Minister of Public Works Budget speech & reponses by ANC and DA

Briefing

20 Apr 2016

Minister of Public Works, Mr Thulas Nxesi gave his Budget Vote Speech on 20 April 2016.
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Honourable Chairperson
Members of Cabinet and MECs
The Chair and members of the Portfolio Committee
Honourable Members of Parliament

Let me also recognise in the gallery the presence of:
Chairpersons and CEOs of Public Entities and Professional Councils;
The Director-General and senior management of the Department of Public Works, as well as HoDs of provincial departments;

Members of the Audit Committee;
Representatives of labour, disability and women’s organisations;
Representatives of the property and construction sectors;
Academics from institutions of higher learning;
Beneficiaries of DPW’s school support, bursary, and training programmes
Participants from EPWP programmes
Bishop and Mrs Abrahams
Bishop and Mrs Ndabambi
Rev Lennox Mcubisi
Members of my family, particularly my wife and son;
Distinguished guests, ladies and gentlemen
 
The Departmental budget allocation over the medium term is R21.4 billion. Of this total amount, R18.3 billion (or 85.5%) is earmarked as transfers and subsidies:

  • R6.4 billion goes to EPWP Incentives intended for the creation of job opportunities and income support as articulated in government’s 2014-2019 Medium Term Strategic Framework and the National Development Plan (NDP).
  • R11.4 billion goes to funding the operations of the PMTE (Property Management Trading Entity).
  • The balance of the budget will be utilised for operational priorities such as:
  • Combating fraud and corruption,
  • Strengthening oversight of the public works sector, and
  • Enhancing the department’s delivery capacity.

This Budget Vote debate takes place against the backdrop of low growth and constraints on government spending. The direction set by SONA (State of the Nation Address) and the Finance Minister’s Budget Speech makes clear demands on government departments and entities, including to: contain costs, cut waste, combat fraud and corruption, and renegotiate all leases on property and equipment – to ensure value for money.
 
I want to assure this House that, as the Department of Public Works and the PMTE, we are taking action on all these fronts.  Leases are being renegotiated and we have already met with landlords with a view to containing the cost of accommodation to government.
 
By strengthening our legal unit, we have reduced the high rate of default judgements against the Department with consequent savings to the state. Moreover, civil claims to the value of around R300 million against the Department were successfully defended.
 
Cost cutting measures have been implemented in relation to goods and services, and logistics. Human resource plans are being reviewed to contain administrative and management costs, whilst focusing available resources on acquiring, training and retaining the professional and technical skills needed to improve the core business of the Department. To drive this effort we have strengthened the Professional Services function of the Department.
 
In 2015/16 - 1,291 beneficiaries participated in Public Works bursary and skills development programmes, with a projected 1,067 beneficiaries targeted for 2016/17. Additionally, the PMTE is in discussion with SAPOA (South African Property Owners Association), the leading provider of Real Estate training – and universities - to design and implement a programme for PMTE Real Estate officials.
 
I have stated previously that services such as security and cleaning must not be out-sourced. We have now completed the in-sourcing of the security function in the Head Office – creating 79 decent jobs - with plans to now roll this out in the regions.
 
The Turnaround Plan
 
This is my fifth Budget Policy Vote presentation as Minister of Public Works. Many of you will remember that when I announced the Turnaround Strategy in 2012, I said that it would be based on two pillars:

  • A zero tolerance of fraud and corruption, and
  • Improving the way we do business.
  • I also said that this would be implemented in three phases:
  • Stabilisation – to stop the bleeding;
  • Efficiency enhancement – to improve the way we do  business; and
  • Sustainable growth – so that DPW increasingly plays a leading developmental role ensuring that public buildings are user friendly, safer, accessible and sustainable, whilst the state’s property portfolio is utilised to facilitate community and economic development. 

To this effect, we worked closely with National Treasury to develop a 7-Year Plan to Rebuild Public Works. Four years on, I am here today to provide a progress report:
 
In relation to improved audit outcomes – the Department has bedded down the gains made during the stabilisation phase of the Turnaround. The Main Vote again maintained its unqualified audit opinion in 2014/15. The PMTE on the other hand maintained its qualified audit opinion in 2014/15 but with only two areas of qualification, down from seven in the previous year. In preparing for the current audit, we are actively addressing all outstanding issues.
 
The positive audit outcomes reflect improvements in the Department’s operations, particularly in lease management and the procurement environment. Stringent checks are carried out by the Inspectorate and Compliance Unit to prevent any irregularities in the procurement process, whilst we have worked closely with the National Treasury’s Chief Procurement Officer to review Supply Chain Management processes to make them fit for purpose in the specific construction and property environments. The Department is now utilising the National Treasury’s e-Portal to transparently advertise all competitive bids for easier (and cheaper) access.
 
I need to add that efforts to reform procurement processes were further spurred on by the Department’s commitment, in 2014, to implement the remedial findings of the Public Protector’s Report into the Security Upgrades at the President’s Residence in Nkandla.
 
The Department has implemented all the remedial actions of the Public Protector, as well as the recommendations of the SIU and the Ministerial Task Team. This includes the following actions taken:

  • DPW finalised a lease agreement with the Ingonyama Trust for use of land where police and defence facilities are built;
  • Matters were forwarded to the SIU (Special Investigating Unit) to investigate irregularities and any acts of criminality;
  • All officials who were found to have failed to comply with procurement policy and prescripts were subjected to internal disciplinary processes;
  • A civil claim has been instituted against the Principal Contractor, to recover approximately R150 millions;
  • Delegations were withdrawn from Regional Offices to approve tenders of above R50 millions;
  • A draft policy on the Implementation of Security Upgrades at the residences of the President, Former President(s), Deputy President and Former Deputy President(s) is being developed to be presented to Cabinet for approval.

Public Works has learned from this experience. More importantly, systems are now in place to prevent any recurrence in the future.
 
I. In relation to the first pillar of the Turnaround – ‘zero tolerance of corruption’
 
you will remember that I have previously announced that one of my priorities for the five years of this Administration is the full operationalization of the Governance, Risk and Compliance (GRC) Branch to combat fraud and corruption and to strengthen governance and compliance.
 
I need to mention that when we conceptualised the GRC Branch, back in 2012, we engaged with officials of SARS. They advised us along these lines: that whilst it was necessary to investigate and prosecute wrong-doers, it was even more important to put in place strong governance structures and controls to deny the opportunity for corruption in the first place.
 
This has necessitated a comprehensive Fraud Risk Assessment conducted for the first time during the year under review, to be repeated annually, with the intent of identifying and addressing fraud risk to prevent malpractice before it occurs.
 
With the focus on strong governance practices, I am pleased to announce that, over the past two years, the Department has demonstrated incremental improvement in its MPAT assessment results – government’s Management Performance Assessment Tool - which provides a barometer for improvements in governance practices. I have informed the Director-General that I expect a perfect score for MPAT compliance over the five-year period of the Strategic Plan. He consequently introduced this commitment as a target in the department’s annual performance and strategic plans.
 
The Anti-Corruption Unit within the GRC branch has investigated a total of 340 allegations reported for the period 2009/10 to date (51 were reported in the current year) of which 235 have been completed, 57 referred to the SAPS, SIU or other entities for further investigation, and 52 are in progress. These investigations resulted in 176 disciplinary recommendations (of which 49 were processed in the past year).
 
During the year under review the Department initiated 7 disciplinary actions specifically for the charges of serious fraud and corruption. Four of these have been finalised and resulted in 3 dismissals and 1 resignation. Completed investigations have also resulted in 6 civil proceedings for the recovery of approximately R322 million.
 
Investigations are also underway into conflicts of interest in 122 matters where departmental officials are suspected of having had interests in companies doing business with the Department, and possibly of having participated in related procurement processes.
 
A Departmental review of work by built environment professionals contracted on the renovation of 16 ministerial houses in the Western Cape informed the Department’s decision to recommend, thus far, that the SIU recovers monies in 8 of these cases, and to refer the evidence of overpayment and unprofessional conduct to the built environment professional councils for further action. Potential recoveries, at this stage, amounting to several million rands, are being quantified.
 
In terms of a proclamation, the SIU investigations into irregularities in the procurement of leases is also underway. These investigations have thus far resulted in 2 criminal cases being referred to the National Prosecuting Authority. Two acknowledgments of debt have been signed to the value of R200,000 and the Department has recovered over R2 million from overpayments for space and VAT. Six matters have also been referred to the Department to institute disciplinary proceedings. Further recoveries and disciplinary action is expected to emerge from this investigation.
 
Honourable Chairperson
 
We have successfully re-launched Operation Bring-Back in 2015 within the Public Works family to specifically: identify, investigate and recover state properties that have been unlawfully occupied or disposed of.
 
Working with provincial departments, a total of 9,719 properties are currently under various stages of investigation or resolution, having been red flagged for possible irregularities mainly from anomalies identified through our asset register rebuild programme and whistle-blower reports.
 
Computer-based interrogation of deeds records will identify further anomalies for investigation. As part of our data analytics exercise, we have linked the PERSAL data with the deeds data and have identified just over 300 employees of the state that have been red flagged for possible investigation. In Gauteng, the Department of Infrastructure Development has identified around 20 employees who are being investigated for being involved with transactions that are irregular.
 
More than 1,300 properties owned by the national Department of Public Works, having been detected as irregularly occupied through our physical verification exercise, will be either reclaimed or occupancies regularised by means of lease agreements or other financial arrangements with the occupants.
 
Our colleagues in the provinces from the public works family have also identified various high value properties that are illegally occupied. In Gauteng, the popular Roodeplaat Dam has been invaded by occupants arriving with caravans for a weekend stay, and who have now moved in permanently. In the Eastern Cape popular resorts featured in the Getaway magazine have illegally built hotels and chalets.  The banks of the Kei River have now also been illegally occupied.
 
Investigations completed by the GRC Anti-Corruption Unit have also uncovered 15 properties that were irregularly alienated from the Department. These properties are being recovered through the relevant legal processes. A further 35 similar allegations are under investigation in the provinces.
 
The Department has also referred 14 allegations of properties illegally transferred to private individuals to the relevant national, provincial, and municipal custodians for further investigation.
 
Honourable members, the good news is that, as Public Works and the PMTE, we are now getting to grips with this large backlog of corruption and maladministration.
 
Moreover, I believe that combatting fraud and corruption and strengthening financial management and governance structures is an essential precondition for us to make progress on the second pillar of our Turnaround: ‘Improving the way we do business’.
 
II. The second pillar: ‘Improving the way we do business’
 
This has taken centre-stage as we moved decisively into the second phase of the Turnaround: ‘Efficiency Enhancement’ – and at the heart of this is the operationalization of the PMTE (Property Management Trading Entity) – which  you remember I announced as one of the key priorities during the five years of this Administration. The PMTE is responsible for the core business of the Department: the provision of accommodation to government and management of the state’s property portfolio.
 
The vision that was articulated for the PMTE is to: ring-fence, better manage, maintain and optimally utilise the massive state property portfolio to build value, generate income and bring savings to the state - as well as other socio-economic benefits – particularly job creation and empowerment - whilst improving service to client departments.
 
During 20016/17, the PMTE will be conceptualising income generating initiatives on the back of the massive property portfolio under its custodianship. I have requested the Director General to conclude a finance model for the PMTE during the 2016/17 year to guide the strategies and tariff structures of the Entity, as well as to provide various alternatives and innovative ways to generate revenue from assets.
 
In pursuit of empowerment objectives, the PMTE has embraced the state procurement directive to target 30% of appropriate categories to engage SMMEs and cooperatives. In 2015/2016, the value of construction contracts to SMMEs amounted to R478 million.
 
I am pleased to announce that the PMTE will present a comprehensive and reliable GRAP-compliant (Generally Recognised Accounting Practice) Immovable Asset Register for 2015/16 which comprises 105,586 immovable assets on 31,310 land parcels.
 
Fair values have now been assigned to the assets resulting in an increase in disclosed value from R3.5 billion in 2012/13 to an expected value in the region of R100 billion for 2015/16 – thus more appropriately reflecting the value of state immovable assets on the national balance sheet.
 
I need to mention that unemployed graduates were recruited and trained to complete the verification exercise – thus also embedding capacity within the Department.
The completion this year of the Immovable Asset Register Enhancement Programme is crucial for the operationalization of the PMTE – providing the database underpinning asset management, property and facilities management programmes, as well as being the platform on which the aforementioned financial model will be built. It has also supplied critical data to Operation Bring Back on possible irregularities for further investigation.
 
During 2015/16 the PMTE commenced with a project to understand fully the contents of this massive property portfolio and to segment it so as to ensure optimum utilisation and to unlock its value and development potential.
 
Key to this initiative will be the development of a strategy around the utilisation of its vacant properties which amount to 13,043 land parcels and 1,939 buildings of varied nature and usage. All available options will be investigated, including the identification of those properties that could benefit government programmes such as human settlements, land reform, and the requirement for student accommodation, amongst others.
 
During financial year 2015/16, I approved the release of 36,494 hectares to address the following government requirements:
·         Human settlements – 8,959 hectares
·         Land Reform – 26,828 hectares
·         Other socio-economic objectives (e.g. servitudes for water & electricity, educational purposes) - 707 hectares.
 
The Department will also enhance opportunities for the letting of some of these vacant properties to the public and private sectors (with a view to generating income to secure and maintain the portfolio) as well as availing properties to emerging black and female entrepreneurs in the construction and property sectors. This initiative will build on the 100 properties identified in 2015/16 for allocation to B-BBEE property developers, and will also avail similar opportunities to property management and letting agencies. Where properties are identified as having no utilisation potential, a disposal option, among others, will need to be considered.
 
These various initiatives are supported by the PMTE’s recently established Research Unit that focuses on market research of all aspects of the construction and property industry. This Unit will assist to undertake a comprehensive portfolio analysis for the purpose of informing the Department in its property decision-making processes, and especially to ensure a sound benchmarking approach to expenditure in all operational areas. Initial research by the Unit already indicates that Government is paying considerably above market rate for leases in the Tshwane Metro. These findings support our current negotiations with landlords in regard to cost containment.
 
The Department remains intent on finding an appropriate balance between the state-owned portfolio and reliance on leased-in accommodation as an interim measure. Where positive opportunities present themselves, the Department will acquire readily available stock for its portfolio, exemplified in the 2015/16 acquisition of the Telkom Towers office precinct in the Pretoria CBD as permanent accommodation for the Head Office of the South African Police Services. This acquisition substantially reduces the requirement for leased accommodation in Pretoria – resulting in long-term savings to the state of R1.3 billion over 10 years.
 
The recent acquisition of the Parliament Towers Building, just across the road from Parliament, which accommodates our Directors-General, will also go a long way in reducing the state’s financial exposure to leasing. 
 
The backlog of lease renewals has been substantially renegotiated with considerable savings and long-term reductions in projected annual rental and escalation rates paid to landlords. The recent study by our Research Unit has revealed that leases in Pretoria CBD constitute 74% of all leases expiring in 2016 in terms of occupied space and about 11% of the total leasehold portfolio. Depending on the actual building/property grades, the potential savings of just the Tshwane leases, will be between R 44 million and R 69 million for the first year if renewed at the existing market rates.
 
Improved lease management has already impacted positively on audit outcomes, and will be further strengthened through the roll-out of an integrated electronic lease management system.
 
Performance standards have been developed for government immovable assets to measure: energy and water consumption, utilisation levels, condition and functionality. 400 buildings have been prioritised for performance assessment.
 
A huge challenge that we are still faced with, however, is that numerous state properties are vacant and neglected, leaving them susceptible to theft, vandalism, and illegal occupation. In other cases, the conditions of some of our occupied buildings are so poor that it doesn’t properly enable our user departments to fulfil their service delivery mandates.
 
As part of the Efficiency Enhancement Phase of the Turnaround Plan, the PMTE has identified the implementation of a maintenance strategy to improve access to, and the quality of, the state’s immovable assets. The strategy aims to increase the portfolio of properties which meet the requirements of user departments.
 
In this regard, as part of our comprehensive Facilities Management function, we are developing a high-level maintenance strategy that will focus on preventative, day to day, unscheduled, and planned maintenance. This is an area targeted for empowerment opportunities, job creation and skills development. The aim is to appoint and train apprentices, artisans and professionals to build strong institutional capacity to implement the maintenance strategy. This approach will also reduce the incidence and cost of unplanned maintenance, and preserve the longevity and condition of the Department’s immovable assets.
 
In line with a client-centred approach, facilitated by the PMTE’s User Demand Management Unit and the cooperation of user departments, for the first time, we obtained all 42 U-AMPS (User Asset Management Plans) from the user departments. While there is room for improvement in the quality of some of the plans, this represents a significant milestone in terms of compliance with GIAMA (Government Immovable Asset Management Act) as well as supporting implementation of IDMS (Infrastructure Delivery Management System). By more accurately matching needs to available accommodation, the purpose is to save costs and ensure that accommodation is fit for purpose, thus assisting line departments to enhance their service delivery.
 
To drive the Efficiency Enhancement Phase of the Turnaround, the PMTE has identified a number of projects to run over the next three years – designed to bring large efficiency gains and to improve service delivery, whilst also supporting the PMTE’s SONA obligations. These projects will be coordinated by the Project Management Office in the office of the DG, and are as follows:
 
·         Project 1: PMTE Business Improvement – includes organisation redesign; change management; finalisation of the PMTE policy framework; Immovable Asset Planning; securing, training and retaining technical and professional expertise
 
·         Project 2: Improving water management services at state-owned facilities - The department is currently maintaining and refurbishing 50 water treatment and wastewater treatment plants using an innovative biotechnology solution. This involved the recruitment and training of 102 water professionals in 2015/16. This number will increase to 180 in the present year, with an additional 110 young people to be trained in various professional and technical capacities.
 
·         Project 3: Small Town Precinct Development – the creation of a focused Planning and Precinct Development Unit seeks to redress racial spatial imbalances, guided by the NDP, as well as to integrate government infrastructure planning to create efficiencies, balance the leased portfolio, save costs, and make services more accessible.
 
The Unit is currently active in Polokwane and Mbombela, as well as smaller town developments in Mandeni, Mount Fletcher, Secunda and Howick – and is targeting 24 integrated precincts for development by 2020.
 
The Precinct and Planning Unit also assists to facilitate the planning and regeneration of the country’s capital, Tshwane. Progress includes the following:
o   In the Southern Precinct (Salvokop), the Stats SA Head Office building is in its final stages of completion.
o   At the Capital Hill Precinct, the refurbishment and upgrade of Agrivaal Building has been completed, providing a 40,000 square metre state-owned facility which has achieved a 4 star green-design rating for energy efficiency and water savings. It is now the Head Office of the DPSA (Department of Public Service and Administration.)
 
·         Project 4: Systems development to manage payment of property rates and municipal services
 
An Inter-Governmental Task Team was established in 2015 comprising the Department of Performance and Monitoring in the Presidency, the Department of Cooperative Governance, National and Provincial Departments of Public Works, National Treasury, the Department of Rural Development and Land Reform and the South African Local Government Association (SALGA) to ensure the settlement of inter-governmental debt to municipalities. 
                                                                                     
The process of verification, led by the Department of Public Works, established debt as at 31 March 2015 to be R3.5 billion. Of the verified amount of R982 million owed by national departments, the National Department of Public Works owed R411 million. During the 2015/2016 financial year, the Department of Public Works paid a total of R317 million, representing 77% of the verified debt. The remaining amount for the entire government will be verified to ensure that it is settled. This greatly assists struggling municipalities - for whom these payments provide a critical revenue stream – essential to effect service delivery.
 
·         Project 5: Immovable Asset Registry - consolidation of work done and provision of support to the wider public works sector to complete and manage their asset registers.
 
 
·         Project 6: Energy and Water Efficiency Monitoring and Verification – in 2015/16 energy savings of over 262 million kWh (kilo-Watt-hours) were recorded, with a further 250 million reduction targeted for 2016/17. A National Green Building Sector Plan has been concluded with provincial departments. Working with the Department of Energy and other state-owned entities, plans are being developed for the installation of solar panels in government buildings. Some 5,500 green jobs are targeted for 2016/17 as part of the EPWP programme. In future, we will ensure that all leases PMTE enters into will involve Resource Efficient buildings.
 
To date, water savings achieved are in excess of 40 million kilolitres over the last 7 years, this translates to R 422 million in monetary savings. This programme will be extended in 2016/17.
 
·         Project 7: Development of Integrated ERP Systems and ICT Master Plan – to roll-out an integrated ICT solution across the PMTE to support line function operations and to manage all transactions, secure efficiencies and enhance service delivery.
 
This will also support government’s commitment to pay service providers within 30 days. In 2015/16, 76% of invoices paid under the Main Vote were within 30 days, whilst the figure for PMTE was 86%. The roll-out of the automated invoice tracking and integrated ERP (Enterprise Resource Planning) systems during 2016, together with continued work-shopping of service providers, we believe, will once and for all address these delays.
 
·         Project 8: Small Harbours development – to upgrade proclaimed harbours in the Western Cape as well as to develop un-proclaimed small harbours in KZN, Northern Cape and Eastern Cape – as part of Operation Phakisa: Oceans Economy. This initiative is expected to contribute approximately R118 million to the Gross Domestic Product (GDP) for the 2016/17 financial year.
 
·         Project 9: Establishment of a Strategic Partnerships Office - in line with the Minister of Finance’s Budget speech call to establish partnerships to re-ignite infrastructure development and growth through co-funded syndicated projects and shared best practice.
 
·         Project 10: Finance Efficiency Improvement and Sustainability Intervention – the point here is that we do not become complacent with the improved audit outcomes, and that we strive for continuous improvement and introduce further efficiencies in the financial management of the PMTE.
 
·         Project 11: Construction Turnaround – the Construction Branch has been characterised by insufficient professional capacity and out-dated infrastructure delivery models. The following initiatives are being intensified to address these short-comings and include the following:
o   Establishment of the SCM war room to track infrastructure projects
o   The PMO will coordinate the infrastructure delivery value chain across the various business units of PMTE, and the implementation of IDMS (Infrastructure Development Management Strategy).
o   Utilisation of government implementing agencies – particularly IDT (Independent Development Trust), the DBSA (Development Bank of South Africa) and COEGA to deliver projects.
o   Establishment of joint teams with major client departments to identify and address project delivery blockages.
o   Recruitment of professionals to assist in rebuilding technical capacity and mentoring young graduate professionals.
o   A priority in this year is to re-engineer business processes and enhance ICT systems to drive improvements in planning, execution and monitoring of construction project management.
 
I need to flag the important contribution being made by IDT to realising the priorities of the Department: in relation to facilitating the delivery of social infrastructure; job creation (including 51,000 EPWP work opportunities); and its B-BBEE spend and support for youth and women contractors. The Department is working with Treasury to finalise a sustainable business case for the IDT. This process is now at an advanced stage.
 
In summary, the key strategic objectives of the PMTE for 2016/17 are:
 
·         To fully operationalise the PMTE. We are on track to finalise the approval and implementation of the organisational structure in 2016;
·         Reducing the cost of doing business and the optimisation of state assets;
·         Improving property portfolio performance monitoring and evaluation for informed investment decisions;
·         Improving needs assessments by focusing on the user departments and their requirements;
·         Optimising the portfolio mix between leased-in and state-owned properties;
·         Development and delivery of function-specific accommodation which is fit for purpose, such as service points, police stations, courts and so on;
·         Developing and implementing the Facilities Management function, including a maintenance strategy;
·         Completing the development of the financial model for PMTE, including revenue generating initiatives.
 
In relation to Construction Management the priority remains to strengthen capacity to:
·         Ensure spending of all allocated funds;
·         Tackling the backlog of projects; and
·         Ensure that projects are delivered on time, to the required specifications and within budget.
 
III.           Towards Phase III of the Turnaround: Sustainable Development
 
In closing, I need to say that ring-fencing and professionalising the property management activities within PMTE has also focused attention on the need to clarify, and enhance, the other mandates and roles of Public Works, in summary:
 
·         To nationally coordinate the EPWP - Honourable Deputy Minister Cronin will address this in detail;
 
·         Oversight and governance in relation to the public entities (cidb, IDT, Agrement SA and CBE) as well as the six professional councils, and the PMTE;
 
·         Oversight, policy and standard setting in relation to the wider public works family – in terms of the concurrent mandate; and 
 
·         To transform and regulate the built environment – the construction and property sectors. To implement this mandate the Department is assisted by its entities: the Council for the Built Environment and the Construction Industry Development Board.
 
In this respect I should also congratulate the Property Sector Charter Council for successfully aligning their sector codes with the revised B-BBEE Act, 2013 (Act No 46 of 2013). We also wish the parties to the Construction Sector Charter Council well in their continuing efforts to find common ground – with the purpose of promoting enterprise and supplier development of disadvantaged groups, as well as skills development.
 
In terms of the concurrent mandate, national and provincial public works departments already cooperate across a number of areas, including: coordination and implementation of EPWP, implementation of IDMS (the Infrastructure Delivery Management System), the Green Building policy, maintenance of immovable asset registers, coordination of payment of rates and taxes owed to municipalities, and implementation of GIAMA.
 
The Department has embarked upon a major policy review to produce a new White Paper which will culminate in the tabling of a Public Works Act to clarify the mandate of the Department.
 
This process also lays the groundwork for the third phase of the turnaround: Sustainable Development.
 
No doubt, honourable members are eagerly awaiting the medical metaphor with which, by tradition, I end these budget vote inputs. I will not disappoint you.
 
Thanks to the aggressive surgery, I’ve outlined, accompanied by positive therapeutic rehabilitation, I believe that the cancer of weak governance and corruption is now in remission… But to prevent any relapse requires continuous monitoring – amongst others, by members of this House.
 
I thank you.

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Responses

 

Speech by Hon Ben Martins (ANC), MP Chairperson: Portfolio Committee of Public Works, Public Works Budget Vote debate

20 April 2016

Honourable House Chairperson
Honourable Minister and Deputy Minister of Public Works
Honourable Members of Parliament
Director General and Senior Officials of the Department of Public Works
Esteem Guests

More than 20 years into the new dispensation after the fall of the apartheid regime, there are still far too many South Africans living in poverty, largely because far too few have jobs. This has serious implications for South Africa as considerable democratic achievements are being put at risk by the political, social and economic consequences of low growth, unemployment, poverty and inequality. Job creation thus remains South Africa`s single biggest economic priority and challenge.

In executing its mandate, the Department of Public Works has to meet five strategic outcome - orientated goals that define its direct service delivery responsibilities. These strategic goals, as set out in the Strategic Plan are:

1. Decent employment through inclusive economic growth;
2. Strategic leadership and regulation of the construction and property sectors to promote economic empowerment and skills development;
3. Good corporate governance to support effective and efficient service delivery;
4. An efficient, competitive and responsive accommodation infrastructure Network; and
5. To contribute towards comprehensive rural development.

The Portfolio Committee on Public Works has oversight responsibility over the Department and the entities that report to the Minister of Public Works, these are namely

The Portfolio Committee in carrying out its mandate had public hearings at which the Department of Public Works, and its entities made presentations on their Strategic Plans, Annual Performance Plans and Budget for the 2016/17 financial year.

The Portfolio Committee exercises oversight over whether and how the policy priorities that are articulated in the National Development Plan (NDP); the Medium Term Strategic Framework (MTSF); the 2016 State of the Nation Address (SONA) and Cabinet Lekgotla are implemented. The Portfolio Committee also appraises the Minister`s programmatic implementation of policies that the Director General, the Department of Public Works and its entities are responsible for.

An important aspect of the Annual Performance Plan are the key performance areas and indicators that enable the tracking of whether, when and how the programmes give effect to Public Works policies during the financial year. The budgetary allocations to each of the programmes makes it possible for the Director General and Deputy Director Generals to assign personnel with the requisite capacities and tools to execute the imperatives as described in the Strategic Plan and Annual Performance Plan (APP).

The Department`s budget allocation over the medium term, as the Minister stated is R 21.4 billion rand.

The Department`s objectives amongst others are to:

1. Formulate policy for the Public Works Sector;
2. Co-ordinate, regulate and provide oversight of the Public Works Sector in terms of the accommodation, housing, land and infrastructure needs of National Departments;
3. Lead and direct the implementation of the Expanded Public Works Programme (EPWP);
4. Facilitate growth, job creation and transformation in the construction and property industries.

The Department of Public Works policy priorities for the 2016/17 financial year are amongst others:

i. Delivering jobs;
ii. Stimulating growth through an infrastructure development programme;
iii. Gazetting the Public Works Bills for public comment;
iv. Signing twelve Cooperation and Protocol Agreements for joint service delivery: with provinces and municipalities;

The Department of Public Works received a budget allocation of R 6.5 billion for the 2016/17 financial year with which to accomplish its priorities.

Honourable House Chairperson

In appraising the performance of the Department, the Portfolio Committee noted the following:

The positive outcomes of the Department`s Turnaround Strategy of stabilization, efficiency enhancement and sustainable growth which continues to yield positive results. During the current stabilization phase the Department achieved a number of deliverables, including an augmented management structure, the review of the Organisational Structure to suit the mandate of the Department, the Development of the Macro Serve Delivery Model and the tightening of financial and internal controls.

The Department maintained its unqualified audit opinion in the 2014/15 financial year. The Main Account has maintained its unqualified status with a decline in matters of non-compliance reported.
The Property Management Trading Entity (PMTE) assumed the role of the implementer of the property management functions of the Department. The Property Management Trading Entity (PMTE) received a qualified audit opinion for the 2014/15 financial year. But whereas it had seven qualifications in the 2013/14 financial year, the number of qualifications decreased to two in the 2014/15 financial year. The Property Management Trading Entity (PMTE) is now responsible for approximately seventy five percent (75%) of the work and budget of the Department. The Portfolio Committee noted the improved audit outcomes which reflect improvements in the Department`s operations.

The Department has further established an Immovable Asset Register (IAR) which lists the State`s Properties under its custodianship. Buildings are being physically verified and fair values assigned, on a continuing basis. A reliable Asset Register will enhance the Department ability to leverage this Portfolio for socio-economic development, Black Economic Empowerment, for small business and job creation. It will also generate revenue to maintain State Assets.
Independent Development Trust (IDT)

The Portfolio Committee noted with concern, the disclaimer of opinion expressed by the Office of the Auditor-General, on the 2014/15 financial year statements of the Independent Development Trust (IDT). The Independent Development Trust (IDT) has the potential to become a premier social infrastructure delivery vehicle at provincial and local government level. Its management and Board have to ensure its financial sustainability and prudent financial management in order to deal effectively with the office of the Auditor-General`s findings.
The Council for the Build Environment (CBE) / The Construction Industry Development Board, (CIDB)
The Portfolio Committee also noted the governance challenges in The Council for the Build Environment (CBE). These are unacceptable and need to be addressed and resolved as a matter of urgency. Furthermore the challenge remains to strengthen the Department`s partnership with the Construction Industry Development Board, (CIDB) and the Council for Build Environment (CBE) and the Charter Councils (CC) to ensure that the ownership, control and the composition of the Build Environment Sector and the Allied Professions change radically to better reflect the demographics of South Africa.

The Portfolio Committee urges the Minister to speed up the Review of the White Papers and the conclusion of the draft Public Works Bill, so that these can be submitted to Parliament.
The Ministry and The Department is also reminded that the President, in the 2015 State of the Nation Address directed the Department to meet the following priorities:
1. Energy saving and greening of Public Buildings;
2. Contribution to Operation Phakisa through the development of small harbours and the establishment of a small harbour unit under the Property Management Trading Entity (PMTE).

Going forward the Portfolio Committee will pay close attention and scrutiny to the third phase of the Turnaround Strategy as it constitutes the Sustainability and Growth elements of the Department to refresh its mandate by undertaking a policy review and focusing on its Sustainability and Growth.

Honourable House Chairperson: In conclusion

The Portfolio Committee is confident that working in a critical but constructive partnership with the Ministry and Department, the triple challenges of unemployment, poverty and inequality will be mitigated.

The ANC supports the Department`s Budget Vote

I thank you!!!

Speech by Hon CQ Madlopha (ANC) Budget Vote Debate Public Works Vote 11

20 April 2016

House Chairs and EPC Chairs
Honourable Members
Distinguished Guests

Reconstruction and Development Program (RDP)

The R.D.P, 1994 said and I quote `No political democracy can service and flourish if the masses of our people remain in poverty, without land, without tangible prospects for a better life. Attacking poverty and deprivation must therefore be the first priority of a democratic government. To eliminate poverty and reduce inequality, S.A has to raise levels of employment through productivity growth and earnings of working people.

As part of government intervention in poverty alleviation, it introduced and launched Expanded Public works Program (EPWP) in 2004, as a concerted effort to address issues of poverty, unemployment and lack of skills, particularly of marginalised communities in Rural areas.

It is this reason that as African National Congress we continue with our journey to reduce poverty- unemployment and inequalities despite the 2016/17 Budget proposals being tabled under serious constraints and pressures both economically and socially.

Unemployment

It is true that the levels of unemployment in the country remain high, however that should not make us turn a blind eye on the achievements that the government has made in addressing this challenge. According to the latest figures from Statistics South Africa, unemployment levels decreased by 225 000 in the fourth quarter of 2015 compared to the third quarter of the same year. The declining levels in the official unemployment rate were recorded in seven of the nine provinces. The largest decreases were recorded in Northern Cape (9, 0 percentage points), Eastern Cape (1, 8 percentage points) and Free State (1, 7 percentage points).

Even when considering the number of discouraged job seekers, between the third quarter and the fourth quarter of 2015 the expanded unemployment rate is on a decline. The largest decrease was recorded in Northern Cape (3, 5 percentage points), Eastern Cape (2, 2 percentage points) and North West (1, 8 percentage points).

Expanded Public Works

Over the past 10 years the Expanded Public Works programme (EPWP) created 5 million jobs, which provide the necessary relief to our people who would otherwise not survive the unforgiving jaws of poverty. The EPWP programme is now in the third phase and the commitment is to create 6 million work opportunities between 2014 and 2019 - with increased focus on women, youth and the disabled; added to this, a sharp focus is placed on skills development and training. We must not misunderstand this focus. It is absolutely necessary that we do not just create work opportunities. These people must be given skills training so that when they are finished on projects, they can be employable.

The IDT makes a very important contribution to the EPWP. It is the paramount project management entity for this government and it builds social infrastructure that communities are proud to own and protect. In spite of its current budget deficit which many blow out of proportion, the entity has made concerted efforts to collect its long outstanding management fees. These will bring the IDT`s finances back to order so that it is a solid going concern. We call on all client departments and provinces to pay these management fees.

The EPWP is on track with over one-and-a-quarter million work opportunities in the first year of which 55 percent of targeted the youth. In fact by the fourth quarter of 2014/15 the EPWP had exceeded its annual target of 1 million jobs by 58 463 extra jobs. The majority of these jobs came from the Infrastructure Sector with 409 209 jobs and the Non-State Sector with 249 078 jobs. A total of 387 278 Full Time Equivalents (FTEs) were created against the set target of 420 952 translating to 92 percent.

These job opportunities are created by public bodies across the three spheres of government - national, provincial and municipal and across 4 sectors which include:

The Infrastructure sector (focusing on construction and maintenance;
the Social Sector
Environment and Culture Sector,
And the non-state Sector (these include the Non Profit Organisations, Non-governmental Organisations and faith-based organisations.
In terms of provinces and municipalities, all provinces except for the Free State and Northern Cape exceeded their combined (provincial and municipal) annual targets on work opportunities. The leading provinces in terms of performance is KZN with 173 774 WO reported at 130 percent, followed by EC with 109 850 WO reported translating to 129 percent. The National Youth Service, which is part of the EPWP Infrastructure sector is currently training 3,600 young people as artisans in trades like carpentry, building and plumbing.

In the Environment and Culture sector the EPWP has a number of programmes that are directed at addressing skills shortages in the tourism and hospitality industry. In this sector alone, to date, 1,760 unemployed youth were enrolled in the Chefs Training Programme and some of the graduates are now working overseas, others have started their own businesses. During 2014, 3,434 unemployed youth passed through the Tourism Training Programme. Graduates of this programme have a high subsequent employment rate in the tourism industry.

There are also multiple jobs created through the Working on Fire Programme to train Fire Fighters. In the EPWP Social Sector there are a number of training programmes for: Early Childhood Development practitioners; teaching assistants; Home Community Based Carers; Primary Health Counsellors; Youth Workers; Pharmacy and Nursing Assistants; and Sports Administrators.

The benefits of the EPWP are spread throughout the nine provinces. For instance, Last year the programme trained 120 young people in KZN and Mpumalanga to operate water treatment services - under supervision. a further 320 unemployed chemical engineering and science 17 graduates are receiving training and will be appointed to 97 water facilities across the country. The significance of this contribution cannot be overlooked given the shortage of skills in these areas coupled with the current water crises as a result of the on-going drought.

In 2014 the Minister of Public of Public Works launched the EPWP/merSETA Artisan Development Programme, which is jointly funded by the Department of Higher Education and Training through the National Skills Fund, and the merSETA (Manufacturing, Engineering and Related Services Sector Education and Training Authority).The commitment is that by 2019 a total of 330 young people will have obtained artisan development training. These learners receive wages, which are paid by the registered employers as per the relevant bargaining council rates. Besides getting decent wages, these learners get qualifications which will empower them and make them key contributors to the South African economy.

Employment in General

The country`s vision 2030, National Development Plan (NDP) calls for radical change that must bring real benefits to working people and the poor across S.A. The NDP provides a long term vision to accelerate development so that unemployment and inequalities could be reduced, creating a more inclusive society. The NDP is the road map for our programs. One of the key pillars of extensively covered in NDP and built into Medium Term strategic framework (MTSF) is descent employment through growth.

Some people find some joy in talking about unemployment but they fail to talk about job creation. They prefer to say the glass is half empty when it is actually half full. The latest figures from Statistics South Africa shows that government is making strides in terms of job creation. This narrative is confirmed by latest figures arising from the December 2015 Quarterly Labour Force Survey (QLFS) conducted by Statistics South Africa. This Report tells the following:

Moving from the second quarter of 2015 to the third quarter of the same year, the number of persons employed in South Africa increased by 171 000
The number of employed persons in South Africa increased by 712 000 when one compares the third quarter of 2014 with the third quarter of 2015.

Overall, by the third quarter of 2015 the number of employed people in South Africa was sitting at 15, 83 million. Here we are talking about people who, in terms of the laws of the country, are supposed to be working; not children who are supposed to be at schools or elderly people who are supposed to be enjoying a quality time with their grandchildren. What is also interesting is the fact that the bulk of these job opportunities were created from the informal sector where employment rose by 314 000. The other sector which created the most number of jobs in the agriculture sector where employment levels rose by 211 000. This tells that our people are not lazy as always suggested, in fact they are the ones who go out and create job opportunities to support their families and our economy through their participation in the informal sector and in the agricultural sector. Every economist will tell you that the informal and agricultural sectors are the backbone of the South African economy, as it is the case in any other developing country. By contrast, employment opportunities were created in the formal sector in the third quarter of 2015. It is in this context that the government is always pleading with the private sector to come to the party in supporting government in creating jobs.

In fact there is a great chance that this number has increased sharply in the course of 2016 as government continues to create jobs through various programmes and projects such as the Expanded Public Works Programme (EPWP) and Community Works Programme (CWP) which is administered by the Department of Public Works; the Jobs Fund which is administered by National Treasury. I will talk at length about these programmes later.

Employment by Provinces
What is even more comforting is the fact that these improvements in job creation are not concentrated in one province, as some would want us to believe that there is one province that is capable of creating jobs in South African. Contrary to such notion, the narrative coming from the Statistics South Africa tells us that the improvements observed in the third quarter of 2015 is spread across at least seven provinces. For example, from the third quarter of 2015 to the fourth quarter of the same year, Gauteng had the highest improvement of 79 000 jobs compared to the Western Cape which had 62 000. The North West Province also performed impressively with employment of 48 000 South Africans during the same period.

By December 2015, employment levels increased in all the provinces, except in Northern Cape. The largest employment gains were recorded in Western Cape (210 000) and Gauteng (209 000)

Decent Jobs

What is also encouraging is that the observed improvements in employment levels is not limited to short term contract employees, however improvements are observed even among permanent contract employees. This is indicative of clear commitment to the creation of decent jobs. According to latest data from Statistics South Africa, between the third quarter and the fourth quarter of 2015 the number of employed people increased by 11 400. This increase was mainly observed among employees with contracts of a permanent nature.

In fact, people are not employed but their salary levels are on an upward trends owing to various interventions by the government. This confirmed by latest data from the December Quarterly Labour Force Survey released by the South African Reserve Bank. The narrative from the South African Reserve Bank is that the pace of increase in total nominal remuneration per worker in the formal non-agricultural sector of the economy accelerated from 6, 9 percent in the first quarter of 2015 to 8, and 7 percent in the second quarter. This improvement is attributed to a clear acceleration in public-sector remuneration growth in particular as well as an acceleration in private-sector remuneration growth. Similarly, growth in the average real take-home pay of those gainfully employed in the formal non-agricultural sector accelerated to 5, 2 percent in the second quarter of 2015.

The pace of increase in public-sector salaries and wages per worker accelerated markedly from a year-on-year rate of 7, 8 percent in the first quarter of 2015 to 12, and 5 per cent in the second quarter. Year-on-year growth in nominal remuneration per worker in the private sector also accelerated, from 6, 5 percent in the first quarter of 2015 to 7, 6 per cent in the second quarter. This is another testimony to the government that is truly commitment to the notion of decent work.

I wish to share the story of Nehemiah, he said and I quote `As I was in Susa that Hanani, one of my brothers came with certain men from Judah and I asked them concerning the Jews who escaped, who had survived the exile and concerning Jerusalem and they said to me, `the remnant there in the Province who had survived the exile is in great trouble and shame. The walls of Jerusalem are broken and its gates are destroyed by fire`. Nehemiah went to Jerusalem to examine the walls of Jerusalem which have been broken down. And its gates which had been destroyed by fire. When he re-entered through the Valley gate, many did not know what he was doing-then he said to them, `You see the trouble we are in`.

Jerusalem lies in ruins and its gates have been burn by fire, come let us rebuild the walls we will no longer be in disgrace.

After reading these verses in the Holly Bible, I mirrored South Africa -When our Great Larders were returning from Prisons and Exile, where there was no nation. It was only a country without Nation, it was a country with broken walls, it was a country where all gates were burnt with fire, it was a country without peace, it was a country without shelter, it was a country without roads in Black areas, it was a country without sanitation, a country without jobs for Black people, a country where Blacks were excluded from economy, a country excluding blacks from education. A country where everything was broken, was burnt, was destroyed. The Government led by the ANC came and build the nation through Truth and reconciliation, Building rainbow nation, the. Constitution of the Republic of SA. It never ended there it continues building infrastructure for electricity, water and sanitation, social infrastructure , providing employment with the creation, of conducive environment for investors, road infrastructure and the list is endless because the apartheid government , fore bearers of DA destroyed everything. It is easy to destroy but difficult to build, that is why opposition parties keep on destroying. ANC invite u all come, join us let us build for the future of the generations to come because walls and gates of SA were destroyed by apartheid government.

As I wrap up, the narrative is simple and clear, there are challenges facing the country mainly owing to the ongoing global and domestic economic challenges; however the government continues to make concerted efforts to create jobs for the people of South Africa.

I thank you

Ngiyabonga
 

Building Corruption through Public Works by    Dianne Kohler Barnard (DA)    Shadow deputy Minister of Public Works
 

Colleagues,

I’m new to this committee so I’ll address just three issues, where various – to use the ANC catch-phrase – ‘challenges’ – must be faced.

Firstly our immovable assets which fall under the Property Management Trading Entity (PMTE).  It is an entity established in April 2006 and what I have learned during my short tenure on the committee is that in terms of the Immovable Assets Register there are assets that are correct as per the municipal rolls; there are assets that are grossly overinflated; and there are assets that simply don’t exist.

15% of the State’s immovable assets are in a poor condition – for which read ‘should be condemned’ – and 85% in a fair to good condition.

Of the 158 000 state assets, 112 000 are immovable assets and the rest is land.  So of the 112 000 immovable assets – 15% – or 16 800 buildings are in poor condition.  Sadly I’ve visited many of the slum-like buildings where government staff actually have to work amongst the rats and bird lice – such as the Firearm Registry in Pretoria; or nurses’ quarters in the Eastern Cape. Death traps all of them.

A year ago our late and greatly missed colleague, Hon Kenneth Mubu said the DPW was a failed custodian for this country’s property assets.

I fear it still is.  We’re told at great length about the turnaround strategy – but there’s more.  My information tells me that there are many problems that simply aren’t being revealed to the committee.

Yes it has finally been admitted that the PMTE has lost 1 200 properties.  They simply can’t find them.  They’ve disappeared. There are also thousands – that have been stolen – invaded, even sold.

But there’s more.  If you check you’ll find that there are rather strange co-ordinates for many of the listed properties.  For example in Midvaal ERF 43 Portion 0 of Pendale Agricultural holdings is valued at R220 000.  Yet there’s no known address.  However, the GPS co-ordinates tell you exactly where this property is.  (28.049326474 – 26.49855205).

It lies, Minister, in the middle of the North Atlantic Ocean.  To the east of North Carolina.

I have details of over 200 such properties with GPS co-ordinates showing them settled at the bottom of the Atlantic.  Some might say the five year turnaround strategy is going swimmingly.

As a newcomer I have to ask about things like the rates and services payments of these government properties.  When Helen Zille took over as the Mayor of Cape Town, the various government entities were millions behind in rates and services.  So she simply cut them off, and suddenly those millions flowed into the municipal coffers and the turn-around of the shabby sea-side city into a world-class icon began.

My information is – however – that no rates or services have been collected from certain government buildings over the past eight years.  The debt nationally comes to over R5,241-billion. These debts go back to 2008.  Imagine where we would be as a country if an extra R5,241-billion-plus had been added to the fiscus.

But there’s more.  Of those properties being charged, and perhaps even paying rates and services, there is one for example, being charged R10 000 pm.  The claim is it is a multi-million rand school.  Actually it’s an empty barn.  So who is paying – us taxpayers? And who is pocketing the R10 000pm?

With the billions not coming in, the next question is: how are the municipalities paying their monthly debts?  It’s suddenly easy to understand the new legislation forbidding us from taking our full pension when we retire.  I’m told the money just isn’t there. It’s gone.

Meanwhile because of the thousands of lost; slum-like or underwater properties, there is a shortage in terms of the Immovable Asset Register, and so the renting of endless properties from endless cronies continues.  I’ve asked for the names of the top ten who rent the highest number of buildings to Public Works per province, and will be looking for the Guptaisation of the whole. Then again 56% of the leasehold portfolio charges above market rental and the rentals are 45% above market rentals. If the department could get its ducks in a row it could leverage its property portfolio for economic development.

Which brings me to the Expanded Public Works Programme – EPWP – the antithesis of economic development.  It is a much-loved baby of the deputy Minister Cronin who is obviously totally under-utilised, and so has taken to camping out in our portfolio committee and referring to the rather cowed officials as ‘his staff’ like some Super DG. Separation of powers, Minister!  The EPWP chases numbers instead of using the funds to stimulate the economy; it has no lasting legacy; nor does it add to the momentum of growth and jobs in any realistic way.  What it does do is provide single job opportunities for those in often desperate need.

I raised the issue of corruption in the EPWP programme – that those who couldn’t produce an ANC membership card were turned away.  I was asked to prove my claim.  Minister it took me one phone call and here in my hand I hold 24 affidavits where individuals were refused EPWP jobs by three ANC Councillors, two men and a woman, from Illovo and uMlazi because they didn’t have ANC membership cards.

Minister you have given the opportunity to offer unfettered and unmonitored largesse to unknown thousands, and I for one will not view this programme in its current format through rose-coloured spectacles.  Without fairness, it doesn’t add to the momentum of growth and jobs in any realistic way. These job opportunities should be available for all, not just ANC cadres.

Indeed it was revealed yesterday that the AG is questioning your data because of inadequate records and deficiencies in the information submitted. Minister he needs ID numbers, not ANC membership card numbers. Minister, when I leave here it will be to go to walk to the police station to lay charges against these ANC Councillors. My colleagues will do the same in province after province after province. Perhaps I will invite the Public Protector to take on one last case which shows all the signs of making Nkandla look like the theft of a child’s lunch money at school.

It’s firepoolery at play and the Democratic Alliance won’t allow corruption on our watch.


Public Works only works for Zuma’s cronies by Patricia Kopane (DA) Shadow Minister of Public Works

 

Honorable Chairperson allow me to use the words of wisdom by Justice Louis Brandeis, from the US Supreme Court of Justice,

“Our government is the omnipresent teacher, for good or for ill, it teaches by example. If the government becomes a law breaker, it breeds contempt for law; it invites every man to become a law unto himself.”

Honorable Chairperson, the Department and Minister of Public Works has failed us on two very serious issues: that of Nkandla, and that of the Council of the Built Environment.

Firstly, in preparing for this budget vote, I couldn’t help but have more questions than answers after the Constitutional Court’s judgment with regards to the Nkandla saga.

This judgment revealed that the integrity of Parliament and the Department of Public works is compromised, and this judgment also implicates you negatively, Honorable Minister.

The reason I’m raising these issues is because the Department of Public Works is the custodian of South African Public assets, and we as Parliament have the obligation to exercise strict budget scrutiny and oversight role over the Executive and State entities. This is done to ensure that both Constitutional and statutory obligations are implemented and complied with.

Honorable Minister you have a duty to ensure that state resources are used only for the advancement of the South African citizens, especially the poor.

According to the code of ethics prescribed by National Legislation it clearly states that Members of cabinet and deputy Ministers may not use their positions or any information entrusted to them to enrich themselves or improperly benefit any other person.

Currently, the Department of Public Works is implicated in corruption and fraud scandals.

According to the Public Protector and the Constitutional Court of South Africa there are serious allegations of maladministration, irregular procurement processes and wasteful expenditure against your office and your Department with regard to Nkandla. All these happened under your watch Honorable Minister.

Honorable Chairperson,

It is blatantly clear that the budget of this department will never benefit the poor and the vulnerable, but rather the President and his cronies. This is a sad realization. In a country where people battle to access reasonable housing you, Honorable minister chose to use your budget to prioritize one man. You and your predecessors were amongst President Zuma’s top men in the Nkandla cover up attempt.

For the past six years that you were in office, you and your predecessors have used your office and tax payers’ money at  your disposal to protect the President from the consequences of his action.

You did not fulfil your role as Cabinet Ministers with the best interest of South Africans at heart, but used your time in office to favour a morally bankrupt President whilst defrauding South African people in the process. In doing this you failed South Africans.

This is a sad story to tell, when the rich steal from the poor. This is what you have done with Nkandla.

In this Parliament the Minister has abused the National Key Points act to protect the President and to prevent information about Nkandla being released or made public.

The Public Protector in her report, found that the minister’s communications to Parliament on the Nkandla matter was riddled with inaccuracies and inconsistencies and his actions had grossly undermined trust in government.

Not only does the Minister show blatant disregard for the Constitution of the Republic and the people of South Africa, but also he can’t even look after the very officials delegated to exercise the mandate of the Department. Why are officials of the department punished for the wrong doing of the private people who were introduced by the President Zuma’s private architect Mr. Mkhanya?

Honorable Chairperson,

Honorable Minister all that you did is a betrayal of the Constitutional aspirations of the people you claim to represent and people you claim to cherish.

The DA will pursue every avenue possible until the president and every other ANC and government official is held to account for their role in President Zuma’s most infamous corruption scandal since he took office.

We will make sure that the Constitutional Court’s judgment is carried out, the judgment that stated that the Ministers involved in the Nkandla saga be reprimanded. The DA will make sure that you account to the people of South Africa and that the dignity of this Parliament is restored.

Chairperson, the Department and Minister have also failed us in a second instance when it comes to the Council for the Built Environment.

The CBE in collaboration with the Department of Public Works has a clear mandate to coordinate efforts that drive transformation in the build environment, property and construction.  Some of its primary roles are:

  • Development role (training, competence, standards of education);
  • Regulatory role (promote sound governance of build environment profession);
  • Advising government on built environment matters.

The profession and skills of the sector are of national interest. They play a very important role in planning, construction and maintenance of existing government infrastructure.

However, during the committee meeting it was clear that there are major challenges within this entity. There are corporate governance challenges and the pace of transformation of the built environment profession in terms of race and gender is far too slow.

The CBE is not in a strong position to do oversight and exercise its regulatory function over Professional Councils because the Professional Councils have more capacity in these core activities than the CBE.

To offer effective oversight, the CBE must have the capacity to engage the professional councils in skill development strategies. They should have a core component of knowledgeable workers and researcher staff – which they don’t currently have.

The Board and the Council must take the responsibility for the lack of research, skills development, built environment knowledge and human capacity that should make up the core activities for the entity.

The Department simply does not have the expertise it needs.

Many of our built environment graduates cannot find the relevant placement for their workplace training, so how can they register as qualified professionals? There is no incentive/disincentives for any recent graduates to register with 6 councils.

With regard to governance, the CEO was suspended since 9 April 2015 and the board disrespected the public trust: they spent R1,8 million on this witch-hunt.

Honorable chairperson what is disturbing is that the chairperson of the built Environment lied to our committee – and therefore to Parliament – by stating that the suspended CEO refused legal assistance with her disciplinary hearing. I have documentation which shows she did request legal assistance from the CBE. The action of the chairperson is illegal.

According to the deputy minister there is no case against the CEO and she must be reinstated.  Honorable Minister, everything happened right under your watch. The DA believe that the board must pay this money back personally.

I thank you!

 

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