Expanded Public Works Programme II Progress Report: Department of Public Works: briefing

Meeting report

Department of Public Works. Expanded Public Works Programme (EPWP). Progress Report
Mr Butcher Matutle, Acting Chief Operations Officer, Department of Public Works, said the presentation was aimed at answering questions raised at previous meetings of the Portfolio Committee.

Overall, the Expanded Public Works Programme (EPWP) had created 643 116 work opportunities during the past year, exceeding the target of 642 000, although the infrastructure and environment sectors were below target.  This had been offset by increases in the social and non-state sectors, and the programme was on course to meet the 4.5 million work opportunities target by March 2014.

There had also been an increase in the average duration of work opportunities in the 2010/11 period, with the social sector averaging more than 100 days or more in eight provinces, compared to the previous average of below 50.  However, the community works programme averaged less than 30 days, and this lowered the overall average.  The North West Province and Western Cape were singled out as needing to improve their performance.

Progress in providing work opportunities to youth and women was good, with targets being exceeded in both areas.  However, people with disabilities did not benefit to the extent planned, and this remained a challenge.

The EPWP had been awarded R200 million by the Department of Higher Education and Training (DHET) for the training of beneficiaries from the National Skills Fund, and R188 million of this had been committed to training 20 000 beneficiaries by March next year.

The Independent Development Trust acted as intermediary for implementing the non-state sector (NSS), contracting with non-profit organisations (NPOs), disbursing funds and monitoring performance.  For the past budget year, 108 NPOs had been contracted, and had created over 33 000 work opportunities against a target of 24 000.  The NSS budget for 2010/11 was R190 million, of which R19 million was for administration, but the 2011/12 budget allocation did not match the increased work opportunity targets. The daily wage subsidy rate had been increased from R50 to R60.

To provide technical support to municipalities, an additional six deputy directors had been employed and based in the provinces.  At this stage, 217 of the 283 municipalities were being assisted in the implementation of the EPWP, and more municipalities would be supported in the coming year.

During the past year, municipalities had accessed only R459 million (48%) of the R954 million infrastructure incentive allocation, and this had resulted in the DPW intensifying its engagement with the municipalities. The situation was expected to improve in the current year.  Municipal officials were being trained in labour-intensive methods of construction, and over 170 of the targeted 1 200 officials had been trained so far.  Training on reporting on the EPWP – another problem area – was also being undertaken.

Mr Matutle said key planned targets for the 2011/12 financial year were the creation (and reporting) of 868 000 work opportunities, 3 000 youth recruited to the National Youth Service programme, 30 000 beneficiaries being trained, and 1 000 officials being trained in labour intensive methods.

Discussion
Mr M Rabotapi (DA) said it would be helpful if the Committee could be provided with a breakdown by municipality, indicating how many people had been employed, and what jobs they had been given.  He also expressed concern at payment of workers being delayed, and a lack of monitoring resulting in idle workers being paid for doing little work at all.

Mr Ignatius Ariyo, Chief Director: Infrastructure, DPW, said a breakdown was available and would be provided, and assured Members that monitoring would be improved to ensure workers were paid on time.

Mr P Mnguni (COPE) asked what checks were in place to ensure municipal projects were compliant with EPWP standards.

Mr Ariyo described compliance as a “mixed bag”, and was trying to eliminate inconsistencies by working with municipalities to check that their documentation was in line with EPWP guidelines.

Mr K Sithole (IFP) wanted to know how many of the work opportunities were temporary jobs, and how many were permanent.

Mr Ariyo said EPWP job opportunities were not permanent, and would vary in duration.  He also explained the concept of full-time equivalents (FTEs), which were based on EPWP job opportunities averaging 100 days, against a normal work year of 230 days.  This meant that a target of 4.5 million job opportunities, each averaging 100 days, would equate to 2 million FTEs.

Ms N Ngcengwane (ANC) asked about the type of training being offered to EPWP beneficiaries.

Mr Ariyo said that whereas training had in the past been generic, in Phase 2 it was now related to the sub-projects of the programmes being undertaken.  The focus had also shifted to accredited training.

Ms Ngcengwane enquired whether the Department was able to monitor whether monies sent to municipalities were properly used.

Mr Ariyo responded that a comprehensive audit was currently being carried out and, on completion, a full report would be conveyed to the Committee.

Ms Ngcengwane, Ms N Madlala (ANC), Ms P Ngwenya-Mabila (ANC) and the Chairperson raised various concerns around the R60 daily wage subsidy rate, ranging from a feeling that it should be increased and that the rate actually paid was often different in different provinces, to the perceived lack of management and monitoring.

Mr Matutle said that although R60 might be considered low, there was a danger that if it were increased, the EPWP would attract workers who were already employed in the private sector.  It appeared that already some provinces were paying up to R120 a day, or R2 000 a month, and this was not sustainable. 

The Chairperson argued that EPWP workers operated in harsh conditions – very hot in Phalaborwa, or very cold in Gauteng – and should be paid at least R80 daily.  She was supported by Ms C Madlopha (ANC), who added it was unlikely private sector employees would give up their job security for temporary EPWP work opportunities.

Ms Ngcengwane said she understood the level of the wage subsidy was determined by the National Economic Development and Labour Council (NEDLAC), which meant that the Committee had no power to intervene, and could merely ask the DPW to negotiate at NEDLAC level.

Mr Ariyo pointed out that R60 was the minimum, and that the EPWP allowed beneficiaries to be paid from R60 to R150 daily.  It was important for the entities involved to engage with communities to establish an appropriate wage for the particular work involved, and for this reason, there would be variances.

Ms Ngcengwane expressed concern at the fact that neither the Northern Cape nor North West Province had taken advantage of the infrastructure incentives.  She felt this should have been picked up through the monitoring process so that corrective action could have been taken.

Mr Ariyo said the Department was engaging with both provinces in order to introduce labour-intensive road maintenance projects, so that they could access incentive funds.

Ms Ngcengwane asked for a breakdown of training expenditure, as it seemed a large proportion went to administration at the expense of actual training.

Mr Ariyo said a breakdown could be provided, but most of the budget was used to pay training providers, and the actual training  was related to the projects being undertaken.  Beneficiaries generally felt that the training they received had made them more employable in the future.  The R19 million paid to the Independent Development Trust was primarily for their intermediary role in training non-governmental organisations (NGOs) and NPOs, as well as on-site monitoring.  This expenditure was monitored by the DPW.

Ms Ngcengwane said oversight visits by Members of the Committee indicated that many municipalities were confused about the EPWP.  As politicians, they were willing to accompany the Department to these municipalities to see what was happening at grass roots level.

Ms Madlopha raised concerns about the inconsistencies of work opportunity targets – some seemed to be set too low, as indicated by a 230% over-achievement in non-state community works.

Mr Ariyo disputed this, saying they were set on the basis of funds that were available, and results could then be influenced by new projects coming on line. For instance, funding in the environment sector was a challenge, which had resulted in engagement with the Treasury.  In the case of the infrastructure sector, performance had been influenced by not maximising the labour intensity of projects, such as using capital-intensive bitumen paving versus labour-intensive concrete. A round of provincial summits was being held to promote the EPWP at both provincial and municipal level. Committee Members would be invited to attend.

Ms Madlopha said that although the targeted average duration for work opportunities was 100 days, in some areas it was less than 30 days.  Working for two or three weeks would not realise the Government’s intentions with regard to poverty and hunger alleviation.  She had heard of workers being laid off after only a few days, to be replaced by others, so that more people could be shown to have been given work opportunities.

Ms N November (ANC) said that with all the training municipal officials had received since 2006, one would expect some to be fully capable, so that training resources could be re-directed to other municipalities.

Mr Ariyo said that due to the high turnover of staff at municipal level, training had to be a continuous process.

The Chairperson said there was a need for equipment used in EPWP projects to be maintained.  Slashers, for instance, needed to be sharpened.  She also blamed poor monitoring for roadside workers sleeping on machinery, and for burning grass, which was not allowed.

Mr Matutle agreed that monitoring posed a serious problem, and the DPW needed to send people to assist in certain areas.  The provinces should also develop the capacity to assist in monitoring.

Mr L Gaehler (UDM) said he did not believe the EPWP was succeeding in training people to compete in the open market.  He gave the example of a two-classroom project in Mthatha which had taken more than two years to complete, and described it as fruitless expenditure because those involved would not be employed in the private sector.  Proper monitoring was necessary to correct this situation.

Mr Ariyo said this example would be investigated.  He said that, while the focus was on labour intensity, the principles of the EPWP dictated that projects should not cost more, take longer, or be of inferior quality.

Ms Ngcwengwane asked whether the challenge facing the DPW in reaching its targets regarding people with disabilities was because many of them were already receiving disability grants.

Mr Ariyo said this was not the case, and the challenge was more to do with the physical nature of many EPWP projects, which were unsuited to people with disabilities.

Status of Independent Development Trust (IDT)
Following the Committee’s meeting with the Independent Development Trust (IDT) last week, at which the Trust had presented its case for restructuring to ensure its long-term sustainability, the Chairperson asked Mr Devan Pillay, Chief Director: Construction Policy, DPW, to advise the Committee on future action.

Mr Pillay said converting the Trust to a new entity required the development of a policy position, which the Minister had the sole prerogative to approve.  A business case would then have to be presented before a legislative process could begin.

The Chairperson said that, in the light of this advice, the workshop involving the Committee and the IDT on this issue would be held in abeyance until further notice.

The meeting was adjourned.