Construction Industry Development Board Annual Report
Public Works and Infrastructure
07 November 2007
Meeting Summary
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Meeting report
PUBLIC WORKS
PORTFOLIO COMMITTEE
07 November 2007
CONSTRUCTION INDUSTRY DEVELOPMENT BOARD ANNUAL REPORT
Chairperson: Ms T Tobias (ANC)
Documents handed out:
Construction
Industry Development Board of Annual Report 2006/07 Presentation
Construction
Industry Development Board of Annual Report 2006/07
Audio recording of
meeting
SUMMARY:
The Portfolio Committee on Public Works was briefed by the Construction
Industry Development Board (CIDB). The briefing addresseed CIDB’s performance,
effects of the 2010 FIFA world cup construction boom on the local construction
industry, CIDB’s vacancy rate, how the grading process works, establishment of
Construction Contract Centres (CCC’s) offices, the stakeholder forum register,
linkages with the Department of Public Works, Board member appointments as well
as contractors with lower grading among others.
Members raised questions on the number of staff and the vacancy rate, the
communication tools being used, the recruitment programmes, and finance for
contractors and the method by which this was obtained. Further questions
related to the mandate and the financing.
MINUTES:
Construction Industry Development Board (CIDB) 2006/7 Annual Report Briefing
Mr Ronnie Khoza, Chief Executive Officer for CIDB briefed the Committee on
key matters relating to the Construction Industry Development Board (CIDB). He
noted that the CIDB was intended to provide strategic leadership to industry to
promote reform and development, and regulate the construction industry. The
presentation highlighted CIDB’s performance, effects of the 2010 FIFA world cup
construction boom on the local construction industry, CIDB’s vacancy rate, how
the grading process worked, establishment of Construction Contract Centres
(CCC’s) offices, the launch of the Construction Charter, stakeholder forum
register, linkages with the Department of Public Works, and Board member
appointments. The main challenges were identified as the rapid growth of the
registrar of contractors, which had led to backlog, and the need for further
resources and systems to keep pace....The financial indicators were the
increase of revenue by 19% to R40,01 million from
government, and 142% in revenue from the registers. The expenditure had
increased by 33%. Detailed figures were provided. The surplus for the year was
R5.5 million, that was to be used in the next year's
budget for the set up of CCCs. There had been one qualification in the audit report, that related to incorrect debiting or crediting on
contractor accounts. The matter was being addressed through reconciliation
processes..
Discussion:
Ms C Ramotsamai (ANC) asked how many staff members there
were n 2006 and how many there were currently. Ms Ramotsamai also asked how
this had affected their output.
Mr Khoza noted that in 2001 when CIDB
started there was a total of 42 staff members permanently employed and that
currently there were 100 permanent staff members employed. Mr Khoza raised the
problem of finding suitable employees as most of the vacancies were highly
specialised areas and noted that temporary employees were riskier as they were
more susceptible to bribery in this kind of industry. There had been a bigger
output since the employment of more personnel.
Ms Ramotsamai requested that CIDB highlight which communications tools were
being used by the CIDB.
Mr Khoza pointed out the establishment of call centres as a tool of
communications was used by the CIDB, adding that employment opportunities
were thus created . The establishment of these helped also improve the
efficiency of CIDB.
Mr S Nxumalo (ANC) wanted to know the vacancy rate at the CIDB. Mr Nxumalo went
on to ask if all the board members’ terms had expired.
Mr Khoza replied that it was the duty of the Minister of Public Works to
appoint board members and that no standard approach was used by the Minister to
appoint the board.
Mr Khoza indicated that the CIDB were currently sitting with 100 permanent
employees as compared with the 112 target. He mentioned also that they had a
recruitment programme to help fill the vacancies at CIDB as well as a reliable
team of consultants groomed by the CIDB.
Ms N Ngcengwane (ANC) enquired on the access to finance for contractors and if
it was still a problem for most of the emerging contractors. Ms Ngcengwane was
concerned about those contractors being registered with the Credit Bureau.
Mr Khoza answered that the CIDB had been in touch with the major banks in the
country who had
responded by establishing packages that would offer financial assistance to
contractors who needed some financial backing.
Mr J Blanche (DA) asked if the 51 000 contractors registered under CIDB were
competent and how they were screened. He also asked if there was enough
manpower to handle this overload.
Mr Khoza replied that CIDB had established some incentives for their employees,
such as that an employee’s wages would be increased proportional to their
increment on processing registrations successfully.
The Chairperson wanted to know how CIDB acquired R5 million surplus
after having still received addition funding from government.
Mr L Maduma (ANC) asked how CIDB trained their clients.
Mr Khoza replied that the mandate of the CIDB was to lead and assist, only not
to train, insisting also that CIDB played a dual role, having both the
oversight over regulatory functions (for compliance) and by providing the
required framework for development.
The meeting was adjourned.
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