1995 - National Treasury

-2.8-
The functions and administrative structures of the
former public services have been comprehensively
reviewed and redeployed into new national departments
and provincial administrations. These
departments and administrations were given legal
standing through the promulgation of the Public
Service Act of 1994, and most of the functions
and organisational components of the former
national and regional authorities were transferred
to new legal entities with effect from 1 July 1994.
Further rationalisation steps have followed, focusing
particularly on the functional content of the
national departments and provincial administrations,
and setting up departmental structures for
the provincial administrations, within the context of
changing social and developmental priorities of
the Government.
Considerable progress has also been achieved in
the allocation of powers to provincial government.
The bulk of legislation which devolves to provinces
in terms of the 1993 Constitution has already
been assigned to them. The Public Service
Commission is working in close collaboration with
the State Law Advisers and relevant departments
to amend and assign the remaining Acts.
Rationalisation and reorganisation will continue at
both national and provincial levels, and the
election of new local authorities later this year will
allow the rationalisation process at this level of
government to proceed as well. Government
recognises that organisational reforms and
capacity building directed towards more efficient
and effective delivery of public services must
continue and be strengthened. Under the
auspices of the Public Service Commission and in
association with the RDP Office, efforts to build
and redirect public sector training capacity are
presently being coordinated.
2.1.4.4 Intergovernmental financial relations
Developments in the reorganisation of intergovernmental
financial relations are discussed in
par. 2.4 below.
2.1.4.5 Restructuring of assets and liabilities
The structure of state assets and associated
liabilities inherited by the Government of National
Unity reflects priorities and strategies of the previous
Government and must be reorganised to
reflect new economic and development commitments.
Government recognises that the restructuring
of public assets can unlock resources
currently underutilised and can contribute to the
empowerment of disadvantaged communities and
sectors.
The rationalisation of parastatal development
finance institutions is an important aspect of this
challenge. In several provinces, institutions which
served former regional administrations are being
consolidated and their functions re-examined.
These institutions have critical roles to play in the
infrastructural and developmental programmes of
provincial and local tiers of government, and the
redefinition of their missions and restructuring of
their governance need to be undertaken in
consultation with a wide range of stakeholders.
Reviews of several institutions with national
developmental responsibilities have already been
initiated, including the appointment of a transformation
team to investigate the future role of the
Development Bank of Southern Africa.
It is recognised that the sale of certain state
assets would enable the public debt and associated
interest costs to be reduced. Where appropriate,
such reforms will be negotiated with other
stakeholders, and Government will remain
responsible for ensuring that suitable regulatory
mechanisms are in place.
A Cabinet Committee has been formed to take
forward the reorganisation of state assets and
enterprises. Four task groups will address the
following issues respectively:
the objectives of Government in undertaking
enterprise restructuring;
• the role, mission and asset base of all
development and financing parastatals and
quasi-non-governmental organisations;
• the identification of more effective or
alternative usage of assets outside the
domain of commercialised entities; and
• reorganisation of the State's pension fund
obligations and the retirement provision for
the general populace.
The Government recognises that the optimal use
of public resources will entail delivery of many of
its services in partnership with the private sector,
which will frequently require restructuring of state