Q&A’s, 2008

QUESTION FOR WRITTEN REPLY
DATE OF PUBLICATION: 26 SEPTEMBER 2008

Question 1690

Mr C M Lowe (DA) to ask the Minister for Public Enterprises:

(1) (a) What was the total cost to the State of consultants used by her department in the (i) 2005-06, (ii) 2006-07 and (iii) 2007-08 financial years, (b) what are the names of the consultants used; (c) for what purpose were they used and (d) what was the reason for preferring to use consultants instead of hiring persons with the necessary skills;

(2) whether any former employees of her department have been employed as
consultants in the above mentioned financial years; if so, (a) why and (b) why did each such person leave her department? NW2468E

Reply

(1) The classification of Consultants in the Standard Chart of Accounts (SCOA) from National Treasury is very broad, hence the disclosure of all items reflected under consultants in the department’s total annual expenditure. To this end, the department has defined the categories within this classification as follows:

• Consultants: A Consultant is contracted through a company or directly for a defined period related to a specific project. These Service Providers deliver various services to the department, some of which are contracted annually, depending on the needs and others on once off basis.
  
• Contractors: A Contractor, for all intents and purposes, is viewed and treated as an employee in the department. Contractors are employed directly to DPE in their personal capacity or through a company. They are based at the department on a full-time basis for a fixed period ranging from one to three years. These individuals are specialists with extensive experience in their area of operation. They are expected to comply with normal working hours as per the Basic Conditions of Employment and are vetted in a similar fashion to Public Service Employees.

(a) (i) 2005/06 R 6 502 480 
     (ii) 2006/07 R23 248 426 
     (iii) 2007/08 R30 117 668

(b&c) 2005/06 - refer to Annexure A
         2006/07 - refer to Annexure B
         2007/08 - refer to Annexure C
      
(d) In the instance when a specialist skill is required on a fulltime basis, we would contract the person for either one or two years at completive salaries given their expertise and experience.  
 
(2) 2005/06 - None
2006/07 – Two former employees
2007/08 – None

(a) Former employees were employed due to their understanding of the mandate of the department and required knowledge and competencies. In other cases were employed due to the urgency and the continuity of the projects. 

 (b) Personal Career Growth and Development.