Common Market for Eastern

CS/CM/XX/9(a)

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Distr.

RESTRICTED

CS/CM/XX/9(a)

December 2005

Original: ENGLISH

COMMON MARKET FOR EASTERN

AND SOUTHERN AFRICA

Twentieth Meeting of the Council of Ministers

on Administrative and Budgetary Matters

Lusaka, Zambia

5 - 6 December, 2005

REPORT OF THE TWENTIETH MEETING OF THE

COUNCIL OF MINISTERS ON ADMINISTRATIVE

AND BUDGETARY MATTERS

THEME: DEEPENING REGIONAL INTEGRATION THROUGH

CUSTOMS UNION

05-PYK/nmn/smz

A.INTRODUCTION

1. The Twentieth Meeting of the Council of Ministers (Council) considered administrative and budgetary matters covering the following issues:

(1)Administrative Matters

(a)Mid Term Review Report of the Organisation Structure;

(b)Report on Conditions of Service and Salary Structure;

(c)Proposed Reintroduction of the Intermediate Category; and

(d)Renewal of Staff Contracts and Update on Recruitment from the COMESA Regular Budget and Extra Budgetary Resources.

(e)Executive Management Posts as Regards the Quota System

(2)Regulatory Matters

(a)COMESA Financial Rules and Regulations

(b)COMESA Procurement Rules

(3)Audit Matters

(a)2004 COMESA Financial Statements and Internal Control Report

(b)Appointment of External Auditors 2005/2006.

(c)Internal Audit

(i)Terms of Reference for Audit Committee

(ii)Policy Statement

(iii)Internal Audit Charter

(iv) Policy and Practice of Internal Audit

(v)Organisational Audit

(vi) 2006 Work Programme

(vi) Establishment of Internal Control Unit

(4)Budget and Finance Matters

(a)2006 Work Programme and Budget

(b)Proposed Investment in the Share Capital of ZEP-RE

(c)2005 COMESA Secretariat Budget Performance;

(d)2006 Draft COMESA Regular Budget

(5)Report of the Leather and Leather Products Institute (LLPI)

(a)2004 Financial Statements and Audit Reports

(b) 2006 Draft Work Programme and Budget

(6)Reports on the COMESA Court of Justice Budget Performance for 2005

(a)2004 Financial Statement and Audit Reports

(b)2005 Budget Performance; and

(c) 2006 Draft Work Programme and Budget

(7)Report of the PTA Bank

Mid Term Review of the Organisation Structure (Agenda Item 1(a))

1. Council was informed that the report on the Mid Term Review of the COMESA Secretariat Structure that was prepared by Deloitte, a Zambian based consulting firm to review the existing structure, took into consideration the COMESA’s vision, priorities and planned programmes. It was based on the following Terms of Reference:

• Reviewing previous reports relating to the restructuring and re-organisation of the COMESA Secretariat, in order to develop an understanding of the mandate that was the basis of Council’s decision to commission the restructuring and re-organisation of the Secretariat;

• Reviewing the main features of the approved structure, which emphasized departure from a sectoral approach of service delivery to that of a programme approach, and examining whether this change has had a positive impact on the operations of the Secretariat and its ability to fulfill its mandate as specified in the COMESA Treaty;

• Considering the Secretariat’s planned programmes, taking into account the vision and priorities of COMESA for the next decade, and determining whether or not the capacity exists to deliver those programmes;

• Reviewing the current job descriptions for all posts at the Secretariat and carrying out job analysis, classifications and grading of the existing established posts, and recommending appropriate actions;

• Suggesting ways in which, if necessary, the structure can be revised, and/or how the remaining vacant posts under the current structure can be re-organised, repositioned and filled to meet the emerging challenges;

• Reviewing the recruitment procedures of the Secretariat with the practices of similar regional and sub-regional organisations as well as international best practices, taking into account the COMESA Treaty and Council decisions; and

• Identifying and reviewing economic and regional integration issues that may have an impact on the operations and activities of COMESA within the region, with regard to the organisational structure of the Secretariat.

Key Findings

1. Council was informed that the study key findings were as follows:

(a)Organisation Structure

1. The review of the organisational structure indicated that:

• The COMESA structure as approved in 1997 was still relevant and no significant changes were required;

• The positions approved by Council in 1997 that were still vacant should be filled;

• There was need to create new positions where gaps were identified; and

• There was need to encourage further delegation of work.

(b)Human Resources Assessment

1. In the Human Resources area, the consultants made the following observations:

(i)Recruitment and Selection

• COMESA has a very elaborate recruitment system whichbegins with the Council approving the establishment of a position, the recruitment process and guidelines for the recruitment;

• Recruitment and selection processes generally take between 3 and 9 months;

• Some Member States do not carry out initial short-listing before submitting their candidates to the Secretariat;

• Although DCDM consultantsrecommended during a previous consultancy that psychometric tests should be introduced, these hadnot yet been initiated; and

• Due to the excessive brain drain that some Member States had experienced, they simply do not have a sufficient pool of professionals to compete for the vacant positions at the Secretariat.

(ii)Performance Management System

1. Under this item, the consultants made observations as follows:

• Whereas a performance appraisal system has severalverifiable uses, the COMESA System is applied primarily to renew or terminate an employee’s contract;

• There was need tointroducea performance based pay system;

• The performance appraisal system is not used as a key criteria to decide on promotions within the organisation; and

• The performance system is not being used as the main input to define annual training plans for staff.

(iii)Job Descriptions

1. The Consultant observed that most of the job descriptions in place, and had not been updated for three years. Therefore, they did not necessarily reflect the actual work being performed by the officers of the organisation.

(iv)Work Culture

1. The Secretariat was making a conscious effort to improve in this area and had conducted several retreats to develop common values that would lead to the formation of a corporate culture. Furthermore, the Secretariat arranges weekly Total Quality Management sessions to internalise its visions and values.

(c)Regional Integration

1. On regional integration, the Consultants made the following observations:

(i) Peace and Security

1. A sound and predictable political environment was the most important precondition for economic development as verified by the COMESA Treaty, andas well as the SLP I & II. However, until recently there were no formal COMESA programmes to help troubled countries resolve conflicts. A programme to manage and co-ordinate peace building and conflict resolution initiatives had been developed.

(ii)Different Levels and Pace of Development

1. Member States of COMESA were at various levels of economic development. While COMESA has made allowance for countries to implement programmes at variable speeds, the complete integration of the region could be affected by the approach.

(iii)HIV/AIDS

1. The high incidence of HIV/AIDS was affecting all the skills groups and necessitated a Regional approach. Further increases in mortality rates adversely affect the labour market by reducing the supply of labour as well as labour productivity.

(iv)Undeveloped Technological Infrastructure

1. A sophisticated technological infrastructure was an important determinant of a country’s ability to attract foreign investment and a major stimulus to small business development. However, thehigh cost of acquiring new technology, as it has to be imported was a major constraint.

(d)Programme Approach

1. The Consultant observed that, until recently, COMESA employed a sector-wide approach to development efforts, that is, different programmes targeted at the various sectors e.g. Agriculture, Trade, etc. were dealt with simultaneously, but in isolation. Deloitte was requested to assess whetherthe programme approach had had a positive impact on the operations of the Secretariat.

1. The key findings were that the programme approach has not been fully appreciated by Secretariat Staff and therefore needed to be reinforced. However, the consultants noted that a start on the programme approach had been made, for example, the 2004 Consolidated Implementation plan was based on the decisions of the COMESA Policy Organs.

Recommendations of the Consultant

1. Council noted the recommendations of the Consultants which were as follows:

(a) Organisation Structure

(i)Reporting Lines

1. The positions reporting directly to the Secretary General's office should be reduced from nine to six, that is, Assistant Secretary General (Programmes); Assistant Secretary General (Administration and Finance); Chief Internal Auditor; Chief Strategic Planning and Research; Technical Cooperation and Resource Mobilisation; and Director Legal and Institutional Affairs.

(ii) Recommended New Positions

1. The consultants recommended that thefollowing positions be created for the efficient and effective functioning of the institution:

(iii) Vacant positions

1. It was noted that the Secretariat still had vacant positions under the 1997 approved structure and these shouldbe filled.

1. In addition, six expert positions were to be recruited and filled under the Regional Integration Support Programme (RISP) which had been set up to strengthen the capacity at the Secretariat.

(iv) Position of Protocol and Procurement Officer

1. Currently, the COMESA Secretariat staff establishment had a position of a Protocol and Procurement Officer. The designation puts the two functions into one and provided a significant challenge in identifying and recruiting personnel with appropriate competencies in both disciplines. It, therefore, was recommended that the position should be split into two, i.e. Protocol Officer and Procurement Officer. A Protocol Officer post needed to, therefore, be created.

(v) Recruitment and Selection

1. Under this area, the Consultants recommended as follows:

• Recruitment and selection should be done through a reputable Employment Agency;

• Uniform advertisements designed by the Administration Unit at the Secretariat, with job specifications and other pre-requisites should be placed in the Member States local media;

• The advertisements placed, together with the five shortlisted applications, should be sent to the Secretariat for processing. This would ensure proof of the positions being advertised; and

• The use of psychometric tests or other appropriate psychoanalytic tools should be embraced, as per the DCDM recommendations.

(vi) Performance Management System (PMS)

1. With regard to the PMS, the consultants recommended as follows:

• COMESA shouldintroduce a performance based pay system(PMS).

• The performance appraisal system should be used to identify the training needs of COMESA. Furthermore, the training plans should be implemented; and
• The system should be used as a key criteria in determining promotions in COMESA.

(vi)Job Descriptions

1. The consultants noted that the Secretariat should recognise that job descriptions were a valuable tool that can be used for various purposes, including performance management, recruitment and selection, job evaluation and grading. In addition, job descriptions provide a common understanding of the tasks to be performed by the job holder in any position.

1. Council was informed that, the consultants built capacity in job description writing by conducting a workshop for staff of the Secretariat.

(viii)Work Culture

1. With regard to work culture, Council noted that the consultants made recommendations as follows:

(i)Recruitment and selection should target people from both the private and public sectors so that there can be diverse ideas, experiences, etc. in terms of the backgrounds and cosmopolitan nature of COMESA staff; and

(ii)As TQM assists organisations such as COMESA to achieve organisational excellence, theCOMESA TQM sessions should be re-enforced to enable the new culture to take root.

(b) Conclusion of the Consultant

1. The Consultant observed that the Secretariat played a crucial role in providing technical and advisory services to the member States to realise COMESA objectives. In order for the Secretariat to achieve optimal efficiency and effectiveness, the existing structure should be supported by best practice systems and procedures, competent staff and an enabling environment that empowered staff in decision making, encouraged teamwork and motivated staff.

1. The consultants also argued that if the proposed recommendations were adopted and implemented, they would serve to strengthen the operations of the Secretariat in line with its developing role.

Discussions

1. In the discussions that followed, Council commended the consultants for the comprehensive report and made comments and observations as follows:

(a)With regard to the general presentation of the report, the section on the assessment on the economic performance of the Member States should be recast positively; that the issue of belonging to more than one Regional Economic Integration arrangement was a prerogative of Member States based on their assessed advantages, for example, a wider market for their business community. On technology, the issue for most Member States was access to technology rather than limited appreciation of it.

(b)On recruitment, Council noted that the current recruitment system took an average ofnine months before a candidate took up a post. There was, therefore, need to reduce this period to a maximum of five months.

(c)With regard to the recommendation to create six new professional posts and two General Service posts, Council noted it involved additional financial implications which would entail an increase in Member States Contributions.

(d)Council also noted that the recommended new posts should not be concentrated on support staff functions but should also cover the core business of COMESA under the Technical Divisions. It was, therefore observed that a fair balance between the two needed to be struck.

(e)Council further noted the need to minimize the number of officers reporting directly to the Secretary General so he could concentrate on strategic leadership. The meeting further agreed that in order to ensure good governance and advocacy in COMESA, some functions such as Audit, Legal and Public Relations should continue to directly report to the Chief Executive.

(f)On the recommendation to use psychometric tests in recruiting officers, Council agreed that this would be a useful innovation provided it was achieved at a reasonable cost.

(g)Council observed that the functions of the Protocol Office should be combined with those of the Public Relations Office. There would, therefore, be no need to create a new position of Protocol Officer. However, the Secretariat informed the Committee that the job descriptions for the two positions were different.

(h)Council observed that out of the eight positions proposed in the Mid-Term Review, the following six similar positions would be recruited under the Contribution Agreement signed with the EU. Consequently, three posts should not at the moment be budgeted for under the regular COMESA budget would revert to the COMESA structure when the Contribution Agreement comes to an end:

(i)Public Relations Assistant

(ii) Programme Co-ordinator

(iii) Reviser English-French

(iv) Human Resources Officer

(v) Trade Expert

(vi) Research Assistant

(i)Council agreed that the function of the proposed Database Administrator should be incorporated into the already approved position of Information Systems Analyst.

(j)Noting that the Interview Panel for the post of Senior Trade Officer (P4) did not recommend the recruitment of the second best candidate, in the event that the best candidate declined the offer, Council agreed that a policy providing for the same be adopted. This would enable savings to be realised in recruitment costs.

Decision

1. Council decided that as follows:

(a)The following posts be established at the professional category under the COMESA Regular budget:

(i)Executive Support Officer-P3

(ii)Assistant Gender Affairs Officer -P2

(b)The following posts that were approved in 1997 be filled in 2006 in order to complete the phased recruitment:

(i)Assistant Technical Co-operation-P2

and Resource Mobilisation

(ii)Librarian-P2

(iii)Senior Trade Officer-P4

(iv)Information System Analyst/Database

Administrator-P3

(v)Senior Investment Officer-P4

(c) The recruitment system be shortened to a maximum period of five months in line with practices of similar organisations. Council agreed that this necessitated better communication and coordination between the Secretariat and Member States;

(d)In recruiting staff of the Secretariat, the psychometric tests should be introduced provided the cost of doing so was reasonable;

(e)The Secretariat should include in its policy a provision for the appointment of the second best candidate in the event that the first candidate declines the offer, provided the second best candidate has achieved the pass mark of 65 per cent;

(f) The following posts should not be budgeted for under the regular COMESA budget as resources for their filling were available under RISP. However, the posts would revert to the COMESA budget at the expiry of the Contribution Agreement.

(i)Public Relations Assistant;

(ii)Programmer Co-ordinator;

(iii)Reviser English – French;

(iv)Human Resources Officer;

(v)Trade Expert; and

(vi)Research Assistant.

(g)The function of the proposed Database Administrator should be incorporated into the already approved position of Information Systems Analyst; and