Question NW644 to the Minister of Public Works and Infrastructure

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20 May 2020 - NW644

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Public Works and Infrastructure

With reference to her reply to question 304 on 19 March 2020, what are the details of the amounts owed by client departments to the Department’s Property Management Trading Entity as at (a) 31 March 2018, (b) 31 March 2019 and (c) 28 February 2020 including but not exclusively the details of (i) each client in respect of their, (aa) names, (bb) contact details and (cc) accounting officers’ names, (ii) dates on which the payments were made on behalf of each client, (iii) the expenditure incurred and paid for on behalf of each client and (iv) why clients had not paid within 30 days of the payments having been made on behalf of clients?

Reply:

The Minister of Public Works and Infrastructure:

The amounts owed by client departments to the Department of Public Works and Infrastructure (DPWI) Property Management Trading Entity as at:

(a) As at 31 March 2018, the gross outstanding balance was R3.478 billion that included an amount of R2.367 billion for impairment. The amount disclosed in the annual report was a net balance of R1.111 billion. (Annexure A)

(b) As at 31 March 2019, the gross outstanding balance was R4.172 billion that included an amount of R2.590 billion for impairment. The amount disclosed in the annual report was a net balance of R1.582 billion.

(c) As at 28 February 2020, the gross outstanding balance (before impairment) was R7.282 billion that included an amount of R2.590 billion that was impaired on the 31 March 2019. The impairment amount for the year ended 31 March 2020 has not been calculated yet and will be calculated and disclosed in the annual financial statements for the year ended 31 March 2020.

Impairment is an accounting requirement that requires the Entity to evaluate whether objective evidence exists as a result of one or more events (a loss event) that may impact on the recoverability of the amounts due and calculate an impairment loss based on future expected cash flows. It must be noted that amounts impaired do not mean that they have been written off by the Entity. There is continuous engagement with client departments to ensure that they pay the gross outstanding debt.

The details of the amount owed for 31 March 2018, 31 March 2019 and 28 February 2020 are listed in Annexure A attached.

(i) The details of each client with respect of their, (aa) names, (bb) contact details and (cc) accounting officers’ names, are attached as (Annexure B).

(ii) and (iii) the Table A below reflect the period in which the payments were made on behalf of each client and the expenditure incurred and paid for on behalf of each client.

Table A:

Ageing bracket

Amount

Current (0-30 days outstanding)

R 1 199 303 174.83

30 days

R 1 187 276 619.08

60 days

R 514 491 484.74

90 days

R 362 236 122.09

<1 year

R 1 507 012 265.46

1-3 years

R 1 622 432 217.30

3- 5 years

R 328 926 973.56

> 5 years

R 560 054 849.53

TOTAL

R 7 281 733 706.59

The current approved business model of the Entity is that expenditure is incurred on behalf of client department after which the amount is claimed. The expenditure that is incurred on behalf of client departments is for private leases, municipal services, client infrastructure spending (Capital allocation) and other recoverable infrastructure projects (referred to as PACE and CA). At the end of the month, all payment made are then consolidated as a claim/invoice and sent to each client department to reimburse the Entity within 30 days as prescribed by Treasury Regulations 8.2.3. The current model has been revised and communicated to all user departments, where each user department must sign Billing Agreement to pay quarterly in advance for certain services.

(iv) As at 28 February 2020, an amount of R7,282 billion was outstanding from national departments and other organs of the state (Annexure C). Some of the reasons cited by client departments not to pay the Department is due to:

• user departments dispute occupation,

• lack or insufficient budget;

• budget cuts by National Treasury;

In line with established inter-governmental framework principles, below are some of the intervention that the Department has put in place to recover the outstanding from client departments:

  • Request to National Treasury to intervene on clients that do not pay within 30 days;
  • The Minister wrote letters to her counterparts requesting them to ensure that their departments pay the outstanding balances;
  • An intergovernmental framework on billing and recovery has been implemented to address the outstanding debt; dispute resolution and advance billing for services rendered;
  • The Department has resolved to devolve municipal services to the client departments; and
  • National Treasury was requested to issue an instruction note for all user departments to pay quarterly in advance, ring-fence the budget for accommodation and consider allocating infrastructure and accommodation budget to the DPWI. National Treasury is still processing the request of the Department.

Annexure B

 

NAME OF DEPARTMENT

DIRECTOR-GENERAL

PHONE

FAX

E-MAIL

 

Agriculture, Forestry & Fisheries

Mr Mzamo Michael Mlengana

(012) 319 6503

(012) 319 7135

Phone 012 319 6503

Fax 012 319 7135

Email [email protected]

 

Arts and Culture

Mr Vusumuzi Mkhize

Director-General

(012) 441 3027

012 441 3735

[email protected]

 

Basic Education

Mr Hubert Mathanzima Mweli

Director-General

(012) 357 4504

(012) 323 5837

0862 070 149

[email protected];

 

Communications

Qinisile Delwa (Acting DG)

(012)  473 0418

(012) 473 0469

 

[email protected]

 

 

Cooperative Governance

Mr Dan Metlana Mashitisho

Director-General

(012) 334 0518

(021) 469 6735

086 293 4966

[email protected]

 

Correctional Services

Arthur Fraser, Mr

National Commissioner

(012) 305 8841

(012) 323 6149

[email protected]

 

Civilian Secretariat for Police

Mr Alvin Rapea

Secretary of Police

(012) 393 2520

(012) 393 2536/8

[email protected]

 

Defence

Dr Sam Gulube

Secretary for Defence

082 078 7707

(012) 355 6219

(012) 355 6220

(012) 347 7445

[email protected];

[email protected];

[email protected]

[email protected]

 

Economic Development

Mr Monde Tom (Acting DG)

(012)  394 1045

012 394 5664

 

[email protected];

[email protected]

[email protected]

 

Energy

Zulu Thabane, Mr

Director-General

(012)  406 7672

(012)  643 0932

[email protected];

 

Environmental Affairs

Ms Nosipho Ngcaba

Director-General

(012)  310 3017

(012)  322 4832

[email protected]

 

GCIS

Ms Pumla Williams

(Acting DG: GCIS)

(012)  473 0245

012 473 0163

 

[email protected];

 

Health

Anban Pillay, Dr

Acting Director-General

(012) 395 9150

(012)  395 8422

[email protected];

 

Higher Education & Training

Mr Gwebinkundla Qonde

Director-General

082 705 9457

(012) 312 6349 /6350

012 312 5429

(012) 323 0291

[email protected];

[email protected];

[email protected]

 

Home Affairs

Mr Jackie McKay

Director-General (Acting)

(012)  406 7070

086 512 7864

[email protected]

 

Human Settlements

Mr Mbulelo Tshangana

Director-General

082 801 9708

(012)  421 1486

012 421 1486

086 546 0490

[email protected]

[email protected]

[email protected]

 

Independent Police Investigative Directorate

Patrick Setshedi,Mr

Executive Director (Acting)

(012)  399 0026

(012) 399 0070

(012)  399 0144

086 630 0617

(012) 399 0144

[email protected]
[email protected]
[email protected]

 

International Relations & Cooperation

Mr Kgabo E Mahoai

Director-General

(012) 351 0363

(012)  351 0296

(012)  329 2242

(012) 329 2242

[email protected]

[email protected];

[email protected]

[email protected]

 

Justice and Constitutional Development

Director-General

JB Skosana (Acting), Adv

(012) 406 4701

(012) 406 4706/4

086 644 6406

[email protected];

[email protected];

[email protected]

[email protected];

 

Labour

Mr Thobile Lamati

Director-General

082 467 4315

082 886 2604

(012) 309 4126

(012) 309 4620

[email protected];

[email protected]

 

Military Veterans

Director-General

Derrick Mgwebi (Acting), Mr

(012)  671 4783

(012) 264 3280

(012) 671 1108

[email protected];

[email protected];

 

Mineral Resources

Adv Thabo Mokoena

Director-General

(012) 444 3880

(012) 643 0932

[email protected]

[email protected];

 

National School of Government

Principal

Busani Ngcaweni, Mr

(012) 441 6079

012 441 6133

(012) 441 6044

[email protected];

[email protected]

 

National Treasury

Mr Dondo Mogajane

Director-General

(012)  351 5904

(012)  328 5145

[email protected]

[email protected];

 

Planning Monitoring & Evaluation

Ms Nompumelelo Mpofu

Director-General

071 267 8748

Mr Tsediso Matona

Secretary for National Planning

(012) 312 0014

(012) 312 2261

 

[email protected];

[email protected]

 

Public Enterprises

Director-General

Kgathatso (Acting) Tlhakudi, Mr

(012) 431 1035

021 469 6776 

(012) 431 1040

[email protected]

 

Public Service and Administration

Ms Yoliswa Makhasi

Director-General

012 336 1279

012 469 5485

(012) 336 1088

086 632 2028

[email protected]

[email protected];

[email protected];

 

Public Service Commission

Dr Dovhani Mamphiswana

Director-General

082 773 0432

082 261 8809

(012)  352 1025

(012) 352 1200

(012) 325 8322

086 647 9746

[email protected];

 

Public Works

Adv Sam Vukela

Director-General

(012)  406 1988

(012)  328 4217

(021)  465 1244

[email protected]

[email protected]

[email protected]

[email protected];

 

Rural Development and Land Reform

Director-General

Mdu Shabane, Mr

(012)  312 8503

(012) 312 8867

(012) 312 6072

(012) 323 6072

[email protected]

 

Science and Technology

Dr Phil Mjwara

Director-General

082 889 0971

(012 )843 6815

086 681 0006

[email protected]

[email protected]

[email protected]

[email protected]

[email protected];

 

Small Business Development

Acting Director-General

Lindokuhle Mkhumane, Mr

012 394 1433

 

[email protected]

 

Social Development

Director-General

Mzolisi Toni (Acting), Mr

(012) 312 7647

 

[email protected];

[email protected]

[email protected]  

[email protected]

[email protected] [email protected]

 

South African Police Service

(SAPS)

General KJ Sitole

National Police Commissioner
082 450 9206

012 400 6583


012 400 6890

 

[email protected] [email protected] [email protected] [email protected]

 

South African Revenue Services (SARS)

Commissioner

Edward Kieswetter, Mr

012 422 5174

(012) 422 5205

(012) 422 5160

012 452 9676

[email protected]

[email protected];

 

Sport and Recreation South Africa

Director-General

Sumayya Khan, Ms

(012)  304 5149

086 5748 039

[email protected]

 

Statistics South Africa

Mr Risenga Maluleke

Statistician-General

(012)  310 8075

(012)  321 7343

[email protected];

[email protected];

 

Telecommunications & Postal Services

Mr Robert Nkuna

Director-General

012) 427 8031

012 427 8167

(012) 427 8016

[email protected]

[email protected];

 

The Presidency

Dr Cassius Lubisi

Director-General

(012)  300 5354

086 683 5354

[email protected];

[email protected];

 

Tourism

Mr Victor Tharage

Director-General

083 387 3300

(012 ) 444 6379

(012) 444 6721

(012) 444 7040

[email protected];

[email protected];

[email protected];

 

Trade and Industry

Mr Lionel October

Director-General

071 356 1135

(012) 394 3075

(012)  394 0323

[email protected];

[email protected];

[email protected];

 

Traditional Affairs

Mr Mashwahle Diphofa

Director-General

(012) 334 4918

086 616 7586

[email protected];

[email protected]

[email protected]

 

Transport

Director-General

Alec Moemi, Mr

(012) 309 3172

(012) 328 5926

[email protected]

[email protected];

 

Water & Sanitation

Director-General

Deborah Mochotlhi (Acting), Ms

(012) 336 8152

(012) 336 8850

[email protected]

 

Women

Director-General

Shoki Tshabalala (Acting), Ms

(012) 359 0071

(012) 323 5954

[email protected]

 

Government Pensions Administration Agency

(GPAA)

Chief Executive Officer

Krishen Sukdev, Mr

012 319 1007

012 326 2507

[email protected]

 

Government Printing Works

Chief Executive Officer(Acting)

Thandi Moyo, Ms

012 748 6213

012 323 9746

[email protected]