PLAN - Eastern Cape Department of Transport
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
GOVERNMENT FLEET
MANAGEMENT SERVICES 2021/22
STRATEGIC
2025/26
Customer Care Centre: 0800 644 644
GOVERNMENT FLEET MANAGEMENT SERVICES
PLAN
Office of the Head of Entity
Private Bag X0001, EAST LONDON, 5218
Tel: 043 731 2899
E-mail: melody.trimalley@ectransport.gov.za
Website: www.ectransport.gov.za
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
EXECUTIVE AUTHORITY STATEMENT
MEC WEZIWE TIKANA-GXOTHIWE
TRANSPORT, SAFETY AND LIAISON
I am delighted to present to you the Government Fleet Management Services - Trading
Entity Strategic Plan 2021 – 2026. The Strategic Plan outlines the strategic vision and
outcomes to support service delivery in the 6th term of Administration.
Since its inception Government Fleet Management Services has positioned itself to improve
service delivery by providing cost effective fleet management solutions to the Eastern Cape
provincial government. GFMS aims to achieve the above through a capable and empowered
human resources and further seeks to transform operations and services through innovative
technological solutions.
GFMS for the next five years will continue to contribute to the National Development Plan
and Medium Term Strategic Framework (MTSF) priorities with the key focus on economic
transformation. Creating strategic partnerships to empower businesses in the previously
marginalised areas and communities to ensure sustainability and steer the agenda of
economic development and empowerment.
An efcient, safe, sustainable, affordable transport system
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
The GFMS’ priorities over the next 5 years are:
• Development of SMME’s
• Creating work opportunities for designated groups through development SMME’s
• Improving operational efficiencies at Government Fleet Management Services.
Lastly, it is imperative that relations are strengthened with stakeholders that will support
GFMS in the implementation of the strategic plan.
_________________________
Ms W Tikana-Gxothiwe
MEMBER OF THE EXECUTIVE COUNCIL
An efcient, safe, sustainable, affordable transport system
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
HEAD OF ENTITY STATEMENT
ACTING HEAD OF GFMS
MBUYISELI MBOYA
The new strategy of Government Fleet Management Services (GFMS) Trading Entity is
service delivery oriented and designed to ensure that the organisation is au fait with the
needs of its stakeholders (clients) to provide services and solutions that address the needs.
The pressure on the fiscus, compounded by the advent of the Corona virus pandemic, has
necessitated that the GFMS eliminates all inefficiencies in the value chain whenever they
manifest themselves in order to assist the administration to enhance its output without
necessarily increasing the financial resources.
In 2011, the Executive Authority of the Department of Transport approved an interim
structure upon the establishment of GFMS Trading Entity following the Executive Council
resolution. GFMS has been operating on the basis of the interim structure and the upshot
thereof is that more than 50% of the posts were on a one-year contract basis. This situation
impacted the performance and efficiency of GFMS adversely in that there was no security
of tenure for the contract employees and therefore no commitment in their performance.
However, work is in the final stages of completion of the development of a permanent
structure and it is intended that same will be implemented in the 2021/22 financial year.
Since its inception, GFMS has been operating on a manual fleet system and this has an
adverse impact on the efficiency of its operations. To this end, GFMS has finalised the
specification for the procurement of an integrated fleet management system with the
intention to have it in place during the new financial year. Government Fleet Management
An efcient, safe, sustainable, affordable transport system
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
Services is currently rolling out an upgraded financial management system, Pastel Evolution,
which it is intended to integrate with the fleet management system and thereby eliminate all
manner of manual operations and improve efficiency.
Part of the mandate of GFMS is local economic development within the Province in an effort
to ramp up our spend on HDI’s particularly on women, youth and people living with
disabilities. GFMS intends to contract directly with the HDI’s rather than rely solely on the
national transversal contract for fleet maintenance and related services. The initiative will
seek to ensure that businesses of previously disadvantaged individuals are supported and
capacitated to offer repair, maintenance and other related services to government vehicles
thereby creating an opportunity for those businesses to provide their services to private
individuals as well as the insurance industry.
There are several National Departments and Public Entities that have offices within the
Province, but which are serviced by a service provider outside the Province. In order to
expand the mandate of GFMS, the intention is to approach the Executive Council of the
Province for approval to extend our mandate to include all Municipalities, National
Departments and Public Entities.
Based on the understanding that transport is the lifeblood of the economy and an integral
tool in service delivery, the staff of the GFMS is committed to a client-centric, service
delivery-oriented, reliable, cost-effective, development focused fleet management solution
to the Eastern Cape Province.
_________________________
Mr. M Mboya
Acting Head of Entity
GOVERNMENT FLEET MANAGEMENT SERVICE
An efcient, safe, sustainable, affordable transport system
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
OFFICIAL SIGN-OFF
It is hereby certified that this Strategic Plan:
• Was developed by the management of the Government Fleet Management Services -
Trading Entity under the guidance of Honourable MEC Weziwe Tikana-Gxothiwe.
• Takes into account all the relevant policies, legislation and other mandates for which
the Government Fleet Management Services – Trading Entity is responsible.
Accurately reflects the Impact and Outcomes that GFMS will endeavour to achieve over
the period of 2021/22 - 2025/26.
Mr. Z. Ngxobongwana ______________________
Manager: Fleet Risk and
Logistics
Mrs. G. Fortuin ______________________
Manager: Client Relations
Management
Mrs. P. Mbewu ______________________
Manager: Corporate Support
Mrs. Y. Kunene ______________________
Manager: Risk & Strategy
Mr. B. Chirimuta ______________________
Director: Vehicle Provisioning
and Development
Mr. F. Narkedien ______________________
Director: SMME & Fleet Maintenance
Mrs. N. Mafumbu ______________________
Director: Finance
Ms. M. Trimalley ______________________
Official Responsible for Planning
An efcient, safe, sustainable, affordable transport systemGOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
Mr. M. Mboya ______________________
Acting Head of Entity
Mr. M. Mafani ______________________
Accounting Officer
APPROVED BY:
Ms W. Tikana–Gxothiwe ___________________ 19 March 2021
______________
EXECUTING AUTHORITY DATE
An efcient, safe, sustainable, affordable transport systemGOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
TABLE OF CONTENTS
PART A: OUR MANDATE ................................................................................................... 1
A.1 CONSTITUTIONAL MANDATE................................................................................... 1
A.2 LEGISLATIVE AND POLICY MANDATES .................................................................. 1
A.3 INSTITUTIONAL POLICIES AND STRATEGIES OVER THE FIVE-YEAR
PLANNING PERIOD ................................................................................................... 4
A.4 RELEVANT COURT RULINGS ................................................................................... 5
PART B: OUR STRATEGIC FOUCUS ................................................................................ 7
B.1 VISION ....................................................................................................................... 7
B.2 MISSION .................................................................................................................... 7
B.3 VALUES ...................................................................................................................... 7
B.4 SITUATIONAL ANALYSIS .......................................................................................... 7
B.4.1 External Environmental Analysis ................................................................................. 7
B.4.2 Internal Environmental Analysis .................................................................................. 8
PART C: Measuring Our Performance ............................................................................ 18
C.1 Institutional Performance Information ........................................................................ 18
C.1.1 Impact Statement ...................................................................................................... 18
C.1.2 Measuring our Outcomes .......................................................................................... 18
C.1.3 Explanation of planned performance over the five-year planning period .................. 19
C.2 KEY RISKS ............................................................................................................... 21
C.3 PUBLIC ENTITIES .................................................................................................... 22
PART D: Technical Indicator Descriptions ..................................................................... 24
Annexure A: District Development Model ...................................................................... 25
An efcient, safe, sustainable, affordable transport systemGOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
ACRONYMS
4IR Fourth Industrial Revolution
AGSA Auditor General of South Africa
CFO Chief Finance Officer
EE Employment Equity
GFMS Government Fleet Management Services
HDI Historically Disadvantaged Individuals
HOD Head of Department
HR Human Resources
ICT Information Communication and Technology
MEC Member of the Executive Council
MMs Managed Maintenance
MTSF Medium Term Strategic Framework
N/A Not Applicable
NDP National Development Plan
NLTSF National Land Strategic Framework
PDP Provincial Development Plan
PFMA Public Finance Management Act
SA South Africa
SCOPA Standing Committee on Public Accounts
SDGs Sustainable Development Goals
SMME Small Medium Macro Enterprises
TCO Total Cost of Ownership
TID Technical Indicator Description
VIP Very Important Person
An efcient, safe, sustainable, affordable transport systemGOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
PART A: OUR MANDATE
A.1 CONSTITUTIONAL MANDATE
The Constitution of the Republic of South Africa, (Act 108 of 1996) provides the national
overarching framework for all government institutions. It further underpins legislation that is
responsive to the economic and social challenges that face South Africa.
A.2 LEGISLATIVE AND POLICY MANDATES
In 2010, the Executive Council of the Eastern Cape Province passed a resolution to in-
source government fleet management services.
Government Fleet Management Services (GFMS) Trading Entity was then established in
terms of Public Finance Management Act, Treasury Regulation 19 in November 2011 to
provide fleet management services to all Eastern Cape Provincial Government departments
and the Legislature. GFMS is responsible for procuring vehicles on behalf of the Eastern
Cape government, administration of fleet, repairs and maintenance of fleet and disposal of
obsolete fleet.
In executing its role, GFMS is guided by all public service legislation and regulations,
including but not limited to:
Government Motor Transport Handbook, 2019
The Government Motor Transport Handbook guides users and managers of government
vehicles in the management, including the safeguarding and the maintenance of the assets
of a Department. It is applicable to all government motor vehicles, whether these vehicles
are owned or leased by government with the purpose of utilizing it for official purposes.
Public Finance Management Act (Act 1 of 1999)
• Regulates financial management in national and provincial governments, listed public
entities, constitutional institutions and provincial legislatures.
• Ensures that all revenue, expenditure, assets, and liabilities of these institutions are
managed efficiently and effectively; and
• Defines the responsibilities of persons entrusted with financial management in these
bodies.
An efcient, safe, sustainable, affordable transport system
PAGE 1GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
White Paper on National Transport Policy, 1996
The White Paper on National Transport Policy recognises the important role that transport
plays in the social and economic development of the country, as a mechanism for “smooth
and efficient interaction” and as a catalyst for development. Accordingly, the White Paper
acknowledges that policies in the transport sector must be “outward looking, shaped by the
needs of society in general, of the users or customers of transport, and of the economy that
transport has to support”.
National Road Traffic Act (Act 93 of 1996)
The purpose of the National Road Traffic Act is to regulate all road traffic matters on public
roads.
National Land Transport Act (Act 5 of 2009)
The purpose of the National Land Transport Act is to further the process of transformation
and restructuring of the national land transport system initiated by the Transition Act (22 of
2000).
National Land Transport Strategic Framework, 2007
The National Land Transport Strategic Framework (NLTSF) is an overarching five-year plan
guiding transport planning and land transport delivery. The framework sets out strategies
towards the integrated planning of land transport across all spheres of government.
International Policy Context
The Sustainable Development Goals (SDGs) was adopted by South Africa and 192 other
countries in 2015 at the United Nations Sustainable Development Summit. The new agenda
entitled, “Transforming our World: The 2030 Agenda for Sustainable Development”. There
are 17 SDGs of which GFMS plays a role in supporting SDG 7 (Affordable and Clean
Energy) and SDG 8 (Decent Work and Economic Growth).
National Policy Context
The National Development Plan (NDP): Vision for 2030 is a broad development plan that
aims to create a better South Africa (SA) for all who live in it. The NDPs’ keystone objective
is to bring about inclusive economic growth, where economic growth is equally spread
An efcient, safe, sustainable, affordable transport system
PAGE 2GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
among all South Africans, leading to reduced poverty and inequality leading to better living
standards. The NDP notes that the following elements are important to living standards:
• Transport
• Nutrition
• Housing, water, electricity and sanitation
• Education and skills
• Safety and security
• Health care
• Employment
• Recreation and leisure
• Clean environment
The NDP realises that transport infrastructure will support the NDP in meeting the key
objectives, by:
• Improving social mobility and integration
• Facilitating economic growth
• Contributing to sustainability.
Medium Term Strategic Framework (MTSF)
The Medium-Term Strategic Framework is a five-year (2019-24) plan intended to implement
the electoral mandate of the ruling party and National Development Plan.
The MTSF is structured around 7 priorities:
National Priority 1 Economic Transformation and Job Creation
National Priority 2 Education, Skills and Health
National Priority 3 Consolidating the Social Wage through Reliable and Quality
Basic Services
National Priority 4 Spatial Integration, Human Settlements and Local Government
National Priority 5 Social Cohesion and Safe Communities
National Priority 6 A Capable, Ethical and Developmental State
National Priority 7 A Better Africa and World
An efcient, safe, sustainable, affordable transport system
PAGE 3GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
Provincial Policy Context
The Eastern Cape Government developed six provincial developmental goals for the 5-year
period to give effect to its strategic priority areas as aligned with the NDP and MTSF.
Together, the goals constitute the Provincial Development Plan (PDP) 2019 – 2024.
The PDP Goals are depicted below:
Provincial Goal 1 An innovative, inclusive and growing economy.
Provincial Goal 2 An enabling infrastructure network
Provincial Goal 3 An innovative and high-value agriculture and rural sector
Provincial Goal 4 Human Development
Provincial Goal 5 Environmental Sustainability
Provincial Goal 6 Capable Democratic Institutions
A.3 INSTITUTIONAL POLICIES AND STRATEGIES OVER THE FIVE-YEAR
PLANNING PERIOD
A.3.1 The Entity’s priorities over the next 5 years are to:
• Develop SMME’s.
• Create work opportunities for designated groups.
• Improve operational efficiencies at Government Fleet Management Services
A.3.2 This strategic plan is supported by a range of internal plans. Among these are:
• SMME Strategy
• Client Relations Engagement Framework
• Business Continuity Plan
• Information Communication and Technology Plan
• Human Resource Strategy
• Employment Equity Plan
An efcient, safe, sustainable, affordable transport system
PAGE 4GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
A.3.3 Policy development and review
• Fleet Management Policy
• SMME Policy
• Risk Management Policy
• Loss Control Policy
• Information Communication and Technology Policy
• Finance Policies
A.4 RELEVANT COURT RULINGS
There are no court rulings.
An efcient, safe, sustainable, affordable transport system
PAGE 5GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
PART B: OUR STRATEGIC FOUCUS
B.1 VISION
Preferred provider of mobility to support service delivery within the Eastern Cape.
B.2 MISSION
To provide a client-centric, service delivery-oriented, reliable, cost-effective, development
focused fleet management solution within the Eastern Cape.
B.3 VALUES
Government Fleet Management Services (GFMS) is guided by the following values:
Value Value Statement
Unity Working together with common direction.
Client Focus Endeavour to be responsive to client
needs through efficient service delivery.
Reliability Strive to deliver a quality service to both
internal and external clients.
Innovative Adapt and meet the needs of clients
through creativity and new technology.
Commitment Continually strive for excellence.
Integrity Being open, honest, and transparent in
terms of information being communicated.
B.4 SITUATIONAL ANALYSIS
B.4.1 EXTERNAL ENVIRONMENTAL ANALYSIS
Demographics
According to Statistics SA, Mid-year population estimates (2020) the population size of the
Province is estimated at 6 734 001 with O.R Tambo and Sarah Baartman being the most
populous district municipalities. Overall, the province is the third most populous province in
the country with a total area of 168 966 square kilometers’, covering about 13,9% of the
country’s land with vast distances needing to be travelled, vehicles need to be fit for the
terrain.
As at December 2021, Government Fleet Management Services was leasing 3223 vehicles
to the provincial government departments. In addition to this, 963 managed maintenance
vehicles are owned by User Departments and GFMS maintains these vehicles. As vehicles
are critical in the day-to-day functioning of Provincial Government and make it possible for
An efcient, safe, sustainable, affordable transport system
PAGE 7GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
the public to access service delivery within urban and distant rural areas. Government Fleet
Management Services has three satellite offices shared with Department of Transport within
the districts namely, Alfred Nzo (Mount Ayliff), Chris Hani (Queenstown), Joe Gqabi (Aliwal
North). In addition to this, there are three depots within the greater districts Oliver. R. Tambo
(Mthatha), Amathole (East London), and Sarah Baartman (Gqeberha) to improve on
operational efficiencies. Furthermore, a feasibility study will be conducted to revitalise the
three depots in order:
• To be more proactive by doing vehicle inspection to enhance preventative
maintenance.
• To insource minor repairs.
• To increase SMME work distribution by creating partnerships with local SMME
merchants.
B.4.2 INTERNAL ENVIRONMENTAL ANALYSIS
Fleet Management Services includes:
• Procurement (Vehicle and accessory procurement).
• Engagements with clients are conducted to understand their needs as well as
forecasting of replacement vehicles.
• Vehicle administration which includes licensing and registration, fuel management, fines
management and vehicle monitoring (Tracker).
• Vehicle Maintenance: Maintenance and repairs of vehicles.
• Vehicle Disposal: Auctioning of vehicles at the end of the life cycle.
Over the past years, GFMS has been mandated to provide fleet management services to all
provincial government including provincial legislature. During the next five-years, GFMS
seeks to expand its service offering to all spheres of government across the province.
An efcient, safe, sustainable, affordable transport system
PAGE 8GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
Customer Satisfaction
GFMS services thirteen (13) provincial government departments as its clients, contracted
through a Service Level Agreement. To achieve the desired results, GFMS must work
collaboratively to maintain inclusive relationships with its clients.
A customer satisfaction survey was conducted in (2017), it resulted in a rating of 50%. The
survey analysis highlighted issues that the respondents were not satisfied with, thus
interventions were put in place to improve the client experience. GFMS will continue to
advise clients on optimal utilisation of vehicles and conduct continuous training of transport
officers on preventative maintenance.
In addition to this, a demand assessment will be conducted to determine the optimal fleet
size, required for service delivery. In order to enhance cost efficiency and effectiveness in
running its fleet, GFMS needs to acquire the optimal number of vehicles. As a fleet size
which is below optimum value will lead to over-utilisation of vehicles, which results in higher
costs in replacement and maintenance. Over-utilisation also leads to increased downtime,
which negatively impact service delivery. A fleet size which is above optimum value will lead
to under-utilisation of vehicles and unnecessary tying in of capital. In depth surveys and
interviews will be conducted across all districts within the province to respond to the needs
of GFMS clients.
Accident Management
In exploring solutions to the challenges experienced in terms of accident management
GFMS will embark on the following:
• Delays in the submission of accident documentation by client departments are still
prevalent. If accident documents are not obtained within 21days of release of repaired
vehicle, the full cost of the repairs will be billed back for the account of the client.
• Some vehicles are falsely reported as mechanical damage, whereas they were involved
in an accident and the accident was never reported to GFMS.
GFMS will repair the damage and bill back the costs to clients.
• Most client departments resist payment of penalties for drivers found to be negligent and
where state cover is lost. GFMS will continuously educate clients on the obligations by
their respective departments which are enshrined in the Service Level Agreement.
An efcient, safe, sustainable, affordable transport system
PAGE 9GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
• In cases of 3rd party claims against the State, GFMS will explore the possibility of
acquiring the services of an independent assessor.
Green Economy
In supporting a green economy and reducing the carbon footprint GFMS will implement eco-
friendly processes and interventions at both the vehicle selection and operational levels.
When selecting vehicles to be purchased GFMS will use the total cost of ownership model
(TCO). This method takes into account fuel consumption among other factors. Vehicles with
lower weight and engine capacities will also be selected. GFMS will utilize fit –for- purpose
vehicles which are correctly specified, in order to enhance economic fuel usage.
At operations level, GFMS will fit a tracker system to all vehicles. The tracker system
identifies drivers with bad driving habits which increase fuel consumption and consequently
the carbon footprint. Interventions will be introduced to correct bad driving habits such as
over raving, over speeding and harsh breaking.
Small Medium Macro Enterprise (SMME) Development
GFMS adopted a robust approach in terms of economic transformation and job creation,
guided by the Small Medium Macro Enterprise (SMME) strategy which seeks to benefit
historically disadvantaged individual (HDI) merchants. GFMS will facilitate development and
capacity building opportunities for Small Medium Macro Enterprises (SMMEs) in order for
merchants to comply with registration on the database which seeks to unlock job
opportunities and propel economic growth. Travelling to the various districts within the
province, empowering SMME’s and providing guidance in registration of merchants on the
RT46 database. This requires that strategic partnerships be strengthened with other
institutions to provide guidance to merchants.
An efcient, safe, sustainable, affordable transport system
PAGE 10GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
Financial Viability
GFMS was established to be a self-sustainable trading entity and does not receive an
allocation from Provincial revenue funds. At inception R362 million was provided to GFMS
by Provincial Treasury for operational overheads and acquisition of vehicles. To date, one
billion, twenty-six million, four hundred and nineteen thousand Rands (R1 026 419 000)
reserves have been surrendered to Provincial Treasury which negatively impacts on
financial liquidity for replacement of vehicles. Ongoing engagements are taking place
between GFMS and Provincial Treasury for better understanding of the GFMS business
model.
Further, the prevailing economic challenges has an on-going impact on financial markets
which in turn adversely affects the budget with increased operational costs. This requires
that GFMS finds ways to be more efficient and innovative in the delivery of its mandate.
An efcient, safe, sustainable, affordable transport system
PAGE 11GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
SWOT ANALYSIS
Strengths
• Provincial government departments are currently locked into making use of GFMS
services.
• Precedents and benchmarks for running a fleet service exist, there is no need to reinvent
the wheel.
• Procurement of vehicles directly from Original Equipment Manufacturers through the
RT57 Transversal Contract
• A viable and self-sustainable funding model.
• Many of the supplier relationships are contracted at national level through RT46
contracts where a list of suppliers are selected and it is up to the provincial and local
organs of state to select from that list according to their needs and local arrangements.
Weaknesses
• Absence of approved organizational structure.
• Ineffective organizational culture.
• No proper ICT infrastructure and Information Management System.
• Lack of capacity of appointed RT46 service provider resulting in delays in maintenance
and repairs.
• GFMS have no control over the National Transversal Contract (RT46) for repairs and
maintenance of fleet, managed by National Treasury.
Opportunities
• Provide fleet management services to Municipalities, Public entities and National
Departments within the Eastern Cape.
• Expansion of short-term rentals to clients (incl. VIP rentals).
• In-sourcing of repairs and maintenance contract by managing procurement.
• Increase work distribution to historically disadvantaged individuals and other SMME
merchants.
An efcient, safe, sustainable, affordable transport system
PAGE 12GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
Threats
• Continued forced surrender of funds to Provincial Treasury, which affects the future
sustainability of GFMS.
• Failure to obtain approval to change the current organisational form.
• Subsidized vehicles may lead to a reduced demand for leased vehicles.
• Clients procuring their own vehicles.
• Clients using car rental companies.
• Shrinking of provincial fiscus leading to inability of clients to pay for vehicles.
• Non approval of Rate card by Provincial Treasury.
An efcient, safe, sustainable, affordable transport system
PAGE 13ORGANISATIONAL STRUCTURE
HEAD OF DEPARTMENT
HEAD OF ENTITY
FLEET SMME
FLEET RISK AND COMPLIANCE,
DEVELOPMENT DEVELOPMENT & CLIENT RELATIONS FINANCIAL CORPORATE
LOGISTICS ASSURANCE AND INTERAL AUDIT
AND FLEET MANAGEMENT MANAGEMENT SUPPORT SERVICES
MANAGEMENT STRATEGY
PROVISIONING MAINTENANCE
INFORMATION,
COMMUNICATON
AND TECHNOLOGYGOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
Human Resource (HR) Requirements
GFMS currently operates with an interim organisational structure, with a staff complement
of 89 posts of which 73% (65/ 89) positions were filled as of 31 January 2021 resulting in a
vacancy rate of 27%. GFMS is currently engaging in the process of reviewing its
organisational structure with the aim to improve efficiencies and responding to alignment of
capacity needs, as most posts are contractual and negatively affects performance and
threatens stability of the organisation.
GFMS is not included in the Departmental Employment Equity (EE) Plan and to achieve
equitable representation of employees, will develop its own plan in contribution to achieving
the Medium-Term Strategic Framework (MTSF) in prioritising women, youth and people with
disabilities.
The GFMS Human Resource Strategy mission is to become: “The Employer of Choice.”
In becoming “The Employer of Choice.” GFMS will:
• Creating a client-centred and high-performance culture aligned to GFMS’ strategy and
employee personal objectives based on our reward and recognition system.
• Empowering employees to make decisions within the overall strategic framework.
• Creating an environment conducive to personal growth and developmental
opportunities particularly for key talented staff.
• Developing a value system that creates a sense of belonging and promotes citizenry
for all employees.
The main pillars of GFMS’ Human Resource Strategy are built on:
• Leadership Development
• Retention and Attraction
• Performance Management Development System
• Rewards and Recognition
• Organisational Development and Change
• Skills Development and Career Path
• Employee Engagement
An efcient, safe, sustainable, affordable transport system
PAGE 15GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
GFMS Digital Transformation Plan
GFMS continues to rely on manual systems (Excel Spreadsheets) to manage a complex
system of operational and financial activity. Deployment of an automated business process
is pivotal to sustainable service delivery. To improve efficiencies at GFMS, a management
information system that is appropriate for fleet management will be acquired to administer
the vehicle records, allowing better analysis and management of clients and drivers.
As the fourth industrial revolution (4IR) gains momentum, there is increased pressure to
continually be innovative and move with agility to introduce suitable technological solutions.
Developments are underway for the installation of Information Communication and
Technology (ICT) infrastructure separate from Department of Transport which is conducive
for fleet management. Transforming from the previously manual operations to a more
enabling environment which is responsive to the needs of stakeholders. The new ICT
development business model will ensure competitive edge and deliver value to clients.
The fourth industrial revolution has meant that the world is increasingly becoming dependant
on smart technologies to run organisations and has a myriad of benefits in the world of fleet
management. This includes rapid access to information and data where use of telematics
can be optimised for effective and efficient use of vehicles, driver and vehicle safety, fuel
efficiency possibilities unlocked by monitoring of driver behaviour in terms of speed, lifespan
of vehicles and compliance with rules in terms of monitoring of mileage, service intervals,
among others. Coupled with this, initiatives to fully digitize the operations of GFMS are
underway, this includes the implementation of a fleet management system for vehicle
management.
In addition to this, the financial management system at Government Fleet Management
Service – Trading Entity has been upgraded to a more integrated platform for better financial
management and reporting.
Infrastructure
A physical inspection of various depots was conducted and it was discovered that a lack of
proper structure may present a perennial risk to both departmental assets and employees.
Renovations and maintenance of depots will be carried out continuously to ensure and
maintain a conducive environment. In creating enabling infrastructure network, depots will
be upgraded with ICT infrastructure suitable for fleet management.
An efcient, safe, sustainable, affordable transport system
PAGE 16PART C: MEASURING OUR PERFORMANCE
C.1 INSTITUTIONAL PERFORMANCE INFORMATION
C.1.1 Impact Statement
Impact statement Improved mobility of government in the Eastern Cape Province
Impact statement Transformed automotive sector that reflect demographics in the Province
An efcient, safe, sustainable, affordable transport system
C.1.2 Measuring our Outcomes
MTSF Priority Priority 1: Economic Transformation and Job Creation
Outcome Outcome Indicator Baselines 5-year targets
Client-centric, fit-for-purpose and Percentage of Customer 50% 75%
responsive total fleet solution that Satisfaction achieved
enables mobility for service delivery.
Good governance Unqualified Audit Opinion Unqualified Audit Opinion Clean Audit Opinion
Empowerment of previously Percentage of maintenance and - 62%
disadvantaged in the automotive sector. repairs work allocated to HDI’s
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
PAGE 18GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
C.1.3 EXPLANATION OF PLANNED PERFORMANCE OVER THE FIVE-YEAR
PLANNING PERIOD
Outcome 1: Client-centric, fit-for-purpose and responsive total fleet solution that
enables mobility for service delivery.
Achieve 90% vehicle compliance for the Eastern Cape provincial fleet in terms of the
economic life cycle. In line with MTSF Priority 3, this will enable GFMS to provide reliable
and cost-effective vehicles to facilitate timeous and high-quality service delivery. To ensure
a compliant fleet, it is necessary to continuously dispose non-compliant vehicles. GFMS will
leverage on the disposal of non-compliant and written-off vehicles to empower the youth in
line with the MTSF Priority 1, Economic transformation and job creation and Provincial Goal
1, producing an Innovative, inclusive, and growing economy.
GFMS plans to carry out vehicle demand assessment every three years. This enables
GFMS to provide clients with the optimal fleet size and composition of vehicles which in turn
will assist the clients to fulfil their mandates effectively. In contribution to Provincial Goal 2,
with enabling infrastructure network, clients will have the right vehicles to use in
implementing high quality and effective service delivery. Further, GFMS will continue to
manage, monitor, advise and educate clients on the use of vehicles.
A customer satisfaction survey will be conducted to establish whether GFMS has improved
on services to clients. GFMS will continue to strive for service excellence.
Outcome 2: Good governance
Government Fleet Management Services as part of the Department of Transport is
committed to maintaining a high standard of governance. GFMS will implement governance
systems including adherence to the requirements of the PFMA and Treasury Regulations
and will continue to establish and improve controls and processes around planning, financial
management, risk management, and monitoring its system of internal controls.
Furthermore, GFMS will promote good governance through developing, reviewing and
monitoring adherence with policies and procedures together with compliance with laws and
regulations governing the fleet industry. The review of the GFMS organisational structure
will be concluded together with the review and implementation of a Human Resource
Strategy to ensure adequate human resource development for effective running of
operations.
An efcient, safe, sustainable, affordable transport system
PAGE 19GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
GFMS will report quarterly to the Department of Transport and oversight structures such as
Audit Committee, Portfolio Committee and Standing Committee on Public Accounts
(SCOPA) on its operations.
Outcome 3: Empowerment of previously disadvantaged in the automotive sector.
Part of the mandate of GFMS is local economic development within the Province in an effort
to ramp up our spend on HDI’s particularly on women, youth and people living with
disabilities. GFMS intends to contract directly with the HDI’s rather than rely solely on the
national transversal contract for fleet maintenance and related services. The initiative will
seek to ensure that businesses of previously disadvantaged individuals are supported and
capacitated to offer repair, maintenance and other related services to government vehicles
thereby creating an opportunity for those businesses to provide their services to private
individuals as well as the insurance industry.
An efcient, safe, sustainable, affordable transport system
PAGE 20GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
C.2 KEY RISKS
Outcome Key Risk Risk Mitigation
Client-centric, fit-for- Ineffective and costly • Procurement of fleet
purpose and responsive fleet service management system.
total fleet solution that • Enforce turnaround times with
enables mobility for RT46 service provider in line
service delivery with National Transversal
Contracts.
• Analysis of the tracking system
reports on driver behaviour.
Loss of existing and • Training and development on
prospective clients fleet management for CRM and
clients.
• Monitoring the implementation
of Service Level Agreement.
• Conduct customer satisfaction
survey.
• Conduct comprehensive needs
analysis.
• Structured operational
meetings.
Abuse on fuel usage • Set limits on the number of
transactions per day based on
the operational needs of the
clients.
• GFMS authorization for override
transactions.
• Reconciliations – fleet register vs
service provider reports.
• Analysis on fuel exceptions.
Good Governance Ineffective direction Development and review of
and running of the policies, processes and systems.
business (Policies,
Systems, Processes)
High staff turnover • Development and
implementation of an
organizational structure.
• Revision and implementation of
HR strategy.
Fraud and corruption • Implementation of Risk
Management Implementation
Plan.
• Fraud and Anti-corruption
awareness, Fraud risk
assessment.
Financial viability • Review and approval of rate
card.
An efcient, safe, sustainable, affordable transport system
PAGE 21GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
Outcome Key Risk Risk Mitigation
• Procurement of Fleet
Management System.
• Reconciliation of fleet register
• Escalation of overdue debt to
HOD’s and CFO's Forum and
Provincial Treasury.
• Continuous engagement with
Provincial Treasury to discuss
forced surrender of funds.
Empowerment of SMME’s are non- Facilitate upgrading for accredited
previously compliant and non- status through training.
disadvantaged in the accredited
automotive sector
Dependency on RT46 Conduct gap analysis on RT46
Transversal Contract contract.
C.3 PUBLIC ENTITIES
There are no public entities.
An efcient, safe, sustainable, affordable transport system
PAGE 22GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
PART D: TECHNICAL INDICATOR DESCRIPTIONS
Indicator Title Percentage of customer satisfaction score achieved
Definition Average satisfaction score of customers who participated in
the satisfaction survey
Source of data Customer Satisfaction Survey report
Method of Calculation / Average Rating
Assessment
Assumptions Clients value excellent service
Disaggregation of • Target for women: N/A
Beneficiaries • Target for youth: N/A
• Target for people with disabilities: N/A
Spatial Transformation Districts
Desired Performance 75%
Indicator Responsibility Manager: Client Relations Management
Indicator Title Unqualified Audit Opinion
Definition Outcome of the audit conducted by the Auditor-General of
South Africa (AGSA)
Source of data Audit Report
Method of Calculation / Assessing materiality of audit findings.
Assessment
Assumptions Accurate Reporting
Disaggregation of • Target for women: N/A
Beneficiaries • Target for youth: N/A
• Target for people with disabilities: N/A
Spatial Transformation N/A
Desired Performance Clean audit opinion
Indicator Responsibility Director: Financial Management
Indicator Title Percentage of maintenance and repairs allocated to
HDI’s
Definition Proportion of maintenance and repairs on out of warranty
vehicles work allocated to HDI’s
Source of data Historically Disadvantage Individual Report
Method of Calculation / Total out of warranty work allocated to HDI′s
Assessment Total out of warranty work allocated within the Province
Assumptions • HDI’s do not conform to contractor’s registration
standards
• HDI’s can only maintain and repair out of warrantee
vehicles
Disaggregation of • Target for women: N/A
Beneficiaries • Target for youth: N/A
• Target for people with disabilities: N/A
Spatial Transformation Districts
Desired Performance 62%
Indicator Responsibility Director: SMME & Fleet Maintenance
An efcient, safe, sustainable, affordable transport system
PAGE 24Annexures to Strategic Plan
ANNEXURE A: DISTRICT DEVELOPMENT MODEL
Areas of 2021 to 2025
intervention
Project Budget District Location: GPS Project Leader Social
Description Allocation Municipality coordinates Partners
Infrastructure to Fleet Demand R3 500 000 Amathole 32°30′S 27°30′E Head: Fleet All Clients
facilitate service Analysis Provisioning and
Sarah Baartman 33°57′S 25°36′E
delivery Development
OR Tambo 31°34′S 28°46′E
An efcient, safe, sustainable, affordable transport system
Chris Hani 31°53′S 26°52′E
Joe Gqabi 30°58′S 27°36′E
Alfred Nzo 30°48′S 29°22′E
Infrastructure to Renovation of R 1 800 000 OR Tambo 31°34′S 28°46′E Head: Corporate DPW
support service Mthatha Support
delivery Government
Garage
Training and Education on fleet R218 000 Amathole 32°30′S 27°30′E Head: OEM’s
Development management Client Relations
Sarah Baartman 33°57′S 25°36′E
Management
OR Tambo 31°34′S 28°46′E
Chris Hani 31°53′S 26°52′E
Joe Gqabi 30°58′S 27°36′E
Alfred Nzo 30°48′S 29°22′E
PAGE 25
GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26GOVERNMENT FLEET MANAGEMENT SERVICES STRATEGIC PLAN 2021/22 – 2025/26
NOTESGOVERNMENT FLEET
MANAGEMENT SERVICES 2021/22
STRATEGIC
2025/26
Customer Care Centre: 0800 644 644
GOVERNMENT FLEET MANAGEMENT SERVICES
PLAN
Office of the Head of Entity
Private Bag X0001, EAST LONDON, 5218
Tel: 043 731 2899
E-mail: melody.trimalley@ectransport.gov.za
Website: www.ectransport.gov.zaYou can also read
