Implementation of the reconfiguration of national government structures

13 December 2009

The Ministry for Performance Monitoring and Evaluation is pleased to announce the completion of the implementation of the National Macro-Organisation of the State (NMOS) project. The project, established by President Jacob Zuma following the announcement of Cabinet in May 2009, was intended to direct the new configuration of national government structures.

Minister Collins Chabane oversaw the project and was in that process supported by the Departments of Public Service and Administration, the National Treasury and the Department of Public Works. The NMOS project achieved its objective of ensuring efficient service delivery and effective public administration in a new macro organisational dispensation. A number of Ministries were renamed, two were split, a number of functions were transferred between departments and new departments were created.

A Presidential proclamation was issued in July 2009 to assign the administration of legislation to the new ministers and subsequently a proclamation in terms of the Public Service Act of 1994 was issued also in July 2009 to rename and establish new departments. The proclamation to transfer administration of skills development legislation from the Department of Labour to Higher Education and Training came into effect in November 2009.

The determinations by the Department for Public Service and Administration were finalised for the splitting of the Departments of Minerals and Energy, Environmental Affairs and Tourism, the establishment of the Economic Development Department, the establishment of the Department of Women, Children and Persons with Disabilities, the transfer of sanitation to Human Settlements function and the transfer of the integrated rural development programme to Rural Development.
The Department of Public Service and Administration further made determinations, in terms of the Public Service Act of 1994, on the transfer of functions and concomitant staff to give administrative effect to the transfers and structures.
The outstanding transfer of functions will be finalised by relevant ministries and departments with the support of the Department of Public Service and Administration, Treasury and Public Works. These include the transfer of the forestry function, marine aquaculture and fisheries functions to the Department of Agriculture, Forestry and Fisheries and the transfer of skills development functions to the Department of Higher Education and the splitting of the Department of Education.

The affected departments have undertaken organisational scoping and most departments have completed the transfer of functions and components to relevant ministries. Many departments merged the activities of the organisational scoping, human resource auditing and organisational design for implementation. The organisational structures to integrate functions and staff for line and support functions have been developed in the following departments: Agriculture, Forestry and Fisheries; Environmental Affairs; Tourism; Basic Education; Higher Education and Training; and Labour.

The structures which are still to be completed, are the Presidency: Planning Commission and Performance Monitoring and Evaluation. These structures have been submitted for approval and are expected to be finalised early next year. The Department of Public Works has largely finalised activities regarding the functional office and residential accommodation for Cape Town and Pretoria for ministers and deputy ministers. The accommodation for departments will be finalised following the finalisation of organisational structures of affected departments.

The Appropriation Bill was passed by the National Assembly and National Council of Provinces in July 2009. The Appropriation Bill establishes new budget votes for the new departments and amends the titles of current budget votes to accord with the renamed departments. The National Treasury issued cost containment guidelines in July 2009 to ensure that costs related to restructuring do not escalate.

The Adjustments Appropriation Act, 2009 was adopted in November 2009 to provide for defraying expenditure by the affected departments from the budget votes indicated in the act. The affected departments are concluding agreements regarding the approval of expenditure, accountability for expenditure, and the allocation of responsibilities in terms of the Public Finance Management Act (PFMA).

There are residual matters which will be finalised by relevant departments with support of the Department of Public Service and Administration, National Treasury and the Department of Public Works. These matters include finalising outstanding transfer of functions and organisational structures, assistance with matching and placing of staff, job evaluation and recruitment of staff and finalising accommodation requirements by departments.

There has been ongoing consultation with staff and organised labour in departmental chambers and unions were represented in all departmental project teams to ensure an effective transition. The project was scheduled to be completed by 31 October 2009 and a close-out report was completed as scheduled and presented to Cabinet on 2 December 2009. The Cabinet noted the close-out report and agreed that Minister Chabane should continue to provide guidance and oversight where necessary.

Background notes

Annexure A

Following the announcement of Cabinet by President Jacob Zuma in May, a circular was produced to immediately and formally inform all directors-generals and ministers on the administrative implications of new configuration of portfolios and departments.

The NMOS Steering Committee and project team and secretariat were put in place in May to administer the programme and provide support to Minister Chabane. They were composed of the Department of Public Service and Administration, Department of Public Works and National Treasury.

The committees identified the legislations that require transfer to ministries and prepared presidential proclamations for the President’s signature. The President did sign the proclamations in July 2009.

The committees also analysed and identified functions and staff that needed to be transferred. The process followed consultation with organised labour and staff. The Minister of Public Service and Administration issued a determination on the transfer of functions and staff. A Presidential proclamation was then issued to list affected departments in the Public Service Act. The process was completed by 9 October 2009.

The organisational restructuring of affected departments was developed in consultation with the Department of Public Service and Administration. The committee also consulted with organised labour and executive authorities for implementation. The process was concluded on 2 November 2009.

Assets and accommodation were audited and reassigned to relevant departments. The relinquishing departments had to relinquish all asserts and lease agreements for accommodation to recipient departments. The process for approval by Treasury and heads of departments were received and finalised by 2 November 2009.

The Committee on Finance analysed the approved and existing budgets, determined budget needs and reconciled expenditure of affected departments. The committee further developed the medium term expenditure framework (MTEF) proposals for the departments and obtained approval of heads of departments and Treasury by 30 October 2009.

The Information and Communications Technology (ICT) Committee analysed, audited and apportioned the ICT systems, hardware and databases and obtained approval from heads of departments, Department of Public Service and Administration and Treasury by 30 October 2009.

The Legal Committee analysed and determined amendments to the legal instruments to enable departments to function. The committee obtained draft revised and new legal instruments from the heads of departments by 30 October 2009. The Change Management and Communication Committee analysed and developed a change management and internal communication plan. The plan was approved by 8 July 2009. The communication and has been ongoing in individual departments with greater emphasis to affected staff.

Issued by: The Presidency