Committee Report on Northern Cape Public Works Oversight Visit

PUBLIC WORKS PORTFOLIO COMMITTEE
31 August 2007
COMMITTEE REPORT ON NORTHERN CAPE PUBLIC WORKS OVERSIGHT VISIT

Chairperson: Mr F Bhengu (ANC)

Documents handed out:
None

Audio recording of meeting

SUMMARY
A Committee delegation that had recently visited Public Works Department of the Northern Cape, presented their observations and recommendations to the Northern Cape Transport, Roads and Public Works MEC. The delegation’s main areas of interest were: inter-governmental and inter-departmental relations, with specific focus on service delivery; asset management; and the implementation of the Expanded Public Works Programme (EPWP) with its three focus areas of poverty alleviation, skills development and job creation in the region. Thereafter, the MEC responded giving clarification where needed.

MINUTES
The Chair thanked the MEC and his delegation for making the effort to see the Committee in person. He also mentioned that this was be his last meeting as Chair of the Portfolio Committee on Public Works, as he was relinquishing his responsibilities in this committee, and would move to that of Defence.

Recommendations from the Oversight Visit to Northern Cape Public Works
Mr L Maduma (ANC), the head of the delegation, began the presentation by outlining the mandate that his delegation was given when they embarked on their oversight visit. He then proceeded to give a lengthy and in depth summary of the observations and recommendations of the delegation to the Northern Cape. The key areas of observation were: inter-governmental and inter-departmental relations, with specific focus on service delivery; asset management; and the implementation of the EPWP and their three focus features of poverty alleviation, skills development and job creation. Within skills development, the effects of the Construction SETA (Skills Education Training Authority) were also observed.

Concerning inter-governmental and inter-departmental relations, the delegation were given a presentation by the Department of Local Government and Housing. It seemed however, that the presenter, the Head of Department, was not properly briefed of what was expected, and the presentation was insufficient. A revised presentation was promised, though the Portfolio Committee was still waiting for it. The MEC was asked to please assist in this matter. Mr Maduma mentioned that it seemed as if there were challenges with regard to service delivery in the province because the various departments were not talking to one another. The Portfolio Committee wished to fix up the relations so as to improve service delivery and change lives.

Mr Maduma moved onto the next area of observation - asset management and the asset register. The visiting party had been informed there was an asset register, but there were still challenges in this area. He said that they realised that the bigger challenges originated at the local government level.
 
The main body of the report and presentation concentrated around the Extended Public Works Program (EPWP) that was being encouraged by the National Government, and its three key foci of poverty alleviation, skills development and job creation. The delegation’s findings were that there unfortunately was not much work being done in the province around the EPWP. This was mainly due to a lack of awareness and understanding at local government level of the EPWP. There were existing projects, however they were not run according to the guidelines of, or as, EPWP projects.

Mr Maduma then went over the various sites and municipalities that the delegation visited. He said that for the majority of the large projects the Public Works Department was involved in, there was no conscious effort from management to drive the EPWP. As a result, a further problem observed was that the sub-contractors were not able to be graded by the Construction Industry Development Board (CIDB) when they completed their project, and as such were not improving their grade rating, or getting certification for the work done. These sites included: a mental hospital in Kimberley; a hospital and new generation prison in Upington; the Kgalaghadi municipality and its donkey cart project and UDS (Urine Diversion System) project; the beachfront promenade work in Port Nolloth; the Hartswater access road construction project; airport plans in Namaqua and the Eksteenfontein world heritage site; and finally a Secure Care Centre in Springbok.

According to Mr Maduma, the party also observed that there was a shortage of equipment amongst the local smaller contractors, so that they hired from the established companies and could not keep the money themselves. The presenter pleaded with the MEC to see if there was a way to have a disposal process of the government equipment, or to create ways to use some of the contract money to buy their own equipment. This would also be looked upon favourably by the CIDB, as these contractors had handled funds well and had their own equipment.

Mr Maduma also noted that the Province was part of the National Youth Service launch, but there was as yet no launch of the project in the Province itself. For projects (such as the Port Nolloth beachfront, and Hartswater access road construction project) where youth were used, an exit strategy needed to be built in that allowed the youth to take their skills further, as the EPWP emphasises. He also did not get a sense that there was involvement of the Construction SETA as the Department trained all the people. He reminded the MEC that there is a national SETA whose job was to capacitate people. Mr Maduma concluded by thanking the MEC again for the hospitality during the visit, for being present at the meeting, as well as for the good work his office was carrying out.

Northern Cape MEC for Transport, Roads and Public Works response
Mr Kagisho Molusi, Northern Cape MEC for Transport, Roads and Public Works, responded in person to the observations and recommendations from the oversight visit. He said that it was clear that the Committee had gone there and had looked at a number of areas and, although his role was to come and listen, it was also important that he made a few comments on the issues.

Mr Molusi informed the Committee that, to deal with inter-governmental and inter-departmental issues, there was a Provincial Intergovernmental Forum (PIGF) that took place once a month, headed by the Premier, where information and Cabinet ideas were discussed and disseminated to the municipalities. He said that the establishment of the PIGF has helped with a number of problems.

Concerning management of assets and the asset register, he said that it was a problem that permeated throughout rural South Africa. In the Northern Cape, the national Department of Public Works was helping with this problem, and following the guidelines set out by the Accountant General.

Mr Molusi noted that the Committee had raised a number of issues concerning the EPWP. He fully agreed that the thrust thereof should be a well-oiled exit strategy for contractors to continue and improve their gradings. His Department had just completed their own EPWP strategy and it was going to the economic cluster next week. This was a co-ordinated project as meetings were convened with all the role players. Concerning the CIDB grading, the MEC agreed with the presenter, noting there were many ‘black contractors’ in the 1 GB grade level and not enough of them were improving their levels. They had started road shows to speak to emerging contractors, especially woman and youth. He said that everyone in Public Works was guilty because when contractors completed a project, they were not given certification.

Mr Molusi then made some remarks about specific projects. He said that as a Department they were assisting with the marketing strategy of the donkey cart project. The beachfront paving project was also to be extended to Hondeklipbaai, and it was critical that in this instant there was training, accreditation and sustainability. Mr Molusi added that they were in the process of auctioning their old ‘yellow fleet’, but they would refurbish some of them and allocate them to municipalities. With regards to access roads, the Province had a shortage of engineers and a problem with the registration of their professionals. They were trying to attract retired engineers to help with the registration. Mr Molusi’s office was aware of the road problem at the Eksteenfontein world heritage site, and was engaged with the Northern Cape Chamber of Industry and aviation companies to get flights to Upington and Springbok.

Discussion
Mr N Gogotya (ANC) wanted to seek clarity on the UDS toilet system and wondered if there was a way to re-look the strategy and improve it to best serve the community.

Mr B Radebe (ANC) appreciated the work of both delegations and expressed concern that something as large as a R40 Million project could have no EPWP.

Mr M Anthony (ANC) agreed that the incorporation of Kgalaghadi district into the Northern Cape had brought complexities into the province. As an MP of that district, he had made recommendations about the UDS toilets in his constituency reports. He added that there must also be provision made to care for government buildings that were part of the former homelands, and that these buildings could be handed over to the local communities and traditional leaders.

The MEC, Mr Molusi, responded to the discussion and acknowledged the proposals. He noted the point to engage with SETA about training. He also said that they had started a good working relationship with the CIDB. The properties and big buildings inherited were also a big challenge in Kgalaghadi.

Ms Ruth Palm, Acting Head of Department, Transport, Roads and Public Works of the Northern Cape mentioned that, concerning training and capacity building, for the new Department office project, they had sent the constructors for retraining based on EPWP principles.

Mr Maduma said that the delegation really enjoyed the visit, and the hospitality and welcome was memorable. It was not easy to part ways at the end.

The Chair concluded this part of the meeting by thanking the delegation again. He said they were glad to hear that things were still moving in the Northern Cape, and they would be back to visit again.

The MEC and his delegation left the meeting, and the Portfolio Committee members remained to cover some business matters.

Committee business
Mr Bhengu noted that as there was not a quorum present, they could not go over the Committee  Reports, so he asked that the Committee go through and adopt the outstanding minutes.

The minutes for 13, 20, 22 and 24 June were approved.

The Committee Secretary informed the meeting that the next meeting of the Portfolio Committee, scheduled for September 4 had been cancelled. The next meeting would then be on the 5^th. The meeting on September 11 with the Construction SETA was postponed until further notice.

Meeting adjourned.