Asset Register and progress made on GIAMA (Government Immovable Asset Management Act): briefing by National Department of Public Works

Meeting report

Presentation by the DPW on the IAR and GIAMA
Ms Lydia Bici, the acting COO (Chief Operating Officer) of the National Department of Public Works noted the presence of the Department’s representatives at the meeting. Ms Cathy Motsisi, the Department of Public Works (DPW)’s Chief Financial Officer (CFO) delivered the presentation to the Portfolio Committee.

The presentation pertained to issues on the Immovable Asset Register (IAR) and the progress made thus far on the implementation of the Government Immovable Asset Management Act 19 of 2007(GIAMA)
With regards to the Immovable Asset Register (IAR), Ms Motsisi spoke on the audit qualifications, the enhancement of the IAR and how the DPW was intensifying the IAR.
Ms Motsisi highlighted the audit qualifications on immovable assets for 2009 and 2010.
She said that not all assets owned by the DPW had been accounted for in the annual register.
She also noted that stand numbers and title deeds had not been noted on the asset register.
There was an initiative in progress pertaining to the vesting of the ownership of state-owned land she said.

In terms of the IAR's rationale and progress Ms Motsisi said that not all assets owned by the DPW had been accounted for to corroborate financial statements.
She noted that the product expenditure on the Works Control System (WCS) was not showing on the Asset Register.
It was noted that the incomplete surveying of state land had resulted in properties been without title deed and stand numbers.
However, meaningful improvement had been confirmed by the Auditor-General (AG) on completeness.
There was also a reviewed asset register guideline with crucial information.
It was noted that the implementation of the Vesting Master Plan was in progress with a tracking mechanism.

There were three phases in relation to the intensification and enhancement of the IAR.
With regards to the progress made on the implementation of GIAMA, its background was highlighted as well as the legal framework for GIAMA.
Also conferred, was a status report on the implementation of the Act as well as the asset register and the achievements since the inception GIAMA.
The challenges pertaining to the departments were noted as well as the plans for full implementation.
With regards to progress made towards the implementation of GIAMA, there was a provincial pre-implementation plan, where provinces prioritized by means of a self-assessment questionnaire.
Provinces also had to create sub-forums for custodians and users.
It was noted that the President in 2209, had signed a proclamation regarding GIAMA and its operation.
Issues relating to the compilation of Asset Management Plans as well as Immovable Asset Registers were noted.

The confirmation of the vesting or ownership of state-owned properties were too noted as well as condition assessment and maintenance programmes.
Also highlighted in the presentation were the achievements since the implementation of GIAMA in relation to both national and provincial departments.
Challenges were noted. There had been delays in the delegation of custodial responsibilities regarding the Premiers according to the DPW.

With regards to the plans towards full implementation, GIAMA was being extended to local government even though certain issues had to be taken into account.
Two alternatives were noted in the presentation to the Portfolio Committee.
According to the DPW, the GIAMA gave government the chance to improve service delivery via improved asset management.

There was an initiative in progress pertaining to the vesting of the ownership of state-owned land she said.

In terms of the IAR's rationale and progress Ms Motsisi said that not all assets owned by the DPW had been accounted for to corroborate financial statements.

She noted that the product expenditure on the Works Control System (WCS) was not showing on the Asset Register.

It was noted that the incomplete surveying of state land had resulted in properties been without title deed and stand numbers.

However, meaningful improvement had been confirmed by the Auditor-General (AG) on completeness.

There was also a reviewed asset register guideline with crucial information.

It was noted that the implementation of the Vesting Master Plan was in progress with a tracking mechanism.

There were three phases in relation to the intensification and enhancement of the IAR.

With regards to the progress made on the implementation of GIAMA, its background was highlighted as well as the legal framework for GIAMA.

Also conferred, was a status report on the implementation of the Act as well as the asset register and the achievements since the inception GIAMA.

The challenges pertaining to the departments were noted as well as the plans for full implementation.

With regards to progress made towards the implementation of GIAMA, there was a provincial pre-implementation plan, where provinces prioritized by means of a self-assessment questionnaire.

Provinces also had to create sub-forums for custodians and users.

It was noted that the President in 2209, had signed a proclamation regarding GIAMA and its operation.

Issues relating to the compilation of Asset Management Plans as well as Immovable Asset Registers were noted.

The confirmation of the vesting or ownership of state-owned properties were too noted as well as condition assessment and maintenance programmes.

Also highlighted in the presentation were the achievements since the implementation of GIAMA in relation to both national and provincial departments.

Challenges were noted. There had been delays in the delegation of custodial responsibilities regarding the Premiers according to the DPW.

With regards to the plans towards full implementation, GIAMA was being extended to local

Discussion
The Chairperson noted that the issue of the asset register has existed since 1994 when Minister Jeff Radebe was in office. Mr Radebe had then raised the issue with the Director- General (DG) that the register needed to be dealt with.

She sought clarity as to what had happened to with data that had been collected between 2004 and 2009.

She sought clarity as to what had happened to the photographs of properties that had been taken and scanned into the database.

She also wanted to know what had happened to the Compact Discs (CD's) comprising data.

The Chairperson noted that the DPW in their presentation, had only highlighted its future plans regarding the IAR and that more information was indeed necessary concerning the existing properties.

The Chief Operating Officer (COO) of the DPW, Ms Lydia Bici noted that indeed the DPW needed to brief the Portfolio Committee on the current status and not just the Departments' future plans.

She conceded that a lot of work had been done during the time that former Minister Jeff Radebe had been in office and the Ministers who had succeeded him and that all the previous basic information and photographs were there.

She said that it had been identified in the audit report that some of that information was not accurate and indicated that the asset register was a live document. She said that when listing a new property, one had to go back if it had not been listed accurately.

She noted that the DPW was addressing the inaccuracies during the phases that had been stipulated in the presentation.

Ms D Ngcengwane (ANC) noted that even though the DPW had identified its future plans, that time frames or time lines had to be attached to those plans.

She noted that former Minister Jeff Radebe had indeed did a sterling job on identifying those properties and that even though phases had been identified, that time lines were crucial.

She emphasized the importance of working with the provinces to achieve faster results.

She highlighted the importance of the DPW working with the Deeds Office.

She wanted to know how the 200 contractors were spread across the various provinces.

She made reference to the amnesty initiative that would come into effect soon and asked the DPW for a detailed plan of that to better clarity.

She sought clarity on the identification of the farmers in the Western Cape with leases of up to 99 years. She also sought more clarity on what was being done with regards to the identification of the farms in the Free State.

The COO, Ms Lydia Bici noted that in terms of those farmers in the Western Cape with the long leases, all the information would be provided to the Portfolio Committee by the DPW.

Ms N November (ANC) noted that it was vital to work closely with the Deeds Office.

Ms Cathy Motsisi said that in terms of the time lines allocated regarding the surveying, the DPW had a vesting master plan with time frames attached to it.

With regards on the surveying capacity, Ms Motsisi said that the DPW was working very closely with the Department of Rural Development and that the collaboration gave the DPW greater manpower to ensure that surveys occurred faster.

She noted that the DPW would have to also engage with the private sector in terms of the vesting process.

She said that the DPW really appreciated the approach of collaboration with the provinces on vesting and getting the asset register right.

Ms N November (ANC) sought greater clarity on the surveying of the land. She wanted to know who was supposed to be surveying the land.

She noted the 52 contractors who were to be hired and sought clarity on administrative issues relating to that.

Ms Cathy Motsisi (CFO) said that out of the 52 contractors, 32 had already been hired and the other 20 had been interviewed and were in the process of being appointed.

Mr W Doman (DA) was concerned about the creation of a backlog.

He wanted to know how much was being budgeted for surveying and wanted to know if it was been privatized.

He noted that privatization would allow for the process to take place much quicker.

He sought clarity on the challenges that the DPW was experiencing in relation to the vesting of ownership.

Some of the DPW's challenges relating to the vesting process were due to budget constraints, the lack of surveyors in South Africa (SA) and the regulation of state land.

Mr Doman wanted to know who exactly the DPW was targeting with the amnesty that they had referred to.

Ms Motsisi said that the targets were all those people who are occupying the land illegally as well as those people who were withholding and had crucial information pertaining to the land.

Ms Cathy Motsisi (CFO) noted that the amnesty plan would be presented to the Portfolio Committee as soon as the Minister approved it for implementation.

Mr Doman noted that there were many competent property finding companies out there who could assist the DPW to make more progress.

Mr N Magubane (ANC) sought clarity on the Deeds Office and wanted to know why the DPW could not trace government properties at the Deeds Office.

He said that those who had being appointed to do fieldwork needed to be closely monitored.

The Chairperson sought clarity as to what the DPW had meant when they said in a report that they were frustrated by unresolved issues pertaining to the lack of complete records, staff shortages and funding.
The Chairperson sought clarity regarding asset codes that had been written on tree stumps and rocks in Limpopo Province.

It was noted that property codes were under provincial custodianship.

The meeting was adjourned.