Public Service Commission Act Assented to, Mandate Extended to Municipalities and SOCs

Posted 20 September 2026 Written by Acts Online
Category Public Administration

Brought to you by SAnews: The Public Service Commission Act has been assented to by the President, establishing an independent secretariat and expanding the constitutional oversight jurisdiction of the Public Service Commission (PSC) to include local government and state-owned entities.

Under the new statutory framework, the PSC transitions from relying on a designated government department for administrative support to operating with its own independent secretariat. The Act further equips the Commission with the statutory power to initiate and conduct governance, compliance, and ethics investigations on its own accord, removing reliance on executive or ministerial shareholder requests.

Expanded Mandate and Implementation Timelines

The Act broadens the PSC’s scope across all three spheres of government, subject to a structured rollout schedule:

  • Initial 12-month suspension: The Commission’s mandate over municipalities, state-owned companies, and public entities is pended for an initial 12-month period to allow for budgeting, stakeholder engagement, and operational capacity-building.
  • Three-year transition: Full operationalisation of the expanded mandate over local government and public entities must be completed within three years after the conclusion of the initial 12-month preparatory period.
  • Staff transfer protections: Current PSC employees transfer automatically to the new Secretariat with no break in continuity of service, retaining all accrued benefits and terms of service under existing collective agreements.
  • 30-day opt-out window: PSC personnel retain a statutory right to opt out of transferring to the Secretariat within 30 days of commencement, with employment conditions protected pending placement elsewhere in the public service or secondment.

What this means for you, your business, or your clients

  • For yourself: Professionals practicing in or advising the public sector must account for heightened, direct constitutional oversight regarding appointments, professional ethics, and public administration standards.
  • For your business: Audit, legal, and compliance firms serving state-owned companies and local councils face an expanded oversight architecture, including independent PSC inquiries separate from departmental or shareholder control.
  • For your clients: Municipalities and state-owned entities must audit their internal appointment procedures, governance charters, and ethics reporting frameworks during the 12-month phase-in period to align with PSC regulatory standards.

Originally published at https://www.sanews.gov.za/south-africa/psc-chairperson-ushers-era-public-service-commission-act

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