Department of Public Works 2006 Annual Report: briefing
Public Works and Infrastructure
01 November 2006
Meeting Summary
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Meeting report
PUBLIC WORKS PORTFOLIO COMMITTEE
1 November 2006
DEPARTMENT OF PUBLIC WORKS 2006 ANNUAL REPORT: BRIEFING
Chairperson: Mr F Bhengu
(ANC)
Documents handed out
Annual Report Presentation to the Public Works Portfolio Committee: Part1, Part2 & Part3
Minister Didiza’s opening remarks on the 2005/06 annual report
presentation to Public Works Portfolio Committee
Public Works Annual Report for the year ended 31 March 2006 (available at www.publicworks.gov.za)
SUMMARY
The Minister and Department of Public Works briefed the Committee on its
2006 Annual Report.
The Committee raised concerns about government asset management, asset
disposal, maintenance backlog, fraud and corruption, the permanent location for
the Pan-African Parliament, improved service delivery, the Extended Public
Works Programme and skills development and
improvement.
MINUTES
Opening Remarks by the Minister of Public Works
The Minister of Public Works, Ms Thoko Didiza, gave members a brief summary of the presentation,
which would be presented by the Department. The presentation would include the
performance of different programmes implemented by
the department. In a previous meeting with the Portfolio Committee in June
three key issues were highlighted namely: The vision of the Department and
where it will be taken in the future, Departmental programmes
and interdepartmental and intergovernmental relations. The signing of the
Property and Construction Charter on 17 March 2005 was a milestone for the
promotion of growth and the transformation of the construction industry. The
Department is currently looking at the extent to which the Charter satisfies
the Black Economic Empowerment (BEE) legislation and the role of the Executive
in this. The Construction and Property Charter has been forwarded to the
Department of Trade and Industry (DTI) for compliance consideration.
The annual report made reference to the importance of the committee passing the
Government-wide Immovable Assets Management Bill. The annual report reflected
‘pockets of excellence’ in the Asset Management Branch. Some of these are the
management plans, enhancement of the asset register, the acceleration of
disposal of unutilized property, prioritization of maintenance and capital
projects, property industry research and the devolution of the budget and the
introduction of accommodation charges. The Department’s flagship programme, the Expanded Public Works Programme
(EPWP) has reached a higher level of implementation across all sectors. One of
the challenges highlighted in the annual report is the vacancy rate in the
department. There are a considerable number of vacant positions in critical
skills. One of the reasons for this is the aggressive recruitment drive and
incentives that the private sector provides to individuals with such skills.
The Auditor General had raised some concerns about the financial statements but
this has not led to a qualified report. The Auditor General was concerned about
rental debtors, intergovernmental balances and the information systems audit.
The department is responding to these concerns.
Annual Report Presentation by the Department of Public Works (DPW)
Mr Zingi Ntsaluba, Acting Director General, gave members a brief
summary of their presentation. The presentation included the devolution of
charges and the introduction of accommodation charges. The devolution of
budgets and creation of trading entities will change the department in the
medium term. The successful implementation of Zimisele
and other service delivery improvement initiatives will determine the
Department’s future. The Zimisele Service Delivery
Improvement Programme’s main purpose is to improve
the effectiveness and efficiency of service delivery through the implementation
of sound business principles, while at the same time conforming to the National
Government’s social responsibility parameters. Zimisele
is made up of four programmes; namely Customer
Relationship Management, Project and Contract Management, Property Management
and Facilities Management. The project is divided into seven phases. The
Department is currently implementing the third phase of the project plan. The
2006 programme of action mandated the Department to
develop a national strategy to improve the maintenance of public infrastructure.
This strategy was produced after consultation with key national departments,
and was approved by cabinet in August 2006. The key elements of the strategy
were to improve the infrastructure regulatory framework, to develop the
maintenance industry, and create links between capital budgets, operating
budgets and infrastructure. The Department currently has a massive maintenance
backlog. The Business Plan for 2007 is currently being finalized.
Mr S Opperman (DA) wanted
to know if the phases in the Zimisele project follow
each other, or do they run concurrently.
The Acting Director General replied that the phases in the presentation were
key areas that had been identified by the Department.
2005/06 Asset Management Activities presentation
Mr S Mathobela, Deputy
Director General for Asset Management, told members that the Department has an
electronic asset registry, which meets all prescribed requirements. He took
members through the objectives of asset management and some of the achievements
as well as the challenges. Some of the achievements have been the
identification of unutilized properties for possible alternative use which
would contribute to socio-economic objectives and service delivery. The Border
Control Operational Co-ordination Committee (BCOCC) structure had been approved
by the Cabinet Legotla held in July 2005. Some of the
challenges are missing and unaccounted for inventory, an alternative financing
model and the lack of an immovable asset risk management system.
Scaling up the EPWP presentation
Mr B Gxilishe, Deputy
Director General for EPWP, gave members a brief summary of the programme. A detailed review has been done on the capacity
requirements of the unit. This report is currently on its way to the Acting
Director General. The main challenge of this unit is to provide technical
support to municipalities. All projects, which have a budget of more than R3
million and which have a duration of more than 6
months, should be made part of EPWP. A National Youth Service (NYS) EPWP programme will be started. Each DPW regional office will be
requested to identify one or more projects, which can be made an EPWP–NYS
project. Various requirements will be attached to this programme.
An accredited NYS service provider will implement the project. They will then
be responsible for the recruitment and training of youth. The overall project
oversight will by done by DPW and EPWP project managers. Once the project has
been completed, the youth should be equipped with the necessary skills to
either become part of a learnership or form a
cooperative with other youth who have also completed the project. He told
members that the development of the social sector would focus on the expansion
of Home and Community Based Care and Early Childhood Development. The Development
Bank of Southern Africa (DBSA) will conduct a study which will determine the
cost of additional work opportunities available to the sector. The study will
recommend the management requirements for expanding and “massifying”
the social sector. The study is to be concluded in November 2006. 1500 learners
are currently participating in Vukuphile. 12000 jobs
have been created and R237 million worth of work has been completed
Discussion
Mr Opperman wanted
to know if the maintenance backlog amount of R12 billion was a figure that has
been “made up”. He commented that a study still has to be conducted to find out
how much the maintenance would cost.
Mr Mathobela replied that
the figure was based on a previous study, which was conducted five years ago.
Since then the figure has escalated. A new study would have to be done to
determine the ultimate cost.
Mr I Blanche (DA) wanted to know if provision has
been made for the Pan African Parliament location.
The Minister replied that they are investigating where the Pan African
Parliament would be located.
Mr L Maduma (ANC) wanted to
know how the department is dealing with the perception that Public Works is not
doing what it should be doing.
Mr Mathobela replied that
they have started the process of improving service delivery.
The Minister commented that some of the improvements fall under Zimisele.
Mr B Radebe (ANC) commented
that expenditure of 99.9% of the departmental budget is a great achievement.
However, there might be another qualified audit report soon as the lack of
effective management was a weakness. He wanted to know why a large amount of
money had been spent on a progressive summit last year, but did not take place
at the set time. He also wanted clarity on the R110 million that was used to purchase
Acacia Park from the Graaf Trust.
Mr Maduma wanted to know
how often the Department interacted with the Construction Sector and Education
Training Authority (CSETA). He wanted to know if the EPWP programme
at provincial level had been consolidated with the national programme.
The Minister replied that the Department of Labour
coordinated the SETAs. The department has been in
consultation with the SETA members to see how it can be revived. The Department
of Provincial and Local Government’s SETA was identified as one of the SETAs that Public Works could form a partnership with
whilst there were problems with the Construction SETA. She added that even
though municipal managers have been trained, they are not always the ones who
deal with the tender process. The Department spends more time with the
Municipal Managers so that they can understand the process. Municipalities are
now asking the Department to assist them with some of their projects.
Ms Nngcengwane (ANC) wanted to know how closely the
department works with the Joint Initiative for Priority Skills Acquisition
(JIPSA).
The Minster replied that government had committed itself to equip the youth
with the necessary skills they would need in the work place. Through the
Accelerated Shared Growth Initiative for SA (ASGISA), JIPSA was formed in
partnership with the private sector.
Ms C Ramotsamai (ANC) wanted to know if there was a
deadline for the asset register to be completed. She also raised concerns about
fronting and corruption in the Department. She commented that there were
reports in the media that suggested “heads would soon roll”.
The Minister replied that as indicated in the presentation an asset register
existed. The Department is currently in discussions with consultants to
determine ways of improving the register. This process is ongoing and would
take a long time to complete. She added that the register of assets would
change every year as buildings are either sold or used for something else as
indicated in the presentation.
The Acting Director General replied that the Scorpions are currently
investigating cases of corruption and fraud.
Mr Blanche commented that it would be a good idea for
the Department to employ a town planner to track the value of the buildings
owned by the Department.
The Chairperson commented that the Construction SETA had received a disclaimer
from the Auditor General. He commented that only once the committee had asked
questions about Acacia Park had the Department taken action and paid R110
million for the land.
The Acting Director General replied that the documents on the Graaf Trust would be forwarded to the committee.
Mr Mothobela replied that
the land at Acacia Park could only be used for two things, namely an airport or
as a military base. The Department negotiated with the Graaf
Trust and subsequently bought the land.
The Chairperson said that the committee would be meeting with the Joint Budget
Committee in the afternoon. He suggested that whatever issues had not been
dealt with be raised again in that meeting.
The meeting was adjourned.
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