Reply:

The Minister of Public Works

No. I did not issue an instruction to the said individual, or to any other employee of the Department of Public Works (DPW), to lobby Government departments not to renew current lease agreements.

From an operational perspective, we in the Public Works sector recognise that every cost-effective and informed transaction can mitigate in reducing Government spending. In this respect, revised spending plans are being implemented within the DPW and the Property Management Trading Entity (PMTE) aimed at greater efficiency, eliminating waste and improving the composition of spending.

Thus, in relation to leases, the DPW has been implementing changes, including aligning annual rental escalation rates to the Consumer Price Index (CPI) and reducing rentals to market-related amounts and opting for permanent solutions where possible. This is done in line with the objectives as set out in the 7-year Turnaround Strategy and to fulfil the objectives of Government in reducing costs within the scope of fiscal consolidation measures announced by the Minister of Finance in his budget speech.

Furthermore, with specific reference to Pretoria, the DPW along with the Department of Public Service and Administration (DPSA) and the City of Tshwane Metropolitan Municipality, are implementing a precinct Development Programme in line with the resolution adopted by Cabinet on 25 May 2005, calling for the regeneration of the inner city of Pretoria, as the capital city of the Republic of South Africa. The Precinct Development Programme aims to provide a long term solution for all Government departments and agencies in terms of providing permanent office accommodation within the city and making these offices accessible to the general public.

In line with the above the DPW has responded to the accommodation needs of several User departments, which include:

• The completion of the State-owned Agrivaal building to accommodate the DPSA following their move from Batho Pele House, which was under a lease.
• Statistics South Africa is set to move into its permanent head offices in Salvokop, Pretoria, along with its 4 satellite offices, which had four different leases.
• The South African Police Service (SAPS) is set for a move into the recently acquired Telkom Towers, thereby consolidating its offices into one precinct and moving away from leased accommodation in different buildings. The occupation of Telkom Towers is to be done in a phased approach.

Evidently, as per the cases noted above, the DPW will have to opt for the non-renewal of expiring leases for the affected User departments in preparation for the move towards permanent State-owned office accommodation.

(2) There is no agreement with the Public Investment Corporation for this entity to construct offices on behalf of Government. I am unaware of such allegations as put by the Honourable Member and therefore I am not in a position to investigate this matter.

(3) No. in line with the above-mentioned Cabinet Resolution of 2005, Government office accommodation will be based within the inner city boundaries of the Tshwane Metropole. Currently, there are no plans to construct Government Offices on the outskirts.

However, with respect to the specific questions posed by the Honourable Member, in terms of the Tshwane Precinct Development Programme:

     (a) All leases will continue as per the agreements that are in place with the respective landlords until they approach a period of expiry, when the DPW will exercise its prerogative to negotiate for renewal or non-renewal, with adequate notice to the landlords.

     (b) Since Government is not planning to construct office accommodation on the outskirts of Pretoria, therefore there are no costs involved.

     (c) All costs for office accommodation, whether newly constructed, leased or refurbished, are funded through User-charges recovered from client departments.

     (d) The DPW is revisiting the Broad-Based Black Economic Empowerment (BBBEE) strategy and its rather “narrow” application with respect to leasing office accommodation. The Department now wants to put focus on Real Estate Management, Construction, Facilities Management and Planned Maintenance as areas where the principles of BBBEE can best be applied. The DPW plans to enhance opportunities for emerging black and female entrepreneurs in the construction and property sectors to market, operate, develop, maintain and manage the portfolio on behalf of the DPW.

     (e) The aim of the Tshwane Precinct Development Programme is to develop Pretoria as capital city of excellence with an integrated service delivery approach that will be achieved by congregating Government services in the inner city, thereby making them more accessible to the general public. The Government office accommodation solutions are also assisted by the Accessibility Programme, which seeks to make all Government buildings accessible to people with disabilities.

     (f) With the current constraints of low economic growth and high unemployment in the country, all cost-effective and informed transactions contribute to greater efficiency, reducing waste and improving the composition of Government spending. In this regard, the Department of Public Works has a role to play in reducing Government spending on office accommodation and increasing efficiencies through the reduction of leased-in buildings and maximising the use of State-owned accommodation.

    (g) There are no further details.

Reply:

The Minister of Public Works:

(1) (a) (i) (ii) and (iii) and (b) No.

(2) (a) (i) (ii) and (iii) and (b) No.

Reply:

The Minister of Public Works:

(1) (a) (i) The Department of Public Works (DPW) is custodian of 31,310 land parcels as at end of March 2016. Please refer to Annexure 1(a) (i) for the detailed list per province.

(ii) The DPW is custodian of 95,587 buildings and other improvements. Please refer to Annexure 1(a) (i) for the detailed list per province.

(b) Government User Departments and other entities occupy properties under the custodianship of the Department of Public Works. Please refer to Annexure 1(a)(i) for the detailed list per User Department.

(c) 93,648 State-owned buildings on 18,267 land parcels are leased out to User departments and other entities. Please refer to Annexure 1(a)(i) for the detailed list per province.

(2) (a) The Department of Public Works issues quarterly invoices in advance to 26 national Government departments as per devolved budget, which is equivalent to R324,501,155.00 per month.

While it is possible to indicate how much each Department is currently paying, it is not possible to aggregate the information down per facility or per province, as the amount is paid at the National level.

Client Department	Monthly R’
Agriculture, Forestry and Fisheries	7,194,961
Arts and Culture	2,927,866
Communications	72,912
Correctional Services	80,945,700
Defence and Military Veterans	76,259,000
Environmental Affairs	1,469,968
GCIS	2,348
Health	1,136,584
Health (Civitas)	6,747,110
Higher Education	61,012
Home Affairs	3,507,473
Human Settlements	37,211
Independent Police Investigative Directorate	30,000
Justice and Constitutional Development	28,887,083
Labour	4,121,270
Mineral Resources	227,787
National Treasury	426,574
Public Service and Admin	21,622
Rural Development and Land Reform	2,243,767
SA Police Service	95,563,167
SA Revenue Service	2,415,808
Social Development	39,724
Sport and Recreation	838
Statistics SA	259,603
Trade and Industry	2,682
Water Affairs	9,899,088
TOTAL	324,501,155

(b) The purpose of accommodation charges, whilst engendering the culture of total cost of accommodation within User departments, is to collect enough revenue, at a minimum, to maintain the entity’s portfolio at a specific conditionality level.

The current rates charged for State-owned accommodation are based on the original calculations of 2005 when accommodation budgets were devolved to User departments.

In calculating the baseline information, the Department of Public Works (DPW) considered the different facility types in its property portfolio. It was not possible to calculate this amount on a per-property basis owing to the magnitude of the portfolio and the property-specific information that was not available at that time. This was done for all facility types, which resulted in different rates proposed per facility type. The average rate was calculated at R23.74/m2.

Although the average rate per facility was R23.74/m2, the DPW could only devolve the funds it had in its Maintenance and Property Rates budgets baseline. The distribution of funds per User department had to be scaled down to fit into this baseline and was reduced on a pro-rata basis. The average of R23.74/m2 was reduced to R4.74/m2 at inception and has escalated to an approximate current amount of R16.00/m².

The amount devolved (and subsequently charged back) was not enough to cover the self-sustainable target level. As part of the devolution framework, it was indicated that the entity would have to receive at least a 15% growth on this amount to reach the desired funding level by 2017. At that point, it would be possible to maintain properties at their current level. During the time lapse from 2006 to 2017, the portfolio would further deteriorate except where specific intervention took place. This is referred to as “backlog maintenance”, which would be funded separately.

The above-mentioned devolution and charge-back methodology is being reviewed currently so as to align with the operationalisation of the Property Management Trading Entity (PMTE).

(3) (a) (i) and (ii)

1,939 buildings are currently not being utilised nor leased. Please refer to Annexure 1(a)(i) for detail per province.

(b) (i) and (ii)

Payable rates and taxes are treated as one expenditure item by municipalities and the DPW therefore treats payable rates and taxes as one expenditure item.

A total amount of R3,983,937.52, on average, is currently payable monthly on municipal rates and taxes through all regional offices in all provinces. Attached please find Annexure 3(b)(i) for detail per province in relation to unutilised properties.

(iii)

A total amount of R1,058,541.66, on average, is currently payable monthly on State-owned properties for municipal services through all regional offices in all the provinces. Attached, please see Annexure 3(b)(ii) for detail per province in relation to unutilised properties.

4. (a) and (b)

There are 13,043 unutilised land parcels under the custodianship of the Department of Public Works. Please refer to Annexure 1(a)(i) for detail per province.

________________________________________________________________________

Reply:

The Minister of Public Works

In my concluding speech in the National Assembly debate on Budget Vote No. 11 (Public Works), held on Wednesday, 20 April 2016, I responded, amongst other things, to the Honourable Kohler-Barnard’s claim to have twenty-four affidavits from individuals alleging they had been refused Expanded Public Works Programme (EPWP) jobs, because they did not have African National Congress (ANC) membership cards. The Honourable Kohler-Barnard said that it took her one phone call to obtain the affidavits. The Honourable Kohler-Barnard also said that the Auditor-General is questioning the data of Department of Public Works, because of inadequate records and deficiencies.

This was the double context in which I referred to Khayelitsha. The Auditor-General has indeed raised questions about EPWP data, much of it in regard to under-reporting to the Department of Public Works’ central data system from local project sites. In the case of Khayelitsha, the Auditor-General found that 52 claimed participants in Khayelitsha had not been reported to the Department of Public Works’ central EPWP recording system.

In regard to allegations of partisan recruitment of participants for EPWP projects, I am on record of repeatedly speaking out against this abuse. The Department has issued guidelines on participant selection, emphasising the importance of transparency and non-partisanship. It was also for this reason that I instructed my Departmental officials to follow up on the 24 affidavits provided by the Honourable Kohler Barnard. Unfortunately, these affidavits proved to be worthless. They appear to be in three batches, with each batch written by the same hand and with word-for-word, identical general allegations made. The dates, locations, and names on which three ANC Councillors allegedly refused potential beneficiaries EPWP jobs are not provided.

I am not claiming that these abuses did not occur, however, it is my experience that in Municipalities controlled by different political parties, those community members who are aligned to another party, often believe, rightfully or not, that they have been excluded from EPWP projects. This has been our experience in both ANC and DA-controlled Municipalities, including in the City of Cape Town. It is important that as politicians we both condemn partisan manipulation of EPWP projects, as well as refrain from fanning partisan, but ungrounded rumours.

In specific response to the Honourable Macpherson’s question:

(a) There are a number of shortcomings in EPWP projects in the City of Cape Town, including in Khayelitsha, relating to data capturing and the portfolio of evidence for participation in EPWP projects, as noted by the Auditor-General. We are working collegially with our colleagues in the City of Cape Town, just as we are doing with other public bodies, to address these matters. I am pleased to say, however, that currently no cases of corruption in EPWP projects in the City of Cape Town have been reported to the Department of Public Works.

(b) Therefore, no criminal cases in this regard have been opened.

________________________________________________________________________

Reply:

The Minister of Public Works:

In November 2012, I established a Task Team to investigate the matter of the security upgrades at the private residence of the President of the Republic, located in Nkandla, KwaZulu-Natal Province. The Task Team investigated the above matter and requested an explanation for the items highlighted in this Parliamentary question. The explanation obtained from South African Police Service (SAPS) officials on these items is as follows:

(a) Swimming Pool

The SAPS explained that one of the hazards raised by the assessment was the possible outbreak of fire on or near the premises as most of the structures have thatched roofs and are close to each other. In order to eliminate or minimise potential risks and due to water supply, which was erratic, the SAPS requested a structure that could store 45 000 litres of water.

The idea of a swimming pool or fire pool was based on the advice of the mechanical engineering team that a structure which can contain 45 000 litres of water was needed and a swimming pool or fire pool was the most viable option.

(b) A Chicken Run

The explanation by the SAPS was that the chicken run was constructed within the cattle kraal. It was created as a replacement to a number of building block structures that were scattered around some of the main dwellings which were, according to the security assessments, obstructions and potential hiding areas for intruders. The reason for the relocation of these loose structures to a dedicated area was to improve the security on site.

(c) A Cattle Kraal and Culvert

According to the security personnel, when the security assessments were conducted and as part of the security, sensitive electronic equipment was recommended to be installed on the fence. False alarms, as well as damage to the fence and electronic equipment could be caused by the movement of cattle.

Secondly, due to the location of the kraal next to the entrance used by people, thereby posing a potential risk in the high security area, a decision was therefore taken to move the cattle kraal to a dedicated area and a culvert be erected to prevent the cattle from disturbing and damaging the electronic equipment and the fence.

(d) The Shop

The tuck shop existed long before the President was inaugurated and was located within the President’s homestead. Due to the security risk posed by the movement of people from outside the homestead into the high security area and taking into account previous incidents of criminality that took place at the homestead, the tuck shop had to be relocated from within the premises and erected at the perimeter of the premises.

(e) Air Conditioning

The air conditioners were installed in certain rooms of the main house, the clinic, guard houses and the security tunnel, in line with the security risk assessment. The assessment recommended that bullet proof windows be installed in certain rooms of the President’s private residence and such windows had an impact of high temperatures in the rooms and could not be opened. As a result and in order to minimize the adverse effect that the bullet proof windows would have, air conditioners were installed.

The above items were not contained in the documents, but the explanation was provided to the Task Team. This explanation is contained in the Task Team Report as an explanatory note.

________________________________________________________________________

Reply:

The Minister of Public Works

(a) Since January 2012, no official of the Department of Public Works (DPW) has been convicted of corruption. However, with the assistance of the Special Investigating Unit (SIU) criminal cases were opened with the South African Police Services (SAPS) and the investigations are still on-going.

The following cases of corruption/fraud have been registered with the South African Police Service (SAPS), during the periods as indicated:

F/Y in which cases were reported	Cases registered with SAPS	Cases being investigated by SAPS	Cases being considered by Prosecuting Authority	Cases being declined to prosecute by Prosecuting Authority	Cases before court
2011 - 12	1				1
2012 - 13	15	12	2	1
2013 - 14	2	1	1
2014 - 15	9	6	1	1	1
2015 - 16	1	1
TOTAL	28	20	4	2	2

From these statistics seven individuals are former employees of the DPW. Three resigned and four were dismissed after being found guilty of misconduct in internal disciplinary hearings.

In one of the cases registered with the SAPS the person is still under the employment of the DPW.

(b) The cases were investigated by the Special Investigating Unit.

(c) Falls away.

________________________________________________________________________

Reply:

The Minister of Public Works

The National Department of Public Works (NDPW) has established that the property where the Op Die Berg Police Station in Die Koue Bokkeveld is currently accommodated is under the custodianship of the Provincial Government of the Western Cape (PGWC). The maintenance of this police station is therefore, currently, not being done by the NDPW. However, it is the responsibility of the NDPW to provide accommodation to the SAPS in terms of its police stations. To this extent, this anomaly is being rectified in tandem with the PGWC and a request for the compilation of a formal lease agreement has been submitted.

The formal lease agreement with the PGWC shall specify responsibilities for maintenance and will provide answers to the following:

(a) when (i) the upgrades and/or (ii) repairs to the specified station shall take place; and

(b) the relevant details of the (i) upgrades and/or (ii) repairs that will take place.

________________________________________________________________________

Reply:

The Minister of Public Works

The 1 200 properties are not untraceable as suggested by the Honourable Member. Rather, the land parcels in question cannot be linked to the Geographical Information System (GIS) due to the absence of cadastral information on them. The Department of Public Works (DPW) has therefore approached the Office of the Chief Surveyor-General to provide spatial geo-reference cadastral data of South Africa for these properties in the format of the (Environmental Systems Research Institute) ESRI files that are currently being used in the Department, so that the land parcels can be linked to the GIS. It is important for all property under the custodianship of the DPW to be put on the GIS system so that the Department or the Property Management Trading Entity (PMTE) is enabled to manage immovable assets optimally, incorporating the ability to do conditionality assessments and thus provide for asset investment decisions.

Attached to this reply is Annexure A, which lists the 1 200 properties.

Reply:

The Minister of Public Works

(a) User Departments’ accommodation requirements differ in size and type and are informed by User Asset Management Plans (U-AMPs) for new requirements and/or ad hoc requests. The decision on the allocation of State-owned property to meet User requirements is also informed, among others, by: an assessment of the type of service being rendered by the client department; the fitness for purpose of the building; the functionality of the building; and the geographic location of the building.

The Department of Public Works (DPW) is further guided by the Space Planning Norms and Standards for Office Accommodation Use by Organs of State (Government Gazette No. 27985, 2 September 2005) to determine the appropriate space requirements for allocation.

(b) In the main, immovable assets under the custodianship of the DPW are primarily intended for the use of national User-Departments. Where assets are surplus to its needs, the DPW engages with other organs and custodians in the national, provincial and local spheres following the application of the above-mentioned criteria. Where there is no take-up within the Government sector, the Department may elect to lease out surplus properties to the private sector.

________________________________________________________________________

Reply:

The Minister of Public Works

(1) No (a) fridges, (b) curtains, (c) couches, (d) tables and (e) chairs were replaced at the Parliamentary villages since 01 April 2015.

(2) (a) and (b) (i) and (ii) and (3) fall away.

Reply:

The Minister of Public Works

1. (a) To date, 1 287 properties have been confirmed as illegally occupied.

Below is a summary of instances of unlawful occupation:

Province	Squatters	Mud houses	Private houses/ commercial buildings	Total number of illegally occupied properties
KwaZulu Natal	128	301	110	539
Eastern Cape	20	27	75	122
Gauteng	83	0	66	149
Limpopo	3	0	29	32
Northern Cape	16	0	47	63
Western Cape	8	0	119	127
North West	31	0	104	120
Free State	8	1	17	26
Mpumalanga	31	10	68	109
Total number of illegally occupied properties	313	339	635	1 287

(b) 313 properties are occupied by squatters who have built temporary (squatter camps) residences on the properties. 339 properties are occupied by communities that have built mud structures on the land. 635 properties are occupied by private sector commercial businesses and are being used either as private residences or business premises.

(2) To date, none of the above listed matters listed matters have been referred for criminal investigation. The Department of Public Works is currently following the civil route in order to resolve disputes.

________________________________________________________________________

Reply:

The Minister of Public Works

(1) No.

(a), (b), (c) and (d) Fall away.

(2) (a), (b) and (c) No.

(i), (ii), (iii) and (iv) Not applicable.

Reply:

The Minister of Public Works

(a), (b) and (c) One official was arrested and charged with corruption (solicitation of a bribe to release payment). A sting operation was carried out by the Directorate for Priority Crime Investigations  (The Hawks) in terms of Section 252 (a) of the Criminal Procedure Act, 1977 (Act No. 51 of 1977).

(i)-(iv) The above-mentioned incident took place at the Department of Public Works’ Pretoria Regional Office during the 2014-2015 financial year.

Reply:

The Minister of Public Works

(a) and (b) (i) (aa), (bb) and (cc) and (ii) (aa) and (bb)

No.

(aaa), (bbb) (aaaa), (bbbb) and (ccc) Fall away

Reply:

The Minister of Public Works

(1) The Department of Public Works (DPW) did not spend any money on maintenance of the homestead of Mr JG Zuma, President of the Republic of South Africa, during the (a) 2012-2013, (b) 2013-14, and (c) 2014-15 financial years;

(2) There are four general workers (employed on a contract for three years) at the President’s homestead at Nkandla. Their main duties are to maintain the gardens at the State Domestic Facilities adjacent to the President’s homestead. These are facilities that are used mainly the South African Police Services (SAPS).

_______________________________________________________________________

Reply:

The Minister of Public Works

It must be noted that the alleged R800 million leases worth reported by the Auditor – General is a figure which was calculated for outstanding documents over a period of more than one financial year, and goes back about five years.

In 2013, the Department of Public Works launched a special lease review intervention aimed at identifying all active private leases and verifying lease validity for leases registered on the Department’s property management information system.

In 2014, a second special lease review intervention was launched with the aim of consolidating information and matching documentation (lease agreements).

As a result of the above lease interventions, all 2 619 active leases have valid lease documents and are logged on a master database.

Reply:

The Minister of Public Works

(a) (i) and (ii) I would like to point out to the Honourable Member that the current reporting systems within the Department of Public Works (DPW) do not cater for capturing of information in the particular categories of cooperatives, township enterprises and rural enterprises, as the focus has shifted to Broad-Based Black Economic Empowerment (BBBEE) status level of contribution. Whilst the DPW systems do not make provision for recording procurement in terms of the specific categories, to ensure monitoring and reporting on these designated categories, the Supply Chain Management Directory is negotiating with the system service provider to reconfigure the procurement module to provide the relevant statistics.

In terms of procurement from SMMEs, the DPW can report the following:

For the period 01 April 2015 to 31 January 2016 the percentage of procurement from SMMEs by the Department of Public Works is as follows:

Goods and Services including day-to-day maintenance:-

A total of 3 688 (100%) with a value of R181 311 457.46 was awarded to SMMEs.

Consultancies (Built Environment):-

Out of a total of 233 appointments with a total value of R68 957 445.61, a total of 152 appointments (66%) were made with a total value of R31 761 929.55 awarded to SMMEs.

Construction Projects:-

Out of 166 tenders* awarded with a total value of R1.8 billion, 95 tenders (57%) were awarded to SMMEs, worth a total value of R171 349 536.90.

*90.5% of the construction projects (with a value of R1.6 billion) were awarded according to the CIDB grading system.

(b) Entities reporting to the Minister of Public Works

Entity	SMMEs	Co-operatives
Council for the Built Environment (CBE) (01 April 2015 – 29 February 2016)	R12 928 645-00 (57.58% of R22 453 970-58)	Nil
Construction Industry Development Board (CIDB) (1 April 2015 – 31 January 2016	R7 149 988.15 (15.41% of R46 387 686.84)	Nil
Independent Development Trust (IDT) (1 April 2015 – 29 February 2016)	IDT spent the following amounts towards SMMEs out of its infrastructure programme: Goods and services including day-to-day maintenance: R30 877 470.73 (100%) Built environment consultants: R285 408 176.00 (99%) Construction Projects R677 736 177.60 (96%)	Nil
Agrément South Africa (01 April 2015 – 29 February 2016)	The procurement of goods and services for Agrément South Africa (ASA) was done through the shared services under the CSIR. The CSIR response to this question through the Department of Science and Technology has therefore included ASA’s procurement spent towards the SMMEs.	Nil

Reply:

The Minister of Public Works

(1) Since, my reply to question number 471 for oral reply on 09 September 2015 the Department of Public Works has not received any requests from any Government departments regarding further security upgrades at the President’s private residence in Nkandla.

(2) The Department has not worked on a costing exercise, as the request for the security upgrades has not been received. An estimation or calculation of costs will only be done pursuant to a security assessment and the identification of requirements for the installation of security measures by the relevant departments in the security cluster.

____________________________________________________________________

Reply:

The Minister of Public Works

The investigation into alleged irregularities at the Independent Development Trust (IDT) was not conducted by the Auditor-General of South Africa. The IDT Board of Trustees appointed Gobodo Forensic and Investigative Accounting (PTY) Ltd. (GFIA) to conduct a preliminary investigation into the allegations of irregularities in the procurement of goods and services.

A preliminary report, which was presented to the IDT Board of Trustees, revealed serious irregularities in the supply chain management processes within the IDT and further recommended that certain significant findings required further investigation.

The Board then took a proactive step and referred such an investigation to the Specialised Audit Services Unit (SAS) within the Office of the Accountant-General at the National Treasury. This Unit conducts all its investigations in collaboration with all the law enforcement agencies of Government, including the South African Police Service under the auspices of Anti-Corruption Task Team.

Reply:

The Minister of Public Works

(1) Yes, the Independent Development Trust (IDT) has, through its Internal Audit Unit, conducted an investigation into the R31, 4 million in irregular expenditure.

   (a) The investigation has not yet been finalised.

    (b) (i) and (ii) The details of the investigation are yet to be finalised.

    (c) (i) and (ii) The details of the investigation are yet to be finalised.

(2) Yes, control measures have been in place with detailed checklists to help detect and prevent fruitless and wasteful expenditure. Adherence to these measures will be monitored on an ongoing basis and reported upon quarterly.

(3) The Public Finance Management Act (PFMA), 1999 [Act No. 1 of 1999] gives powers to the accounting authority to recover irregular expenditure under certain circumstances, namely, if there is proof of wilfulness in wrongdoing, negligence and if there was no value derived by the organisation. The recoverable amounts will only be known once the investigation is completed.

________________________________________________________________________

Reply:

The Minister of Public Works

No.

Thus (a), (b) and (c) (i) and (ii) fall away.

____________________________________________________________________

Reply:

The Minister of Public Works:

Yes, all Ministers are subject to Performance Agreements with the President of the Republic.

(a) The Performance Management Framework for Ministers is the Medium-Term Strategic Framework (MTSF) 2014-2019, which is the first 5-year implementation plan of National Development Plan (NDP) 2030. The performance targets and indicators are derived from the 14 Outcomes, which Government seeks to achieve.

These Outcomes and targets constitute Government’s Programme of Action (POA), against which performance is tracked and reported at least on a quarterly basis. POA reports are available to the public on the Government website.

(b), (c), (d) and (e) Cabinet closely monitors the implementation of the NDP 2030/MTSF 2014-2019 through POA reports. These reports are tabled before an implementation forum of a Cluster of Ministers collectively responsible for MTSF Outcomes and then submitted to Cabinet on a quarterly basis, where progress is noted, challenges to implementation are discussed and recommendations are considered and approved.

Reply:

The Minister of Public Works

No.

Thus (a), (b) and (c) fall away.

____________________________________________________________________

Reply:

The Minister of Public Works

The Department of Public Works has not bought advertising space in The New Age during the (a) 2012-13, (b) 2013-14 and (c) 2014-15 financial years.

Thus (i) and (ii) fall away.

____________________________________________________________________

Reply:

The Minister of Public Works

(1) The amount spent by each of the Metropolitan Municipalities in the (a) 2012-13, (b) 2013-14 and (c) 2014-15 financial years on wages is shown in the table below:

Name of Metropolitan Municipality	Financial Year 2012-13	Financial Year 2013-14	Financial Year 2014-15
City of Johannesburg	182 045 060	196 318 269	188 678 230
City of Tshwane	116 678 960	157 825 210	169 630 527
Ekurhuleni	15 477 568	46 397 769	99 040 036
Mangaung	5 523 853	6 923 626	11 946 018
Buffalo City	4 902 035	1 934 783	3 261 455
Nelson Mandela	40 823 993	25 800 017	25 507 476
City of Cape Town	115 292 062	102 028 567	176 081 155
eThekwini Metropolitan Municipality	122 926 690	135 032 036	144 005 314
Total	603 670 221	672 260 277	818 150 211

(2) The table below reflects those Metropolitan Municipalities that provided accredited training to EPWP participants.

Through the National Skills Fund (NSF) training was provide to a total of 763 EPWP participants within the specified time period of 2012-13 to 2014-15. The participants were trained in three EPWP Programmes, namely: Skills Programmes; Learnership Programmes and Artisan Development Programmes. From the trained participants 577 were trained on Skills Programmes, 130 on Learnership Programmes and 56 went through the Artisan Development Programme. Below is a breakdown of the training Programmes offered:

Table 1

PROVINCE	NAME OF MUNICIPALITY	NO. OF PARTICIPANTS
Eastern Cape	Buffalo City	10
Gauteng	Ekurhuleni	77
KwaZulu-Natal	eThekwini	106
Gauteng	City of Johannesburg	122
Gauteng	City of Tshwane	130
Western Cape	City of Cape Town	132
Total		577

Table 2

PROVINCE	NAME OF MUNICIPALITY	NO. OF PARTICIPANTS
Eastern Cape	Buffalo City	60
KwaZulu-Natal	eThekwini	50
Free State	Mangaung	20
Total		130

Table 3

PROVINCE	NAME OF MUNICIPALITY	NO. OF PARTICIPANTS
Eastern Cape	Buffalo City	9
Gauteng	City of Tshwane	3
Gauteng	City of Johannesburg	3
Gauteng	Ekurhuleni	13
Western Cape	City of Cape Town	12
KwaZulu-Natal	eThekwini	8
Free State	Mangaung	8
Total		56

(3) The City of Cape Town is the only Metropolitan Municipality that uses a database to source EPWP participants. The database is open to the City of Cape Town residents looking for work. In the other Metropolitan Municipalities EPWP participants are sourced from communities through Project Steering Committees that involve relevant stakeholders, such as community leaders, municipal officials and projects managers. The Project Steering Committees assist in ensuring that recruitment of participants is done in a fair and transparent manner.

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Reply:

The Minister of Public Works

(a), (b) and (c):-

It must be noted that the stated R800 million lease worth reported by the Auditor – General is a figure which was calculated for outstanding documents over a period of more than one financial year and goes back to about 5 years.

In 2013, the Department of Public Works launched a special lease review intervention aimed at identifying all active private leases and verifying lease validity for leases registered on the Department’s property management information system (PMIS).

In 2014, a second special lease review intervention was launched with the aim of consolidating information and matching documentation (lease agreements).

As a result of the above-mentioned lease interventions, all 2619 active leases have valid lease documents and are on a master database.

Reply:

The Minister of Public Works

a) In terms of the question “How many contractors from the previously disadvantaged communities have upgraded from grade 1 to grade 2”, the response is as follows:

A total of 928 registration upgrades from grade one to grade two have been recorded in the General Building (GB) Class of Works over the past 10-year period from 1 October 2005 to 31 September 2015.

A total of 620 registration upgrades from grade 1 to grade 2 have been recorded in the Civil Engineering (CE) Class of Works over the same period.

Note that many contractors are registered in more than one Class of Works. The number of upgrades is not disaggregated by ownership, but Grade 1 is almost entirely black-owned.

b) In response to the question “How many such [Grade 1] contractors have upgraded to Grade 9”, the response is as follows:

No contractor has upgraded from Grade 1 to Grade 9 over the past 10 years.

However, it is worth pointing out that 38 General Building and Civil Engineering registration upgrades have occurred from Grades 4 to 8 to Grade 9 within the 10 year period.

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Reply:

The Minister of Public Works

(1)(a) The Department of Public Works (DPW) confirms that it did not sidestep or circumvent the provisions of the Public Finance Management Act, (Act No. 1 of 1999), (PFMA) when awarding tenders. However, there are situations where deviations are permitted in terms of the applicable legislation, regulations and policy prescripts. All tenders awarded were done in accordance with prescribed and legislated procurement methods and within the duly approved procurement systems of the DPW.

Numerous projects have been launched to ensure that procurement systems are intact and leasing processes are clear, transparent and well-articulated. This includes, amongst others, the introduction of a standardised lease agreement that ensures that all salient matters of the lease are captured clearly. The signing of leases has been centralised at the Head Office to the Head of the Property Management Trading Entity (PMTE) and other delegated officials at Deputy Director-General level. Due to the unique nature of the property and construction environments, the Supply Chain Management (SCM) processes for leasing and construction procurement are also in the process of being revised, where unique SCM processes for each of these fields will apply.

(1)(b) Yes, purchases were made and services were procured as part of the DPW’s obligation to render services to clients. However, in light of Government’s drive to reduce expenditure, the DPW focused on areas where spending could be reduced. On furniture, costs were reduced by 80% compared to the previous year: from R8 400 504.62 in 2014/15 to R1 679 383.33 as at end October 2015.

On renovation/upgrades costs were reduced by 30% compared to the previous year: from R176 017 074.00 in 2014/15 to R123 108 435.00 as at end of October 2015.

(1)(c) No money has been spent on the extension, maintenance or upkeep of the President’s private residence in Nkandla during the period 1 March 2012 to 31 October 2015.

(1)(d) The DPW embarked on an Immovable Asset Register (IAR) Enhancement Programme to provide certainty on the extent of immovable assets, and validate completeness and accuracy of immovable assets under its custodianship. As a continuous exercise to ensure that the Department’s IAR is complete and accurate, the Department’s IAR was reconciled against the Deeds records and other National and Provincial IAR’s for both the interim and annual financial statements during the past three financial years (2012/13, 2013/14 and 2014/15).

(1)(e) The Department’s programme to rebuild its Immovable Asset Register (IAR) that complies with the Generally Recognised Accounting Practice (GRAP) by 31 March 2016 is making good progress, as indicated below:

• The physical verification of specifically identified land parcels by DPW has been concluded. To date the Department has verified 36 852 of the identified land parcels in the 2013/14 financial year.
• The remaining 6900 land parcels are being verified and assessed during the 2015/16 financial year.
• The Department’s State Domestic Facilities not on State land have been identified and accounted for.
• Approximately 60% of DPW’s properties have had municipal values applied to them in the 2014/15 financial year with the remainder to be completed by 31 March 2016 in line with the GRAP phase-in process as permitted by the Accounting Standards Board (ASB) Directive 2. This has resulted in the disclosure of DPW’s properties at R78.1 billion for the year ending 31 March 2015, compared to the R10.3 billion in the 2013/14 financial year.
• There was no audit qualification pertaining to the Department’s IAR in 2013/14 and 2014/15 financial years.

The above key indicators highlight the significant advances made to enhance the Department’s IAR.

 

(2) (a) and (b) Government’s policies are not neo-liberal. In the current global and national context, necessary measures to ensure fiscal consolidation have been collectively agreed upon by Cabinet and I fully support these measures. Naturally, these measures have impacted upon the line budgets of all Government departments and, as indicated above, the DPW has accordingly implemented a range of cost-cutting interventions.

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Reply:

The Minister of Public Works

(1) Yes, the National Department of Public Works (NDPW) has concluded its decision on the optimum use of Portions 454 and 455 of the farm Kameeldrift 211 JQ. The decision was informed by the consultative processes undertaken with the Madibeng Local Municipality, the Department of Human Settlements and the Housing Development Agency.

The NDPW’s decision entails that, once the Department has received all the required documentation from the Madibeng Local Municipality, Ministerial approval will be sought to release Portion 455 of Farm Kameeldrift 211 JQ to the Madibeng Local Municipality for human settlement development purposes. Portion 454 will remain in the custody of the NDPW, as it is not required by the Madibeng Local Municipality.

(2) It is envisaged that the Madibeng Local Municipality will formalise the informal settlement on Portion 455 of Farm Kameeldrift 211 JQ once the property is transferred. The Municipality will do so in collaboration with the Department of Human Settlements and the Housing Development Agency.

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Reply:

The Minister of Public Works

1. Yes, a company was awarded a contract to renovate flats at the Acacia Park Parliamentary village during the period 1 January 2009 to 31 December 2013.

(a)(i) Refurbishment of residences of sessional officials in the three Parliamentary villages.

(ii) The tender amount for the contract was R68 435 000.00.

(iii) The entity contracted to perform the work was Vusela Construction (Pty) Ltd.

(aa) and (bb) According to the records of the Department of Public Works (DPW), Mr Aldridge Fisher was the sole owner and director of Vusela Construction (Pty) Ltd.

(b) No upfront payments were received by the company in question.

(2) No, the contract was not successfully completed.

(3) At this stage the Department has not quantified the total financial losses suffered. However, the Department has recovered an amount of R6.8 million from the construction guarantee. The total financial loss will only be known once the second contract is completed and the Final Account has been finalised.

(4) Yes, a contract has been awarded by the DPW for construction work / renovations to the same flats at Acacia Park.

(a)(i) The scope of work involves the completion of partially completed renovation work to a part double storey and part triple storey building (Protea flats) and the rectification of defective work.

The scope of work at the Mopane flats (triple storey building) involves the stripping of internal and external walls and replacing them with new.

(ii) The tender amount is R54 786 000.00.

(iii) The name of the company contracted to perform the work is Nolitha Construction (Pty) Ltd.

(aa) Ownership of the entity is as follows: Amina Pillay 20%, Faizal Pillay 10%, Fierdouz Pillay 20%, Stephen Faizal Pillay 40% and Waseem Pillay 10%.

(bb) Directorship of the entity is as follows: Amina Pillay 20%, Faizal Pillay 10%, Fierdouz Pillay 20%, Stephen Faizal Pillay 40% and Waseem Pillay 10%.

(5) Yes, the transaction was concluded in compliance with the Public Finance Management Act, (Act No. 1 of 1999), supply chain management regulations and the applicable Departmental policies.

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Reply:

The Minister of Public Works

No.	Client	Maintenance Amount
(a)(i)	President	R3 783 088.27
(a)(ii)	Deputy President	R1 596 390.38
(iii)(aa)	Ministers	R22 562 089.50
(iii)(bb)	Deputy Ministers	R9 430 690. 86
(b)	Parliamentary Villages	R90 402 420.00

Reply:

The Minister of Public Works

As per the earlier undertaking to provide a reply to this question to the Honourable Member the response is as follows:

The Department of Public Works has not launched an investigation to date, as the Department has not received reports of its buildings having structural defects such as the one the Honourable Member is alluding to.

Within the current system of managing infrastructure projects, there is a process to address latent defects (defects that happen or are detected after the practical handover of projects / buildings) which goes as such:

• When a project is practically completed and declared fit for the intended use, the Practical Completion Certificate is issued by the Principal Agent.
• From the practical completion date an allowance of 3 to 12 months is made for the unforeseen defects to be reported and corrected. The defects have to be corrected by the Contractor who was responsible for the project within a reasonable time after an instruction has been issued by the Principal Agent. This is done by way of retainer provisions within the contract between the Department and the contractor. Once these defects have been corrected the final account can be signed off, paving a way for a well completed project, free of defects.

The school referred in the question is a project that was implemented by the Western Cape Provincial Department of Transport and Public Works.

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Reply:

The Minister of Public Works

No.	Residence Name	Purpose of work	Cost	Project Concluded in year
1.	Groote Schuur Estate, Avenue 4 – Heritage Residence	Kitchen, floors, roof, bathrooms, electricity, cottage and garage.	R7 256 956.72	2012
2.	Groote Schuur Estate, Mecklenburg - Heritage Residence	Kitchen, floors, roof, bathrooms, electricity, cottage and garages.	R10 283 780.27	2013
3.	Groote Schuur Estate, Avenue 5 – Heritage Residence	Kitchen, floors, roof, bathrooms, electricity, cottage and garages.	R17 804 451.59	2013
4.	Groote Schuur Estate, La Maisonette – Heritage Residence	Kitchen, floors, roof, bathrooms, electricity, cottage and garages	R13 612 785.00	2013

(2) No.

(a), (b), (c) and (d) Fall away.

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Reply:

The Minister of Public Works

The Department of Public Works has not recorded instances of paranormal activity or ‘ghosts’ haunting any of the buildings under its custodianship.

Thus the answer to parts (a) and (b) (i) and (ii) is: None.

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Reply:

The Minister of Public Works

The Departmental officials are in the process of compiling the information for this question. The challenge is that the information lies with various regional offices of the Department of Public Works. Such information is being collected, collated and analysed in order to provide accurate information. We will endeavour to provide this information as soon as possible.

____________________________________________________________________

Reply:

The Minister of Public Works

This matter has been discussed at various levels. We are in the process of ascertaining information and we will provide it to the Honourable Member as soon as it becomes available.

____________________________________________________________________

Reply:

The Minister of Public Works

The extent of the information required in this question demands that Departmental officials go back to historical records, which is a huge task. Also, an in loco inspection must be conducted at the Estate to ascertain the work that was done. We will endeavour to provide the information required in the question as soon as possible.

Reply:

The Minister of Public Works

Yes, a company was awarded a contract to renovate flats in Acacia Park parliamentary village during the period 1 January 2009 to 31 December 2013. Details thereof are being prepared by the departmental officials. We will provide this information as soon as it is complete.

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Reply:

The Minister of Public Works

(1)(a)(i) R290 379.07

(ii) 41

(b)(i) and (ii)(aa) and (bb) R0.00

(2)(a)(i) R451 441.74

(ii) 57

(b)(i) and (ii)(aa) and (bb) R0.00

 

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Reply:

 

1.  (a) The total amount spent on air travel between Gauteng and Cape Town on officials of the Department of Public Works attending official Parliamentary business during the 2014/15 financial year is R238 670.94

     (b) The total number of trips undertaken is 48.

2.  (a) The total amount spent on accommodation is R79 666.50

     (b) The total cost of car rental was R25 844.61

 

Reply:

The Minister of Public Works

(1) (a), (b) and (c) (i) The Department of Public Works has taken the following remedial action:

• Improved systems and training of staff members

• Appropriate delegation of authority to Regional Offices was implemented to ensure operational effectiveness in service delivery. As a form of control to ensure that Supply Chain Management (SCM) processes are adhered to, all successful tenders awarded by Regional Offices are now reviewed at the Head Office by the Compliance Inspectorate to check for compliance with the SCM framework prior to being confirmed.

• A change management programme is being implemented in the Department that seeks to build on three fundamentals underlying infrastructure delivery. These include business process re-engineering through the implementation of the Infrastructure Delivery Management System (IDMS), human resource capacity development, as well as governance and accountability improvements.

          The IDMS, which was developed in partnership between the Public Works sector (national and provincial), along with             National Treasury, is a best practice methodology for the delivery of infrastructure. Its implementation will result in                 improved achievement of infrastructure delivery targets with respect to time, quality and budget.

• The Department of Public Works, with the assistance of the State Security Agency (SSA), has embarked on a vetting project of all its SCM officials. The vetting of SCM officials at the Head Office has been prioritized, as well as at the Regional Offices that have a significant portfolio of Prestige projects (Durban, Cape Town and Pretoria Regional Office).

• As part of the overall DPW Turnaround Strategy, the Department has concluded a detailed review of its business processes, which resulted in extensive business process re-engineering to vastly improve the SCM system. The 7-year reform path for SCM business processes began with a phase of the correction of inefficiencies to stabilisation (2014 – 2017) and will move ultimately to standardization, integration and optimization of the SCM business process (to take place during the period 2017 – 2020). This will ensure that DPW supply chain management is fully compliant with the regulatory framework and will also be able to meet its business requirements effectively. The SCM reform initiatives are pursued in collaboration with National Treasury’s Chief Procurement Office. The Department of Public Works was selected by the Minister of Finance as a pilot site for the implementation of general procurement reforms in the public sector.

• The DPW has reviewed its SCM Policy, which now promotes stricter governance and compliance. The SCM policy is to be reviewed annually. For every SCM activity that is performed, there is a mapped out process flow with activity checklists, templates and reports. Utilisation of the mentioned documentation now enhances compliance, thereby contributing to reducing irregular expenditure.

• The organizational structure of SCM has also been reviewed and a new structure was developed to meet business requirements. The structure is geared to focus on the support of the various functional streams of the Department through the correct mix of skills sets and competencies. The new structure provides for adequate segregation of duties and thus conflicts of interest will be avoided.

• The Department’s Inspectorate and Compliance Unit is now a key role player in SCM processes prior to the award of every bid or quotation. This unit verifies that every SCM activity leading up to the recommendation of the bid has been complied with. Only upon receipt of the approved compliance checklist, will the bid be forwarded to the relevant committee for approval.

• The Department is examining the guidelines, policies, norms and standards for the implementation of security measures at the private and official residences of the Executive and the Legislature in general, as well as certain administrative buildings, for consultation with the security cluster departments. It is envisaged that these consultations as well as those planned with the Department of Public Service and Administration will result in a refined procedural framework with respect to the implementation of physical security measures for tabling before Cabinet.

(ii) The following disciplinary action has been taken against the staff in DPW:

• The investigation by Special Investigating Unit (SIU) indicated that 12 employees or former employees of the Department were probably guilty of misconduct due to acts and omissions in 30 separate matters related to the appointment of contractors for the security upgrades at President’s residence in Nkandla.

• The Department has initiated disciplinary proceedings against the 12 officials. One official has since pleaded guilty with a sanction of two months suspension without pay and a final written warning and barred from participating in procurement processes for three years until he has undergone training. Disciplinary cases with respect to the remaining 11 employees are still on hold pending the high court application for media access to the disciplinary hearings by various media houses.

(iii) (aa) and (bb) No other action has been taken against officials or staff of the Department of Public Works.

(2) (a) (i), (ii) and (iii) The SIU investigation into the conduct of contractors/service providers has provided a basis for civil action against the architect, Mr M Makhanya for the recovery of R155 million. As the Principal Agent, Mr Makhanya bore the overall responsibility for the project.

The civil claim against the Principal Agent was instituted by the SIU on 11 August 2014 for the recovery of R155 324 516.49, being the amount of losses suffered by the Department for over-billing. The matter is before court and the hearing is pending.

(3) See the paragraph (2) (a) (i), (ii) and (iii) above. There is currently no basis in terms of a finding to warrant recovery of money from any staff member of DPW.

______________________________________________________________________

 

 

 

Reply:

The Minister of Public Works

(1)(a)(i) There are 507 housing units at the three Parliamentary villages.

(ii) There are 155 apartment units at the three parliamentary villages.

(b)(i) 621 units are in a condition for habitation.

(ii) 41 units are not available for use currently.

(2)(a)(i) 347 housing units have been allocated to Members of Parliament.

(ii) 160 housing units have been allocated to other persons or entities.

(b)(i) 2 of the 155 apartment units have been allocated to Members of Parliament.

(ii) 127 apartment units have been allocated to other persons or entities.

(3) There are currently no Members of Parliament (MPs) who have requested accommodation and who have not been allocated units within the Parliamentary villages.

(4)(a) Persons allocated accommodation in the Parliamentary villages include Sessional Officials, Public Works Officials who are servicing the Parliamentary Villages, Party Support Staff, Aides to disabled Members of Parliament, domestic workers and a former Member of Parliament’s dependents residing in the parliamentary villages.

(b) Sessional Officials employed by the following Government departments are accommodated at the parliamentary villages:

1. Ministry of Public Enterprises

2. Ministry of Social Development

3. Ministry of Health

4. Ministry of National Treasury

5. Ministry of Water Affairs

6. Ministry of Communications

7. Ministry of Defence and Military Veterans

8. Ministry of Arts and Culture

9. Ministry of Rural Development

10. Ministry of Trade and Industry

11. Department of Energy

12. Ministry of the Presidency

13. Ministry of Human Settlements

14. Ministry of Public Works

15. Ministry of Police

16. Ministry of State Security

17. Ministry of Women, Children and People with Disabilities

18. Ministry of Agriculture, Forestry & Fisheries

19. Ministry of Labour

20. Ministry of Tourism

21. Ministry of Co-operative Governance and Traditional Affairs

22. National Youth and Development Agency

23. International Relations and Co-operation

24. Ministry of Sports and recreation

25. Ministry of Science and Technology

26. Ministry of Justice and Correctional Services

27. Ministry of Higher Education

28. Ministry of Economic Development

29. Ministry of Home Affairs

30. Ministry of Small Business Development

31. Ministry of Basic Education

32. Ministry of Environmental Affairs

33. Ministry of Mineral Resources

34. Ministry of Telecommunications and Postal Services

35. Ministry of Water and Sanitation

(c) The rationale for accommodating the categories mentioned above, is as follows:

• Sessional Officials designated by the Heads of their Departments for a Parliamentary session are accommodated at the Parliamentary villages.
• Officials employed by the Department of Public Works who perform standby duties at the parliamentary villages are accommodated at the parliamentary villages.
• Party Support Staff / Aides to disabled Members of Parliament: Special ministerial approval was granted for aides to disabled Members of Parliament to be accommodated at the Parliamentary villages.
• Domestic workers who are registered by a legal tenant at the Parliamentary villages and approved by the Department of Public Works.
• Former MP’s dependents: Extension of stay was granted after the commencement of the Fifth Parliament, as the dependents were still attending school. Subsequent notices to vacate were ignored. A final notice to vacate is being processed, where after the case is to be handed over to the office of the State Attorney for eviction, should the subjects ignore the final notice to vacate.

(5) No members of the newly established Chamber Support Unit within the Parliamentary Protection Services have been allocated units within the Parliamentary villages.

___________________________________________________________________

Reply:

The Minister of Public Works

(1) The names of the lessors for each of the 17 leased properties are listed in the table below

	LESSOR NAME	NAME OF BUILDING / PROPERTY	LESSOR TELEPHONE
1.	SAROSMA TRUST REPRESENTED BY DEDEKIND REAL ESTATE	HERON HOUSE, 131 MURCHISON STREET	(036) 637 2297
2.	L.KIRSTEN	104 LEICESTER STREET	(036) 631 2414
3.	EMNAMBITHI LADYSMITH MUNICIPALITY	WAGON HILL RIFLE RANGE UNSURVEYED PORTION OF ERF 1	(036)637 2231
4.	JANORA TRADING (PTY) LTD	33 KEATE STREET	(036) 637 2287
5.	BILLYGREEN INVESTMENTS (PTY) LTD	LADYKEATE BLDG 35-37 KEATE STREET	(036) 637 2989
6.	EMNAMBITHI LADYSMITH MUNICIPALITY	DRIEFONTEIN THUSONG CENTRE	(036) 637 2231
7.	THE ROSCO FAMILY TRUST	73 MURCHISON STREET	(036) 637 2989
8.	KZN PROV GOV-WORKS	OLD RTI SITE	(033) 355 5468
9.	JANORA TRADING (PTY) LTD	DEVANA FARM TRUST, OLD DURBAN ROAD- R103 NEXT TO TESTING GROUNDS	(036) 637 2287
10.	JANORA TRADING (PTY) LTD	388,6 square metre space at 35 BUCKINGHAM STREET	(036) 637 2287
11.	JANORA TRADING (PTY) LTD	500 square metre space at 35 BUCKINGHAM STREET	(036) 637 2287
12.	JANORA TRADING (PTY) LTD	24 BUCKINGHAM STREET	(036) 637 2287
13.	INDUSTRIAL LEASES (PTY) LTD	43 MURCHISON STREET	(031) 941 8132
14.	ETERNA TRUST LADYSMITH CC	284 MURCHISON STREET	(036) 637 2297
15.	JAZZ SPIRIT 140 PTY LTD	284 MURCHISON STREET	(036) 631 3211
16.	NATAL PARKHOMES	VLAK PLAATS - PARKHOMES DISTRIBUTED TO THE FOLLOWING AREARS; GROENVLEI, WASBANK, CHARLESTOWN, ELANDSLAAGTE, VAN REENEN AND BESTES	(031) 701 4221
17	PEPWORTH BODY (PTY) LTD (50)	PT: FOURIESKRAAL FARM	(083) 620 0032

(2) No, the company is not a VAT vendor in terms of the regulations of the South African Revenue Service (SARS). It must be noted that SARS regulations stipulate that a company does not need to be registered for VAT if its annual turnover is below R1 million. The value of the Department’s lease with the said vendor is below R1 million. In addition, upon lease renewal, all landlords are required to submit their recent Tax Clearance Certificates, which indicate the VAT registration status of their companies.

The Department often engages such companies, particularly because in many small towns, there is a shortage of suitable accommodation for Government departments. Also, by engaging small companies the Department contributes to their development.

(3) The 80 square metres in Fourieskraal farm is used for the purpose of accommodating a South African Police Service (SAPS) Communication Tower.

(4) (a), b) and (i) Devana Farm is located alongside the Old Durban Road, which is a small dirt road leading off the R103 into the leased land which is used by SAPS as a garage. (Directions: from the N3 Highway from Durban, take exit at R103 Bergville/Colenso off ramp. Turn right very shortly thereafter onto the R103 – “Durban / Colenso”. Keep on this road until you join up with a larger road, Pass the Ladysmith testing grounds on the right the Garage is immediately next to the Ladysmith testing ground.)

(ii) The park homes are mobile units that can be moved, as per the client’s requirements. The park homes are leased from Natal Parkhomes and were were originally located in Vlakplaats, which is an area within the Ladysmith District. The mobile units used by SAPS were first placed at Ezakheni Police Station and were later relocated to other locations within the Ladysmith District, including the following areas: GROENVLEI, WASBANK, CHARLESTOWN, ELANDSLAAGTE, VAN REENEN AND BESTES.

(5) (a) SAPS is still in occupation of 43 Murchison Street and the lease is currently running on a month to month basis.

(b) (i) The lease has been identified for renewal within the prescripts of the 2nd National Treasury Dispensation on leases, which was recently granted to the Department in March 2015.

(ii) Internal processes dictate that once a Special Dispensation is received from National Treasury, an internal circular on the application of the Dispensation is to be drafted, approved and communicated to all departmental officials who will utilise the dispensation prior to the Dispensation being utilised.

The above lease expired before the issuing of the internal circular and in the interest of compliance and to ensure that the client department’s daily operations are not disrupted and was then renewed on a month to month basis, for a period not exceeding 12 months as an interim measure.

The internal circular on the application of the Dispensation from National treasury has since been approved and the process to renew the lease based on the Dispensation has begun, thus there are no details on the new lease as yet.

_________________________________________________________________

Reply:

The Minister of Public Works

The State’s immovable asset portfolio consists of 99 249 buildings and other immovable assets nationally. It is not possible to inspect all the buildings on a regular basis with the current capacity of people, processes and systems. This has led to the Department’s current approach of prioritising the inspections of occupied buildings only.

Currently, the Department has 33 Officials in all eleven regions that are responsible for inspections of all properties, owned and leased. In addition, the Department employs lease Portfolio Managers in the 11 regional offices, ranging from a minimum of 5 per region to 12 per region, who are also required to regularly inspect buildings which form part of their portfolio.

In the 2014/15 financial year, 2 668 building inspections were conducted and 681 inspections have been conducted in quarter one of the current year 2015/16.

As part of the Turnaround Plan Phase 2 - Efficiency Enhancement - the business processes, systems and Departmental structure are being updated as part of the revision of the operating model. In the revised PMTE Business Processes, which are currently in draft, and upon National Treasury’s approval of funds, this responsibility will rest with area based portfolio managers, thus increasing visibility and access to buildings nationwide.

The roll out of Building Management Systems in 11 State-owned buildings over the MTEF period will also contribute largely to the better monitoring and management of State-owned facilities.

The Department also plans to re-open numerous Facilities Management Workshops nationally in order to ensure rapid responses to maintenance requirements.

The above mentioned initiatives along with various other planned interventions by the PMTE will ensure that the State’s immovable asset portfolio is well maintained and suitable for occupation.

____________________________________________________________________

 

Reply:

 

(a) There are six fraud cases have been concluded relating to leases / rentals, where officials have been implicated, during the period in question.

(b) In five of the cases wrongdoing was found on the part of Departmental officials.

Reply:

(1) We could not find any official record in the Department of Public Works of who authorized the allocation of State-owned accommodation to Mr Mac Maharaj.

(2) (a), (b) and (c) See the response to (1) above.

(3) Services rendered at the Bryntirion Estate are centralised and costs are not recovered from individual occupants.

(4) (a) and (b) State-owned accommodation at the Bryntirion Estate is not exclusively reserved for Ministers and Deputy Ministers. The Estate has different types of accommodation including houses and flats. Government officials are accommodated at the Estate as well.

Following the introduction of the Turnaround Strategy in 2012 the Department has embarked on a process of further refining the Prestige policy, which includes the allocation and occupation State-owned accommodation.

(5) (a) and (b) See response to (1) above.

_______________________________________________________________________

Reply:

(1) In October 2012, as the Minister of Public Works I ordered an investigation into the conduct and management of security upgrades implemented by the Department of Public Works (DPW) at the President’s residence in Nkandla, KwaZulu-Natal.

The Task Team responsible for this investigation submitted their Report in January 2013 and made a number of recommendations that have a bearing on DPW. The Task Team, among other things, recommended that their report be referred to the Special Investigating Unit (SIU) for further investigation. As a result, the President issued Proclamation R59 of 2013 on 20 December 2013, to mandate the SIU to conduct an investigation into the affairs of the Department with respect to the security upgrades.

(2)(a) The Task Team’s Report did not make reference to the cost of individual houses in the police barracks. However, the investigation found that that the total cost of the South African Police Service (SAPS) and Department of Defence (DOD) needs, which includes accommodation, the Clinic, Park Homes, Helipads, etc., amounted to approximately R125 000 000.00. The cost of R6 million per individual house is not the result of an official departmental cost apportionment, and the department is also not aware how this amount was arrived at.

(2)(b) The finding was that the price for the mentioned items was probably inflated.

(3)(a) Steps have been taken to determine who was responsible for the irregularities, including the costs.

(3)(b) The officials who did not comply with Supply Chain Management (SCM) prescripts in the appointment of the contractors have been charged with misconduct and the disciplinary hearings are pending. The loss as a result of the over-design of the facilities/inflation of the price is claimed by the SIU from the architect, Mr. Minenhle Makhanya. The civil matter for the recovery is pending in the High Court.

 

Reply:

The Minister of Public Works

Members of Parliament, Sessional Officials, and where appropriate, their dependents, are eligible to utilise the transport service to and from the Parliamentary Villages and Parliament.

___________________________________________________________________________

Reply:

The Minister of Public Works

(a), (b) and (c) No. The aforementioned have not travelled to China during the financial year 2014-15 on the official business of the Department of Public Works.

(i) and (ii) (aa) and (bb) Fall away.

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Reply:

The Minister of Public Works

With respect to the Department of Public Works:

(a) Yes, the Department of Public Works paid out the remainder of an employee’s contract in the 2012/2013 financial year.

(i) (aa) The amount of R1 523 504.98, was paid out after tax was deducted.

(ii) The above-mentioned amount was paid to a former Director-General in the Department of Public Works.

(iii) The amount was paid as a result of the redetermination of the term of office of the employee.

In most of these cases Government has made a saving, because we settled for an average of six months, instead of the full duration of the employment contract and thus avoided incurring further costs. In other cases the settlements were based on the outcomes of the Commission for Conciliation, Mediation and Arbitration (CCMA) arbitrations.

With respect to public entities:

(b) Apart from the Independent Development Trust (IDT) none of the four public entities reporting to the Department of Public Works paid out the remainder of any employee’s contract before the contractually stipulated date of termination of contract since the 2008/09 financial year up to 31 March 2015. The IDT paid out the following amounts based on the negotiated separation agreements or CCMA arbitration awards against the IDT for terminated contracts involving disciplinary cases:

(i) (bb) Amount paid out	(ii) To whom paid	(iii) Reasons for contract termination	Financial year
R822 102.34	Former Regional General Manager – Limpopo Office	Changes in the business operating environment and changes in organizational requirements and skills demands for the position.	2009/2010
R793 267.94	Former Regional General Manager – Western Cape Office	Changes in the business operating environment and changes in organizational requirements and skills demands for the position.	2009/2010
R646 671.00	Former General Manager: Human Resources – National Office	Incompatible behaviour causing disharmony at work. The case was resolved through a mutual separation agreement.	2011/2012
R1 014 266.00	Former Executive Head: Corporate Services – National Office	Relationship between employer and employee had reached irreconcilable differences. The case was resolved through mutual separation.	2011/2012
R997 204.00	Former Programme Implementation Manager – Limpopo Office	The employee was dismissed for gross irregularities and at arbitration the ruling went against the IDT resulting in the settlement pay out.	2011/2012
R470 224.00	Former Programme Manager: Social Development – North West Office	The employee was dismissed for alleged tender irregularities but the CCMA determined that his suspension had been procedurally unfair and made an award in his favour leading to the four months settlement.	2013/2014
R691 561.00	Former Senior Manager: Human Resources Management – National Office	Incompatible behaviour causing disharmony at work. The case was resolved through a mutual separation agreement.	2013/2014
R437 000.00	Former Programme Manager: Social Development – Limpopo	The employee was charged and dismissed for gross misconduct, but the Employee won the case at the CCMA and was awarded 6 months’ salary pay.	2013/2014
R1 437 004.00	Former Regional General Manager – Eastern Cape Office	Changes in the terms and conditions of employment rendered the employee redundant, leading to a breakdown of relations. The breakdown in relations led to a negotiated mutual separation agreement.	2014/2015
R50 000.00	Former Filing Clerk – National Office	This was an irregular appointment as the individual did not have appropriate qualifications for the position. The contract was then annulled upon which the employee took the matter to the CCMA and the CCMA ruled that there had been procedural unfairness in the handling of the matter and an award of four months’ salary was given.	2014/2015