for the movement of the project is the fixing
of the poor electrical infrastructure, including provision of adequate transformers.
o) Makana Local Municipality: This municipality is still locked up in bad electrical
infrastructure without any improvement insight, they are still battling with revenue
collection, they are also struggling to control their Notified Maximum Demand (NMD) and
thus incurring huge penalties by Eskom on top of the fact that they are struggling to collect
revenue.
10) Mzimvubu Dam project: A Project Technical Team (MPTT) has been established and a
reconnaissance visit to the site with a view to activate construction of advance infrastructure
was conducted. The Project is packaged as follows:
p) First stage: The construction of advance infrastructure, especially access roads. This
stage is ready for implementation (Design and Tender Documentation complete.
q) Second stage: The implementation of the Ntabelanga Dam (Design complete), water
treatment works and bulk distribution system (Design complete) with the purpose of
delivering water for social needs.
r) Third stage: A desktop study was done on the designs of the bulk distribution system.
Bulk distribution infrastructure constitute the major costs of the project, hence further
optimisation will lead to value engineering which will lead to lower costs.
s) Fourth stage: Involves the construction of the Lalini Dam and Hydroelectric Plant
downstream of Ntabelanga Dam. Further investigations as recommended by National
Treasury are required before implementation readiness can be achieved.
The project implementation plan and costs have been submitted by DWS Construction Unit
and for the Advance Infrastructure can be summarized as follows:
12– Construction could commence on 14 January 2019 and be completed by
September 2019 assuming no unforeseen delays and also assuming that all the
critical project management dependencies and governance will be timely fulfilled.
– Estimated cost is: R161 million (inclusive of VAT and 10% contingencies).
– Based on the provisional cash flow estimate an amount of R40 million will be
required during the 2018/19 financial year.
– Procurement will follow the “Implementation Guide to Advance Empowerment of
Certain Designated Groups”.
11) Coverage of SPU Programmes: Towards ensuring that SPU Programmes are spread across
the Province more than half of the municipalities have been covered during the first half of the
year and the highlight some of the programmes implemented during the period under review:
t) Sarah Baartman District Municipality: Gender Based Violence, (GBV), awareness & socio-
economic empowerment programmes targeting women / young women;
u) OR Tambo District Municipality
i) GBV awareness & socio-economic empowerment programmes targeting women /
young women living in rural areas,
ii) LGBTI stakeholder engagement session,
iii) Capacitation of Traditional Leaders on GBV issues,
v) Nelson Mandela Metropolitan Municipality
i) Autism awareness session.
ii) Awareness programme on the rights of the child and positive parenting.
w) Joe Gqabi District Municipality: Anti-Gender Based Violence awareness and
empowerment session.
x) Chris Hani District Municipality: socio-economic empowerment session for women in
Agriculture.
12) Integrated SPU planning and co-ordination: The Monitoring of mainstreaming and socio
economic inclusion of designated groups in departments was coordinated through the First
Provincial Integrated Quarterly Review session aimed at monitoring the mainstreaming and
socio-economic inclusion of Designated Groups. The session focused on integrated policy
formulation, planning and review of departmental programmes taking into consideration the
White Paper on the Rights of Persons with Disabilities, JOB-ACCESS, and the Gender Policy
Framework.
Worth noting from this exercise is that some departments do not have transformation related
indicators in their plans. To address this the Transversal Special Programmes Unit is working
towards standardised performance indicators for Special Programmes Units in departments
as pet of supporting departments in this area.
13) Representation of all activists in the Disability Rights Machinery: According to the
Eastern Cape Disability Rights Machinery, Terms of Reference only Disability Organisations
which have a Provincial serve in the Provincial Machinery. Chapter 9 institutions such as the
Human Rights Commission, Commission for Gender Equality, also serve in the Machinery.
To ensure participation of organizations who operate at local level, the Office is in the drive of
13establishing District Disability Rights Machineries. Thus far the Nelson Mandela Metropolitan
Municipality has been covered and the remaining Municipalities will be covered during the
course of the second half of the year starting from the Disability Rights Awareness Month.
14) Translation of policy and strategy documents: Efforts are made to capacitate the Eastern
Cape Braille and Print Institute to assist government in translating official documents into
Braille. The Office is in constant communication with DEAFSA and has been running
empowerment sessions. Moreover, the DSRAC Language Section will be engaged to ensure
that these policy documents are translated to official languages of the Province.
15) Establishment of youth Units and location of SPU in departments: DPSA has approved
some departmental organograms with posts dedicated for youth coordinators. Departments
are in the process of filling the posts e.g. DoT advertised their post and Social Development
has appointed a Senior Manager in the Youth Directorate.
2) Youth in Agriculture: Phase 3 Youth-in-Agriculture Projects were launched. These comprise
33 Projects adding to the 19 Phases 1 and 2 projects. Phases 1 & 2 Projects were provided
with various resources depending on their needs and allocated budget. These include farming
implements, farming inputs and vouchers for redemption whenever urgent needs arose. The
impact of the support includes job creation which in turn reduces the rate of youth
unemployment in the targeted communities
16) Training of Unemployed youth: The training of unemployed and unskilled youth on
infrastructure maintenance through the OTP-DoD- DHET collaboration has commenced. The
first phase entailed 395 successful candidates who have since been contracted by the
Department of Education and placed in various schools across the Province.
17) Empowerment Initiatives with Disabled Community: Empowerment sessions for Persons
with Disabilities were conducted in the Nelson Mandela Metropolitan Municipality. The purpose
of the initiative was to capacitate and empower the Nelson Mandela Metro Disability Forum on
the legislative frameworks that affect them. In addition, Autism awareness was conducted
within this Municipality targeting parents and guardians of children with Autism. Since
September is commemorated annually as Deaf Month, the Office in partnership with DEAFSA
co-ordinated a silent walk programme in Zwelitsha. The purpose of the silent walk was to raise
awareness on the needs of the Deaf learners in schools and communities at large.
18) Information and knowledge Management: The Office of the Premier has developed the
Provincial Central Research and Knowledge Repository wherein information is uploaded onto
on weekly basis. This can be accessed on www.prkr.ecprov.gov.za which stands for
“Provincial Research and Knowledge Repository”. The repository is continuously popularised
/ marketed at different forums.
19) Delivery Agreements: The service delivery agreements of the Members of the Executive
Council were developed and validated against the MECs’ Policy Speeches in order to ensure
accountability in policy implementation and delivery on commitments prior to signing sessions
between the Premier and the MECs. The agreements ensure that issues that are of priority
receive attention and are driven at the Executive Authority level.
1420) Research: The Office of the Premier has established relations with the universities in the
Province for the generation of evidence to support planning. This led to the signing of
Memoranda of Agreement with all universities in the Province in order to conduct Research
and Evaluation according to the following areas:
a) Nelson Mandela University will focus on Oceans Economy, SMME Development and the
Evaluation of an Integrated Human Settlements Programme.
b) University of Fort Hare will focus on the Evaluation of Early Childhood Development
(ECDs), Agricultural Economic Transformation and Quality of Education in Rural Schools
and Mud Schools.
c) Walter Sisulu University will focus on Research and Evaluation of Municipal Performance
Management System and Health District Clinical Specialist System.
d) Rhodes University will focus on assisting the Province to improve the quality of the system
of Communication.
21) Implementation of international agreements: Pursuant to these objectives, the Province
established relations with Córdoba Province (Argentina), Chungcheongnam-do Province
(South Korea) Guangdong Province (China), Lower Saxony (Germany), Zhejiang Province
(China) and South East Region (Tunisia).
Argentina (Cordoba Province) : Pilot projects are already implemented earmarking a total of
200 000 hectares over a six-year investment period in partnership with co-operatives that are
farming in Chris Hani, OR Tambo, Alfred Nzo and Joe Gqabi District Municipalities, targeting
emerging black farmers, women and the youth.
The ECDC has been working actively to promote access to the Chinese markets for exports
from the Eastern Cape and has made gains in the following:
Trial procurement of 10 000 bottles of Eastern Cape wines for distribution via 400 stores
across China;
Long term partnership with SEEA Restaurant Co Ltd to promote and sell Eastern Cape
cherry peppers and honey mead products;
Increasing demand for mohair products
China (Guangdong Province): Shenzen Hengyue Industrial Development Company which is
based in Guangdong Province has committed to invest an amount of R300 million in a tile
manufacturing plant which will be situated in the East London Development Zone. The
investment will result in the creation of 1000 jobs when the plant is fully operational.
Germany (Lower Saxony): Renewable Energy - A mini-grid electrification project which is
currently under construction in Upper Blinkwater in Raymond Mhlaba municipality to supply
energy and further create employment opportunities to the community
Germany (Lower Saxony) Sport - Exchange programs were undertaken in boxing, canoeing,
handball, women football codes to advance the JD in the Field of Sport that was concluded
between the Eastern Cape and Lower Saxony.
Germany (Lower Saxony) Agriculture:
5 mobile clinics were donated to the Eastern Cape;
Donation of a rapid response trailer by Lower Saxony;
15 Two EC veterinary technologists underwent specialist training at TiHo;
Fourteen (14) extension service officials were trained at DEULA;
Participation of two EC scientists in training and interactive engagements hosted at the
Julius Kuehn institute and Goettingen University.
Germany (Lower Saxony) Volunteer Programme - In a reciprocal exchange of volunteers, the
Eastern Cape volunteers placed 4 volunteers in Hannover and the 30 Lower Saxony
volunteers are deployed in various areas in the Eastern Cape to contribute to building social
cohesion, inculcate life skills amongst the youth, talent identification and promoting healthy
lifestyles.
22) Refinement of the Provincial Development Plan: Some chapters of the PDP were also
updated as part of the review process. In this regard, further updates were made on the
following:
Goal 1: Innovation and inclusive growing economy; and
Goal 2: An enabling infrastructure network.
The Draft Provincial Development Plan was consulted with the Provincial Government
Information Technology Office Council and the PDP’s direction in terms of digital
transformation was confirmed to be aligned with the National Strategy on deployment of ICTs
for effective and efficient service delivery. The revised draft PDP will be used to consult
provincial departments and other stakeholders.
23) Development of the 5 year MTSF: An emerging PMTSF 2019-2024 with priority areas for the
term has been developed in line with the revised PDP. Input from StatsSA and the diagnostic
analysis of the 25 year review of the province will inform the baselines for priority areas
identified in the P-MTSF. Consultations of various role-players in the Province is ongoing in
order to solicit inputs.
24) Infrastructure planning: Towards improving infrastructure delivery in the Province through
implementation of the Eastern Cape Infrastructure Plan (ECIP), the Infrastructure Planning
and Co-ordination Office (IPCO) was established comprising of resources from the Office of
the Premier and the Eastern Cape Socio-Economic Consultative Council. The implementation
plan for ECIP was presented to Government Clusters as part of creating awareness to all
relevant stakeholders. The ECIP highlighted the 11 Provincial Strategic Projects (PSPs) as
well as institutional arrangements to fast-track implementation.
25) Performance Management: All HoD performance agreements for 2018/19 are in place and
have been quality checked. The following 9 Departments have appointed HoDs: OTP; DOH;
DSD; DOE; COGTA; DEDEAT; DOT; PT; DSRAC. SDAs of MECs are currently being received
and the PAs will be validated against these. Capacity building support was provided to DoH &
DoT on PMDS. The SMS PMDS Directive has been communicated and is being enforced. The
revised provincial PMDS Policy for levels other than SMS has been communicated and rolled-
out in all departments. In line with s7(3) of the PSA, all HoDs are empowered to make sure
that employees comply with all policies through training and management of discipline.
26) HROPT matter: The outstanding departments have made progress with DoE finally engaging
affected employees with a view to implementing audit findings. DRDAR has completed an
16audit of claims and will also be giving feedback to affected employees. The internal audit by
DSD has found no basis for the claims for payment by employees.
27) Operations Management Framework: The Operations Management Framework was
presented to a Public Sector Transformation Strategy Forum, followed by the G&A and
Executive council presentations. Operations Management Framework training was held to
capacitate officials from Provincial Departments in East London Blue Lagoon provided by Real
IRM Consultancy. The implementation roll out of OMF is 40% Operational Strategy, 10%
Operational Design and 15% Operational Analysis and Improvement.
28) Organisational Structures: OTP validates all Service Delivery models and organograms
prior to the final approval of these. In addition, hands-on support is provided to the officials
responsible for the development of these in Departments. OTP, DOH, DEDEAT, DHS, PT and
DSRAC are implementing their approved organograms. DOT has revised its SDM and is busy
with the organogram review. The draft revised DRDAR organogram is with MEC for DRDAR
for consideration. COGTA is refining its District support services delivery model as part of its
org review at present. DOE has indicated dissatisfaction with the outcome of the JE of support
DDGs (CFO and Corporate Management) and is engaging OTP on the matter. DSD has
submitted its revised SDM to OTP for validation. DPW is reconsidering its SDM in the light of
its infrastructure delivery mandate. The DSL structure is with Premier and the submission
thereof to DPSA will depend on the future location of the function.
29) Filling of posts in departments
a) HoD for DPW: Short listing held on 11 July 2018 and no suitable candidates were found.
The post is to be re-advertised
b) HoD for DRDAR: interviews were held and competency assessment completed for one
candidate, one competency assessment pending. The memo for appointment of suitable
candidate to be submitted.
c) HoD for DHS: Post advertised, closing date was the 21st September 2018. Master list being
captured.
16 PCMT approval letters were issued with 5 170 posts, 366 (7%) to be filled additional to the
establishment. 2 577 (60%) have been filled at an average of 59 days (This includes both
carry-over and new posts). A total of 2 443 posts in the ARP is for youth employment. This
is 2% of the overall total employees (127 338) in all the 13 departments.
30) Strengthening employee wellness: Merger of PILIR Steering committee with the Employee
Wellness committee to improve and enhance applications for incapacity leave and monitoring
thereof, thereby reducing unnecessary absenteeism and abuse of sick leave. This merged
committee is also a platform for showcasing best practices in the province and a learning
platform.
31) SMS competency assessment: Departments report on a monthly basis to the OTP on
assessments completed by SMS members, this information is compared to the departmental
ARP and Persal report which indicates which new SMS members have been appointed in
each month. The status is at 100% for all newly appointed employees in the Province.
1732) Skills Development for Economic Growth: The Province has identified key skills linked to
the economic development opportunities in the Province. The development of these skills were
projected against the implementation of the economic development projects and costed. The
Province has been working on the Oceans Economy as a key platform for economic growth.
In this regard, working with the SA Maritime Safety Association (SAMSA) the Province
established the School of Marine Studies at the Nelson Mandela University (NMU) to develop
the high-end skills needed for the industry. At another level, i.e. Boatbuilding, the Office of the
Premier and the Manufacturing SETA (merSETA) has placed at least 8 TVET College students
as apprentices in welding to support the boatbuilding, manufacturing and maintenance
demands of the industry.
33) Transfer of funds to institutions of higher learning: The Office of the Premier is working
with Institutions to ensure that funds for the Top Achievers are transferred speedily within the
new financial year. Delays occur as Institutions do not invoice the office on time and also
invoice for the incorrect amount. With these challenges now discussed the payments should
be processed speedily.
34) Uniform framework on the management of learners: The Minister of Public Service and
Administration issued a new Directive re the management of learners in all learning and
development programmes in the Public Service. To this end, all Interns are, with effect from 1
April 2018, appointed on a 24 month contract. Scales of stipends for interns are also included.
The Office of the Premier has also presented a proposal to the National Skills Authority to
regulate the stipends paid by Sector Education and Training Authorities (SETA) to learners
placed in the Public Sector, so that there is consistency in the stipends that learners receive.
This will avoid learners jumping from one programme to the next due to differences in stipends.
The Office of the Premier is facilitating a policy development process to make the Directive
Provincial specific.
35) Strengthening Provincial Communication: The Department initiated and developed a two-
pronged overarching accelerated Communications Turn-around plan. This entailed the
strengthening of governance within the sub-programme through populating all the three
Directorates by reassigning and realigning SMS responsibilities in line with their areas of
strength and expertise. The next phase entailed the development of a Communications Action
Plan which produced two campaigns, namely the “Beneficiary Speak-out” campaign which is
flighting on national radio as well as an Outdoor Campaign. These campaigns give a voice to
the Beneficiaries and use the power of Testimonies to showcase the good work of
Government. These will be developed into the second phase and fast-tracked, during the
period leading up to the end of the 5th term.
36) The Department has also revved up the coordination of the structures that collectively make
up the Provincial Communications System, particularly the Heads of Communication Forum.
Three areas of collaboration have been identified and agreed upon with the Rhodes University
(RU). These are expressed in the soon-to-be signed MoU and cover the following:
a) The process of authenticating the Home of Legends Research Manuscript produced by
the National Heritage Council has commenced.
18b) The Capacitation of the Provincial Government Communicators as well as a
c) More in-depth Research on Public Perceptions about Government Services.
37) Provincial Integrity Management: Departments have been supported and monitored to
establish Ethics Management Infrastructure and ensure that all designated categories disclose
financial interests. Online Training of Ethics Officers and other officials is being conducted in
departments on an ongoing basis. Departments were assisted to develop their capacity
through guidelines that was developed by OTP and regular trainings provided on investigation
and ethics management. Municipalities are supported on request e.g. Joe Gqabi, Amathole,
Chris Hani, OR Tambo District Municipalities had requested assistance on Fraud Risks
Management and anti-corruption awareness training which had been provided.
38) Ethics and Change Management: The Provincial Ethics Policy has been endorsed by the
EXCO and an update on the reviewed Ethics Policy was given during the Public Service Month
where all 13 departments were represented. The application for Remunerated work outside
employment has declined where most departments reported 0 in this regard. Awareness
sessions on Remunerated work outside employment and procedures for deregistration of
officials from the Central Supplier database have been conducted throughout the province.
Departments were assisted to develop their capacity through guidelines that was developed
by OTP and regular trainings provided on investigation and ethics management.
39) Provincial ICT: A business case has been developed for a Provincial Cloud Based Disaster
Recovery model and endorsed by the G & A Cabinet Committee. There is no improvement but
a Task Team has been formulated from the PGITO Council to look into the matter.
40) Litigation monitoring and coordination: The quarterly litigation statistics indicate ECPG
litigation pressures arising from the Department of Health. Trends have been established in
PAIA and medical negligence matters which mainly arise from institutions within the Mthatha
High Court jurisdictional area. There is at least 90% of PAIA litigation lodged against the
DOH. The main litigation trend in the DOE has been established in the handling of Human
Resources related matters. The onslaught of PAIA matters in the DOE needs to be addressed.
Intervention in this area must be undertaken.
41) Legal Capacity Building: An invitation was issued to the legal advisors of municipalities with
regard to by law training in municipalities. No requests for by law training has been received
from municipalities. Training on PAJA and PAIA was scheduled for 26 and 27 September 2018
for the Department of Transport. However, due to logistical problems, the Department
cancelled the training. No other training was conducted during this quarter. Except for the
Department of Health, the training on PAJA and PAIA has resulted in a reduction in litigation
in most departments in the province. The training has made officials aware of their obligations
in terms of the law, and the need to ensure that efficient and effective services are delivered
to the citizens of the province. Proper and accurate record keeping is a central tenet of this
training. However, the impact of the training would be much greater if more resources were
employed to conduct the training.
19In moving forward it is important to note that the 2019/20 financial marks the first year of the new
MTSF and it is therefore vital that the Provincial Administration spare no effort to ensure that the
objectives of this term are achieved. The role of the OTP largely remains the same, however,
particular emphasis will be placed on the following areas:
Public Sector Transformation where the focus will be on the implementation of a
revised sector strategy which is imperative to build a capable, development – orientated
and accountable government. This also includes efforts to ensure that all department
have service delivery models that are aligned to their mandates.
Municipal functionality and viability will receive attention with our efforts to implement
and monitor the Back-to-Basics programmes heightened. A total of 16 local
municipalities, mainly composed of those that have recently been amalgamated were
identified and prioritised. The Provincial Treasury, the Department of Cooperative
Governance and Traditional Affairs, and the South African Local Government Association
have developed financial systems in these municipalities. There is now the need to tackle
municipal debt and assist these municipalities with revenue collection strategies as
indicated in the P-MTSF.
The province has witnessed positive trends in the audit outcomes of departments as
well as in municipalities. Despite this positive trend there is a needs to improve on
matters of emphasis and maintain positive audit outcomes and also to ensure that there
is a stronger correlation between positive audit outcomes and service delivery at both
Provincial and local government level. To this end more focus will be on the monitoring of
the 30 day payment of suppliers and the expenditure on capital and conditional grants.
Strengthening Planning Monitoring and Evaluation through the implementation of
the revised Provincial Spatial Development Framework, development of Multi-year
human settlement development plan and the implementation of the Provincial
Infrastructure Plan. There is also the need to optimize integrated planning and facilitation
of strategic economic development programmes and projects as indicated in the PDP.
The development of a business intelligence capacity and capability at OTP to track and
monitor development patterns and trends in the province will therefore be vital to ensure
that this is realised.
The OTP will be fast tracking the implementation of an integrated planning framework
and guidelines to support and promote community-based planning through the
Integrated Service Delivery Model (ISDM).
Through ICT, the department will continue with the programme of creating an enabling
environment to facilitate connectivity to corporate sites, schools etc. in order to drive cost
efficiency, improved service delivery and serve as a catalyst for economic and social
development. This will be done through the rollout of broadband and the establishment
of a contract with a service provider, establishing a portion of the core infrastructure and
connecting the initial sites during the financial year
In partnerships with various stakeholder, the OTP will intensify the implementation of
Provincial Youth Strategy through various programmes which include youth in
agriculture, skills development and infrastructure. The programme on youth and maritime
development which was launched in the 2019/20 financial year will continue to be
supported in the 2019/20 financial year.
On corporate management, the OTP has a new organisational structure which is
aligned to its budget structure. Implementation of this structure will continue in 2019/20
financial year. This structure will further bolster the capacity of the department in its
critical functional areas of planning, policy monitoring and evaluation.
20In pursing these priorities the OTP has identified key strategic projects, in addition to its normal
operations, that it will be implementing in the 2019/20 financial year. These are as follows:
Co-ordination and facilitation of youth projects
Implementation of research and evaluation
Stakeholder engagement and community participation
Small town revitalisation
Co-ordination of special programmes (including military veterans)
Marketing and showcasing government work
Implementation of broadband
Development of the business intelligence for M&E
Co-ordination of integrity management programmes
Transfer to institutes of Higher Learning for Premier's bursary
Co-ordination of government communication machinery
Implementation of operations management framework
Audit Fees
Installation of security video cameras
Provision of legal advices on provincial issues
Staff train and development
Premiers discretionary fund
ORGANISATIONAL ENVIRONMENT
The Department embarked on a process to reposition itself to ensure that more focus is placed on
the roles of planning, governance and accountability, alongside coordination and facilitation. To
this end the strategic plan has been revised, the service delivery model has been completed and
the organisational structure has been finalised. The placement of staff in the new organisational
structure has been completed. 283 employees were placed in posts. The remaining vacant posts
from Deputy Director level and downwards were advertised internally so as to give unplaced
employees an opportunity to apply. There are currently 48 unplaced employees. The reason for
having unplaced employees is primarily that the posts they occupied in the previous structure
became redundant. Another reason for having unplaced employees is the issue of skills mismatch.
The process of finding posts where these employees can be placed is ongoing.
There are 65 unoccupied redundant posts which have since been abolished. There are currently
136 vacant posts on the structure and some of these are being filled on an ongoing basis. One of
the requirements when developing the structure is to ensure that there is no duplication of roles.
There are therefore no double parked officials as employees are allocated functions specific to
their portfolios.
Change management sessions were held with all staff to prepare them for the changes that were
taking place in the department in 2016, that is, the restructuring. The process has been completed
and issues that were raised in these sessions are currently being addressed. A strategy is being
developed and will be implemented once consulted with all staff.
The Department also achieved an unqualified audit outcome for the 2017/18 financial year,
although a matter of emphasis remains relating to the irregular expenditure incurred in the 2014/15
financial year.
21An audit improvement plan, which addresses all matters raised by the Auditor-General as well as
by the departmental internal audit, has been put in place, and its implementation is being
monitored on a monthly basis. The Audit Committee (AC) and Risk Management Committee
(RMC) continue to be functional, and these provide valuable oversight functions to the
Department.
LEGISLATIVE AND OTHER MANDATES
The following are policy mandates that the OTP will be implementing and have since been used
to inform the current strategic plan:
The National Development Plan
The Provincial Development Plan
Medium Term Strategic Framework (MTSF);
Provincial Strategic Framework (P-MTSF)
The National E-Government Strategy and Roadmap;
The Corporate Governance of ICT Policy Framework; and
The Provincial Telecommunications Position Paper.
OVERVIEW OF 2019/20 EXPENDITURE ESTIMATES
EXPENDITURE ESTIMATES
Main Adjusted Revised
Outcome Medium-term estimates % change
appropriation appropriation estimate
from 2018/19
R thousand 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
1. Administration 145 733 161 573 314 280 381 692 374 592 353 585 396 504 408 174 430 266 12.1
2. Planning, Policy Coordination, Monitoring And Ev aluation 293 835 154 091 253 146 404 516 402 202 408 035 379 439 318 016 222 896 (7.0)
3. Institutional Dev elopment And Organisational Support 205 318 190 639 195 820 187 188 199 988 201 207 197 140 195 537 195 419 (2.0)
Total payments and estimates 644 886 506 303 763 246 973 396 976 782 962 827 973 083 921 727 848 581 1.1
22SUMMARY OF ECONOMIC CLASSIFICATION
Main Adjusted Revised
Outcome Medium-term estimates % change
appropriation appropriation estimate
from 2018/19
R thousand 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Current payments 372 084 431 186 561 132 673 200 704 936 687 959 738 173 762 579 777 075 7.3
Compensation of employ ees 223 056 242 324 255 128 293 919 277 530 276 990 298 054 317 724 331 313 7.6
Goods and serv ices 149 026 188 862 306 004 379 281 427 406 410 969 440 119 444 855 445 762 7.1
Interest and rent on land 2 – – – – – – – –
Transfers and subsidies to: 263 810 66 229 194 081 283 297 261 447 264 586 217 484 140 747 52 092 (17.8)
Prov inces and municipalities – – 96 898 207 073 207 073 209 934 170 726 91 369 – (18.7)
Departmental agencies and accounts 59 734 37 011 39 158 41 429 41 429 41 429 43 752 46 202 48 743 5.6
Higher education institutions 16 332 24 834 – 12 000 – – – 0 –
Foreign gov ernments and international organisations – – – – – – – – –
Public corporations and priv ate enterprises 184 562 – – – – – – – –
Non-profit institutions – – – – – – – – –
Households 3 182 4 384 58 025 22 795 12 945 13 223 3 006 3 175 3 349 (77.3)
Payments for capital assets 8 992 8 853 7 977 16 899 10 399 10 282 17 426 18 402 19 414 69.5
Buildings and other fix ed structures – – – – – – – – –
Machinery and equipment 8 605 8 853 7 977 16 004 9 504 9 387 17 426 18 402 19 414 85.6
Heritage Assets – – – – – – – – –
Specialised military assets – – – – – – – – –
Biological assets – – – – – – – – –
Land and sub-soil assets – – – – – – – – –
Softw are and other intangible assets 387 – – 895 895 895 – – – (100.0)
Payments for financial assets – 35 56 – – – – – –
Total economic classification 644 886 506 303 763 246 973 396 976 782 962 827 973 083 921 727 848 581 1.1
RELATING EXPENDITURE TRENDS TO STRATEGIC OUTCOME ORIENTED GOALS
Table above provide a summary of payments and estimates by programme and economic
classification from 2015/16 to 2021/22. In 2015/16, the expenditure significantly increased from
R644.886 million to a revised estimate of R962.827 million in 2018/19 and this was mainly due to
allocations made for intervention projects which included Broadband, Small Town Revitalization
and Youth projects. In 2019/20, the budget shows a minimal increase of 1.1 per cent to R 973.083
million mainly due national and provincial baseline cuts implemented. In addition, the decline in
the budget provided for the Small Town Revitalisation project also contributed as these projects
will be completed in 2020/21.
Compensation of Employees increased moderately over the years from R223.056 million in
2015/16 to a revised estimate of R276.990 million in 2018/19. In 2019/20, the budget increases
by 7.6 per cent to R298.054 million mainly to cater for salary adjustments, filling of vacant posts
as part of the implementation of the recently approved organisational structure. The budget
increases moderately in the two outer years.
Goods and Services significantly increased from R149.026 million in 2015/16 to a revised estimate
of R410.969 million in 2018/19 amongst other things due to additional allocation made for rollout
of the Broadband project. In 2019/20 the budget increases by 7.1 per cent to R440.119 million
mainly due to reclassification of funds from Transfers and Subsidies to Goods and Services in line
with the Circular 21 of Standard Chart of Accounts (SCOA) such as Youth projects, Premier’s
discretional funds as well as bursaries. National Treasury Clarification Circular 21 of 2018
introduces the principle of determining the immediate use of the funds, “what is being bought” with
the funds. It also introduces the test that must be applied to determine whether a transaction meets
the requirements to be classified as Transfers and Subsidies or Goods and Services.
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