Minister & Department of Public Works: 2012 Strategic Plan

Public Works and Infrastructure

13 March 2012
Chairperson: Ms M Mabuza (ANC)
Share this page:

Meeting Summary

The Department of Public Works presented its strategic and annual performance plans and Estimates of National Expenditure to the Portfolio Committee. Mr Thulas Nxesi, Minister of Public Works, gave some introductory remarks and noted that although he had initially wondered whether the strategic plans were not simply repetitive and may set targets that were not achievable, he had signed off on them, as he was confident that the Department of Public Works (DPW) would be able to deliver. He had met with other Ministers to try to assess where the problems in the DPW lay, and a turnaround strategy was planned, that would require buy-in at all levels. In particular, this would address corruption and fraud. Over the next five years it was anticipated that DPW would be responsive to government issues of service delivery, having strengthened the register of movable and immovable assets of the state, and would be actively addressing the skills shortage related to the built environment profession. He noted the allocation of R8 billion for the 2012/13 financial-period, which would increase over the medium term.

The Department expanded on the five programmes of the DPW, setting out the main strategic priorities, budgets and targets. Under the Administration Programme, there were plans to review policies regularly, improve governance and oversight, approve the internal audit plan, and present regular reports to the Management, and Audit and Risk Management Committees. DPW intended to reduce the age of debtors and pay 85% of invoices within 21 days, complete legal cases and achieve 95% of the work to document accurate asset register information. It would screen 200 companies and vet personnel to consolidate international efforts. The Immovable Asset Management Programme had 2 500 projects and intended to complete 200 by year-end. Training and learning opportunities were outlined for built-environment sector graduates. Inner city regeneration was planned in two cities. Almost 5 000 building inspections would be conducted. Service level agreements had been signed with 25 departments and two Prestige agreements were operative. The Expanded Public Works Programme aimed to create 1.2 million opportunities by the end of 2012/13, and 3 500 should participate in National Youth Service. R1,6 billion was allocated for this programme. The Construction and Property Policy programme intended to introduce the Built Environment legislation, establish Agrément SA as an entity, and develop a Green Building programme. The Auxiliary and Associated Services Programme activities were also described.

Members thought that the plan lacked specifics, and questioned the R5.5 billion spending on Prestige projects, commended the turn-around strategy, and hoped that it would start the Department on a fresh path. They noted the explanation of the Minister as to what was hoped to be achieved, asked if the Amnesty Campaign and Zimisele Service Delivery programme were still running, questioned what the DPW intended to do about filling of posts and retaining staff, and wondered if it could pay all invoices within the time stipulated. Members suggested that the targets for rehabilitation may be too low, and progress too slow, asked about the screening process, which departments would sign agreements, how the transfer of land for human settlements purposes would take place, and noted that they expected  reports on developments in Robben Island and correctional centres.

Meeting report

Minister of Public Works briefing on Departmental Strategic Plan
Mr Thulas Nxesi, Minister of Public Works, stated in his introductory address that he had serious reservations about signing off on the Strategic Plan of the Department of Public Works (DPW or the Department). At first sight it seemed to be repetitive and carried promises that might not be attainable. However, he had now signed off on it, and was convinced that the DPW would be able to turn around. The successful implementation of the strategy depended on the focus of the turn-around strategy, and this, in turn, required the buy-in from all stakeholders of the Department.

The Minister noted that he had met with affiliated unions in order to take the matter forward, and said that, in order for the Department to attain its goals, it was important to stabilise the environment. This would mean dealing with the suspensions and ensuring that the posts were filled permanently, rather than by acting officials. A support team with different areas of expertise would be appointed to focus on the core functional areas of the Department, such as supply chain management, monitoring and evaluation, and research. All of these were priority areas that needed renewal. This team would be drawn from within the various entities of the Department, and no consultants would be used. He pointed out that this was the beginning of the process.

The Minister noted that stabilisation projects were in place. It was hoped that, within two months time, the movable assets register would be cleaned up. National Treasury would be dealing with audit queries and with matters in relation to the irregular leases. There had already been some disciplinary hearings in respect of officials suspended.

He assured Members that over the next five years the DPW should be seen as being responsive to government issues of service delivery. It would have strengthened the register of movable and immovable assets of the state. It would address the skills shortage related to the built environment profession. At the moment, built environment skills were mostly found in older people and it was important to ensure that young people, particularly from the black communities, were trained and given experience to ensure succession.

He emphasised that the current infrastructure was seen to be wasteful, especially when it came to some forms of development or repairs, but said that this depended on the nature of the building. Some buildings had to be kept in a certain form, even when being expanded and renovated, because they were heritage buildings, and that demanded the hiring of specialised engineers and use of rare materials. He also pointed out that sometimes the private sector attempted to make huge profits from attending to these buildings. In future, the DPW would be placing emphasis on the state erecting its own buildings and moving away from leasing premises, which should result in savings of billions of rands.

Mr Nxesi finally indicated that he had embarked on a campaign to meet all Ministers who were clients of the DPW, to analyse the problems and assess how best to move forward. In future, when the DPW was commissioned for projects, a joint committee would be established so that there was better accountability.

Mr Nxesi indicated that the DPW had received an allocation of R8 billion for the 2012/13 financial-year, and this would be subject to increases in the medium term.

Department of Public Works briefing: Strategic plan and Annual Performance Plan 2012/13
Ms Mandisa Fatyela-Lindie, Acting Director General, Department of Public Works, indicated that her presentation was a combination of strategic and annual performance plans, and would set out some comparative analyses. She dealt with the issues by focusing on each of the five programmes of the DPW.

Administration Programme
Ms Fatyela-Lindie noted that the DPW would try to ensure that strategic and annual performance plans were compliant with Treasury Regulations and other relevant prescripts. The DPW offices would be institutionalized, and the Monitoring and Evaluation policy would be reviewed annually. The 2012/13 financial-year would see improvements in intergovernmental meetings, oversight visits, internal top governance structure meetings and appointment of board members for Councils. An internal audit plan had been developed and was awaiting approval, which should happen by May 2012. Audit reports would be presented quarterly to the Management and Audit and Risk Management Committees, as well as progress reports on investigations to Management and Audit and Risk Management Committees.

She noted, in respect of the financial matters, that DPW intended to reduce the age-analysis of the debtors to one year. DPW had targets to pay 85% of invoices within 21 days, and DPW would make sure there was 100% compliance to supply chain management prescripts. 95% of the work would be done in order to complete and document accurate information on the movable asset register. She noted that it was intended to complete 100% of all legal cases referred within a five-year period. A legal opinion would be sought in response to all requests, within 14 days.

Ms Fatyela-Lindie said that the DPW had registered a 5% increase in the participation of women, youth and people with disabilities in the core business of DPW. In 2012, the DPW would facilitate signature of two agreements with foreign countries to consolidate the African agenda and South-south cooperation. 200 companies would be screened, and 80 prioritised personnel would be vetted. R893 million of the budget went to this programme.

Immovable Asset Investment Management Programme
Ms Fatyela Lindie noted that there was a target of 2 500 projects for implementation under the Immovable Asset Investment Management programme. Of these, 200 would be completed by the end of the year. One hundred training and learning opportunities would be created for graduates of built environment careers, through the Young Professionals Programme. 35% of budget would be expended on development of emerging contractors, and women and youth owned enterprises, in terms of the BBBEE score-card. There were targets to rehabilitate ten properties. She noted that although 500 buildings were to be made accessible to people with disabilities, only 100 would be completed. DPW intended to release 200 hectares (ha) of land for human settlement purposes. Only 20 out of the intended 35 properties for land reform purposes would be released.

She also indicated that 200 market valuations for acquisition, letting and disposal of property, and 100 feasibility assessments would be conducted. Two Memoranda of Understanding should be concluded with two cities, aimed at inner city regeneration initiatives.

In order to ensure compliance with Occupational Health Safety Act and regulations for all immovable assets over the Medium Term Expenditure Framework (MTEF), 4 752 building inspections would be conducted, for state and leased facilities, and verification of optimal utilisation. A Facilities Management Strategy would be applied to contracts for state immovable assets, in accordance with the implementation plan. She noted that the DPW had signed 25 Service Level Agreements (SLAs) with 25 user departments, as well as two other Prestige agreements, in respect of the Parliament and The Presidency. Monthly reports would be submitted to the Parliament and The Presidency. An amount of R5, 3 billion had been allocated to this programme.

Expanded Public Works Programme
Ms Fatyela-Linde reported that by 2014, it was intended to create 4.5 million work opportunities for poor and unemployed people. 1 210 000 work opportunities would be created through the Expanded Public Works Programme (EPWP) by the end of the year, and 130 000 work opportunities would be created through the EPWP on provincial access roads. 3 500 young people were expected to participate in National Youth Service. The budget for this programme was R1,6 billion.

Construction and Property Policy Regulation Programme
Ms Fatyela-Linde reported that Agrément SA (ASA) was to be established as an entity by 31 March 2013, and approval had been received from the Joint Evaluation Committee for the creation of a Public Entity.

Between 2012 and 2015, amendments would be made to the legislative framework for the Built Environment Professions (BEP), by the tabling of the BEP Bill in Parliament. Over the same period, there would be development of a Green Building Programme for government, aimed at green job creation and economic growth. Life Cycle Guidelines would be rolled out to national and provincial custodians. These guidelines were meant for the management of state immovable assets. R37 million had been allocated to this programme.

Auxiliary and Associated Services Programme
Ms Fatyela-Linde said that this programme provided compensation for losses in the State housing guarantee scheme, when public servants failed to fulfill their obligations. It provided assistance to organisations for preservation of national memorials by channeling funding to the Commonwealth War Graves Commission and United Nations for maintaining national memorials. It also provided for the acquisition of logistical facilities of state functions, and aimed to influence training and skills development throughout the construction industry. An allocation of R39 million was made to this programme has been allocated R39 million.

(See attached presentation for more detailed graphs and tables on budgeted revenue and expenditure).

Discussion
Ms P Ngwenya-Mabila (ANC) commented that the plan of the Department was too vague, and lacked specifics. For instance, the DPW had not given details of what exactly the focus of the programme was for the first quarter.

Ms Cathy Motsisi, Chief Financial Officer, DPW, explained that quarterly and mid-term targets were set, in line with the requirements of National Treasury. Mid-term targets were broken down into quarterly ones.

Ms Ngwenya-Mabila wanted more explanation about the reports that the media had carried about the R5,5 billion to be spent on prestige projects.

Ms Motsisi said that the figure of R5.5 billion related to the total project costs, and this was funded and set out in the Estimates of National Expenditure (ENE). It must be noted that these projects included some that were started ten years ago, and some projects would go beyond 2015, including the prestige projects. Some of the monies included in that amount were invoices already paid and audited.

The Minister remarked that the issue was over-sensationalised. The media failed to get clarity on the matter. The whole issue was political and the target was clear.

Ms A Dreyer (DA) commented that she had been pleased to hear the Minister admit that the Department was in decline, and that corruption was so deep and wide. She commended the Minister for bringing a turn-around strategy, and hoped that it would start the Department on a fresh path.

The Minister said there was a need for stabilisation, and there were new plans for addressing this, as well as fraud and corruption, presented to the Executive of the Department. The issue of establishing a Support Team that would answer to the Executive of the Department was also discussed. There was a need for a proper diagnosis into the past inefficiencies of the Department. As part of change management, the whole Department was going to be transformed. The leadership would first need to boost the morale of the staff, which was currently very low. He pointed out that, whoever was in charge of a department, certain matters should be regarded as non-negotiable; for example, the responsibilities of every worker, and the need to maintain professionalism. A turn-around was not an event, but must be seen as a process with time frames. The intention was that DPW would do things in a different way. No one was going to be fired, but people may see to their own removal from the Department. A change management expert would be brought in to help drive the process. He noted that the DPW was anticipating that this would be an 18-month process that would involve all the stakeholders – through staff and unions and right up to executive level.

Ms C Madlopha (ANC) wanted to know if the Amnesty Campaign was still in existence.

Ms Fatyela-Lindie stated that the Amnesty Campaign was in existence, but it needed to be intensified. Although the call centre was operational, there were very few calls being received.

Ms Madlopha enquired if the Department had a retention policy in place, saying that the vacancy rate was of concern as it was too high.

Mr Lucky Mochalibane, Director: Corporate Services, DPW, said that the most recent information indicated that the vacancy figure was under 1 000, and the DPW was aiming to reduce it down to 15%, as opposed to the 21% it had been in the last year. The figures were dynamic; people were hired and left every day. It was important that the DPW must set a maximum limit for the vacancy rate.

The Chairperson asked the Chief Financial Officer to submit details on the actual vacancy rate figures to the Committee.

Mr K Sithole (IFP) enquired how the Department was planning to ensure that it paid invoices within 21, or even 30 days, because there was proof that this was not possible..

Ms Motsisi explained that if a contractor had not been paid within the stipulated time, then that contractor had every right to contact the Department. The Department would contact the Independent Development Trust (IDT), the body who was given money for paying contractors.

Mr Sithole wondered if the target of rehabilitating twenty properties was not too low, and also said that the rehabilitation was very slow.

Ms Motsisi corrected him, saying that the pace was actually not slow. One hundred projects were identified for next year, and ten buildings would be fixed this year.

Ms N Madlala (ANC) wanted to know if the Zimisele Service Delivery programme was still in existence.  and how was the screening of 200 companies to be done.

Ms Fatyela-Lindie said the Zimisele programme dealt with the norms and values of the Department. It had been presented to the Cabinet. Trainees were in place, and the training of facilitators had happened already.

Ms Madlala asked how the screening of 200 companies would be done.

Ms Fatyela-Linde explained that the Securities Services Management Directorate unit was in the process of being established. The screening of the companies would be referred to the Department. The number was realistic, as more than 200 had already been screened in the current year.

Mr M Swathe (DA) enquired which other departments were, or would be, signatories to the Service Level Agreements with the DPW.

Ms Fatyela-Lindie stated that the Department had 51 clients, 36 of whom were national government departments, and there were 15 entities who already had expressed interest in working with the Department.

Mr N Magubane (ANC) wanted to know if the transfer of land for human settlements purposes was done formally by the DPW, or if this was merely a “gentleman’s agreement”.

Ms Fatyela-Lindie said that there was a plan in place. The Department of Human Settlements worked within a developmental framework, and the process would be that this Department made a request to the DPW, who would in turn commission the evaluation of land. Once the land had been valued, the process would go via the Director General and National Treasury.

The Chairperson advised the Minister that the Committee had received no information in relation to the infrastructure development planned for Robben Island and one of the correctional centres, and nothing had been accounted for. She expected answers on these matters when the DPW next appeared before the Committee.

The meeting was adjourned.

Present

  • We don't have attendance info for this committee meeting

Download as PDF

You can download this page as a PDF using your browser's print functionality. Click on the "Print" button below and select the "PDF" option under destinations/printers.

See detailed instructions for your browser here.

Share this page: