PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION Report on the management of the Subsidized Motor Transport Scheme 10 November 2004

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PRESENTATION TO THE PORTFOLIO COMMITTEE ON
PUBLIC SERVICE AND ADMINISTRATION Report on the
management of the Subsidized Motor Transport
Scheme 10 November 2004
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INTRODUCTION

• The purpose of the Subsidized Motor Transport
  Scheme (SMTS) is to enable officials to undertake
  approved journeys in those cases where other
  transport is not practical and/or economical.
• Need for investigation PSC became aware of
  allegations of subsidized vehicles being granted
  to employees as a result of their ranks rather
  than them meeting the qualifying requirements.
• Furthermore, although the SMTS is regulated by
  the Subsidized Motor Transport Policy, no
  provision is made in the Policy for monitoring
  and evaluation mechanisms.

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OBJECTIVE OF THE INVESTIGATION

• It was the intention to establish
• whether qualifying criteria and allocation
  requirements set by the NDoT are adhered to
• whether control measures are in place to ensure
  the effective management of the Scheme
• constraints experienced with the SMTS
• the financial implications of the SMTS and
• the availability of management information.

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METHODOLOGY

• Scope of the investigation 22 departments
  participated in the investigation.
• Sources of information
• - Interviews with transport officers
• - Inspection of transport files
• - PERSAL (financial expenditure)
• - Service providers
• Wesbank First Auto (financing the SMTS).
• Fleet Africa/Auto Fleet Services (maintenance
  of vehicles and administration of logsheets).

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TOTAL NUMBER OF PARTICIPANTS IN THE SMTS

• Eastern Cape 579
• Free State 772
• Gauteng 464
• Kwazulu-Natal 1 572
• Mpumalanga 1 303
• Nort West 1 170
• Northern Cape 193
• Limpopo 1 687
• Western Cape 252
• National departments 2 018

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FINANCIAL IMPLICATIONS

• Expenditure, including the payment of capital
  remuneration, maintenance fuel allowances
  incurred by the State, amounted to the following
• R81 million - 1999/2000 financial year
• R122 million - 2000/2001 financial year
• R213 million - 2001/2002 financial year
• In addition, the following insurance premiums
  were paid
• R32 million - 1999/2000 financial year
• R30 million - 2000/2001 financial year
• R42 million - 2001/2002 financial year

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PARTICIPATION IN THE SMTS

• Role players involved in the process of approval
  to participate in the SMTS include advisory
  committees and risk management committees.
• Issues taken into account when evaluating an
  application to participate in the SMTS include
  the reasons motivated in the Z 81 application
  form, budgetary constraints and the reason(s) for
  the termination of a previous contract.
• Most departments have their own departmental
  policy/procedure manual, in addition to the
  national Policy issued by the NDoT.

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MECHANISMS IN PLACE TO CONTROL PARTICIPATION IN
THE SMTS

• Distances traveled is controlled by the keeping
  of logbooks completing logsheets (form Z 79).
• Role and responsibility of line managers
  Approving official journeys verifying official
  kilometers traveled.
• Vehicles are inspected to determine if the
  contracted kilometers have been traveled.
• Individual contracts are amended renegotiated
  due to deviation from the official kilometer
  distances initially contracted.
• Records are kept of drivers licenses and ID
  documents, individual contracts, logsheets, trip
  authorization forms, etc.

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USE OF INFORMATION FOR MANAGEMENT PURPOSES

• PERSAL is the only computerized system utilized
  to administer the SMTS, including payments made.
• Information pertaining to numerous issues with
  regard to the management of the SMTS is available
  on PERSAL. However, officials were uninformed
  about such information available on PERSAL.
• Information needs, such as accurate information,
  the decentralization of PERSAL to all provincial
  departments, more training on the utilization of
  PERSAL, etc. were identified by transport
  officers.

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CONSTRAINTS IN THE ADMIN MANAGEMENT OF THE SMTS

• The awarding of subsidized vehicles to officials
  who do not qualify
• - vehicles awarded due to ranks
• - work circumstances not taken into account
• Incorrect logsheet information claim problems
• - not informed of tariff amendments
• - fuel claims take too long to be paid out
• Inadequate record keeping records not regularly
  updated.
• Misuse of subsidized vehicles for private
  purposes not properly maintained.

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CONSTRAINTS(continued)

• Policy related problems
• - policy too often amended
• - policy not user-friendly difficult to
  interpret
• Maintenance and insurance related problems
• - services not always up to standard
• - no change of driver allowed
• Problems with the delivery of vehicles as well as
  the choice of vehicles available on National
  Contract RT 77.
• - delivery takes too long
• - choice of vehicles limited

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RECOMMENDATIONS

• Provisioning of effective/efficient resources
• - training staffing
• - Internet e-mail facilities to be installed
• Advisory committees to be established, as
  required by the Policy
• Tariff related recommendations
• - tariff adjustments to be announced in advance
• - revised fuel tariffs to be applicable when
  towing
• Amendment of the policy for the SMTS
• - standardize payments on insurance claims
• - provisions for replacement of tyres to be
  revised

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RECOMMENDATIONS(continued)

• Keeping participants in the SMTS informed at all
  times of the rules prescripts.
• Electronic processing of claims - training to be
  provided in this regard.
• Revision of National Contract RT 77 to allow for
  a bigger choice of vehicles.
• Enhanced record keeping of information - record
  also to be kept of
• - cases of driver misuse
• - termination of contracts/disposal of vehicles
• - results of vehicle inspections

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CONCLUSION

• The SMTS is in general administered and managed
  in an effective efficient manner.
• However, certain problem areas needs were
  identified during the investigation.
• In order to manage the SMTS in a cost effective
  efficient manner, departments should use the
  recommendations provided in this report by
  adapting them to suite their unique needs and
  circumstances.