PLAN - Eastern Cape Department of Transport

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PLAN - Eastern Cape Department of Transport
GOVERNMENT FLEET
                                              MANAGEMENT SERVICES   2021/22
                                              STRATEGIC
                                                                    2025/26
Customer Care Centre: 0800 644 644

GOVERNMENT FLEET MANAGEMENT SERVICES
                                              PLAN
Office of the Head of Entity
Private Bag X0001, EAST LONDON, 5218

Tel: 043 731 2899
E-mail: melody.trimalley@ectransport.gov.za

Website: www.ectransport.gov.za
PLAN - Eastern Cape Department of Transport
GOVERNMENT FLEET
MANAGEMENT SERVICES

   STRATEGIC PLAN
   2021/22 – 2025/26
PLAN - Eastern Cape Department of Transport
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

         EXECUTIVE AUTHORITY STATEMENT

                                         MEC WEZIWE TIKANA-GXOTHIWE
                                        TRANSPORT, SAFETY AND LIAISON

         I am delighted to present to you the Government Fleet Management Services - Trading
         Entity Strategic Plan 2021 – 2026. The Strategic Plan outlines the strategic vision and
         outcomes to support service delivery in the 6th term of Administration.

        Since its inception Government Fleet Management Services has positioned itself to improve
         service delivery by providing cost effective fleet management solutions to the Eastern Cape
         provincial government. GFMS aims to achieve the above through a capable and empowered
         human resources and further seeks to transform operations and services through innovative
         technological solutions.

         GFMS for the next five years will continue to contribute to the National Development Plan
         and Medium Term Strategic Framework (MTSF) priorities with the key focus on economic
         transformation. Creating strategic partnerships to empower businesses in the previously
         marginalised areas and communities to ensure sustainability and steer the agenda of
         economic development and empowerment.

An efcient, safe, sustainable, affordable transport system
PLAN - Eastern Cape Department of Transport
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

         The GFMS’ priorities over the next 5 years are:
         •    Development of SMME’s
         •    Creating work opportunities for designated groups through development SMME’s
         •    Improving operational efficiencies at Government Fleet Management Services.

         Lastly, it is imperative that relations are strengthened with stakeholders that will support
         GFMS in the implementation of the strategic plan.

         _________________________

         Ms W Tikana-Gxothiwe
         MEMBER OF THE EXECUTIVE COUNCIL

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PLAN - Eastern Cape Department of Transport
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

         HEAD OF ENTITY STATEMENT

                                                   ACTING HEAD OF GFMS
                                                     MBUYISELI MBOYA

         The new strategy of Government Fleet Management Services (GFMS) Trading Entity is
         service delivery oriented and designed to ensure that the organisation is au fait with the
         needs of its stakeholders (clients) to provide services and solutions that address the needs.
         The pressure on the fiscus, compounded by the advent of the Corona virus pandemic, has
         necessitated that the GFMS eliminates all inefficiencies in the value chain whenever they
         manifest themselves in order to assist the administration to enhance its output without
         necessarily increasing the financial resources.

         In 2011, the Executive Authority of the Department of Transport approved an interim
         structure upon the establishment of GFMS Trading Entity following the Executive Council
         resolution. GFMS has been operating on the basis of the interim structure and the upshot
         thereof is that more than 50% of the posts were on a one-year contract basis. This situation
         impacted the performance and efficiency of GFMS adversely in that there was no security
         of tenure for the contract employees and therefore no commitment in their performance.
         However, work is in the final stages of completion of the development of a permanent
         structure and it is intended that same will be implemented in the 2021/22 financial year.

         Since its inception, GFMS has been operating on a manual fleet system and this has an
         adverse impact on the efficiency of its operations. To this end, GFMS has finalised the
         specification for the procurement of an integrated fleet management system with the
         intention to have it in place during the new financial year. Government Fleet Management

An efcient, safe, sustainable, affordable transport system
PLAN - Eastern Cape Department of Transport
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

         Services is currently rolling out an upgraded financial management system, Pastel Evolution,
         which it is intended to integrate with the fleet management system and thereby eliminate all
         manner of manual operations and improve efficiency.

         Part of the mandate of GFMS is local economic development within the Province in an effort
         to ramp up our spend on HDI’s particularly on women, youth and people living with
         disabilities. GFMS intends to contract directly with the HDI’s rather than rely solely on the
         national transversal contract for fleet maintenance and related services. The initiative will
         seek to ensure that businesses of previously disadvantaged individuals are supported and
         capacitated to offer repair, maintenance and other related services to government vehicles
         thereby creating an opportunity for those businesses to provide their services to private
         individuals as well as the insurance industry.

         There are several National Departments and Public Entities that have offices within the
         Province, but which are serviced by a service provider outside the Province. In order to
         expand the mandate of GFMS, the intention is to approach the Executive Council of the
         Province for approval to extend our mandate to include all Municipalities, National
         Departments and Public Entities.

         Based on the understanding that transport is the lifeblood of the economy and an integral
         tool in service delivery, the staff of the GFMS is committed to a client-centric, service
         delivery-oriented, reliable, cost-effective, development focused fleet management solution
         to the Eastern Cape Province.

         _________________________
         Mr. M Mboya
         Acting Head of Entity
         GOVERNMENT FLEET MANAGEMENT SERVICE

An efcient, safe, sustainable, affordable transport system
PLAN - Eastern Cape Department of Transport
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

         OFFICIAL SIGN-OFF

         It is hereby certified that this Strategic Plan:
         •    Was developed by the management of the Government Fleet Management Services -
              Trading Entity under the guidance of Honourable MEC Weziwe Tikana-Gxothiwe.
         •     Takes into account all the relevant policies, legislation and other mandates for which
               the Government Fleet Management Services – Trading Entity is responsible.
         Accurately reflects the Impact and Outcomes that GFMS will endeavour to achieve over
         the period of 2021/22 - 2025/26.

         Mr. Z. Ngxobongwana                                         ______________________
         Manager: Fleet Risk and
         Logistics

         Mrs. G. Fortuin                                            ______________________
         Manager: Client Relations
         Management

         Mrs. P. Mbewu                                              ______________________
         Manager: Corporate Support

         Mrs. Y. Kunene                                             ______________________
         Manager: Risk & Strategy

         Mr. B. Chirimuta                                           ______________________
         Director: Vehicle Provisioning
         and Development

         Mr. F. Narkedien                                           ______________________
         Director: SMME & Fleet Maintenance

         Mrs. N. Mafumbu                                            ______________________
         Director: Finance

         Ms. M. Trimalley                                           ______________________
         Official Responsible for Planning

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GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

         Mr. M. Mboya                                                ______________________
         Acting Head of Entity

         Mr. M. Mafani                                               ______________________
         Accounting Officer

         APPROVED BY:

         Ms W. Tikana–Gxothiwe                           ___________________        19 March 2021
                                                                                    ______________
         EXECUTING AUTHORITY                                                        DATE

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         TABLE OF CONTENTS
         PART A: OUR MANDATE ................................................................................................... 1
         A.1 CONSTITUTIONAL MANDATE................................................................................... 1
         A.2     LEGISLATIVE AND POLICY MANDATES .................................................................. 1
         A.3     INSTITUTIONAL POLICIES AND STRATEGIES OVER THE FIVE-YEAR
                 PLANNING PERIOD ................................................................................................... 4
         A.4     RELEVANT COURT RULINGS ................................................................................... 5

         PART B: OUR STRATEGIC FOUCUS ................................................................................ 7
         B.1 VISION ....................................................................................................................... 7
         B.2      MISSION .................................................................................................................... 7
         B.3     VALUES ...................................................................................................................... 7
         B.4     SITUATIONAL ANALYSIS .......................................................................................... 7
         B.4.1 External Environmental Analysis ................................................................................. 7
         B.4.2 Internal Environmental Analysis .................................................................................. 8

         PART C: Measuring Our Performance ............................................................................ 18
         C.1 Institutional Performance Information ........................................................................ 18
         C.1.1 Impact Statement ...................................................................................................... 18
         C.1.2 Measuring our Outcomes .......................................................................................... 18
         C.1.3 Explanation of planned performance over the five-year planning period .................. 19
         C.2     KEY RISKS ............................................................................................................... 21
         C.3     PUBLIC ENTITIES .................................................................................................... 22

         PART D: Technical Indicator Descriptions ..................................................................... 24

         Annexure A: District Development Model ...................................................................... 25

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         ACRONYMS

         4IR                Fourth Industrial Revolution
         AGSA               Auditor General of South Africa
         CFO                Chief Finance Officer
         EE                 Employment Equity
         GFMS               Government Fleet Management Services
         HDI                Historically Disadvantaged Individuals
         HOD                Head of Department
         HR                 Human Resources
         ICT                Information Communication and Technology
         MEC                Member of the Executive Council
         MMs                Managed Maintenance
         MTSF               Medium Term Strategic Framework
         N/A                Not Applicable
         NDP                National Development Plan
         NLTSF              National Land Strategic Framework
         PDP                Provincial Development Plan
         PFMA               Public Finance Management Act
         SA                 South Africa
         SCOPA              Standing Committee on Public Accounts
         SDGs               Sustainable Development Goals
         SMME               Small Medium Macro Enterprises
         TCO                Total Cost of Ownership
         TID                Technical Indicator Description
         VIP                Very Important Person

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         PART A: OUR MANDATE

        A.1       CONSTITUTIONAL MANDATE

         The Constitution of the Republic of South Africa, (Act 108 of 1996) provides the national
         overarching framework for all government institutions. It further underpins legislation that is
         responsive to the economic and social challenges that face South Africa.

        A.2       LEGISLATIVE AND POLICY MANDATES

         In 2010, the Executive Council of the Eastern Cape Province passed a resolution to in-
         source government fleet management services.

         Government Fleet Management Services (GFMS) Trading Entity was then established in
         terms of Public Finance Management Act, Treasury Regulation 19 in November 2011 to
         provide fleet management services to all Eastern Cape Provincial Government departments
         and the Legislature. GFMS is responsible for procuring vehicles on behalf of the Eastern
         Cape government, administration of fleet, repairs and maintenance of fleet and disposal of
         obsolete fleet.

         In executing its role, GFMS is guided by all public service legislation and regulations,
         including but not limited to:

         Government Motor Transport Handbook, 2019

         The Government Motor Transport Handbook guides users and managers of government
         vehicles in the management, including the safeguarding and the maintenance of the assets
         of a Department. It is applicable to all government motor vehicles, whether these vehicles
         are owned or leased by government with the purpose of utilizing it for official purposes.

         Public Finance Management Act (Act 1 of 1999)

         •    Regulates financial management in national and provincial governments, listed public
              entities, constitutional institutions and provincial legislatures.
         •    Ensures that all revenue, expenditure, assets, and liabilities of these institutions are
              managed efficiently and effectively; and
         •    Defines the responsibilities of persons entrusted with financial management in these
              bodies.

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         White Paper on National Transport Policy, 1996

         The White Paper on National Transport Policy recognises the important role that transport
         plays in the social and economic development of the country, as a mechanism for “smooth
         and efficient interaction” and as a catalyst for development. Accordingly, the White Paper
         acknowledges that policies in the transport sector must be “outward looking, shaped by the
         needs of society in general, of the users or customers of transport, and of the economy that
         transport has to support”.

         National Road Traffic Act (Act 93 of 1996)

         The purpose of the National Road Traffic Act is to regulate all road traffic matters on public
         roads.

         National Land Transport Act (Act 5 of 2009)

         The purpose of the National Land Transport Act is to further the process of transformation
         and restructuring of the national land transport system initiated by the Transition Act (22 of
         2000).

         National Land Transport Strategic Framework, 2007

         The National Land Transport Strategic Framework (NLTSF) is an overarching five-year plan
         guiding transport planning and land transport delivery. The framework sets out strategies
         towards the integrated planning of land transport across all spheres of government.

         International Policy Context

         The Sustainable Development Goals (SDGs) was adopted by South Africa and 192 other
         countries in 2015 at the United Nations Sustainable Development Summit. The new agenda
         entitled, “Transforming our World: The 2030 Agenda for Sustainable Development”. There
         are 17 SDGs of which GFMS plays a role in supporting SDG 7 (Affordable and Clean
         Energy) and SDG 8 (Decent Work and Economic Growth).

         National Policy Context

         The National Development Plan (NDP): Vision for 2030 is a broad development plan that
         aims to create a better South Africa (SA) for all who live in it. The NDPs’ keystone objective
         is to bring about inclusive economic growth, where economic growth is equally spread

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         among all South Africans, leading to reduced poverty and inequality leading to better living
         standards. The NDP notes that the following elements are important to living standards:

         •      Transport
         •      Nutrition
         •      Housing, water, electricity and sanitation
         •      Education and skills
         •      Safety and security
         •      Health care
         •      Employment
         •      Recreation and leisure
         •      Clean environment

         The NDP realises that transport infrastructure will support the NDP in meeting the key
         objectives, by:

         • Improving social mobility and integration
         • Facilitating economic growth
         • Contributing to sustainability.

         Medium Term Strategic Framework (MTSF)

         The Medium-Term Strategic Framework is a five-year (2019-24) plan intended to implement
         the electoral mandate of the ruling party and National Development Plan.

         The MTSF is structured around 7 priorities:

             National Priority 1          Economic Transformation and Job Creation
             National Priority 2          Education, Skills and Health
             National Priority 3          Consolidating the Social Wage through Reliable and Quality
                                          Basic Services
             National Priority 4          Spatial Integration, Human Settlements and Local Government
             National Priority 5          Social Cohesion and Safe Communities
             National Priority 6          A Capable, Ethical and Developmental State
             National Priority 7          A Better Africa and World

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         Provincial Policy Context

         The Eastern Cape Government developed six provincial developmental goals for the 5-year
         period to give effect to its strategic priority areas as aligned with the NDP and MTSF.
         Together, the goals constitute the Provincial Development Plan (PDP) 2019 – 2024.

         The PDP Goals are depicted below:

             Provincial Goal 1            An innovative, inclusive and growing economy.
             Provincial Goal 2            An enabling infrastructure network
             Provincial Goal 3            An innovative and high-value agriculture and rural sector
             Provincial Goal 4            Human Development
             Provincial Goal 5            Environmental Sustainability
             Provincial Goal 6            Capable Democratic Institutions

        A.3          INSTITUTIONAL POLICIES AND STRATEGIES OVER THE FIVE-YEAR
                     PLANNING PERIOD

        A.3.1        The Entity’s priorities over the next 5 years are to:
         • Develop SMME’s.
         • Create work opportunities for designated groups.
         • Improve operational efficiencies at Government Fleet Management Services

             A.3.2   This strategic plan is supported by a range of internal plans. Among these are:
         •      SMME Strategy
         •      Client Relations Engagement Framework
         •      Business Continuity Plan
         •      Information Communication and Technology Plan
         •      Human Resource Strategy
         •      Employment Equity Plan

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         A.3.3      Policy development and review
         •    Fleet Management Policy
         •    SMME Policy
         •    Risk Management Policy
         •    Loss Control Policy
         •    Information Communication and Technology Policy
         •    Finance Policies

        A.4       RELEVANT COURT RULINGS

         There are no court rulings.

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         PART B: OUR STRATEGIC FOUCUS

        B.1         VISION

         Preferred provider of mobility to support service delivery within the Eastern Cape.

        B.2         MISSION

         To provide a client-centric, service delivery-oriented, reliable, cost-effective, development
         focused fleet management solution within the Eastern Cape.

        B.3         VALUES

         Government Fleet Management Services (GFMS) is guided by the following values:

          Value                                                Value Statement
          Unity                                                Working together with common direction.
          Client Focus                                         Endeavour to be responsive to client
                                                               needs through efficient service delivery.
          Reliability                                          Strive to deliver a quality service to both
                                                               internal and external clients.
          Innovative                                           Adapt and meet the needs of clients
                                                               through creativity and new technology.
          Commitment                                           Continually strive for excellence.
          Integrity                                            Being open, honest, and transparent in
                                                               terms of information being communicated.

        B.4         SITUATIONAL ANALYSIS

        B.4.1 EXTERNAL ENVIRONMENTAL ANALYSIS

         Demographics

         According to Statistics SA, Mid-year population estimates (2020) the population size of the
         Province is estimated at 6 734 001 with O.R Tambo and Sarah Baartman being the most
         populous district municipalities. Overall, the province is the third most populous province in
         the country with a total area of 168 966 square kilometers’, covering about 13,9% of the
         country’s land with vast distances needing to be travelled, vehicles need to be fit for the
         terrain.

         As at December 2021, Government Fleet Management Services was leasing 3223 vehicles
         to the provincial government departments. In addition to this, 963 managed maintenance
         vehicles are owned by User Departments and GFMS maintains these vehicles. As vehicles
         are critical in the day-to-day functioning of Provincial Government and make it possible for

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         the public to access service delivery within urban and distant rural areas. Government Fleet
         Management Services has three satellite offices shared with Department of Transport within
         the districts namely, Alfred Nzo (Mount Ayliff), Chris Hani (Queenstown), Joe Gqabi (Aliwal
         North). In addition to this, there are three depots within the greater districts Oliver. R. Tambo
         (Mthatha), Amathole (East London), and Sarah Baartman (Gqeberha) to improve on
         operational efficiencies. Furthermore, a feasibility study will be conducted to revitalise the
         three depots in order:
         •    To be more proactive by doing vehicle inspection to enhance preventative
              maintenance.
         •    To insource minor repairs.
         •    To increase SMME work distribution by creating partnerships with local SMME
              merchants.

        B.4.2 INTERNAL ENVIRONMENTAL ANALYSIS

         Fleet Management Services includes:

         •   Procurement (Vehicle and accessory procurement).
         •   Engagements with clients are conducted to understand their needs as well as
             forecasting of replacement vehicles.
         •   Vehicle administration which includes licensing and registration, fuel management, fines
             management and vehicle monitoring (Tracker).
         •   Vehicle Maintenance: Maintenance and repairs of vehicles.
         •   Vehicle Disposal: Auctioning of vehicles at the end of the life cycle.

         Over the past years, GFMS has been mandated to provide fleet management services to all
         provincial government including provincial legislature. During the next five-years, GFMS
         seeks to expand its service offering to all spheres of government across the province.

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         Customer Satisfaction

         GFMS services thirteen (13) provincial government departments as its clients, contracted
         through a Service Level Agreement. To achieve the desired results, GFMS must work
         collaboratively to maintain inclusive relationships with its clients.

         A customer satisfaction survey was conducted in (2017), it resulted in a rating of 50%. The
         survey analysis highlighted issues that the respondents were not satisfied with, thus
         interventions were put in place to improve the client experience. GFMS will continue to
         advise clients on optimal utilisation of vehicles and conduct continuous training of transport
         officers on preventative maintenance.

         In addition to this, a demand assessment will be conducted to determine the optimal fleet
         size, required for service delivery. In order to enhance cost efficiency and effectiveness in
         running its fleet, GFMS needs to acquire the optimal number of vehicles. As a fleet size
         which is below optimum value will lead to over-utilisation of vehicles, which results in higher
         costs in replacement and maintenance. Over-utilisation also leads to increased downtime,
         which negatively impact service delivery. A fleet size which is above optimum value will lead
         to under-utilisation of vehicles and unnecessary tying in of capital. In depth surveys and
         interviews will be conducted across all districts within the province to respond to the needs
         of GFMS clients.

         Accident Management

         In exploring solutions to the challenges experienced in terms of accident management
         GFMS will embark on the following:

         •   Delays in the submission of accident documentation by client departments are still
             prevalent. If accident documents are not obtained within 21days of release of repaired
             vehicle, the full cost of the repairs will be billed back for the account of the client.

         •   Some vehicles are falsely reported as mechanical damage, whereas they were involved
             in an accident and the accident was never reported to GFMS.
             GFMS will repair the damage and bill back the costs to clients.

         •   Most client departments resist payment of penalties for drivers found to be negligent and
             where state cover is lost. GFMS will continuously educate clients on the obligations by
             their respective departments which are enshrined in the Service Level Agreement.

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         •   In cases of 3rd party claims against the State, GFMS will explore the possibility of
             acquiring the services of an independent assessor.

         Green Economy

         In supporting a green economy and reducing the carbon footprint GFMS will implement eco-
         friendly processes and interventions at both the vehicle selection and operational levels.

         When selecting vehicles to be purchased GFMS will use the total cost of ownership model
         (TCO). This method takes into account fuel consumption among other factors. Vehicles with
         lower weight and engine capacities will also be selected. GFMS will utilize fit –for- purpose
         vehicles which are correctly specified, in order to enhance economic fuel usage.

         At operations level, GFMS will fit a tracker system to all vehicles. The tracker system
         identifies drivers with bad driving habits which increase fuel consumption and consequently
         the carbon footprint. Interventions will be introduced to correct bad driving habits such as
         over raving, over speeding and harsh breaking.

         Small Medium Macro Enterprise (SMME) Development

         GFMS adopted a robust approach in terms of economic transformation and job creation,
         guided by the Small Medium Macro Enterprise (SMME) strategy which seeks to benefit
         historically disadvantaged individual (HDI) merchants. GFMS will facilitate development and
         capacity building opportunities for Small Medium Macro Enterprises (SMMEs) in order for
         merchants to comply with registration on the database which seeks to unlock job
         opportunities and propel economic growth. Travelling to the various districts within the
         province, empowering SMME’s and providing guidance in registration of merchants on the
         RT46 database. This requires that strategic partnerships be strengthened with other
         institutions to provide guidance to merchants.

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         Financial Viability

         GFMS was established to be a self-sustainable trading entity and does not receive an
         allocation from Provincial revenue funds. At inception R362 million was provided to GFMS
         by Provincial Treasury for operational overheads and acquisition of vehicles. To date, one
         billion, twenty-six million, four hundred and nineteen thousand Rands (R1 026 419 000)
         reserves have been surrendered to Provincial Treasury which negatively impacts on
         financial liquidity for replacement of vehicles. Ongoing engagements are taking place
         between GFMS and Provincial Treasury for better understanding of the GFMS business
         model.

         Further, the prevailing economic challenges has an on-going impact on financial markets
         which in turn adversely affects the budget with increased operational costs. This requires
         that GFMS finds ways to be more efficient and innovative in the delivery of its mandate.

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         SWOT ANALYSIS

         Strengths

         •   Provincial government departments are currently locked into making use of GFMS
             services.
         •   Precedents and benchmarks for running a fleet service exist, there is no need to reinvent
             the wheel.
         •   Procurement of vehicles directly from Original Equipment Manufacturers through the
             RT57 Transversal Contract
         •   A viable and self-sustainable funding model.
         •   Many of the supplier relationships are contracted at national level through RT46
             contracts where a list of suppliers are selected and it is up to the provincial and local
             organs of state to select from that list according to their needs and local arrangements.

         Weaknesses

         •   Absence of approved organizational structure.
         •   Ineffective organizational culture.
         •   No proper ICT infrastructure and Information Management System.
         •   Lack of capacity of appointed RT46 service provider resulting in delays in maintenance
             and repairs.
         •   GFMS have no control over the National Transversal Contract (RT46) for repairs and
             maintenance of fleet, managed by National Treasury.

         Opportunities

         •   Provide fleet management services to Municipalities, Public entities and National
             Departments within the Eastern Cape.
         •   Expansion of short-term rentals to clients (incl. VIP rentals).
         •   In-sourcing of repairs and maintenance contract by managing procurement.
         •   Increase work distribution to historically disadvantaged individuals and other SMME
             merchants.

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         Threats

         •   Continued forced surrender of funds to Provincial Treasury, which affects the future
             sustainability of GFMS.
         •   Failure to obtain approval to change the current organisational form.
         •   Subsidized vehicles may lead to a reduced demand for leased vehicles.
         •   Clients procuring their own vehicles.
         •   Clients using car rental companies.
         •   Shrinking of provincial fiscus leading to inability of clients to pay for vehicles.
         •   Non approval of Rate card by Provincial Treasury.

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ORGANISATIONAL STRUCTURE

                                                  HEAD OF DEPARTMENT

                                                       HEAD OF ENTITY

    FLEET                           SMME
               FLEET RISK AND                                                                       COMPLIANCE,
DEVELOPMENT                     DEVELOPMENT &   CLIENT RELATIONS    FINANCIAL      CORPORATE
                  LOGISTICS                                                                        ASSURANCE AND   INTERAL AUDIT
     AND                             FLEET       MANAGEMENT        MANAGEMENT   SUPPORT SERVICES
               MANAGEMENT                                                                             STRATEGY
PROVISIONING                     MAINTENANCE

                                                                                   INFORMATION,
                                                                                  COMMUNICATON
                                                                                  AND TECHNOLOGY
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

         Human Resource (HR) Requirements

         GFMS currently operates with an interim organisational structure, with a staff complement
         of 89 posts of which 73% (65/ 89) positions were filled as of 31 January 2021 resulting in a
         vacancy rate of 27%. GFMS is currently engaging in the process of reviewing its
         organisational structure with the aim to improve efficiencies and responding to alignment of
         capacity needs, as most posts are contractual and negatively affects performance and
         threatens stability of the organisation.

         GFMS is not included in the Departmental Employment Equity (EE) Plan and to achieve
         equitable representation of employees, will develop its own plan in contribution to achieving
         the Medium-Term Strategic Framework (MTSF) in prioritising women, youth and people with
         disabilities.

         The GFMS Human Resource Strategy mission is to become: “The Employer of Choice.”
         In becoming “The Employer of Choice.” GFMS will:
         •    Creating a client-centred and high-performance culture aligned to GFMS’ strategy and
              employee personal objectives based on our reward and recognition system.
         •    Empowering employees to make decisions within the overall strategic framework.
         •    Creating an environment conducive to personal growth and developmental
              opportunities particularly for key talented staff.
         •    Developing a value system that creates a sense of belonging and promotes citizenry
              for all employees.

         The main pillars of GFMS’ Human Resource Strategy are built on:
         •    Leadership Development
         •    Retention and Attraction
         •    Performance Management Development System
         •    Rewards and Recognition
         •    Organisational Development and Change
         •    Skills Development and Career Path
         •    Employee Engagement

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GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

         GFMS Digital Transformation Plan

         GFMS continues to rely on manual systems (Excel Spreadsheets) to manage a complex
         system of operational and financial activity. Deployment of an automated business process
         is pivotal to sustainable service delivery. To improve efficiencies at GFMS, a management
         information system that is appropriate for fleet management will be acquired to administer
         the vehicle records, allowing better analysis and management of clients and drivers.

         As the fourth industrial revolution (4IR) gains momentum, there is increased pressure to
         continually be innovative and move with agility to introduce suitable technological solutions.
         Developments are underway for the installation of Information Communication and
         Technology (ICT) infrastructure separate from Department of Transport which is conducive
         for fleet management. Transforming from the previously manual operations to a more
         enabling environment which is responsive to the needs of stakeholders. The new ICT
         development business model will ensure competitive edge and deliver value to clients.

         The fourth industrial revolution has meant that the world is increasingly becoming dependant
         on smart technologies to run organisations and has a myriad of benefits in the world of fleet
         management. This includes rapid access to information and data where use of telematics
         can be optimised for effective and efficient use of vehicles, driver and vehicle safety, fuel
         efficiency possibilities unlocked by monitoring of driver behaviour in terms of speed, lifespan
         of vehicles and compliance with rules in terms of monitoring of mileage, service intervals,
         among others. Coupled with this, initiatives to fully digitize the operations of GFMS are
         underway, this includes the implementation of a fleet management system for vehicle
         management.

         In addition to this, the financial management system at Government Fleet Management
         Service – Trading Entity has been upgraded to a more integrated platform for better financial
         management and reporting.

         Infrastructure

         A physical inspection of various depots was conducted and it was discovered that a lack of
         proper structure may present a perennial risk to both departmental assets and employees.
         Renovations and maintenance of depots will be carried out continuously to ensure and
         maintain a conducive environment. In creating enabling infrastructure network, depots will
         be upgraded with ICT infrastructure suitable for fleet management.

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PART C: MEASURING OUR PERFORMANCE

                                                                    C.1    INSTITUTIONAL PERFORMANCE INFORMATION

                                                                    C.1.1 Impact Statement

                                                                     Impact statement                  Improved mobility of government in the Eastern Cape Province

                                                                     Impact statement                  Transformed automotive sector that reflect demographics in the Province

      An efcient, safe, sustainable, affordable transport system
                                                                    C.1.2 Measuring our Outcomes

                                                                    MTSF Priority                               Priority 1: Economic Transformation and Job Creation
                                                                    Outcome                                     Outcome Indicator                Baselines                       5-year targets
                                                                    Client-centric, fit-for-purpose and         Percentage of Customer           50%                             75%
                                                                    responsive total fleet solution that        Satisfaction achieved
                                                                    enables mobility for service delivery.
                                                                    Good governance                             Unqualified Audit Opinion          Unqualified Audit Opinion     Clean Audit Opinion
                                                                    Empowerment of previously                   Percentage of maintenance and      -                             62%
                                                                    disadvantaged in the automotive sector.     repairs work allocated to HDI’s
                                                                                                                                                                                                       GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

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GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

        C.1.3 EXPLANATION OF PLANNED PERFORMANCE OVER THE FIVE-YEAR
              PLANNING PERIOD

         Outcome 1: Client-centric, fit-for-purpose and responsive total fleet solution that
         enables mobility for service delivery.

         Achieve 90% vehicle compliance for the Eastern Cape provincial fleet in terms of the
         economic life cycle. In line with MTSF Priority 3, this will enable GFMS to provide reliable
         and cost-effective vehicles to facilitate timeous and high-quality service delivery. To ensure
         a compliant fleet, it is necessary to continuously dispose non-compliant vehicles. GFMS will
         leverage on the disposal of non-compliant and written-off vehicles to empower the youth in
         line with the MTSF Priority 1, Economic transformation and job creation and Provincial Goal
         1, producing an Innovative, inclusive, and growing economy.

         GFMS plans to carry out vehicle demand assessment every three years. This enables
         GFMS to provide clients with the optimal fleet size and composition of vehicles which in turn
         will assist the clients to fulfil their mandates effectively. In contribution to Provincial Goal 2,
         with enabling infrastructure network, clients will have the right vehicles to use in
         implementing high quality and effective service delivery. Further, GFMS will continue to
         manage, monitor, advise and educate clients on the use of vehicles.

         A customer satisfaction survey will be conducted to establish whether GFMS has improved
         on services to clients. GFMS will continue to strive for service excellence.

         Outcome 2: Good governance

         Government Fleet Management Services as part of the Department of Transport is
         committed to maintaining a high standard of governance. GFMS will implement governance
         systems including adherence to the requirements of the PFMA and Treasury Regulations
         and will continue to establish and improve controls and processes around planning, financial
         management, risk management, and monitoring its system of internal controls.

         Furthermore, GFMS will promote good governance through developing, reviewing and
         monitoring adherence with policies and procedures together with compliance with laws and
         regulations governing the fleet industry. The review of the GFMS organisational structure
         will be concluded together with the review and implementation of a Human Resource
         Strategy to ensure adequate human resource development for effective running of
         operations.

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GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

         GFMS will report quarterly to the Department of Transport and oversight structures such as
         Audit Committee, Portfolio Committee and Standing Committee on Public Accounts
         (SCOPA) on its operations.

         Outcome 3: Empowerment of previously disadvantaged in the automotive sector.

         Part of the mandate of GFMS is local economic development within the Province in an effort
         to ramp up our spend on HDI’s particularly on women, youth and people living with
         disabilities. GFMS intends to contract directly with the HDI’s rather than rely solely on the
         national transversal contract for fleet maintenance and related services. The initiative will
         seek to ensure that businesses of previously disadvantaged individuals are supported and
         capacitated to offer repair, maintenance and other related services to government vehicles
         thereby creating an opportunity for those businesses to provide their services to private
         individuals as well as the insurance industry.

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GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

        C.2       KEY RISKS

          Outcome                             Key Risk                 Risk Mitigation
          Client-centric, fit-for-            Ineffective and costly   •   Procurement of fleet
          purpose and responsive              fleet service                management system.
          total fleet solution that                                    •   Enforce turnaround times with
          enables mobility for                                             RT46 service provider in line
          service delivery                                                 with National Transversal
                                                                           Contracts.
                                                                       •   Analysis of the tracking system
                                                                           reports on driver behaviour.
                                              Loss of existing and     •   Training and development on
                                              prospective clients          fleet management for CRM and
                                                                           clients.
                                                                       •   Monitoring the implementation
                                                                           of Service Level Agreement.
                                                                       •   Conduct customer satisfaction
                                                                           survey.
                                                                       •   Conduct comprehensive needs
                                                                           analysis.
                                                                       •   Structured operational
                                                                           meetings.
                                              Abuse on fuel usage      • Set limits on the number of
                                                                         transactions per day based on
                                                                         the operational needs of the
                                                                         clients.
                                                                       • GFMS authorization for override
                                                                         transactions.
                                                                       • Reconciliations – fleet register vs
                                                                         service provider reports.
                                                                       • Analysis on fuel exceptions.

          Good Governance                     Ineffective direction    Development and review of
                                              and running of the       policies, processes and systems.
                                              business (Policies,
                                              Systems, Processes)
                                              High staff turnover      •   Development and
                                                                           implementation of an
                                                                           organizational structure.
                                                                       •   Revision and implementation of
                                                                           HR strategy.
                                              Fraud and corruption     •   Implementation of Risk
                                                                           Management Implementation
                                                                           Plan.
                                                                       •   Fraud and Anti-corruption
                                                                           awareness, Fraud risk
                                                                           assessment.
                                              Financial viability      •   Review and approval of rate
                                                                           card.

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GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

          Outcome                             Key Risk                Risk Mitigation
                                                                      •   Procurement of Fleet
                                                                          Management System.
                                                                      •   Reconciliation of fleet register
                                                                      •   Escalation of overdue debt to
                                                                          HOD’s and CFO's Forum and
                                                                          Provincial Treasury.
                                                                      •   Continuous engagement with
                                                                          Provincial Treasury to discuss
                                                                          forced surrender of funds.
          Empowerment of                      SMME’s are non-         Facilitate upgrading for accredited
          previously                          compliant and non-      status through training.
          disadvantaged in the                accredited
          automotive sector
                                              Dependency on RT46      Conduct gap analysis on RT46
                                              Transversal Contract    contract.

        C.3       PUBLIC ENTITIES

         There are no public entities.

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GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

         PART D: TECHNICAL INDICATOR DESCRIPTIONS

          Indicator Title                     Percentage of customer satisfaction score achieved
          Definition                          Average satisfaction score of customers who participated in
                                              the satisfaction survey
          Source of data                      Customer Satisfaction Survey report
          Method of Calculation /             Average Rating
          Assessment
          Assumptions                         Clients value excellent service
          Disaggregation of                   • Target for women: N/A
          Beneficiaries                       • Target for youth: N/A
                                              • Target for people with disabilities: N/A
          Spatial Transformation              Districts
          Desired Performance                 75%
          Indicator Responsibility            Manager: Client Relations Management

          Indicator Title                     Unqualified Audit Opinion
          Definition                          Outcome of the audit conducted by the Auditor-General of
                                              South Africa (AGSA)
          Source of data                      Audit Report
          Method of Calculation /             Assessing materiality of audit findings.
          Assessment
          Assumptions                         Accurate Reporting
          Disaggregation of                   • Target for women: N/A
          Beneficiaries                       • Target for youth: N/A
                                              • Target for people with disabilities: N/A
          Spatial Transformation              N/A
          Desired Performance                 Clean audit opinion
          Indicator Responsibility            Director: Financial Management

          Indicator Title          Percentage of maintenance and repairs allocated to
                                   HDI’s
          Definition               Proportion of maintenance and repairs on out of warranty
                                   vehicles work allocated to HDI’s
          Source of data           Historically Disadvantage Individual Report
          Method of Calculation /        Total out of warranty work allocated to HDI′s
          Assessment               Total out of warranty work allocated within the Province
          Assumptions              • HDI’s do not conform to contractor’s registration
                                       standards
                                   • HDI’s can only maintain and repair out of warrantee
                                       vehicles
          Disaggregation of        • Target for women: N/A
          Beneficiaries            • Target for youth: N/A
                                   • Target for people with disabilities: N/A
          Spatial Transformation   Districts
          Desired Performance      62%
          Indicator Responsibility Director: SMME & Fleet Maintenance

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                                                                                                         PAGE 24
Annexures to Strategic Plan

                                                                        ANNEXURE A: DISTRICT DEVELOPMENT MODEL

                                                                         Areas of                                                             2021 to 2025
                                                                         intervention
                                                                                              Project              Budget        District            Location: GPS     Project Leader     Social
                                                                                              Description          Allocation    Municipality        coordinates                          Partners
                                                                         Infrastructure to    Fleet Demand         R3 500 000    Amathole            32°30′S 27°30′E   Head: Fleet        All Clients
                                                                         facilitate service   Analysis                                                                 Provisioning and
                                                                                                                                 Sarah Baartman      33°57′S 25°36′E
                                                                         delivery                                                                                      Development
                                                                                                                                 OR Tambo            31°34′S 28°46′E

          An efcient, safe, sustainable, affordable transport system
                                                                                                                                 Chris Hani          31°53′S 26°52′E
                                                                                                                                 Joe Gqabi           30°58′S 27°36′E
                                                                                                                                 Alfred Nzo          30°48′S 29°22′E
                                                                         Infrastructure to    Renovation of        R 1 800 000   OR Tambo            31°34′S 28°46′E   Head: Corporate    DPW
                                                                         support service      Mthatha                                                                  Support
                                                                         delivery             Government
                                                                                              Garage

                                                                         Training and         Education on fleet   R218 000      Amathole            32°30′S 27°30′E   Head:              OEM’s
                                                                         Development          management                                                               Client Relations
                                                                                                                                 Sarah Baartman      33°57′S 25°36′E
                                                                                                                                                                       Management
                                                                                                                                 OR Tambo            31°34′S 28°46′E
                                                                                                                                 Chris Hani          31°53′S 26°52′E
                                                                                                                                 Joe Gqabi           30°58′S 27°36′E
                                                                                                                                 Alfred Nzo          30°48′S 29°22′E

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                                                                                                                                                                                                        GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26

           NOTES
GOVERNMENT FLEET
                                              MANAGEMENT SERVICES   2021/22
                                              STRATEGIC
                                                                    2025/26
Customer Care Centre: 0800 644 644

GOVERNMENT FLEET MANAGEMENT SERVICES
                                              PLAN
Office of the Head of Entity
Private Bag X0001, EAST LONDON, 5218

Tel: 043 731 2899
E-mail: melody.trimalley@ectransport.gov.za

Website: www.ectransport.gov.za
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