Department of Higher Education and Training Annual Report 2010/11

Meeting report

Department of Higher Education and Training: Annual Report 2010/11
The Chairperson noted that the first part of the meeting had been a presentation to the Committee by the Auditor-General (AG), although this meeting had been closed to the public. The Department of Higher Education and Training (DHET or the Department) had received an unqualified audit from the office of the AG.

Dr Gwede Qonde, Director General, Department of Higher Education and Training, introduced the presentation, noting that he welcomed interaction between the Department and the Committee. The DHET was established during the 2009/10 financial year and became fully operational from the 1 April 2010, when education was divided between DHET and the Department of Basic Education (DBE).  

He outlined that the Annual Report consisted of general information with a message from the Minister and Deputy Minister. A chapter on the predetermined objectives included information on key strategic objectives as well as achievements for the 2010/11 financial year. The Annual Financial Statements section included statements of the Quality Council for Trade and Occupations (QCTO). Finally there was  section dealing with Human Resources Management. He noted that the “Department of Education” as it was named previously was still listed in Schedule 1 of the Public Service Act as a functional department, and a letter would be addressed by the Minister of Higher Education and Training to the Minister of Public Service and Administration to request the final abolition of the Department. This would take effect from 1 April 2012. The DHET and DBE already had an agreement, in consultation with the Auditor-General and the National Treasury, for the closure of all outstanding balances and the transfer of uncleared balances to the relevant department by 31 March 2012. 

Programme 1: Administration briefing
Ms Lulama Mbobo, Deputy Director General: Corporate Services, Department of Higher Education and Training, gave a short presentation on the activities in Programme 1: Administration. She explained that there had been a focus, in 2010/11, on putting the necessary administrative systems in place for the new departments. These included policies and procedures as well as the provision of core capacity for the smooth running of the Department. She emphasised that the Department had developed new policies in respect to Human Resources, IT, supply chain management processes and logistical services. These policies and systems had, for the most part, been approved and were being implemented. Another focal area was the filling of critical senior management positions. In 2010, more than 80 posts were advertised, of which 15 were at senior management level. Two Deputy Directors General (DDGs) were appointed by Cabinet. The process of identifying more critical posts continued in the current financial year.

She noted that Department had to improve efficiency through the implementation of the necessary information and communication technology infrastructure as well as the establishment of sustainable, business-appropriate enterprise architecture processes in the Department. The Department had to develop its own website and network which was running smoothly. The Department had also entered into agreements with Microsoft and had now appointed a service provider to maintain and service the network and desk top support. The Department was established and progressing smoothly.

Discussion
Mr G Radebe (ANC) asked why there were still so many acting posts, and how many posts were still vacant. He questioned the likely timeframe to fill the posts. He noted that Dr Mahlobo had been occupying an acting position for a long time. He noted that there should be measurable targets in place for filling the posts.

Ms Mbobo replied that fourteen posts out of fifteen advertised critical posts were filled, and the only unfilled critical post remaining, that of Human Resource Division (HRD) secretariat, was presently being filled.

Ms N Gina (ANC) said that “critical management posts” could not be said to be critical if they remained unfilled for so long.

Ms Gina asked why the QCTO was not yet fully functional, as this was a matter outstanding for more than a year. The CEO was not yet appointed. She asked for an explanation on the actual challenges were with the QCTO and its functionality.
 
Mr Qonde replied that QCTO was in the process of being capacitated. He pointed out that due processes had to be followed, and this had included Parliament and National Treasury having to scrutinise the business plan. Interviews and short listing would be completed soon for the post of CEO.

Mr A Mpontshane (IFP) asked how many posts had been filled. He pointed out that the AG had said that  a verification process had not been followed with regard to appointment of new employees, nor had new employees been provided with a written employment contract. He asked if this would be applicable to the QCTO also.

Ms Mbobo replied that there had not been employment contracts in the past, especially for those who had been with the Department for a long period of time. However, all officials newly appointed to the DHET had signed contracts.

Dr J Kloppers-Lourens (DA) said that Members were in all agreement that senior positions formed the backbone of the Department. She asked why the process of appointing people was so slow, and noted that page 16 of the Annual Report listed by name some who had left the Department, and two names of people apparently occupying different positions. She asked if there was a process through which qualifications of applicants could be verified by the Department.

Mr Qonde replied that the two vacant posts relating to the two DDGs, respectively for Further Education and Training (FET) colleges, and for universities, had been repeatedly advertised. The candidates had to go through security clearances. It had already happened that after going through the processes, they then required more remunerations than advertised and the processes had to start again. This had already occurred three times.

Ms Mbobo added that the verification process was done through South African Qualifications Authority (SAQA) and the security clearances were done through a government agency. Candidates were at times “lost” through the long verification process, and some had relocated. These were all issues beyond the control of the Department, and she added that this was a general problem throughout government.

Mr A van der Westhuizen (DA) said that when public money was transferred to other entities, basic rules applied and the entities had to adhere to these principles. He referred to the report by the AG and said that one of these entities had not confirmed in writing in recent years. He asked what money had been transferred, why had it been transferred, and to which entity. He asked if the Committee needed to be concerned about the spending of this public money.

Mr van der Westhuizen wanted clarity on the budget with regards to exam numerators. There had also been questions and complaints concerning the late release of examination results as well as various errors with examination papers. He asked if this was the Department’s responsibility.

Mr Qonde replied that a credible system had been rolled out and capacity built, to try to avoid exam errors. 

Mr van der Westhuizen noted that the AG had raised the point that performance targets were not compliant with set standards. The AG’s report had concluded that the Department had taken on new indicators and targets and that the Department’s vision was not clear. He noted that it fell within the task of monitoring and progression, and asked for clarity.

Mr Feizel Toefy, Chief Director: Performance Monitoring and Evaluation, DHET, explained that the financial and performance targets were set about six to seven months prior to the start of the financial year. At that time there had still been some instability within the Department. The split of the departments, and the movement from the Department of Labour, had shifted the targets. Processes and capacity had been put in place and planning for the next financial year had now started already.

Mr K Dikobo (AZAPO) noted that the National Skills Fund (NSF) had been mentioned as “part of” the Department and asked when it would become a separate entity. He also commented that all other programme presentations set out key objectives and achievements but this was not done for programme 1, and he enquired why this was so.

Mr Theuns Tredoux, Chief Financial Officer, DHET, replied that NSF was not yet listed as a public entity because when the Department started functioning on 1 April 2010, there were certificates in place based on what was inherited from the Department of Education. The Department also “inherited” the Sector Education and training Authorities (SETAs) from the Department of Labour (DOL). A new process was started in order to get new certificates, which continued throughout the 2010/11 financial year. The Department was currently in the process of obtaining new certificates from the universities and the universities of technology in line with the Public Finance Management Act (PFMA). This was thoroughly discussed with the AG.  There was also a technical difficulty with Section 38 (1) J of the PFMA as it did not specify the term of the renewal of certificates. There was no finality on the listing of the NSF as a public entity, as the institutional form had to be finally agreed upon with both the AG and the National Treasury (NT). Until then, the NSF would be incorporated as a separate chapter within the DHET. The Department had records of a number of meetings and letters with the NT and a decision was still awaited from NT on the listing of the NSF. There were various technical difficulties with the listing of the NSF as a public entity, specifically funding. The NSF was funded through partial levies as well as exchequer contributions. These matters all required clarification.

Ms Mbobo replied that the key strategic objectives for Programme 1 were indeed captured on pages 33 and 34 of the presentation. She noted that she had prepared this according to National Treasury guidelines.

The Chairperson pointed out that DHET could no longer be regarded as a “new” department.

Mr Qonde agreed.

A Member asked if there were performance management contracts in place.  
 
Ms Mbobo replied that all newly appointed officials had signed performance agreements and conditions of service
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The Chairperson thanked the Department for their comprehensive responses. He noted that the existing contracts were reduced to writing and that this by no means changed the conditions of service.  

Programme 2: Human Resource Development, Planning and Monitoring Coordination briefing
Mr Firoz Patel, Deputy Director General, Human Resources and Development, Planning and Monitoring, DHET briefed the Committee on the performance under Programme 2. The key objective of the Human Resource Development (HRD) programme was to establish the HRD Council and its structures and to support, co-ordinate and manage the work-plan of the HRD Council. The Deputy President would chair the Council, and would ensure that all processes were managed by the Minister of Higher Education and Training. The Human Resource Development Council of South Africa (HRDCSA) was established and had held four successful meetings.

The key objectives of the Planning, Information, Monitoring and Evaluation Coordination unit was to develop an integrated management information system for planning and monitoring purposes, to support the development of coherent career information services, and to ensure credible planning processes in the Department. The key achievements were the compilation of a scope and plan for a fully integrated management information system, which would commence in 2011/12. It had done survey data collections and baseline data for FET Colleges and Adult Basic Education and Training (ABET) Centres. The HEDCOM Subcommittee on Information and Planning had been established with all provinces, in order to manage the planning and data collection processes for the FET and ABET sectors. The career advice services were launched as a Ministerial flagship project, in collaboration with SAQA.
 
The key objectives of the international relations unit were to pursue African advancement and enhance international cooperation in education and training to strengthen South-South, North-South and multilateral cooperation in education and training. There had been participation and contribution to a number of meetings (see attached presentation). This unit had participated in a higher education conference with the European Union (EU) in Cape Town and structured bilateral meetings had been held with countries in the north and south. A number of international delegations had also been hosted on study visits.

The key objectives of the Legal and Legislative Services unit were to provide effective legal advice in a timely manner on education legislation and law, and to manage any litigation concerning the Ministry and the Department. Legal opinions were given on various aspects, including the impact of Section 29 of the Constitution on skills development, the Memorandum of Agreement with Higher Education South Africa (HESA), the IBSA Academic Forum, and the three Bills that were drafted for presentation in 2011.

Key objectives for the Social Inclusion in Education programme were to establish a well functioning social inclusion, equity and transformation unit within the Department, to monitor and research transformation processes in the higher education and training system, and to identify and monitor curriculum innovations in citizenship and values education. The Department would identify relevant units for collaboration, and set departmental policies and plans that addressed social inclusion and equity issues. Strategic support was rendered to the DHET-SAQA-SABC Education Career Guidance advocacy project. The Department was represented on the Presidential Steering Committee on Nation Building, which was led by the Department of Justice and Constitutional Development.

Discussion
Mr Dikobo asked if the mere holding of meetings could be regarded as an indicator of success, and wanted to know what the Council had actually delivered.

Mr Patel replied that attending meetings was part of the Department’s function, and it was important to have representation from the Department because it formed part of the coordinating function in the branch.
  
Mr Dikobo pointed out that ABET was the most neglected sub sector and there, the conditions of service for employees appeared to be non- existent. He asked what the Department saw as the main issues in respect of ABET.

Dr Bheki Mahlobo, Acting Deputy Director General: Further Education, DHET, responded that ABET was not a “step child” of the Department and that an appropriate model was being developed. The process of certification was underway. Adult Learning Centres managed their own finances in each province and had their own system in place to deal with educators. However, national norms were set, so that educators would operate under a standard condition of service. The FET Colleges Amendment Bill was passed, and would apply nationally. Each province was acting independently in respect of basic conditions of service. A teacher who taught at a school was not specifically qualified to teach adults.
  
The Chairperson questioned the comment by the AG that the Department had been reporting on a different strategic plan to the one under review.

Ms Gina asked what had been done to include learners with disabilities in higher institutions. She asked what data had been collected, and what specifically was done to accommodate learners with hearing disabilities, or what the challenges were. She also asked how the impact of the programmes could be measured.

Mr Patel said that detailed information could be provided. No attention had been given to disability funding in the past.

Mr S Makhubele (COPE) asked about the impact of the involvement of international bodies and if any value for money was realised.
 
Mr Radebe asked for clarity on the role of the legal services within the public domain, for instance, where the SETAs held differing views.

Dr Mahlobo said the Legal Services unit was stabilised and, despite all the challenges within the SETAs, there was now a system in place.

Mr Mpontshane noted that the fact that a Minister sat on a board could not be listed as an achievement, although the contribution actually made might be.

Mr Mpontshane referred to a case involving the University of Technology in Tshwane, which may or may not be sub judice, and asked if the Department was involved.

Dr Kloppers-Lourens said that a deadline date of 14 October had been set, and it was unclear what might happen if the Vice-Chancellor could not comply. Due process was being followed, and there were attempts to stabilise this institution.

The Chairperson said that the matter should not be further discussed, although he made the general comment that there was a need to intervene where people had bogus qualifications.

Mr van der Westhuizen asked how many people had been assisted with the career advice service at the walk in centres as well as the call centres.

Mr Patel said that detailed information was available as well as detailed transcripts of logged calls.

Programme 3: University Education briefing
Ms Diane Parker, Acting Deputy Director General: University Education, DHET, briefly outlined the key strategic objectives and strategies for university education (see attached presentation for full details). She noted that this operated under various sub programmes of Academic Planning and Management, Financial Planning and Information Systems, Policy and Development, and Teacher Education and Development. The objectives and achievements for this programme were set out (see attached presentation).

Programme 4: Vocational and Continuing Education and Training briefing
Dr Mahlobo outlined very briefly the key objectives and key achievements for this programme, noting that there was a comparison of objectives and achievements to help the Committee see what the Department had achieved under the sub-programmes (see attached presentation).

Discussion
The Chairperson asked why the NSF had budgeted for a deficit. He noted that although the Department had received an unqualified audit report from the AG, more details were required, from an audit perspective, to avoid the Department having to appear before the Standing Committee on Public Account (SCOPA).

Ms Parker replied that the performance measures had not been captured correctly in the presentation. 100% of the statutes relating to the universities were processed.

Mr Mpontshane said that, according to one report that he had read, 4 000 teachers per annum were lost in Kwa Zulu Natal, so he asked for a list of teachers who had been produced through the systems, and asked also if there were any projections for the production of new teachers.

Mr Dikobo said that in 2005 a report by the HSRC had been produced on supply and demand of teachers. There should be a balance in the public domain discourse. The fact that the licensing of private colleges were continuing may well be a problem. He also asked where the National Senior Certificate was going to be offered.

Dr Mahlobo replied that according to the Constitution private institutions could be established if they had been granted a licence. The Department was supposed to regulate their quality, but not their establishment.

Mr van der Westhuizen asked when the implementation of the Higher Education Quality Framework (HEQF) would take place and be finalised. He also asked when the rollout of the new national certification would occur and who would be offering it, where the funding came from and whether there would be any links with the prior systems. He pointed out that nothing had been said about the one third of students who failed their Senior Certificate (SC). He wondered if the new framework would provide relief for those learners who had failed their Certificate examinations.

Ms Parker replied that the HEQF was already implemented by the DHET.

Dr Mahlobo replied that four FET colleges in the Western Cape had been given licences to offer the National Senior Certificate, and the Department would provide support. A subsidy had been supplied by government. The Department had already submitted a bid to National Treasury. He reported that the current Senior Certificate would not be phased out. The post school system could be followed up in the FET colleges.
Mr C Moni (ANC), asked if any of the colleges that had closed were going to re-open and, if so, whether the process had already started.

Dr Kloppers-Lourens said that the Department would soon have three universities under administration. She pointed out that page 14 of the presentation referred to the provision of support to universities. She asked what this support to universities entailed. She also pointed out that the university funding committee had only started its work mid year, yet the report, which was due in April 2012, would require  in-depth research if it was to deal properly with all the issues.

Mr Radebe expressed his frustration that a very similar report was received by the Committee in the last year. Despite the fact that the Department had given a commitment to bring a report to the Committee during June, no report had yet been received.

Mr Qonde replied that the report covered the 2010/11 period, which had a specific budget. There would have to be a feasibility study. He noted that the Department was bound to work under government processes. The two universities to be built would cost at least R8 million. He pointed out that the objectives for the 2010/11 period had been achieved. He assured the committee that although the new universities were high priority in the current agenda, and that the Department was working on this matter, they did not fall within the 2010/11 review period.

The Chairperson asked what had happened to the R4 million mentioned in the Report. He pointed out that it was likely that the employees involved may have been dismissed by now, if there were experienced labour law officials involved.

Mr Tredoux replied that the agreement with the AG and the NT was that the acting CFO would sign as there was no Accounting Officer and that there were three instances of irregular expenditure found at Indlela College. These were being investigated.

The Chairperson said that the Committee had already requested the Indlela forensic report on two previous occasions, and was now insistent that it must be sent.

Mr Dikobo said that he had thought that the R4 million was not part of the Indlela problems.

Mr Dikobo shared the concerns of Mr Radebe as to when the two new universities in North West and Mpumalanga would open.

The Chairperson said that another meeting would be organised to discuss the issue of the universities specifically. The Department should, at that meeting, present all plans and a comprehensive report.

The Chairperson urged the Department to finalise the appointment of the two DDGs as well as all appointments to the funded senior posts.

The Chairperson noted that the AG had reported that the Department had problems in reporting against targets, there were various law suits against the Department. These would be discussed separately on another occasion. However, he was pleased that the audit certificate was unqualified.

The meeting was adjourned.