ATC141029: Budgetary Review and Recommendation Report of the Portfolio Committee on Public Works, dated 21 October 2014
Public Works and Infrastructure
Budgetary
Review and Recommendation Report of the Portfolio Committee on Public Works,
dated 21 October 2014
The Portfolio Committee on Public
Works, having considered the performance and submission to National Treasury
for the medium term period of the department, reports as follows:
1.
Introduction
1.1.
Mandate of the Committee
The
Portfolio Committee on Public Works is guided by the Rules of Parliament and
the Constitution to play an oversight role over the Ministry, the department of
Public Works and its entities. In doing oversight, the committee:
a)
Exercises its monitoring
role in such a way that it contributes towards
the
improvement of the quality of life of all
South Africans;
b)
Scrutinises legislation and
other policies that impact on the spheres of
Public Works;
c)
Facilitates
interdepartmental and intergovernmental relations at all
spheres
of government;
d)
Transforms the conduct of
the committees business to be sensitive to
provincial
interests at the national level;
e)
Learns from international
best practices that are relevant to its field of
jurisdiction to improve service delivery to
all South Africans to its best.
1.2.
Description of core functions
of the Department
:
The Constitution of the Republic of South Africa mandates
the department of Public Works to:
a)
Provide land and
accommodation to national government departments and institutions;
b)
Manage such land and
accommodation;
c)
Act as the custodian of
national governments immovable assets;
d)
Provide strategic leadership
to the construction and property industries;
e)
Co-ordinate the
implementation of the Expanded Public Works Programme;
f)
Have the Minister of Public
Works carry out functions related to land and accommodation through the State
Land Disposal Act (No. 48 of 1961).
The department is also responsible for four entities that
report to the Minister of Public Works as the executive authority. These
entities are:
1)
Agrèment South
Africa (ASA);
2)
Construction
Industry Development Board (
cidb
);
3)
Council for the
Built Environment (CBE);
4)
Independent
Development Trust (IDT).
1.3.
Purpose of the B
udget
R
eview
and
R
ecommendation
Report
Section
77(3) of the Constitution stipulates that an Act of Parliament must provide for
a procedure to amend money bills before Parliament. This constitutional
provision resulted in Parliament drafting the Money Bills Amendment Procedure
and Related Matters Act (No. 9 of 2009).
The
Act makes it obligatory for Parliament to assess the departments budgetary
needs and shortfalls through its oversight of the departments operational
efficiency and performance. In addition to its oversight over the department,
the committee exercises oversight over, as mentioned above, Agrèment South
Africa (ASA)
,
the Construction
Industry Development Board (
cidb
)
,
Council
for
the Built Environment (CBE) and the Independent Development Trust (IDT).
1.4.
Method
This
report is based on information that was assessed and analysed from the department
through briefings and interactions with the entities prior the tabling of the
2013/14 annual reports.
Amongst these oversight
activities, the committee received briefings from the department of Public
Works on its 2013/14 Annual Report, and the Office of the Auditor-General (OAG)
on the audit outcomes for the year under review. The committee further bases
its review and recommendations on the analysis of the annual reports and the
report and briefings of the Office of the Auditor-General. These analyses that
were undertaken by the Parliamentary support staff, focused on the performance
of the department in terms of its service delivery targets and financial
performance. It must be noted that the Committee did not have sufficient time
to interact with the annual reports for 2013/14 of the four entities.
1.5.
Outline
of the
Budget Review and Recommendations
Report
The
report contains the following:
a)
An
overview of the relevant
key
policy focus
areas.
b)
A
summary
of previous key financial performance recommendations of the
c
ommittee.
c)
An
overview
and assessment of financial performance.
d)
An
overview
and assessment of service delivery performance.
e)
A
finance
and service delivery performance assessment.
f)
A
summary
of engagements with the
d
epartment
and
its e
ntities.
g)
A
summary
of reporting requests.
h)
The
commit
tees
recommendations.
2.
AN
Overview of the key relevant policy focus areas
The second State of the
Nation Address (SONA) for 2014 articulated a number of priorities for
government. These include the alleviation of poverty and the reduction of
unemployment and inequality in all affected communities. Measures to address
these challenges were identified in the National Planning Commissions
Diagnostic Report (released in June 2011), that culminated in the National
Development Plan (NDP). The NDP has been adopted as providing the broad policy
foot-print for the country towards 2030.
The Diagnostic Report
explicitly highlighted both achievements and challenges experienced from 1994
to 2011. It identified the implementation of policies as the real challenge for
South Africa. The Diagnostic Report highlighted slow progress in nine areas,
due in part to the failure to implement policies. Of these, the following
challenges were highlighted in the National Development Plan (NDP) that can be
specifically applied to Public Works:
[1]
-
Too
few people work.
-
Infrastructure
is poorly located, inadequate and under-maintained.
-
Spatial
divides hobble inclusive development.
-
Public
services are uneven and often of poor quality.
-
Corruption
levels are high.
In order to overcome these
challenges, the focus for Public Works remains on:
[2]
-
Spending
R847 billion on infrastructure development and the implementation of the
National Infrastructure Plan over the next three years.
-
The
State procuring 75% of goods and services locally to increase domestic
production.
-
Utilising
the Small, Medium and Micro Enterprise (SMMEs) development programme to
support the small, informal sector and township businesses.
-
Addressing
youth unemployment through skills development and empowerment.
-
Creating
6 million work opportunities by 2019 through the Expanded Public Works
Programme (EPWP) and 1 million work opportunities through the local
Government-based Community Works Programme (CWP).
-
Supporting
youth development for the next five years by scaling up the EPWP
environmental initiatives and the Environmental Youth Services.
-
Erecting
new schools to eradicate mud schools and inappropriate structures.
-
Empowering
and improving the lives of women and vulnerable groups such as people with
disabilities.
-
Investing
in skills development of built environment specialists such as engineers,
electricians and plumbers.
-
Addressing
corruption (including barring public servants and representatives from
doing business with the State).
-
Improving
weak Supply Chain Management (SCM), operations and procurement systems.
-
Signing
of performance agreement between the Minister and President outlining the
service delivery programme of the department.
The
2014 SONA articulates the planned priorities of specific focus for the department
of Public Works. These have remained constant in the aim to address
unemployment and alleviate poverty as well as provide necessary infrastructure
for all communities. The department also contributes towards skills development
and aims to ensure that beneficiaries enter formal employment where
possible.
2.1.
Budget Review
During the 2013/14 financial
year the department:
·
Spent a total of R476 million on the construction,
upgrading and refurbishment of residential accommodation.
[3]
·
Created 1 230 000 work opportunities under
Phase II of the EPWP.
[4]
·
Rural municipalities created 700 000 EPWP work
opportunities.
·
Released
9 properties for redistribution under the Land Reform programme.
·
Ensured accessibility for people with
disabilities to 4 buildings that were rehabilitated and 28 buildings were
refurbished.
The department must continue to monitor the
implementation of the EPWP and to ensure that the set percentages of targeted
groups of 55% women; 40% youth and 2% people with disabilities are met. The department
has acknowledged that the target of 2% participation of people with
disabilities in the EPWP was not met in Phase I and II of the programme.
The large vacancies in the department have gradually
been addressed, particularly in the identified specialist and critical areas.
The department reported that 88.9% of all posts have been filled.
2.2
Overview of key developments
in the organisational and service delivery environments of Department for 201
3
/1
4
and 201
4
/1
5
MTEF cycle
The main policy priorities of the department are set
out in the 2014 State of the Nation Address. The areas of focus for Public
Works remain the up-scaling and implementation of Phase III of the EPWP; the
creation of 6 million job opportunities via the EPWP and the
Community
Works Programme (CWP)
by
2018/19; poverty alleviation through the provision of decent work and skills
development; addressing
youth unemployment;
infrastructure development; and
addressing
corruption and weak Supply Chain Management (SCM) systems
.
The 2014/15 priorities of the department include:
[5]
·
Releasing
40 properties for redistribution under the Land Reform programme.
·
Creating
a total of 1 075 026 work opportunities under the EPWP.
·
Signing
12 outcomes-based facilities management contracts for State-owned buildings.
·
Retro-fitting
300 buildings utilising green building principles.
The department has allocated a total of R510.4 million
for 2014/15 towards planned long-term infrastructure for new, replacement,
upgrades and additions. The allocations are for the following projects:
[6]
·
R86
million for various departmental projects.
·
R11.4
million Accessibility programme.
·
R17
million Dolomite Risk Management.
·
R233
million Land Ports of Entry.
·
R107
million Inner City Regeneration.
·
R56
million for various Prestige projects.
The department further allocated R1.6 billion towards
Planned
maintenance projects for 2014/15.
[7]
The
allocation increased by R107.6 million from the R1.5 million allocated in
2013/14, which is an increase of 7.2% in nominal terms and 0.9% in real
terms.
A total of R1.1 billion was allocated towards various
long-term planned infrastructure, rehabilitation, renovation and refurbishment
projects for the 2014/15 financial year.
[8]
This is an increase of R150.9 million.
3.
A Summary
of previous key financial and performance recommendations of Committee
In the 2013 Budgetary Review
and Recommendation Report, the committee recommended to the Minister of Public
Works that systems for the management of rentals and leases entered into by the
department of Public Works on behalf of client departments should be sorted out
and be fully functional by the end of the 2013/14 financial year.
The national, provincial and
municipality asset registers were to be aligned by the end of 2014.The Minister
needed to ensure that tender specifications on all EPWP projects included the
appointment of women contractors and people with disabilities.
The Minister of Public Works
needed to ensure that there were policies in the department of Public Works for
state funerals.
The Minister of Public Works
needed to ensure that the department of Public Works regulated the professional
fees charged by the consultants.
The committee made a strong
recommendation that the Minister needed to re-open the workshops to facilitate
the training of artisans nationally and in all the provincial departments of
Public Works.
4.
AN
Overview and assessment of financial performance
Table:
Budget Allocations Public Works
Programme (R million)
|
Budget
|
Nominal Increase / Decrease in 2014/15
|
Real Increase / Decrease in 2014/15
|
Nominal Percent change in 2014/15
|
Real Percent change in 2014/15
|
|
2013/14
|
2014/15
|
|||||
Administration
|
1 158.2
|
1 175.3
|
17.1
|
-51.5
|
1.48 %
|
-4.45 %
|
Immovable Asset
Management
|
2 981.8
|
2 861.4
|
-
120.4
|
-287.4
|
-4.04 %
|
-9.64 %
|
Expanded Public
Works Programme
|
1 948.0
|
1 951.3
|
3.3
|
-110.6
|
0.17 %
|
-5.68 %
|
Property and
Construction Industry Policy Regulation
|
36.7
|
41.5
|
4.8
|
2.4
|
13.08 %
|
6.48 %
|
Auxiliary and
Associated Services
|
50.7
|
91.8
|
41.1
|
35.7
|
81.07 %
|
70.49 %
|
TOTAL
|
6 175.4
|
6 121.3
|
- 54.1
|
-411.5
|
-0.9 %
|
-6.66 %
|
Source:
National Treasury (2014) and own calculations
The
Department of Public Works received a budget allocation of R6.1 billion for
2014/15 with which to accomplish the priorities listed above. It represents a
decrease of 0.9% in nominal terms, and 6.7% in real terms (calculating the
impact of inflation) from the 2013/14 adjusted appropriation of R6.2 billion.
The departments budget represents approximately 0.1% of the national
appropriation by vote, excluding direct charges.
In
terms of economic classification, the departmental budget includes transfers
totalling 41.9% of the budget, with a total monetary value of R2.6 billion. Of
these, R1.2 billion is in the form of conditional grants to provinces and municipalities,
while a total of R802.8 million is allocated to departmental agencies and
accounts. During 2014/15, the department will spend R510.4 million on
infrastructure-related projects.
Moreover,
current payments amount to 48.4% of the budget (R3.0 billion) and capital
payments amount to 9.7% of the budget (R596 million).
[9]
Compensation of employees
increased by 186.4 million from R1.5 billion in the 2013/14 adjusted period to
R 1.7 billion in 2014/15. It has been noted in the past that the department has
experienced capacity constraints in general, but most especially in the
technically qualified fields.
In 2013, the department
identified the following shortages in the areas of strategic professional and
technical skills: project management, financial management, quantity surveying,
supply chain management, contract drafting, and business analysis.
[10]
At a briefing to the
Portfolio Committee on Public Works in 2014 the Director-General reported that in
order to fill some of these critical vacancies, apart from economists, specialist
personnel such as property lawyers, project managers, and quantity surveyors,
were being recruited and are in the process of being appointed to the PMTE by
the department.
[11]
4.1
Auditor
-
General
Report
The department of Public Works (DPW) received an unqualified
audit opinion (with emphasis of matters and additional matters) for the 2013/14
financial year. This is an improvement from the Qualified Audit Opinion for
2012/13 and the two Disclaimers of Opinion with emphasis of matters and
additional matters that the department received in respectively, 2011/12 and
2010/11.
The Property Management Trading Entity (PMTE) received
a qualified audit opinion (including an emphasis of matters and additional
matters) from the Auditor-General (AG) for the 2013/14 financial year. The PMTE
improved from the Disclaimer it received for three years in a row.
This section will only provide a
select list of issues highlighted by the Auditor-General (AG)
4.1.1 Department of Public Works
The AG highlighted challenges that included the
following:
·
Material
impairments to the amount of R51.5 million were provided for as a result of
irrecoverable receivables.
[12]
·
The department
materially underspent the budget on Programme 2: Immovable Asset Management by
an amount of R105 million, which resulted in the departments objectives of
infrastructure delivery not being fully met.
·
Effective,
efficient and transparent risk management and internal control with respect to
performance information and management was not maintained as required by
Section 38(1
)(
a)(i) of the PFMA.
·
Goods
and services with a transaction value below R500 000 were procured without
obtaining the required price quotations as per Treasury Regulation 16A8.3.
·
A
contract was awarded to a bidder who did not submit a declaration on whether it
is employed by the State or connected to any person employed by the State,
which is prescribed in order to comply with Treasury Regulation 16A6.1.
·
The
Accounting Officer did not take effective steps to prevent irregular and
fruitless and wasteful expenditure, as required by Section 38(1
)(
c)(ii) of the PFMA and Treasury Regulation 9.1.1.
·
Effective
and appropriate disciplinary steps were not taken in certain instances against
officials who made or permitted irregular expenditure as required by Section
38(1
)(
h)(iii) of the PFMA and Treasury Regulation
9.1.3.
·
Some
allegations of corruption, improper conduct or failure to comply with Supply
Chain Management (SCM) system were not yet investigated as required by Treasury
Regulation
16A9.1(
b).
·
Investigations:
Numerous internal allegations mainly related to transgressions with respect to
SCM, potential fraud and financial misconduct are being investigated on an
ongoing basis.
4.1.2 Property
Management Trading Entity (PMTE)
The AG highlighted challenges that included the
following:
·
The
PMTE did not have an appropriate system for identifying irregular expenditure.
[13]
·
The
AG was unable to determine if adjustments were necessary with regard to the
stated irregular expenditure of R34.4 billion.
·
The
AG was unable to determine if the operating leases were accurately accounted
for due to the status of the accounting records.
·
The
AG was unable to determine the full extent of the understatement of accruals as
the PMTE did not have an adequate system to identify and record outstanding
payments for goods and services and services received but not yet paid at
year-end.
·
The
Accounting Officer of the department of Public Works did not formulate a policy
and reporting framework for the head of the PMTE, in accordance with the
requirements of Treasury Regulation 19.3.1.
·
The
AG could not obtain sufficient appropriate audit evidence that invitations for
competitive bidding were always advertised in the government tender bulletin as
required by Treasury Regulation 16A6.3(c).
·
PMTE
did not take effective steps to prevent irregular and fruitless and wasteful
expenditure, as required by Section 38(1
)(
c)(ii) of
the PFMA and Treasury Regulation 9.1.1.
[14]
·
The PMTE
remains a going concern due to a bank overdraft of R443 million and the current
net liabilities exceeding the current assets.
[15]
·
Reviewing
and monitoring of compliance with applicable laws and regulations was not
effective.
·
Implementation
of proper and timely record keeping was not always followed ensuring that
information is accurate and relevant and accessible.
·
Ongoing
internal investigations: related to SCM transgressions; potential fraud and
financial misconduct; alleged abuse of urgent and emergency procurement; and
the utilisation of sole suppliers. The investigations aimed to determine if
there was collusion between officials and service providers, as well as,
reckless spending of funds.
[16]
4.2
Financial performance 201
4
/1
5
Following below is an analysis of the departments 1
st
Quarter Expenditure (April to June) for 2014/15 in relation to that of the same
period for 2013/14. Below, areas where targets were met and some of the
challenges affecting the performance of the department are highlighted.
The department received an allocation of R6.1 billion
for the 2014/15 financial year, which
represents a decrease of R54 million or 0.9% in nominal terms or 6.7%
in real terms (calculating the impact of inflation) from the 2013/14 adjusted
appropriation of R6.2 billion.
Operational Expenditure
A total of R3.55 billion was allocated towards the departments
Operational Expenditure, for the 2014/15 financial year.
[17]
This is a decline of R14.3 million or 0.4% in nominal terms (i.e. 6.2% in real
terms) from the R3.57 billion allocation in the 1
st
Quarter of
2013/14.
The total Operational Expenditure (for the 5 main
programmes)
[18]
in
the 1
st
Quarter of 2014/15 amounted to R810.1 million, which is an
increase of R204.3 million or 34% in nominal terms (or a real increase of 26.1%
from the R605.8 million spent in the same period of 2013/14. Expenditure in the
1
st
Quarter was dominated by spending on compensation of employees
and goods and services.
Programme 1: Administration received an allocation of
R1.2 billion for 2014/15, the second largest portion of the departments
allocation. This is an increase of R50.6 million or a nominal increase of 4.5%
from the R1.1 billion in 2013/14. But in real terms the 2014/15 allocation for
the Administration programme declined by 1.6% compared to the 2013/14
allocation.
Of this total allocation, R284 million was spent to
date, which is an increase of R145.2 million or 105% in nominal terms (or a
real increase of 93%) from the R138.4 million spent in the 1
st
Quarter of 2013/14.
The expenditure constitutes 24.2% which is in range of
the 25% quarterly expenditure target, which is an improvement from the 12.3%
recorded in the 1
st
Quarter of 2013/14.
[19]
Programme 2: Immovable Asset Management received R2.0
billion for 2014/15, the largest portion of the departments total
appropriation. This is a decrease of R63.4 million or 3.1% in nominal terms (or
8.7% in real terms) from the R2.1 billion allocated in 2013/14.
[20]
The department spent R418.5 million in the 1
st
Quarter of 2014/15, an increase of R4.1 million or 1.0% in nominal terms (or a
decline of 4.9% in real terms) from the R414.4 million spent in the same period
of 2013/14. The increase in spending on Programme 2 was mainly due to
additional expenditure on compensation of employees; property payments and
business and advisory consultancy services.
[21]
The expenditure constitutes 20.9% for the 1
st
Quarter of 2014/15, an increase of 0.9% from the 20% recorded in the 1
st
Quarter of 2013/14.
Programme 3: Expanded Public Works Programme (EPWP)
received an allocation of R272.2 million for 2014/15, which is an increase of
R3.4 million or 1.3% in nominal terms (but a decrease of 4.7% in real terms)
from the R268.8 million allocated in 2013/14.
The department spent R51.3 million in the 1
st
Quarter of 2014/15, which is an increase of R8 million (or 18.5% in nominal
terms and 11.6% in real terms), from the R43.3 million spent in 2013/14. The
expenditure was mainly for consultants and professional services for
infrastructure and planning.
[22]
The 1
st
Quarter expenditure of Programme 3
constitutes 18.4%, which is an increase of 2.3% from the 16.1% recorded in the
1
st
Quarter of 2013/14.
Compensation of employees; property payments and
business and advisory consultancy services.
[23]
The expenditure constitutes 20.9% for the 1
st
Quarter of 2014/15, an increase of 0.9% from the 20% recorded in the 1
st
Quarter of 2013/14.
Programme 4: Property and Construction Industry Policy
Regulation received an allocation of R41.3 million for 2014/15, which is an
increase of R4.8 million
(i.e. an
increase of 13.2% in nominal terms or a real increase of 6.5%), from the R36.5
million allocated in 2013/14.
The department spent R13.1 million in the 1
st
Quarter of 2014/15, which is an increase of R7.2 million or 122.0% in nominal
terms (and 109.1% in real terms), from the R5.9 million spent in 2013/14. The
main contributors to the increased expenditure relates to consultancy work on
the policy and regulation of the property and construction industry.
[24]
The
spending under Programme 4 also includes a transfer of R11.1 million
[25]
to
Agrément South Africa. The transfer is made under business and advisory
consultancy services, as Agrément South Africa must still be constituted as a
juristic person.
The expenditure of R13.1 million constitutes 31.7%, an
increase of 15.5% from the 16.2% recorded in the 1
st
Quarter of
2013/14.
Programme 5: Auxiliary and Associated Services
received an allocation of R68.2 million for 2014/15, which is a decline of R9.7
million or 12.5% in nominal terms (or 17.6% in real terms), from the R77.9
million allocated in 2013/14.
The department
spent R43.6 million in the 1
st
Quarter of 2014/15, which is an
increase of 963.4% in nominal terms (or 901.33% in real terms), from the R4.1
million spent in 2013/14. The main contributor to the increased expenditure was
on contractors under goods and services. The contractors provided services on
behalf of the department for State events and functions that included the 2014
Presidential Inauguration and the 2
nd
State of the Nation Address.
4.3
2014/15
MTEF financial allocations
This
section provides a summary of funding submissions by the
d
epartment to the National
Treasury for the 2015/16 MTEF period. It also provides an analysis of the five
p
rogrammes
through which the department give effect to its
policy mandate
.
The
d
epartment requested an
allocation of R6.6 billion for the 2015/16 financial year, which constitutes an
increase of R424
million.
The allocation for the Administration programme declined by R42.1 million from
R1.2 billion for 2014/15 to R1.1 billion for 2015/16.
[26]
A total of R128 million
over the MTEF period has been cut from the Administration programmes budget.
The budget reductions
as
approved
by
Cabinet
are to be implemented mainly in spending on non-core goods and services
; these are for items
such as communication
,
computer services
,
agency and support services
,
stationary
,
operating leases
,
property payments
,
travel and subsistence
,
and venues and facilities.
[27]
The
allocation for Programme 2: Immovable Asset Management rose from R2.9 billion
in 2014/15 to R3.3 billion in 2015/16. This constitutes an increase of R446.8
million. The department will spend the following allocations over the MTEF
period:
·
R306 million Dolomite
projects.
·
R30 million Accessibility
projects.
·
R795 million Land Ports of
Entry for Border Control Operational Coordinating Committee projects.
·
R346 million Prestige
Management.
·
R448 million departmental
projects.
·
R314 million Projects
facilitating Inner City Regeneration around the Tshwane area; to address
accommodation needs of National Government departments.
[28]
The
EPWP allocation increases by R55.6 million to R2 billion in 2015/16, from a
total allocation of R1.9 billion for the 2014/15 financial year. The EPWP
Integrated Grant for Municipalities will be reduced by R37.8 million in 2014/15
and a further R42 million in 2015/16. A further reduction of R22 million will
be made on the EPWP Integrated Grant for Provinces in 2014/15 and R25 million
in 2015/16, respectively.
Expenditure
on performance-based incentive allocations for the 2016/17 financial year are
expected to increase by R159 million, as follows:
·
R10 million EPWP
Integrated Grant for Municipalities.
·
R10 million EPWP
Integrated Grant for Provinces.
·
R74 million Social Sector
EPWP Incentive Grant for Provinces.
·
R65 million Non-State
Sector.
[29]
Programme
4 is allocated a total of R43.4 million in 2015/16 which is an increase of R1.9
million from the allocation
of R41.5 million in 2014/15. The expenditure on the Programme will increase
under
items such as
compensation of employees and goods and services, specifically travel and
subsistence; agency support and outsourced services; professional services and
advertising. The increased spending on the programme in the medium terms will
mainly be focussed on the tabling of the Expropriation Bill (which provides for
the expropriation of property for a public purposes or in the public interest,
subject to just and equitable compensation); and the Agrément South Africa Bill
(which confers the appropriate legal status
to
the
e
ntity). The focus will also
be on promoting the growth and transformation of the construction and property
industries through the implementation of the Construction and Property
Charters.
[30]
The
Auxiliary and Associated Services programme is allocated R53.7 million in
2015/16 which is a decrease of R38.9 million from the allocated R91.8 million
in 2014/15. The programme is mainly responsible for the transfer of funds to
the Assistance to Organisations for the Preservation of National Memorials as
well as State Functions among others. The bulk of the programmes allocation is
usually assigned to these two sub-programmes with the former receiving R22.7
million for 2015/16 which increased by R1 million from the R21.7
million for 2014/15, while
the latter receives R28.5 million for 2015/16 which represents a significant
decline of R39.2 million from the R67.7 million allocated in 2014/15. The
increase in the allocation for the State Functions sub-programme is mainly
linked to the State funeral of former President Mandela at the end of 2013, as
well as the inauguration ceremony of the President following the 2014
elections.
[31]
4.4
Concluding comments on
financial performance
The
funding requirements of the
d
epartment
relate to the implementation of its core functions of infrastructure delivery
and official accommodation for National departments, hence the requirement of
an accurate Immovable Asset Register; a properly managed and updated lease
portfolio; and the EPWP in terms of providing job opportunities for poor and
marginalised communities.
The
Turnaround Strategy of the department also forms the core part of the plans as
it is aimed at addressing some of the serious challenges in the department;
these
include strengthening the
Internal Audit functions, as well as Supply Chain Management (SCM) and
procurement systems.
As
mentioned earlier, and reported on by the DG in 2014, t
he
department needs
to recruit and
appoint
technically
specialist
staff
such as
p
property lawyers, project
managers, and quantity surveyors.
5
AN
Overview and assessment of service delivery
performance
5.1.
Programme Performance
Programme 1: Administration
The Administration programme completed 30 or 83.3% of
a total of 36 targets for the year under review.
[32]
A total of 6 or 16.7% of the targets were not achieved, while R1.1 billion or
97.0% of the total programme allocation of R1.13 billion was spent by the end
of the financial year.
The programme underspent by R33.5 million of which:
[33]
·
R6.9
million Compensation of Employees.
·
R8.2
million Goods and Services.
·
R18
million Payments for Capital Assets.
The programme also reported a high vacancy of
145 from a total of
1 130 posts. The
programme had 985 filled positions, with an added 445 posts filled additional
to the establishment.
[34]
The Administration programme consists of six
sub-programmes of which three achieved all their performance targets, while the
other three sub-programmes did not meet their performance targets, and include:
·
Monitoring
and Evaluation (M&E) met 5 of 6 targets.
·
Finance
and Supply Chain Management (SCM) met 4 of 6 targets.
·
Corporate
Services met 11 of 14 targets.
M&E sub-programme only completed one of two
evaluation reports on the departments performance for 1 April to 31 December
2013. The sub-programme did not have enough capacity to meet the increased
demands for M&E services.
[35]
Finance and SCM sub-programme did not develop the
Accounting and Billing System by 31 March 2014. The delay in achieving the
target resulted from the longer than anticipated development of the System,
which was at the stage whereby the blue prints were only developed in the 4
th
Quarter. However, it is unclear if this was the planned target, given that the
stated target for 2013/14 was for the completion of a framework to
institutionalise an improved Acquisition Management function to be developed by
31 March 2014.
[36]
The 2
nd
target that was not achieved
relates to the Accounting and Billing System which was not developed by 31 March
2014.
[37]
This reported target is a repetition of the above one. These two targets should
be clarified.
Corporate Services sub-programme did not achieve 3 of
the 14 targets:
·
The
initiation phase of the Integrated Financial Management System was not completed.
·
1 of
a targeted 2 Exchange Programmes in SADC
[38]
(Zambia) achieved. The 2
nd
programme did not take place due to the
non-availability of Namibian counterparts to discuss dates for the visit by the
department of Public Works Technical Team and the finalisation of an action
plan.
[39]
·
Identification
of 2 areas for training opportunities within BRICS
[40]
(i.e. India) completed, but the implementation must still be followed up with
the Human Resources department.
Internal Audit and Audit Committee is comprised of
five members and held eight meetings during the year under review. The Audit
Committee highlighted the following:
[41]
·
The
systems of control of the department and the Property Management
Trading Entity (PMTE) is
not effective.
·
Internal
Audit Reports indicate that the systems and controls of both the department and
PMTE are not effective.
·
The department
inadequately manages Consequence Management in terms of the timely completion
of all investigative processes within the prescribed turnaround times; as well
as taking appropriate action against transgressors and perpetrators.
Management of the departments strategy addressed the
issues as follows:
·
Implementation
of a Financial and Reporting System.
·
General
recruitment of personnel in critical areas.
·
Overall
improvement of the overall system of Internal Control
·
department
plans to present the Audit Committee with an Audit
Action Plan addressing all core findings of the Auditor-General.
Audit Committee will monitor the implementation of the
suggested corrective measures
Programme 2: Immovable Asset
Management
Programme
2 is one of the main programmes of the department and received R2.96 billion of
the programme allocation, and reported on 31 targets of which 12 or 38.7% were
achieved.
[42]
At the end of the financial year a total of
19 or 61.3% of the targets were not
achieved while R2.89 billion or 96.4% of the programmes budget was spent. The
programme has 4 501 posts filled from a total of 5 623. The programme
reported a vacancy of 1 122, and 198 positions additional to the
establishment were also filled.
[43]
Immovable
Asset Management Programme consists of four sub-programmes, none of which
achieved all their performance targets.
The
Minister of Public Works introduced the Turnaround Strategy at the beginning of
2012. It was aimed at ensuring the stabilisation of the department; working
towards a clean audit; completing a skills audit to determine the gaps in the
skills requirements; and repositioning the department to fulfil its core
mandate.
The
planned intervention also aimed to ensure that the department finalised a
usable, updated and comprehensive Immovable Asset Register (IAR), which remains
one of the requirements for the department to receive a clean audit. The department
employed a number of consultants to assist in the IAR project and spent a total
of R507.9 million on consultants, contractors and agency/outsourced services.
[44]
The
allocation constitutes an overall increase of R239.2 million from the 268.7
million of the 2012/13 financial year, assigned as follows:
·
Contractors
received R100.7 million, an increase of R51.1 million from 2012/13.
·
Agent
and support/outsourced services received R201.1 million, an increase of R85.1 million
from the previous year.
·
Business
and advisory services received R169.4 million, an increase of R91.3 million
from the R78.1 million.
·
Legal
costs received R18.4 million, an increase of R4.6 million from the R13.8
million in 2012/13.
·
Infrastructure
and Planning received R182 million, an increase of R7.2 million from the R11.1
million of the previous year.
Asset
Investment Management
sub-programme
achieved three of
the eight performance targets, of which one exceeded the target. The following
targets were not achieved:
[45]
·
Confirmed
ownership (Vesting) of 1 174 of the 5 540 land parcels by 31 March
2014.
·
None
of the 16 planned properties were released for land reform purposes.
·
Three
of 15 properties were rehabilitated aimed at reducing the lease portfolio.
·
15
of 100 buildings were made accessible to people with disabilities.
·
One
of 19 properties approved for release for human settlement purposes.
Projects
and Professional Services sub-programme did not achieve the following targets:
[46]
·
179
of 300 construction projects were completed by 31 March 2014.
·
5 309
work opportunities created by the department through projects in construction
stage at the Head Office and the 11 Regional Offices from a target of
40 000 work opportunities.
·
140
Exempted Micro Enterprises were not appointed on Construction Projects.
·
40
Cooperatives were not appointed.
Operations
Management sub-programme achieved six of the 10 planned targets, some of which
exceeded the target. The following targets were not achieved:
·
2 441
of a targeted 2 778 leases payments were managed. Some of the leases on
the Property Management Information System (PMIS) had expired.
·
Process
for the appointment of a service provider to manage the day-to-day Call Centre
was not completed and the department plans to manage it in-house.
·
7 508
of 7 700 State properties were verified for the payment of municipal
services.
·
1 398
of a targeted 1 453 property current debtors and vacated debtors with
debit balances were managed in terms of the signed contract terms and
conditions.
[47]
Key
Accounts Management (KAM) sub-programme did not achieve three of the 6 planned
targets, which include:
[48]
·
No
Service Delivery Standards were updated due to departmental changes that
prevented the KAM from interacting with the property unit.
·
19
of 21 targeted Service Level Agreements (SLAs) were not signed with Client departments.
·
No
Progress Report on the compilation of User Asset Management Plans (UAMPs) by
the 43 user departments was submitted to the departments Accounting Officer in
compliance with GIAMA. This was due to only 5 user departments (departments of
Defence; Social Development; Public Works as well as the South African Police
Service and the South African Social Security Agency) submitted UAMPs.
Programme 3: Expanded Public
Works Programme
The
EPWP received the second largest allocation after Programme 2, with a total of
R1.94 billion of which 98.6% or R1.93 billion was spent. The bulk of the
programmes allocation, R1.22 billion is for transfers and subsidies to
provinces and municipalities for payment of conditional grants for the
implementation of EPWP projects. The programme did not meet 3 of its 6
performance targets, while the three it did achieve exceeded their set targets.
The
programme created 1 012 664 work opportunities, thereby meeting 82.3%
of the actual target. The programme required an additional 217 336 work
opportunities to reach the 1 230 000 target. The percentage of work
opportunities were exceeded for women, which increased from 55% to 61% and from
40% to 49% for youth, respectively.
However,
the target of 2% work opportunities for people with disabilities was not
achieved with 1.018% participation.
In
addition, the 3 500 target of National Youth Service (NYS) participants
was not reached with 718 or 20.5% of youth taking part in the programme. A
further 2 782 youth did not participate in the programme.
[49]
The factors cited as contributing to the
non-achievement of certain targets included:
[50]
·
Procurement
delays for infrastructure projects in some provinces.
·
Limited
funding of the Environment and Culture, as well as, Non-State Sectors affected
the creation of job opportunities.
·
People
with disabilities are not participating in the EPWP programme because some
public bodies would prefer to give priority to beneficiaries who are neither unemployed,
nor receiving stipends. People with disabilities are often excluded as they
already benefit from the Disability Grant.
The
EPWP programme exceeded some of its performance targets by providing technical
support to the provinces, municipalities, as well as all other spheres of
government to ensure that all EPWP requirements are met. However, the staff
compliment equals 209 or 82.6%, and a vacancy of 56 positions from 265
available positions.
[51]
An
additional 1 position was also filled in addition to the establishment.
The
programme underspent by R5.6 million as follows:
[52]
·
R4.3
million on transfers and subsidies in which transfer of payments to Provinces
for the EPWP Integrated and Incentive Grants were withheld due to
non-compliance to the Division of Revenue Act by the provinces.
·
R1 million on machinery
and equipment due to the non-filling of vacant
positions and the tools of trade not being acquired.
The
Auditor-General highlighted the following in terms of the reliability of
reported performance information of the EPWP:
[53]
·
Adequate
and reliable corroborating evidence could not be provided for 32% of the
targets to assess the reliability of the reported performance information.
·
This
was due to the absence of guidelines on document retention and records
management for the EPWP programme as well as a lack of oversight in ensuring
that payments are only made to valid beneficiaries.
Programme 4: Property and
Construction Industry Policy Regulation
Programme
4 only met 2
of its 5 targets for
the 2013/14 financial year. The programme received R36.7 million and spent
R32.8 million or 89.4 per cent of its allocation. The programme consists of 25
positions of which 15 are filled and 10 are vacant, (and 2 posts filled
additional to the establishment). This programme has the lowest vacancy in the department;
however, it is also a crucial programme as it deals with policy formulation for
the construction and property sectors; drafting of legislation,
[54]
amongst others.
Three
of the programmes targets were not finalised or approved by 31 March 2014.
These targets mainly relate to the finalisation of policies and legislation.
-
Agrément South Africa Bill was not tabled in
Parliament by 31 July 2013.
-
Expropriation Bill was not tabled in Parliament
by 30 June 2013.
-
Final Built Environment Professions Policy was
not submitted for Ministerial approval by 31 December 2013.
Explanations
provided included: delayed internal consultation processes, underestimating
duration of consultation with key stakeholders and analysis of public comments,
as well as, consideration of policy options.
Programme 5: Auxiliary and
Associated Services
This
programme does not have a staff complement as its main function is to transfer
funds and meet protocol responsibilities for State functions. The programme
received an allocation of R50.7 million which was increased by R50.5 million to
R101.2 million for the 2013/14 financial year. A total of R96.9 million or
95.8% of the allocation was spent.
The
programme underspent by R4.2 million of which R2.95 million was underspend on
the Commonwealth War Graves Commission due to the lower exchange rate between
the South African Rand and British Pound.
A
total of R1.3 million was underspent from the R2.8 million allocation towards
the Construction Education and Training Authority due to the under expenditure
of the compensation of employees budget allocation.
The department
exceeded its planned performance target by 2 when it provided infrastructure
support for 14 planned Prestige Events. It also reported providing
infrastructure support for 12 unplanned Prestige Events.
[55]
The
allocation of R27.3 million towards State Functions was increased to R77.9
million due to the shifting of funds of R285 000 and a virement of R50.5
million. The R285 000 funds were shifted from the Compensation for Losses
sub-programme (R284 000) and Distress Relief (R1 000). The R50.5 million
virement was approved by National Treasury and relates to the State Funeral of
former President Mandela.
A transfer of
R17.6 million or 85.6% was made for assistance to the Organisations for the
Preservation of National Memorials from an allocation of R20.5 million.
[56]
These
two sub-programmes usually receive the bulk of the programmes allocation. The department
indicated in the past that the challenges with the above sub-programmes
included uncertainty in planning for certain State functions such as funerals
or unplanned functions; as well as fluctuations in the exchange rate. These
issues sometimes impact negatively on the planning of the department and budget
allocated for Programme 5.
5.2.
Other
service delivery performance findings
5.2.1
EPWP
The Auditor General could not find records proving
that the incentive grants were paid to the correct beneficiaries. The
performance management of the programme should be prioritised moving forward,
where proper documentation should be kept and proper reporting systems be
maintained.
5.2.2
Asset
Register and lease management
The management of leases has a direct bearing on the
financial state of the PMTE and the fraud and corruption cases in the department.
The accuracy and completion of the Asset Register remains a concern.
5.2.3
Policy
The committee was looking forward to the introduction
of the Agrèment South Africa Bill, Expropriation Bill, the Built Environment
Professions Bill and the amendment of the Government Immovable Asset Management
Act (GIAMA).
6.
The
COMMITTEES
Observations and response
S
6.1.
Technical issues
In the previous Parliament, the department promised to
ensure that the Annual Performance Plans would be submitted to Parliament with
indicators that are specific, measurable, achievable, relevant, and time bound
(SMART).
The committee urges the department to provide monthly
financial performance reports and internally audited financial statements on a
quarterly basis.
6.2.
Governance and operational issues
The department should ensure the implementation and full
use of i-Eworks, proper IT systems, and the employment of persons with the
required technical skills to ensure the maintenance and continued operation of
these systems within the department.
The department should ensure that the required
internal control measures are properly instituted and monitored.
6.3.
Service delivery performance
The roll-out of phase two of the Expanded Public Works
Programme (EPWP) was a success. The department needs to ensure proper reporting
and recording of performance.
The department should also note the findings of the
Office of the Auditor-General that reported that there was not sufficient
evidence that incentive grants were paid to the correct beneficiaries. The
challenge relates to the manner in which information is captured, recorded, and
verified. The system used by municipalities needs to be consistent so that the
quality of evidence used in the whole system across the EPWP is consistent. The
departments EPWP phase three roll-out should include consistent training and
maintenance of skills across the system so that these negative findings are
eradicated.
6.4.
Financial performance including funding proposals
A total of R2.56 billion was allocated towards
Transfers and Subsidies for the 2014/15 financial year, which is a decline of
R31.8 million or 1.2% in nominal terms (and 7.0% in real terms) from the R2.59
billion allocated in 2013/14.
A total of R1.20 billion was allocated as Conditional
Grants to Provinces and Municipalities in 2014/15, a decline of R24.3 million
or 2.0% in nominal terms (and 7.7% in real terms) from the R1.23 billion
allocated in 2013/14. In the 1
st
Quarter of 2014/15 a total of
R240.2 million was spent, which is an increase of R200 000 or 1.0% in nominal
terms (but a decline of 5.8% in real terms) from the R240.0 million spent in
2013/14. The R240.2 million is disaggregated as follows:
[57]
·
The
EPWP Integrated Grant for Municipalities was allocated R594.6 million a
decrease of R16.1 million or 2.6% in nominal terms (and a decline of 8.3% in
real terms) from the R610.7 million allocated in 2013/14. At the end of the 1
st
Quarter of 2014/15 and 2013/14, none of the allocation was spent.
·
The
EPWP Integrated Grant for Provinces received an allocation of R348.9 million
for 2014/15, which is a decline of R7 million or 2.0% in nominal terms (and
7.7% in real terms) from the R355.9 million allocated in 2013/14. A total of
R137.0 million was spent at the end of the 1
st
Quarter of
2014/15,which is a decline of R3.6 million or 2.6% in nominal terms (and 8.3%
in real terms) from the R140.6 million spent in 2013/14. The expenditure of
R137.0 million constitutes 39.3% at the end of the 1
st
Quarter of
2014/15.
·
The
Social Sector EPWP Integrated Grant for Provinces received an allocation of
R258.0 million for 2014/15, which is an increase of R400 000 or 0.2% in
nominal terms (but a decline of 5.7% in real terms) from the R257.6 million
allocated in 2013/14.
·
A
total of R103.2 million was spent in the 1
st
Quarter of 2014/15,
which is an increase of R3.8 million or 3.8% in nominal terms (but a decline of
2.2% in real terms) from the R99.4 million spent in 2013/14. This constitutes
40.0% expended in the 1
st
Quarter of 2014/15 compared to the 38.6%
recorded in the same period of 2013/14.
Departmental Agencies and Accounts received an
allocation of R802.8 million for 2014/15, which is a decline of R900 000
or 0.1% in nominal terms (and 5.9% in real terms), from the R803.7 million
allocated in 2013/14. The allocation was disbursed to the operations of the
following 4 agencies:
·
R77.2
million was allocated to the Construction Industry Development Board (
cidb
) for 2014/15, of which R38.6
million or 50% was transferred to the cidb in the 1
st
Quarter of
2014/15.
·
R41.6
million was allocated to the Council for the Built Environment (CBE) of which
R20.8 million or 50% was transferred to the CBE in the 1
st
Quarter
of 2014/15.
·
R8.7
million was transferred to the Parliamentary Villages Management Board of which
100% was transferred in the 1
st
Quarter of 2014/15.
·
R1.9
million was transferred to the Construction Education and Training Authority
(CETA) of which 0% was transferred in the 1
st
Quarter of 2014/15.
Foreign Governments and International Organisations
received an allocation of R21.7 million in 2014/15, towards the Commonwealth
War Graves Commission: Maintenance of Soldiers Graves. This allocation
constitutes an increase of R1.2 million or
5.9% in nominal terms (but a decline of 0.3% in real
terms) from the 20.5 million allocated in 2013/14.
A total of R22.5 million was transferred in the 1
st
Quarter of 2014/15, and constitutes 103% of the allocation, an over-expenditure
of R800 000. A contributing factor to this over- expenditure results from
the fluctuation in the foreign currency rates, upon transfer.
A total of R50 million was allocated to Public
Corporations towards the operations of the Independent Development Trust in 2014/15,
which is a decline of R50 million or 50% in nominal terms (and 53% in real
terms) from the R100 million allocated in 2013/14. A 100% was transferred at
the end of the 1
st
Quarter of 2014/15 in contrast to the 50% that
was transferred in the 1
st
Quarter of 2013/14.
[58]
7.
Summary
of reporting requests
Reporting matter
|
Action required
|
Timeframe
|
Predetermined objectives:
DPW
|
The
Committee should ensure there are guidelines on document retention and
records management in the department, including proper record management of
EPWP information.
|
March
2015
|
Supply
Chain Management:
DPW
PMTE
IDT
CIDB
|
The
Committee should ensure it monitors ineffectiveness oversight and monitoring
by the leadership of the department.
|
March
2015
|
Human
resource management:
DPW
|
Human
resources plan should be completed prior to year end of any financial year.
The department should adequately prioritise the filling of vacant positions
and technical skills.
|
March
2015
|
Information
Technology (IT) controls:
DPW
PMTE
IDT
|
Weaknesses
identified in the IT environment should be resolved
|
March
2015
|
Material
errors/omissions in submitted annual financial statements (AFS):
DPW
PMTE
IDT/CIDB/CBE
|
The
department and entities should draft monthly financial statements. Financial
statements should be drafted in accordance with the requirements of the PFMA.
|
March
2015
|
Other
non-compliance:
PMTE
IDT
|
PMTE
should ensure that there is proper monitoring and evaluation in terms of
compliance issues.
Audit
action plan should be implemented.
|
March
2015
|
Financial
health status:
DPW
|
The
department should avoid delays in the implementation of infrastructure
problems.
|
March
2015
|
8.
Recommendations
The Committee recommends to
the Minister of Public Works that:
8.1
The billing system used by the department should meet the
required accounting standards in order for the client departments to pay their
rental and service costs. This would assist in paying the overdraft amount owed
by the Property Management Trading Entity (PMTE).
8.2
The national, provincial and municipality Asset Registers
should be aligned by the end of the 2014/15 financial year.
8.3
In the third phase of EPWP there should be proper records
management and accurate reporting on the performance of the programme across
the whole system with special attention to skills needs at the provincial and
municipal sphere.
8.4
In the 2014/15 financial year the department focuses on
attracting and retaining the required technical skills with specific attention
to
specialist
personnel such as property lawyers, project managers and quantity surveyors
.
8.5
The Minister should continue to keep staff accountable for
unauthorised, irregular, fruitless and wasteful expenditure within the department;
in cases where investigations identified
staff that were
found to have been guilty of non-compliance to the departments supply chain
management and procurement policies, disciplinary action must follow and the
law must take its course.
8.6
The Chief Financial Officer should provide comprehensive and
accurate financial statements to the committee on a quarterly basis, in order
for the committee to monitor the departments spending patterns and trends.
8.7
The role of consultants should be monitored on construction
projects, and that contractors should be held accountable, along with the project
managers if projects have large overrun costs.
8.8
The outstanding legislation be finalised for tabling before
Parliament by the end of the 2014/15 financial year.
8.9
The Minister should strengthen the Supply Chain Management system
to ensure the detection of possible collusion in the construction industry, and
to avert any future risks to the department.
8.10
All instances of variation orders should be monitored to ensure
that all projects are completed on time and that the State receives value for
money. The department should provide quarterly reports to the Committee on
projects already completed.
8.11
The i
-EWorks
system should be fully implemented and an accrual-based accounting system for the
PMTE should replace the current basic accounting system.
8.12
The Minister should prioritise capacitating governance
structures, e.g. Internal Audit Unit and Risk Management Unit, by end of the 2014/15
financial year.
8.13
The Minister should address the lack of compliance with the
Employment Equity Plan, with specific attention to women at the senior
management level in the department by the end of the 2014/15 financial year.
8.14
The Minister should ensure that the Independent Development
Trust (IDT) maintain proper financial records with regard to tender deposits as
well as its leave accrual system.
8.15
The Minister should ensure that the tendency of irregular
expenditure is closely monitored and avoided in the 2014/15 financial audit of
the department.
9.
Appreciation
The
c
ommittee
appreciates the improvements made by the department,
which have yielded tangible positive changes. These changes include the department
moving from a
qualified audit opinion to an unqualified
audit opinion with matters and additional matters raised.
The committee notes that the PMTE received a qualified
audit opinion from a disclaimer in the previous financial year. It is
anticipating tangible positive changes in this regard in the following
financial year.
The committee appreciates
the
support of the Office of the Auditor-General which substantially
increased the strength of the committees oversight responsibility.
Report to be considered.
_________________________________________________________________________
References
Department of Public Works (2014)
Annual Report
of the
Department of Public Works for 2013/14
.
Department
of Public Works (2013a)
Strategic Plan of
the Department of Public Works for 2012 to 2016
.
Minister
of Public Works (2012)
Developing a
Turnaround Strategy: Remarks by Minister of Public Works T.W. Nxesi
,
Department of Public Works Workshop,
23
January.
National Treasury (2014)
2014 Estimates of National Expenditure.
National
Planning Commission (2013
).
Zuma, J.G. (2014)
State
of the Nation Address delivered by President J. G. Zuma,
Parliament of
the Republic of South Africa: Cape Town, 17 June.
[1]
National Planning Commission (2013), p.
15.
[2]
Zuma, J.G. (2014), pp. 7-17.
[3]
Ibid
.,
p.
108.
[4]
Ibid
.,
p.
110.
[5]
Ibid
.,
pp. 100-1.
[6]
Department of Public Works (2014), p. 127.
[7]
Ibid
.,
p. 127.
[8]
Ibid
.,
p. 127.
[9]
National Treasury (2014), p. 102.
[10]
Department of
Public Works (2013
a
).
[11]
Department of Public Works
(2014a).
[12]
Department of Public Works (2014), p.
170-1.
[13]
Department of Public Works (2014), p. 277.
[14]
Department of Public Works (2014), p. 273.
The PFMA is the Public Finance Management Act (No. 1 of 1999).
[15]
Department of Public Works (2014), p. 271.
[16]
Department of Public Works (2014), p. 274.
[17]
National Treasury (2014), p. 31.
[18]
The five main programmes of the Department
are: Administration; Immovable Asset Management; Expanded Public Works
Programme; Property and Construction Industry Policy Regulation; and the
Auxiliary and Associated Services.
[19]
National Treasury (2014), p. 31. The 25%
quarterly expenditure target is the generally accepted expenditure benchmark.
[20]
National Treasury (2014), p. 31.
[21]
National Treasury (2014), p. 33.
[22]
National Treasury (2014), p. 33.
[23]
National Treasury (2014), p. 33.
[24]
National Treasury (2014), p. 33.
[25]
Department of Public Works (2014), p. 132.
[26]
National Treasury (2014), p. 104.
[27] Ibid ., p. 106.
[28]
Ibid
.,
p. 109.
[29]
Ibid
.,
p. 111.
[30]
Ibid
.,
p. 114.
[31]
Ibid
.,
p. 115.
[32]
Department of Public Works (2014), pp. 64-78
[33]
Department of Public Works (2014),
p. 191.
[34]
Department of Public Works (2014), p. 147.
[35]
Department of Public Works (2014), p. 68.
[36]
Department of Public Works (2014), p. 71.
[37]
Department of Public Works (2014), p. 72.
[38]
Southern African Development Community.
[39]
Department of Public Works (2014), p. 78.
[40]
Brazil, Russia, India, China and South
Africa.
[41]
Department of Public Works (2014), p.
138-9.
[42]
Department of Public Works (2014), pp.
79-97.
[43]
Department of Public Works (2014), p. 147.
[44]
Department of Public Works (2014), p. 208.
Earnest and Young was retained to assist in the updating and verification of
immovable assets of the Department.
[45]
Department of Public Works (2014), pp.
80-2.
[46]
Department of Public Works (2014), pp. 83-4.
[47]
Department of Public Works (2014), p. 94.
[48]
Department of Public Works (2014), p.
96-7.
[49]
Department of Public Works (2014),
p. 99.
[50]
Department of Public Works (2014), pp. 98-9.
[51]
Department of Public Works (2014), p. 147.
[52]
Department of Public Works (2014), p. 191.
[53]
Department of Public Works (2014), p. 171.
[54]
Programme 4 responsible for the
finalisation of a Bill to constitute Agrément South Africa as a juristic
person; and to provide a new legislative framework for the Expropriation Act,
(No. 63 of 1975).
[55]
Department of Public Works (2014), p. 102.
[56]
Department of Public Works (2014), p. 190.
[57]
National Treasury (2014), p. 35.
[58]
National Treasury (2014), p. 35.
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