presentation to the standing committee on appropriations

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PRESENTATION TO THE STANDING COMMITTEE

ON APPROPRIATIONS

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Presented by

Acting COO – MR. B. MATUTLE

07 June 2011

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TABLE OF CONTENTS

1. MINISTER’S FOREWORD

2. INTRODUCTION AND STRATEGIC CONTEXT

3. OVERVIEW OF THE ACCOUNTING OFFICER

4. DPW PROGRAMME STRUCTURE AND BRANCH PROJECTS :

• PROGRAMME 1: ADMINISTRATION

• PROGRAMME 2: IMMOVABLE ASSET INVESTMENT MANAGEMENT

• PROGRAMME 3: EXPANDED PUBLIC WORKS PROGRAMME (EPWP)

• PROGRAMME 4: CONSTRUCTION AND PROPERTY POLICY REGULATION

• PROGRAMME 5: AUXILIARY AND ASSOCIATED SERVICES

5. UNDER XPENDITURE

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INTRODUCTION AND STRATEGIC CONTEXT

MANDATE:

The mandate of the Department of Public Works is provided for in the Government Immovable Asset Management Act (GIAMA 2007). The objective of the Act is to ensure efficient and effective planning of immovable asset management within government, as well as to improve service delivery. The Department of Public Works is responsible for the provision of official accommodation for all national departments and all members of Parliament, and providing construction and property management services to client departments at the national level. The department is also responsible for providing leadership for and coordinating the Expanded Public Works Programme (EPWP).

The Medium Term Strategic Framework (MTSF): Key policy priorities guiding medium-term planning:

• Speeding up growth and transforming the economy to create decent work and sustainable livelihoods;• Massive programme to build social and economic infrastructure;• Comprehensive Rural Development Strategy linked to land and agrarian reform and food security;• Strengthening our skills and human resource base • Intensifying the fight against crime and corruption;• Pursuing African advancement and enhanced international cooperation;• Sustainable resource management and use; and• Building a developmental state, including improvement of public services and strengthening

democratic institutions.

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The Department's strategic goals were aligned to the MTSF (indicated in brackets). The goals are:

• Provide strategic leadership in effective and efficient immovable asset management and in the delivery of infrastructure programmes (SP 2, 3, 6);

• Promote an enabling environment for the creation of both short and sustainable work opportunities, so as to contribute to the national goal of job creation and poverty alleviation (SP 1);

• Contribute to the building of a developmental state and a comprehensive rural development framework through state assets (SP 3 & 10);

• Ensure transformation and regulation of the construction and property industries to ensure economic growth and development (SP 1);

• Ensure effective corporate governance and sound resource management (SP 9,4) and

• Ensure improved service delivery in all Departmental programmes to meet clients' expectations and leverage stakeholder relations (SP 3).

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Five outcomes: form the basis re Department’s Strategic Plan:

• Create decent employment through inclusive economic growth;• Create efficient, competitive and responsive infrastructure network;• Efficient and effective development-oriented Public Service and an empowered fair and

inclusive citizenship;• Skilled and capable workforce to support an inclusive growth path; and• Sustainable human settlements and an improved quality of household life.

The Minister’s Performance Agreement and Service Delivery Agreements are central to the department’s planning. The Minster’s PA covers three (3) sector outcomes: decent employment through inclusive economic growth (outcome 4), sustainable human settlements and improved quality of household life (outcome 8), and an efficient, effective and development

oriented public service and an empowered, fair and inclusive citizenship (outcome 12). All branches have used the MTSF priorities and outcomes in their business plans.

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Outcomes in the Minister’s PA –

Outcome 4: Focus areas: reduce youth unemployment, analysing the cost structure of SA economy & expanding the EPWP. DPW Implementation/Building Programmes and input costs in the construction sector.

Outcome 8: Focus area: DPW is required to contribute land for low-

income housing to the Department of Human Settlements.

Outcome 12: Focus area: DPW is expected to provide quality and accessible office accommodation that facilitates service delivery for all citizens.

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KEY MEDIUM-TERM PRIORITIES

Key priorities over the medium-term:

To create a balanced between the change and sustained agenda, more emphasis is on:• job creation and poverty eradication, empowerment, poverty eradication, skills development in the built

environment and property management, service delivery improvement to client departments, enhancement of the asset register, cost effective infrastructure delivery and rural development.

Emphasis of the Strategy for the next three years:• Improved service delivery in the provision of official accommodation for all national departments and all

members of Parliament.• Promote intergovernmental cooperation to improve service delivery. • Providing construction and property management services to client departments at a national level.• Lead Expanded Public Works Programme (EPWP) - the custodian of the largest state immovable asset

footprint, will expedite the investment in infrastructure to promote social cohesion, local economic development and job creation

– New Growth Path directives– Poverty alleviation– Labour- intensive methodology – DORA procurement guidelines– Incentive grants – technical support to municipalities– Improve monitoring and evaluation.

• Land disposal policy as the basis for development and cluster of government services

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Immoveable Asset Register enhancement: Amnesty Call campaign - properties recovered to enhance our disposal strategy or contribute to the Inner City

Regeneration. Complete essential information for the asset register to align it with generally recognised accounting practice.

Reclaim of the mandate Projects – military bases and installations of the Department of Defence.

Skills Development and Capacity Building: The scarcity of skills in the construction and built environment sectors requires targeted ongoing human capital

development initiatives by the department. The department is facing major challenges around operational resources and filling of strategic professional and

technical skills in areas like project management, financial management and business analysis. Invitation for artisans and engineers to partner in the interest of service delivery. Rolling out a bursary programme to attract the necessary skills. Internship and learnership programme in place for experiential training, and assisting qualified Young Professionals

in the employ of the Department to get professional registration.

These initiatives are complemented by those of Public Entities reporting to the DPW.

Expanded Public Works Programme (EPWP) in support of the New Growth Path Poverty alleviation will utilize the existing budgets in the procurement of goods and services, using labour intensive

methods to create jobs, deliver services, and build decent communities. Support provinces and municipalities to invest in job creation in return to for cash incentives which can be (and

must be) re-invested in further job creation opportunities and improve its monitoring and evaluation.

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DPW Contribution to rural development Recent roll-out to communities includes – construction roads and bridges; and the

construction of rural schools as a fundamental children’s right to education, health and safety.

Inner city regeneration – contribute to rural development and student accommodation.

Building, maintenance and capital works programmes Upgrading of facilities for disabled people; Upgrading and construction of department’s offices; Development of national government precincts; Redevelopment of infrastructure related border post centres. Dolomite risk management.

Transformation and regulation of the property and construction industries The Government Immovable Asset Management Act (GIAMA) 2007 – extend principles

to local government. Review of White Papers. Implementation of PIP and CIP.

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Public Entities• There are four public entities reporting to the Department of Public Works. The

entities have identified, inter alia, the following key strategic programmes, for the MTEF period:

– The Construction Industry Development Board (cidb): training and contractor development; procurement reform and research and development.

– The Council for Built Environment (CBE): compliance with policies, regulations and standards within the built environment and building and monitoring skills development.

– The Agrément SA (ASA): the focus will continue to provide assurance of fitness of purpose for non-standardised construction materials & technologies.

– The Independent Development Trust (IDT): tasked to prioritise poverty reduction and to deliver social infrastructure, as an implementing agent of government programmes.

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PROGRAMME 1: ADMINISTRATION

PURPOSE OF THE PROGRAMME:To provide strategic leadership and support services, including the accommodation and overall management of the Department.

SUB-PROGRAMMES:MINISTRY:The sub-programme make provision for the financial resources for the Minister and Deputy Minister.

MANAGEMENT:The sub-programme makes provision for all top management support functions within the Department.

1. OFFICE OF THE DIRECTOR-GENERAL:The office provides strategic leadership, guidance and oversees the overall implementation of the Department’s Strategic Plans, across all functions. The following units are part of the office:

• Internal Audit and Investigation services• Monitoring & Evaluation• Strategic Management Unit• Intergovernmental Relations

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PROGRAMME 1: ADMINISTRATION (Cont…)

2. FINANCE AND SUPPLY CHAIN MANAGEMENT:

The main purpose of the sub-programme is to promote operational effectiveness through sound financial policies and responsive supply chain management, integrated financial planning, budgeting and expenditure management:

2.1 FINANCIAL MANAGEMENT

The purpose of this function is to ensure adequate financial planning and effective allocation and monitoring of resources in the Department.

2.2 SUPPLY CHAIN MANAGEMENT

This function forms an integral part of the operations as it is responsible for the procurement of goods and services in the Department. Its key performance area includes providing strategic leadership in terms of the acquisition and sourcing strategies, as well as to ensure that the Department does not incur irregular, unauthorized or fruitless expenditure.

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KEY PRIORITIES OVER THE MEDIUM-TERM

• Effective Revenue Management (PMTE) & DPW

• Effective Debtors Management

• Effective Internal Controls & Risk Management

• Effective budget mobilization and prioritization

• Effective procurement of goods and services

• Payments turnaround time

• Effective empowerment strategy

• Training of interns

3. PROPERTY MANAGEMENT TRADING ENTITY (PMTE):

The main purpose of this function is to provide sound financial management to ensure the sustainability of the PMTE, financial planning of projects, cash flow and expenditure management, proper billing to clients, revenue collection and debtor’s management.

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4. CORPORATE SERVICES:Corporate Services is a partner in support of the Department’s service delivery objectives. It provides the following services:

4.1 HUMAN RESOURCE MANAGEMENT:The design and application of staffing and skilling solutions in support of an efficient, effective and development-orientated Public Works.

4.2 INFORMATION SERVICES:Provision of modern and appropriate information management systems and technologies, which are responsive to the key business requirements of the Department.

4.3 COMMUNICATION & MARKETING:Implementation of both strategic and developmental communication systems aimed at empowering the citizens and mobilizing public participation.

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4.4 LEGAL SERVICES:

Interpretation of legal concepts and other precepts applicable to the Department in the daily undertaking of its business.

4.5 INTERNATIONAL RELATIONS:

4.5.1 Consolidation of the African Agenda

• Finalizing bi-lateral cooperation frameworks.

4.5.2 South-South Cooperation

• Cuban Ministry of construction

• IBSA

• BRICS

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TOTAL MTEF 2011 BUDGET

2011/12

R’000

2012/13

R’000

2013/14

R’000

TOTAL

Prog 1 Admin 751 033 852 748 909 928 2 513 709

Prog 2 Immovable Asset Management

5 424 945 5 408 332 5 919 664 16 752 941

Prog 3 EPWP 1 575 198 1 729 367 1 996 629 5 301 194

Prog 4 Property & Construction Industry Policy Regulation

34 900 36 436 38 182 109 518

Prog 5. Auxiliary and Associated Services

33 180 34 339 35 678 103 197

TOTAL 7 819 256 8 061 222 8 900 081 24 780 559

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BUDGET ALLOCATION PER BRANCH

Branch Total Allocation

R’000

Comp of Emp

R’000

Goods& Serv

R’000

Machinery & Equip

R’000

Transfers & Subsidies

Finance & SCM 518,761 52,270 456,206 9,535 750

Corp Serv 194,240 72,603 80,465 20,175 20,997

Monitoring & Evaluation 2,941 2,371 500 70 -

Strategic Management 8,380 6,380 1,940 60 -

Internal Audit 20,433 16,083 4,250 100 -

Inter Governmental 312,797 5,098 800 70 306,829

Asset Investment 214,669 46,100 147,169 21,400 -

Projects & Prof Serv 1,920,551 65,106 11,030 1,443,415 400,000

Regional Operations 3,020,540 841,069 123,852 19,100 2,036,519

Inner City Regeneration 7,909 6,609 1,100 200 -

EPWP 1,575,198 99,110 172,524 1,984 1,301,580

Property Constr & Policy Regulation

22,837 9,162 13,600 75 -

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CONDITIONAL GRANTS & SPECIFICALLY & EXCLUSIVE APPROPRIATION

2010/11

R’000

2011/12

R’000

2012/13

R’000

2013/14

R’000

Conditional Grant

EPWP: Infrastructure Grant:

Local Gov

Provincial Gov 622 996

331 004

613 455

333 397

665 678

325 220

779 496

401 588

EPWP: Social Sector 56 637 200 358 241 504 286 028

Devolution of Property Rates

1 865 227 1 803 230 1 938 047 2 090 853

Specifically & Exclusively Appropriated

Energy Efficiency 75 000 70 000 - -

IDT 10 515 9 180 9 639 10 169

EPWP Non State Sector 179 811 154 370 219 091 236 003

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DPW Strategic Goal

Strategic Objective Key Result Area

Outputs/ Deliverables

Key Activities (Actions)

Performance Measure

Resource Requirements and enabling conditions

Overall Target & Target Date

Q.1 Q.2 Q.3 Q.4

Strategy Goal 5:Ensure effective corporate governance and resource management

5. Provide strategic leadership and overall management including integrated business systems and processes that will enable effective planning, management, monitoring and evaluation within the Department

Approved HR Plan.

Integrated holistic business and operational systemsEffective planning and performance management in line with relevant govt prescripts Integrated Risk Management Framework and implementation

Ensure appropriate plans and strategies for life-cycle management of human capital and skills development within the Department.

Develop dashboard / business intelligence for reporting.

Recruitment drive for the 641 funded posts

100% Dashboard / business intelligence

641 funded positions advertised and filled (is this realistic)

100% development of Balance Scorecard

100% arising funded vacancies filled (Is this realistic)50% interface of Persal, iEworks, etc

100% arising funded vacancies filled (Is this realistic)50% interface of Persal, iEworks. Etc

100% arising funded vacancies filled (Is this realistic)

100% Development of Dashboard reports

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DPW Strategic Goal




Performance Measure



Q.1 Q.2 Q.3 Q.4

Strategy Goal 5:Ensure effective corporate governance and resource management

5. Provide strategic leadership and overall management including integrated business systems and processes that will enable effective planning, management, monitoring and evaluation within the Department

Integrated Risk Management Framework and implementation

Update Risk Management Framework and develop implementation plan.

100% updated and approved Risk Management Framework and implementation as per approved plan.

Draft Risk Management Strategy.

Consultation and approval by relevant authorities

Monitoring and reporting on implementation.

Monitoring and reporting on implementation.

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PROGRAMME 2: IMMOVABLE ASSET INVESTMENT MANAGEMENT

PURPOSE OF THE PROGRAMMETo manage national government’s immovable property portfolio in support of government’s social, economic, functional and broad policy objectives.

EXPECTED OUTCOME (S) OF THE PROGRAMME• An efficient, effective and development oriented public service and an empowered, fair and inclusive

citizenship.• Sustainable human settlements and an improved quality of household life.

KEY POLICY PRIORITIES• Building a developmental state, including improvement of public services and strengthening democratic

institutions.• Comprehensive rural development strategy linked to land and agrarian reform and food security.• Building a developmental state, including improvement of public services and strengthening democratic

institutions.

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PROGRAMME 2: IMMOVABLE ASSET INVESTMENT MANAGEMENT (cont…)

SUB-PROGRAMMES OF PROGRAMME 2:

• Infrastructure (Public Works)

• Strategic Asset Investment Analysis

• Projects and Professional Services

• Operations Management

• Prestige Management

• Property Management

• Augmentation of the PMTE

• Construction Industry Development Board

• Council for the Built Environment

• Agrément South Africa

• Parliamentary Villages Management Board

• Independent Development Trust

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1. SUB-PROGRAMME: INFRASTRUCTURE

The acquisition of infrastructure for DPW, the prestige portfolio, land ports of entry, dolomite risk management, inner city regeneration programmes and accessibility programmes is funded from the Infrastructure (Public Works) allocation.

Table: Infrastructure Budget

PROJECTS 2011/12

R’000

Departmental 210,000

Accessibility 25,000

Dolomite Risk Management 30,000

Land Ports of Entry 200,000

Prestige 300,000

Inner City Regeneration 124 000

Special & Major Projects 554,945

TOTAL 1 443,945

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SUB-PROGRAMME: STRATEGIC ASSET INVESTMENT

Ensure optimization and maximization of the state assets portfolio under its

custodianship for economic, social and investment purposes.

KEY PRIORITIES OVER THE MEDIUM-TERM Asset Register/Amnesty Call/Vesting Energy Efficiency Buildings for People with Disabilities Rehabilitation and Maintenance Programmes Release land for land reform/housing/agric Rural development/office precincts

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SUB-PROGRAMME: PROJECTS AND PROFESSIONAL SERVICES


• Up-skilling of all project managers in the area of contract law and occupational safety.

• General cleaning and horticulture projects at all Ports of Entries, using EPWP methodology.

• Potholes repair program in focused area within the country.

• Energy & water saving programmes.

• Construction of Tzaneen Project that will accommodate 496 inmates. The project is expected to be completed by 2012/09/11.

• Management of water & sewerage related projects in various prisons across the country where there are municipal services.

• Refurbishment of accommodation and operational facilities projects for Department of Defence with construction having started in January 2011 at Doornkop 21 Battalion, Mafikeng 10 Battalion, and Simonstown Naval Base.

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• Phase 2 of Waterkloof Air Force Base runway covering the secondary runway known as 0624 project commenced in January 2011.

• Development of staff accommodation facilities at Skilpadhek Border Post and Lebombo Border Post (Komatipoort)

• Development of Matola Monument/ Memoriam in Mozambique.

• Resume the Construction of Pan African Parliament.

• Implement facilities management contract for Civitas Building.

• Refurbishment of mechanical and electrical services for Air Force Head Quarters Facilities.

• Improved Customer Service.

• Growth of Emerging Contractors through CIDB Register.

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SUB-PROGRAMME: OPERATIONS MANAGEMENT

REGIONAL OPERATIONS MANAGEMENT

• The DPW’s eleven (11) regional offices fall under this sub-programme


• Capital Works Implementation Programme• Planned Maintenance Implementation Programme• Acquisition Programme• Leasing Implementation Programme• Property and Facilities Management & Maintenance Implementation Programme• Statutory Compliance Management Programme• Construction of maintenance projects• Procured leased and state owned accommodation• Property and facilities management and maintenance projects• Promote health and safety on Construction, Heritage and Disability projects

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SUB-PROGRAMME: INNER CITY REGENERATION

KEY PRIORITIES OVER THE MEDIUM-TERM• ICR initiated Tshwane precinct master plan.• Contribute towards revitalization and development of cities and rural towns to serve as service centres

for rural economies.• Maximise utilization of State Properties within Major cities.• Rehabilitation and upgrading facility for student accommodation in Bloemfontein and Pretoria.

SUB-PROGRAMME: PROPERTY MANAGEMENT

KEY PRIORITIES OVER THE MEDIUM-TERM• Management of state property and leased portfolio.• Facilities management.• Acquisition of properties through leasing, expropriation, exchange, purchase and donation.• Optimal utilization of the state’s property portfolio.

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SUB-PROGRAMME: PRESTIGE MANAGEMENT

To facilitate and co-ordinate the provision and management of appropriate accommodation for Prestige clients

KEY PRIORTIES OVER THE MEDIUM-TERM– Develop Maintenance Plan for Prestige assets– Optimally utilized Prestige buildings and acquisition of additional houses– Improve service delivery to Prestige Clients

SUB-PROGRAMME: AUGMENTATION OF THE PROPERTY MANAGEMENT TRADING ENTITY (PMTE)

The PMTE was established to facilitate accommodation related costs to client departments. This entailed the implementation of the “user charge” principle. The Department of Public Works Building Programme is implemented through the PMTE. The revenue generated by the PMTE is used to pay property rates, provide cleaning and gardening services and general maintenance of buildings.

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SUB-PROGRAMME: PARLIAMENTARY VILLAGE MANAGEMENT BOARD

To provide transportation for residents of the three Parliamentary Villages to Parliament and back as per the Parliamentary Villages Management Board Act No. 96 of 1998

SUB-PROGRAMME: PUBLIC ENTITIES– Council for the Built Environment (CBE)– Agrément South Africa (ASA)– Independent Development Trust (IDT)– Construction Industry Development Board (CIDB)

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DPW Strategic Goal Strategic Objective Key Result Area



Performance Measure



Q.1 Q.2 Q.3 Q.4

Strategic Goal 1: Provide strategic leadership in effective and efficient immovable asset management and in the delivery of infrastructure programmes

1. Provide effective and efficient property and accommodation services to national government departments

Prioritized and funded client depts’ needs

Engage clients on their accommodation needs and prioritise according to available funding;Finalise 2011/12 Implementation Programmes (CWIP) and initiate planning for 2012/13

100% signed-off Implementation ProgrammesDraft Client Needs Plan for 2012/13

100% signed-off programmes for 9 clients

100% signed-off programmes for 9 clients(cumulative)

100% signed-off programmes for 9 clients (cumulative)

Draft 1 of 2012/13 programmes for 9 clients

Accurate records and effective management of Leasing portfolio

Review leasing portfolio to ensure:-Alignment of information of PMIS & contract documents;-Electronic data base of lease contracts

60% completion 10% completion

30% completion

50% completion

60% completion

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DPW Strategic Goal




Performance Measure



Q.1 Q.2 Q.3 Q.4

Strategic Goal 1: Provide strategic leadership in effective and efficient immovable asset management and in the delivery of infrastructure programmes

2. Ensure efficient and effective asset management of state property portfolio under the custodianship of the Department

Complete information on immovable assets in the Asset Register.

Oversee population of information in line with the Office of the Accountant General minimum information requirement.

90% population of information on assets in the Asset Register

91192 properties

93363 properties

95534 properties

97705 properties

User Asset Management (U-AMPS) templates for national departments.

Ensure assistance of 26 national depts and 7 entities in compilation of U-AMPS.

90% completions

10% 30% 60% 90%

Effective prioritization of maintenance and capital works projects for DPW projects.

Ensure development and approval of implementation programme;

Initiate planning for 2012/13 .

100% completion, sign-off and implementation of programme and 90% projects for 2012/13 FY.

100% for 2011/12;

50% for 2012/13

70% for 2012/13

90% for 2012/13

Draft programme for 2012/13

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PROGRAMME 3: EXPANDED PUBLIC WORKS PROGRAMME (EPWP)

PURPOSE OF THE PROGRAMMETo ensure creation of work opportunities for poor and unskilled people in South Africa by coordinating the implementation of the programme and providing overall strategic leadership across the three spheres of government

EXPECTED OUTCOME (S) OF THE PROGRAMMETo create work opportunities through inclusive economic growth

KEY POLICY PRIORITIESSpeeding up growth and transforming the economy to create decent work and sustainable livelihoods

KEY PRIORTIES OVER THE MEDIUM-TERM• Implement incentive scheme in the Social and Non-State Sectors• Implement NYS and increase DPW work opportunities targets.• Provide technical support to municipalities• Support Community Work Programme in partnership with COGTA.• NGO Pilot Programme• EPWP Infrastructure Incentive Grant for Provinces and Municipalities• Incentive Scheme in the Environment and Cluster Sector

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PROGRAMME 3: EXPANDED PUBLIC WORKS PROGRAMME (EPWP) (cont…)

Table 8: Work opportunities – targets per year and sphere of government

Year Local Provincial National Non-State Totals

09/10 182 607 247 325 100 068 20 000 550 000

10/11 208 032 281 720 104 248 48 000 642 000

11/12 267 920 370 420 133 660 96 000 868 000

12/13 349 129 501 283 183 588 176 000 1 210 000

13/14 440 721 659 286 249 994 300 000 1 650 000

Totals 1 448 409 2 060 034 771 557 640 000 4.5m plus*

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*To create 4,5 million short and ongoing work opportunities with an average duration of 100 days - for poor and unemployed people in South Africa so as to contribute to halving unemployment by 2014, through the delivery of public and community services.

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PROGRAMME 3: EXPANDED PUBLIC WORKS PROGRAMME

DPW Strategic Goal




Performance Measure



Q.1 Q.2 Q.3 Q.4

Strategic Goal 2:

Promote an enabling environment for the creation of both short and sustainable work opportunities so as to contribute to the national goal of job creation and poverty alleviation

4. Contribute to creation of decent employment through inclusive economic growth.

No. of work and FTEs opportunities created per annum in EPWP programmes

Ensure coordination and collation of accurate data from all spheres of govt on job creation

Ensure effective participation of designated groups

868 000 work opportunities and 361 739 full time equivalents (cumulative reporting

Annual designated group targets: -55% women;-40% youth;-2% PWD

86 800

10% of the annual target

347 200


607 600


868 000

100 of the total

Effective disbursement of wage incentive to qualifying bodies

Ensure accurate reporting efficient disbursement to qualifying bodies

65% of disbursement across all sectors

10% of funds disbursed




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PROGRAMME 3: EXPANDED PUBLIC WORKS PROGRAMME (EPWP) (cont…)

DPW Strategic Goal




Performance Measure



Q.1 Q.2 Q.3 Q.4

Strategic Goal 2:

Promote an enabling environment for the creation of both short and sustainable work opportunities so as to contribute to the national goal of job creation and poverty alleviation

4. Contribute to creation of decent employment through inclusive economic growth.

EPWP work opportunities created on the Department’s Capital and Maintenance projects

Ensure that EPWP principles are applied in relevant Capital and Maintenance of the Department.

500 work opportunities created and reported.





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PROGRAMME 4: CONSTRUCTION AND PROPERTY POLICY REGULATION

PURPOSE OF THE PROGRAMMETo regulate and promote growth and transformation in the construction and property industries. To promote uniformity and best practice in the construction sector and in the immovable asset management in the public sector.

EXPECTED OUTCOME (S) OF THE PROGRAMMEEfficient and effective development-orientated public service and an empowered fair and inclusive citizenship.

KEY POLICY PRIORITIES• Speeding up growth and transforming the economy to create decent work and sustainable livelihoods.• Comprehensive Rural Development Strategy linked to land and agrarian reform and food security.• Sustainable resource management and use.• Building a developmental state, including improvement of public services and strengthening democratic

institutions.

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PROGRAMME 4: CONSTRUCTION AND PROPERTY POLICY REGULATION

SUB-PROGRAMME: CONSTRUCTION INDUSTRY DEVELOPMENT PROGRAMME

KEY PRIORITIES OVER THE MEDIUM-TERM• Promote and monitor the implementation of construction policy.• Monitoring the implementation of policies in terms of performance in the construction industry to

encourage and facilitate competitiveness.• Monitoring economic and performance trends in the construction sector, and formulate strategies.• Align the Contractor Incubator Programme (CIP) to the National Contractor Development Programme

(NCDP).

SUB-PROGRAMME: PROPERTY INDUSTRY DEVELOPMENT PROGRAMME

KEY PRIORITIES OVER THE MEDIUM-TERM• Immovable asset life cycle management guidelines• Initiate a process of applying GIAMA principles to local government• Property Empowerment Strategy• Property Management Policies• Review of Expropriation Act• Strategy on Green Building

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PROGRAMME 4: CONSTRUCTION AND PROPERTY POLICY REGULATION (cont ….)

DPW Strategic Goal




Performance Measure



Q.1 Q.2 Q.3 Q.4

Strategic Goal 1: Ensure transformation and regulation of the construction and property industries to ensure economic growth and development

3. Provide strategic leadership in the promotion of transformation, growth, development and regulation of the Construction and Property industries and related professions

Legislative review / development to ensure relevance and optimal contribution to national goals

Review / development of the following legislation:-Expropriation Act, 1975:-Built Environment Professions:-Agrement SA:-Extension of GIAMA to Local Government

Certification by State Law Advisor50% completeTabling of Bill to Parliament50% completion of Regulatory Framework

RIA finalisedConsultation with key stakeholdersSubmission of Business Case to NTAnalysis of legislation

Engagement of NEDLACDraft PolicyEngagement with stakeholdersDraft Regulatory Framework developed

Cabinet approval & submission to ParliamentInternal approval of BillDraft Bill to CabinetLegislation submitted to Cabinet

Certification by State Law AdvisorConsultation on draft BillTabling of the Bill to ParliamentConducting of RIA

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PROGRAMME 4: CONSTRUCTION AND PROPERTY POLICY REGULATION (cont…)

Business Plan

DPW Strategic Goal




Performance Measure



Q.1 Q.2 Q.3 Q.4

Strategic Goal 1: Ensure transformation and regulation of the construction and property industries to ensure economic growth and development

3. Provide strategic leadership in the promotion of transformation, growth, development and regulation of the Construction and Property industries and related professions

DPW’s contribution to transformation of Construction & Property Sectors

Review of DPW’s Property BEE Strategy and overall BEE strategy Development of Green Building Framework, programme and Rating ToolInitiate, facilitate, guide and monitor the implementation to empowerment programmes:-CIP:-PIP:

Revised BEE Strategies;

Final Green Building Strategy, programme and Rating Tool;

Revised CIP strategy & guidelines published and operational CIP monitoring tool

Verified personal details of PIP participants on the database and implementation programme

Consultation with stakeholders.

Draft StrategyRevised strategy and guideline approvedInternal approval for implementation of PIP and verification of data

Draft Strategy developedPublished strategy and guidelinesConsultation on with relevant stakeholdersConsultation with relevant stakeholders including PIP participants

Further consultationDevelopment of Green Building programmeIdentified projects and budget approval for PIP

Approval by relevant authoritiesFinalisation & approval by relevant authoritiesApproved PIP programme (projects and budgets)

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PROGRAMME 5: AUXILIARY AND ASSOCIATED SERVICES

PURPOSE OF THE PROGRAMME

To provide various services, including; compensation for losses on government assisted

housing scheme; assistance to organization for the preservation of national memorials;

managing grants for the Parliamentary Village Management Board; and meeting protocol

responsibilities for State functions.

SUB-PROGRAMMES

• Assistance to Non State Sectors for preservation of state assets.

• State Functions

• Sector Education Training Authority

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Measures put in place to address the 2010/11

under spending

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FINANCIAL PERFORMANCE PER ECONOMIC CLASSIFICATION

Current Financial Year (2009/10) Previous Financial Year (2009/10)

Economic Classification

Final Budget

Exp31/03/2011

%Spent

Final Budget

Exp31/03/2010

%Spent

Compensation of Employees

1,1264,527 1,089,693 93% 988 158 976 101 99%

Goods & Services 873,560 818,409 94% 899 923 894 394 99%

Interest and rent on land

4,481 4,481 100% 2 962 2 962 100%

Fin Tran assets & Liab

54,836 54,836 100% 40 341 40 341 100%

Transfers & Subsidies

3,788,130 3,302,542 87% 2 607 897 2 478 282 95%

Payment for Capital Assets

1,517,263 1,345,122 89% 1 509 849 1 295 976 86%

TOTAL 7,364,797 6,610,757 90% 6 049 130 5 688 149 94%

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EPWP INCENTIVE GRANT PERFORMANCE AS AT 31ST MARCH 2011

Grant Budget AllocatedR’000

ExpenditureR’000

% Spent as at 31 Mar 2011

EPWP Incentives to Provinces

331 004 182 406 55%

EPWP to Municipalities 622 996 279 616 45%

EPWP Non-State Sector 179 811 179 811 100%

Intermediary 10 515 10 515 100%

EPWP Non-State Sector- Provinces

56 637 56 637 100%

TOTAL 1 200 963 708 985 59%

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EXPLANATIONS TO THE UNDER SPENDING

• Current Budget:Compensation of EmployeesThe under spending is due to additional funds reprioritized for the filling of vacant posts. Apart from the normal staff attrition, the department had commenced with the high drive of the recruitment process, however, the lag period between the interviews, appointment letters and the assumption of duties usually averages a two month period.

• Goods & ServicesThe savings under goods and services relates to commitments under the energy efficiency programme with the IDT. Roll over has been requested. Out of the R75 million transferred in February, R16,490 million was spent as the 31st March. An amount of R40,9 million was requested for roll over.

• Measures put in placeThe department has already put in please aggressive measures of filling all the vacant posts. All the 641 vacant funded posts have been advertised. Almost 522 interview have taken place and the process of filling is proceeding exceptionally well.

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• Capital and Infrastructure:– The under spending of R120 million relates to funds committed through

the IDT as an implementation agent for the transformation of mud schools. As at the 31 March, R18,9 million was spent resulting with a balance of R111 million which has been requested as a roll over.

• Measures put in place– Focused manager for projects– Weekly expenditure reports– Close monitoring of budget allocation to projects– Management meetings– Enforce compliance and accountability– Fast track supply chain turnaround times

• Machinery & Equipment:– The under spending largely relates furniture and IT equipment which was

planned for the new premises that were going to be occupied by Public Works, (CGO building).

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• Transfers & Subsidies

– The under spending of R483 million EPWP is largely attributable to the slow reporting of job created by municipalities and provinces.

– The Department has put in place measures that include; recruitment of additional staff to provide additional technical support to Public Bodies to accelerate the creation of work opportunities and draw down of the incentive grant.

– Intensify close monitoring– Develop new approaches to job creation including flexibility on the conditions of

the grant.– Drive some of the projects from National Level– Intensify the awareness campaigns– Improve reporting

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Thank You

presentation to the standing committee on appropriations

Documents

development sp

strategic leadership

strategic contextoverview

strategic contextmandate

departments strategic

department of public

sound resource management

property management