ATC151120: The 2014/15 Budgetary Review and Recommendation Report of the Portfolio Committee on Public Works on the performance of the national Department of Public Works, dated 19 November 2015

Public Works and Infrastructure

The 2014/15 Budgetary Review and Recommendation Report of the Portfolio Committee on Public Works on the performance of the national Department of Public Works, dated 19 November 2015
 

1.            Introduction

Section 77(1) of the Constitution vests power in Parliament to amend money bills. The Constitution defines a money bill as a bill that appropriates money; imposes, abolishes, or grants exemptions from national taxes, levies, duties or surcharges; or authorises direct charges against the National Revenue Fund. Section 77(3) of the Constitution requires that an Act of Parliament provides the procedure along which the national legislature may amend money bills.

 

The Money Bills Amendment Procedure and Related Matters Act (Act No. 9 of 2009) provides the procedure that Section 77 of the Constitution requires. Section 5(1) of the Money Bills Amendment Procedure and Related Matters Act states that “The National Assembly, through its committees, must annually assess the performance of each national department”. In Section 5(2), the Act states that committees must “annually submit budgetary review and recommendation reports for tabling in the National Assembly for each department”.

 

The budgetary review and recommendation report (BRRR) is a key component of the oversight that this Portfolio Committee exercises over the national executive authority that is responsible for the national Department of Public Works (DPW).

 

This report is focused on the DPW’s performance over the completed financial year that stretches from 01 April 2014 to 31 March 2015 (2014/15).

 

The role of the Committee:

Parliament, through its Committees, does oversight over the national executive authority and how it uses the budgetary allocation to its Department to fulfil its mandate. The Committees of the National Assembly submits annual budgetary review and recommendation reports (BRRR) after the adoption of the Appropriation Bill, and prior to the adoption of the reports on the Medium Term Budget Policy Statement (MTBPS)[1].

 

In doing oversight over the Department and how the national executive gave effect to its mandate, the Committee does oversight over whether, and to what extent, the DPW has done what it is mandated to do, using the allocated funds to perform its mandated functions.

 

The mandate of the Department of Public Works (DPW):

The mandate of the DPW is described in the Government Immovable Assets Management Act (2007) as the efficient and effective planning of immovable asset management within government, including the improvement of service delivery to departments through the performance of maintenance, property management, project management, and leasing duties.

 

The Department is responsible for the official accommodation of all national departments, and all Members of Parliament. It is mandated to provide construction, maintenance, and property management services to all client departments at national level. This includes the rendering of expert built environment services that are related to the planning, acquisition, management and disposal of immovable assets.

 

The Department is also mandated to provide strategic leadership with employment creation through the implementation of phase three of the Expanded Public Works Programme (EPWP III). The department plays a coordinating and capacity-enhancement role with provincial and local government counterparts to ensure the implementation of the EPWP III.

 

1. Evidence that the committee used

In performing its oversight duty, and following the procedure as set out in the Money Bills Amendment and Related Matters Act (2009), to assess the Department’s performance, the Committee used evidence as set out below:

 

1. The Department’s five year strategic plan, medium term estimate of expenditure, and stated objectives as tabled in Parliament;
2. Quarterly Expenditure reports as per Section 32 of the Public Finance Management Act (PFMA);
3. Financial statements in the 2014/5 Annual Report;
4. The oversight events of the Portfolio Committee on Public Works;
5. The performance audit of the Office of the Auditor-General on the DPW’s financial statements for the 2014/15 financial year;
6. The performance audit of the Office of Auditor-General on the financial statements of the entities reporting to the Minister of Public Works for the 2014/15 financial year.

 

1. Structure of this report

The review consists of seven sections; sections one to five reviews the performance of the DPW and the entities reporting to the Minister of Public Works. Throughout the report, reference is made to such matters of concern at the end of several sub-sections. These matters of concern are later crafted as recommendations that the Department’s Executive Authority may use to ensure consistency between the Department’s mandate, the policy it makes, and the programmes through which it gives effect to the stated outcomes in its Annual Performance Plan, the MTEF, and the National Development Plan.

 

The seven sections out of which the report consists are as follows:

• Assessment of the alignment between the stated objectives in the Department’s Strategic Plan, Annual Performance Plan, the Medium Term Expenditure Framework, and the Annual Report.
• Matters that emerged from the Quarterly Expenditure Reports.
• Matters that emerged from the Financial Statements in the DPW’s 2014/5 Annual Report.
• Matters that emerged from the oversight events of the Portfolio Committee, as well as from the performance audit undertaken by the Office of the Auditor-General on the Financial Statements in the DPW’s Annual Report for the 2014/5 financial year.
• Matters emerging related to the Annual Performance Reports of the entities reporting to the Minister of Public Works:
  • The Independent Development Trust (IDT).
  • The Council for the Built Environment (CBE).
  • The Construction Industry Development Board (CIDB).
  • The Agrément South Africa (ASA).
• Recommendations.

 

1. Assessment of consistency between the legal mandate, policy, and planned initiatives as stated in the Department’s Strategic Plan, Annual Performance Plan, the Medium Term Expenditure Framework (MTEF), and the Annual Report

A comparison between the Strategic Plan, Annual Performance Plan and the Annual Report shows consistency regarding the legal mandate, policy, and planned initiatives to give effect to them, as well as the priorities and outcomes of the National Development Plan. The Committee’s oversight activities, however, revealed weaknesses that need attention to ensure that this consistency is maintained. Some of these weaknesses have further been repeated in the opinions made by the Office of the Auditor-General in its report in the Department’s Annual Report and its financial statements.

 

The Department of Public Works Strategic Plan

1. The Constitutional mandate

The Constitutional mandate of the DPW is provided for in Schedule 4, Part A, of the Constitution of the Republic of South Africa stated as Functional Areas of Concurrent National and Provincial Legislative Competence.

 

1. The legislative mandate

The following Acts provide the legal mandate:

1. Government Immovable Asset Management Act, 2007 (Act No. 19 of 2007);
2. the Construction Industry Development Board Act, 2000 (Act No. 38 of 2000);
3. Council for the Built Environment Act, 2000 (Act No. 43 of 2000);
4. Professional Council Acts that regulate the six Built Environment Professions (BEPs);
5. Public Finance Management Act, 1999 (Act No. 1 of 1999).

 

1. The policy of the DPW

The policy is in part, outlined in the following policy texts:

1. DPW White Paper: Public Works, Towards the 21st Century, 1997;
2. DPW White Paper: Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry, 1999;
3. Construction Sector Transformation Charter, 2006;
4. Property Sector Transformation Charter, 2007;
5. DPW Broad-based Black Economic Empowerment Strategy, 2006;
6. Property Management Strategy on BBBEE, Job Creation and Poverty Alleviation, 2007;
7. Green Building Framework, 2011.

 

In its meetings with the Department during the period under review the Portfolio Committee stated that these policy texts required urgent work to ensure that they are properly aligned to specific structures within the Department, the Property Management Trading Entities and the entities reporting to the Minister.

 

The Committee noted that some of the work has been initiated through the Turn-around Strategy of the Department. The Committee welcomed the statements by the Department that as part of its Strategic Plan and Annual Performance Plan, it planned to revise the White Papers and prepare relevant legislation to ensure that the Department is best mandated and positioned to give effect to its Constitutional mandate. 

 

Strategic policy priorities in the Performance Agreement of the Minister of Public Works in the current MTEF, 2014 – 2019

The following Government priorities form the basis of the Department’s Strategic Plan informed by the Performance Agreement of the Minister of Public Works and the 2014-2019 Medium Term Strategic Framework:

 

1.  Outcome 4 (Chapter 3 of the NDP) - Decent employment through inclusive economic growth. The Department designed Phase III of the Expanded Public Works Programme and reported to the Committee on a focus on funding training in projects. It also highlighted how this phase would, with the collaborative work across national and provincial spheres as well as with other Departments, address the attempt to provide job opportunities to ensure inclusive economic growth.

 

1.  Outcome 5 (Chapter 9 of the NDP) – Skilled and capable workforce to support an inclusive growth path. The Department uses its allocated budget to roll out a combination of development programmes such as the young professionals programme, its internship programme, learnership programme, and artisan programme. Through these it attempts to achieve the stated policy objective of providing valuable on the job experience to young people who are in the preparation phase of entering the formal employment sector of the South African economy.

 

1.  The Department has taken a comprehensive approach to promote sustainable growth of the Built Environment Professions (BEPs).  This effort falls within the focus of the Council for the Built Environment which has initiated a Skills Development Programme with schools to support learners undertaking Mathematics and Science to assist them to pursue a career in the built environment.

 

1.  Outcome 13 (Chapter 11 of the NDP) – “The provision of work opportunities is one of the best forms of social protection”, is aligned with the EPWP’s current primary objective of providing the unemployed with an opportunity to work, thus empowering vulnerable families in South African communities.

 

Planned programmatic initiatives to give effect to the stated policy are as follows:

The Department stated that it planned to review and/or develop the mentioned policies and legislation in the following ways:

1. The Department is coordinating various projects with other spheres of government, entities and Departments to implement Phase III of the EPWP.  EPWP as Programme of DPW in the 2014/15 financial and for the MTEF period to the 2018/19 financial year, aims to create 6 million work opportunities is part of ongoing efforts to provide an effective cushion for the poor and unemployed who fall outside of the formal employment sector of the economy.

 

1. The Department is undertaking a review the Department’s White Papers: “Public Works towards the 21st century, 1997; and “Creating an Enabling Environment for Reconstruction, Growth and Development in the Construction Industry, 1999” to culminate in a Public Works Bill that would establish the necessary enabling legislation for the Department to fully exercise its Constitutional, policy and legal mandates.

 

1. DPW is establishing the Agrément South Africa (ASA) as a public entity mandated to assess non-standardised and/or unconventional construction products, materials and systems fit for purpose.

 

1. Developing a draft Built Environment Professions (BEPs) Policy towards possible amendments to the legislative framework governing the BEPs and the Built Environment Professional Councils (BEPCs).

 

1. Promulgating a new Expropriation Act (repealing the Expropriation Act 63 of 1975) to ensure consistency with the Constitution and uniformity in the expropriation of property by all expropriating authorities.

 

1. The Department is developing legislation to establish the Independent Development Trust (IDT) as a freshly reformulated organisation that can fully function as a project management agency that supports government in the delivery of much needed social infrastructure across the urban-rural ‘divide’.

 

1. DPW is developing a Green Building Policy and Strategy for the Department to, in coordination with relevant sister departments, give effect to Government’s green economy initiatives.

 

1. Matters that emerged from the Quarterly Performance and Expenditure Reports

In doing its oversight over the quarterly performance through expenditure reports over the Department during the period under review, the Portfolio Committee noted:

 

1. A need for consistency of categories in reports to ensure systematic in-year quarterly and year-on-year reporting

During the Financial Year under review, through its oversight meetings, the Portfolio Committee found that the Department often diverted from the previous year’s categories in reports which resulted in issues raised in previous years having been moved to other or new categories in reports. This meant that issues of concern often disappeared in reports, or at the very least, were given a different emphasis. This threatens to water down serious matters that influence implementation of programmes and slow down service delivery.

 

Example: In the First Quarter Performance Information report for the 2014/5 financial year, the DPW included a section that focused on the financial component that was spent on its turnaround strategy. In the Fourth Quarter of the same financial year, this was omitted. This makes it difficult for the Committee to effectively compare and check progression or regression of the Department’s stated strategic objectives. The Department explained that it would report on the turnaround strategy separately[2]. However, it was important that the Department had to, in the year under review, continue including the same categories of information in that financial year’s quarterly reports to the committee rather than omitting it.

 

1. A need for consistency on reporting on targets stated and achieved from one quarter to the next

The Department is a regulatory and coordinating Department in employment creation, and the construction and built environment; it has entities reporting to it that works on programmes and projects that have multi-level targets. This means that, to fully achieve and complete targets, one phase of achievement unlocks the progression to another phase. The Department would often in one financial quarter refer to a target that was achieved, and that this achievement would unlock the next phase; however, it often does not show evidence of having followed this up in the following financial quarter when the next phase of achievement needed to be reported on.

 

Example: In meetings with the Committee, the Department often referred to the number of beneficiaries that benefitted from employment opportunities created in one financial quarter and that the beneficiaries would receive skills training. In the following quarter, the Portfolio Committee would expect the performance report to state how many of those who were placed in employment in the previous quarter, actually received skills training, how many received diplomas, how many dropped out, or moved into the formal employment sector due to skills training that they received. This information is often not part of the reports and presentations of the Department. The Committee would then have to request this in its recommendations. This could have the effect of service delivery being effectively slowed down.

 

1. Evidence of spending allocated funds close to the end of the financial year to ensure that the allocation is not in jeopardy for the following financial year

Example: In the fourth quarter report of the 2014/5 financial year, under Programme 4, Property and Construction Industry Policy Regulations, due to vacant positions in the branch, there was underspending of R 1 million. While the Committee noted and accepted the explanation given, this trend is worrying as it gives the impression that the positions were filled in a hurry close to the end of the financial year to ensure that the financial allocation would not be in jeopardy for the following financial year. Such impressions may be incorrect, but the manner in which allocated funds is spent so close to the end of the financial year, nevertheless cause the impression to persistently exist.

 

1. Matters emerging from the Financial Statements in the DPW’s 2014/5 Annual Report

6.1. Budget Allocations over the last two financial years

	2014/15	2013/14
Budget allocation	R 6.121 billion	R 6.175 billion
Actual Expenditure	R 6.022 billion	R 6.022 billion
Actual: Spent Budget %	98%	97%
Unspent funds	R  99 million	R  153 million
Actual: Unspent Budget %	2%	3%

 

6.2. Expenditure per programme for 2014/15

2014/15
	Amounts Appropriated	Actual Expenditure	Variance	Expenditure
	R'000	R'000	R'000	%
Administration	1 179 272	1 174 805	4 467	99.6%
Immovable Asset Management	2 829 033	2 758 122	70 911	97.5%
Expanded Public Works Programme	1 946 480	1 925 580	20 900	98.9%
Property And Construction Industry Policy Regulations	34 336	31 363	2 973	91.3%
Auxiliary And Associated Services	132 199	132 168	31	100.0%
Totals	6 121 320	6 022 038	99 282	98.4%

 

Matters noted as stated in the Annual Report per Programme:

Programme 1: Administration

The underspending of R4.5 million[3] in Programme 1 related to the following:

• Compensation of Employees’ underspending of R3.7 million.

In both the fourth quarterly report and its Annual Report, this was explained as due to vacant positions in the last quarter of the financial year.

• Goods and Services under-spending of R340 000.
• In both the fourth quarterly report and its Annual Report, this was explained as due to invoices being received late and reported as accruals.
• Transfers and Subsidies (for household) underspending of R436 000.

In both the fourth quarterly report and its Annual Report, this was explained as due to lesser commitments for leave gratuities that were made in the financial year under review.

 

The Programme reported a high vacancy of 155 from a total of 1 184 posts. The Programme had 1 129 filled positions, with an added 542 posts filled additional to the establishment.[4]

 

The Administration programme consists of six sub-programmes of which only Monitoring and Evaluation met its targets. The other five did not meet their performance targets, and include:

• Internal Audit introduced a new audit approach and methodology that required additional on the job training for staff. It therefore only completed 22 of 27 approved Internal Audit Plans.[5]
• Inter-Governmental Relations co-ordinated 3 of a targeted 4 quarterly performance review meetings with the ASA, CBE, CIDB, and IDT.
• Strategic Management Unit 12 Strategic Policies and Procedures were not uploaded within 14 days due to the dysfunctional Knowledge Management System and its replacement with Papertrail (a central hub for uploading documents).[6] 
• Corporate Services met 8 of its 9 targets. The revised organisational structure of the Department was not approved. This resulted in the review of the Human Resources (HR) Plan (that would act as a baseline for human resource capacity projections not being finalised.[7]
• Finance and Supply Chain Management achieved 6 of its 10 targets.

 

Programme 2: Immovable Asset Management

Programme 2 is one of the main programmes of the Department and received R2.83 billion of the total Department allocation. Immovable Asset Management Programme consists of six sub-programmes, none of which achieved all their stated performance targets for the financial year under review.

 

It reported on 43 targets of which 38 or 88.4% were achieved.[8]  At the end of the financial year a total of 5 of the targets were not achieved, while R2.76 billion or 97.5% of the programme’s budget was spent.

 

As in the fourth quarterly report that the DPW presented to the Committee, the Department stated that the underspending of R71 million in Programme 2 related to payments for capital for buildings and other fixed structures due to a delay in implementing infrastructure projects. This resulted in payments being made late under PMTE and not being recovered from the Department. The DPW engaged with National Treasury for the reallocation of these funds to the PMTE, in line with the transfer of functions as funds have already been spent.

 

The Programme has 4 520 posts filled from a total of 5 895. The Programme reported a vacancy of 1 375 posts, and 552 positions additional to the establishment were filled.[9]  

In the year under review the DPW spent a total of R480.2 million on consultants, contractors, agency/outsourced services, computer services, infrastructure and planning, and legal services.[10]

 

The Turnaround Strategy introduced by the Minister of Public Works in 2012 included the finalisation of a usable, updated and comprehensive Immovable Asset Register (IAR). This remains one of the requirements for the Department to receive a clean audit.

 

Concerns noted:

1. The following targets were not achieved in Asset management:[11] 

• Asset Investment Management sub-programme achieved nine of the 11 performance targets. Asset Management populated the Immovable Asset Register with GRAP compliant information fields of 32 677 properties (a deviation of 24 194) of a targeted 56 871 properties.
• Confirmed ownership (Vesting) of 761 land parcels (a deviation of 10 239) from the target of 11 000.
• Valued 45 907 to determine the deemed carrying value of a targeted 113 742 immovable assets. A total of 67 835 immovable assets were not valued.
• Two of 22 planned properties were approved by the Minister of Public Works for release for human settlements. A total of 20 were not approved.  
• One of the 40 planned properties (as identified by the Department of Rural Development and Land Reform) were released for land reform purposes. 
• The following policies were not approved by the Accounting Officer by 30 September 2014:

• Property Performance Standards.
• Asset Management Framework.

 

1. Projects and Professional Services sub-programme did not achieve the following targets:[12]

• 180 out of 542 construction projects (a deviation of 362) were completed. 
• While 33 of 51 buildings were made accessible to people with disabilities. A total of 18 were not made accessible according to the Capital Works Implementation Programme (CWIP).
• Completed one (Beit Bridge) of two (Maseru) Master Plans for One Stop Land Ports of Entry.
• None of the targeted 11 User Departments have approved Infrastructure Programme Implementation Plans (IPIPs).
• The target to improve the ratio of Project managers per project of 1:45 remained unchanged from the targeted 1:10 was not achieved.   

 

1. The Inner City Regeneration sub-programme did not achieve 3 of its 7 targets:

• Salvokop Township was not proclaimed due to the incomplete Noise Impact Study;
• Accommodation solutions were not produced for the Department of Public Works; and
• Accommodation solutions remain outstanding for the South African Police Service (SAPS).

 

1. The Operations Management sub-programme achieved two of the seven planned targets with the following targets not achieved:[13]

• Target of 0 expired leases for accommodation not met, with 323 expired leases running on a month-to-month basis.
• A total of 16 of a targeted 43 leases were signed within 30 days after the finalisation of the bidding process.
• Closed 9 680 of maintenance breakdowns against a total of 53 215 open calls.
• Retrofitted 3 of a targeted 11 buildings with water savings installations.
• 0 of the 12 targeted pilot Outcome-based Facilities Management contracts were signed by the Project Manager due to the lack of a maintenance budget to implement the project.

 

1. The Key Accounts Management (KAM) sub-programme achieved:

• 0 of 31 targeted Service Level Agreements (SLAs) were not received from Client Departments. 
• No procurement instructions were issued due to the Capital Works Implementation Programme (CWIP) not being signed-off by Client Departments.

 

1. The Special Intervention Projects sub-programme is a new indicator and did not achieve any of the following three targets:

• None of the 36 Schools prioritised by the Department of Basic Education were constructed.
• None of the 125 Schools prioritised by the Department of Basic Education were beautified due to the project scope of the service provider not being finalised by the Department of Basic Education.
• None of the 10 low-cost Bailey Bridges prioritised by the Department of Public Works were constructed, due to outstanding legal issues with the appointed service provider.

 

Programme 3: Expanded Public Works Programme Phase III

The EPWP received the second largest allocation after Programme 2, with a total of R1.95 billion of which 98.9% or R1.93 billion was spent. It underspent by R20.9 million or 1.1%.

 

The bulk of the allocation, R1.20 billion was transferred to Provinces and Municipalities for payment of Conditional Grants towards the implementation of EPWP III projects.

 

The EPWP staff compliment equals 215 or 81.4%, and a vacancy of 49 positions from 264 available positions.[14] Six positions were filled additional to the establishment.   

 

During the year under review the programme achieved the following:[15]

• Created 1 103 983 work opportunities, thereby exceeding the target of 1 045 000 by 58 983 work opportunities.
• Trained 3 816 beneficiaries through the National Skills Fund, exceeding the target of 800 by 2 016 trained beneficiaries.
• Created 780 033 work opportunities in rural Municipalities, exceeding the target of 600 000 by 180 033.
• Disbursed total EPWP performance-based allocations to all eligible public bodies across the sectors.   

 

The EPWP programme exceeded some of its performance targets as follows:[16]

• Provided technical support to the Provinces, Municipalities, and to other government departments and entities to ensure that all EPWP Phase III requirements were met.
• The programme used alternative procurement processes, making use of the Sector Education Training Authorities (SETAs) to procure the services of training providers.
• The Programme prioritised EPWP III projects that are situated in rural Municipalities.

 

Concerns noted:

1. The following targets were not met: [17]

• The target set of National Youth Service (NYS) participants was not reached; a total of 1 210 out of 3 500 (34.6%) of youth participated in the programme. A further 2 290 of youth participants had to participate in the programme in the year under review.
• A total of 4 343 work opportunities was created for the period under review, which means an underachievement of 15 657 from a target of 20 000 work opportunities.

 

Reasons given for these targets not being met was that delays in procurement processes negatively affected the implementation of projects identified and planned by the Programme.[18]  

 

1. The Auditor-General highlighted the following in terms of the reliability of reported performance information of the EPWP:[19]

 

• Adequate and reliable corroborating evidence could not be provided for 26% 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 implementing bodies of the EPWP programme. 

 

Programme 4: Property and Construction Industry Policy Regulations

Underspending of R3 million in Programme 4 was due to the following:

• Underspending of R1 million allocated for the compensation of employees was explained as due to vacant positions within the Branch, with some posts only being filled in the latter part of the financial year.
• Goods and services underspending of R12.7 million included an original R11 million budget allocation to Agrément SA which was subsequently paid from transfers and subsidies.

A matter that was raised in previous financial years, was that the expenditure for Agrément SA under transfers and subsidies was classified as irregular expenditure as the organisation was not a registered legal entity. The Committee is aware of this and in the year under review, it facilitated the legislation that was needed to make Agrément SA a legal entity.

• Transfers and subsidies over spending of R10.8 million was attributable to the payment made to Agrément South Africa.

 

The Programme’s staff complement consists of twenty-four positions of which eleven are filled and thirteen are vacant, (one post was filled additional to the establishment).[20] This Programme has the lowest vacancy in the Department. In spite of this, it is a crucial programme that deals with policy formulation for the construction and property sectors; and the drafting of legislation,[21] amongst others.   

 

Concerns noted:

This Programme only met three of its seven targets for the financial year under review. The Programme received R34.3 million and spent R31.4 million or 91.3% of its allocation.

 

Four of the programme’s targets were not finalised or approved by 31 March 2015. These targets mainly relate to the finalisation of policies and legislation.[22]

• Final Built Environment Professions legislation was not submitted to Cabinet for approval to gazette for public comment.
• The revised Bill dealing with the Independent Development Trust (IDT) was not developed, due to the legislation being replaced by the revision of the IDT’s Business Case to establish it as Institution of Government.
• The revision of the Draft White Papers on Public Works functions, and the Construction Industry were not developed.
• The revised Construction Sector Codes were not submitted to the Department of Trade and Industry (DTI) for gazetting.
• The final Draft of the Immovable Asset Investment Policy was not submitted to the Minister for approval.

 

Explanations provided included the following:

1. delayed internal consultation processes;
2. revision of type of legislation required to address challenges of the IDT; and
3. underestimating the duration of consultation processes with key stakeholders, and inadequate internal capacity.

 

Programme 5: Auxiliary and Associated Services

The Department reported that it spent 100% in this Programme. 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 R132.19 million which was increased by R31.0 million from the R101.2 million received in the 2013/14 financial year. A total of R132.17 million or 99.9% of the allocation was spent.

 

The Programme underspent by R31 000 of which R30 000 was underspent on the Sector Education and Training Authority (SETA) and R1 000 on Distress Relief sub-programmes.[23]

The Department exceeded its planned performance target by 10 when it provided infrastructure support for 23 planned Prestige Events. It also reported providing infrastructure support for 10 unplanned Prestige Events.[24]

 

The highest spending occurred during May 2014. During April 2014, the Department spent the least at R1.1 billion. Spending activity spiked in May, August, October and November 2014 and February 2015. In its Annual report the DPW explained that this was high as it included transfers that was paid to the IDT, CIDB, CBE and Agrément SA, the EPWP Non-State Sector, the EPWP Incentive Grants to the provinces, and the municipalities.

 

The allocation of R67.7 million towards State Functions was increased to R107.9 million due to the virement of R40.3 million from Goods and Services.[25]

 

These two sub-programmes under the Auxiliary and Associated Services programme usually receives the bulk of the programme’s allocation.

 

Concern noted:

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 under Programme 5. There has been a stated need for the Department to develop policies to guide how it would manage the uncertainty related to planning for certain state functions. The Committee did not yet receive a briefing on such policies and the necessary guide documents. 

 

6.3. Matters related to Human Resource Management

The Department has a total of 7 367 posts of which 5 775 were filled at the end of 2014/15 with another 1 101 filled positions additional to the establishment.[26] During the year under review, the Department’s vacancy stood at 1 592. 

 

The largest portion of the 1 592 vacancies falls under Programme 2: Immovable Asset Management followed by Programme 1: Administration with a total of 1 375 and 155 vacancies respectively. The two programmes also have the largest portion of Filled Posts Additional to the Establishment: 552 and 542 for Programmes 2 and 1 respectively. 

 

A total of 434 positions on the establishment were in areas of critical occupations that included: Architects, Town and Traffic Planners; Chemical and Physical Science Technicians; Civil Engineering Technicians; Engineers and related professionals; Mechanical Engineering Technicians; Quantity Surveyors.

 

 

 

 

 

 

 

 

 

Table 1: Positions filled and remaining vacancies per Programme[27] for the 2014/15 financial year:

		Number of Posts	Filled Posts	Vacant Posts	Posts Filled Additional to  Establishment
		1 184	1 029
	Immovable Asset Management	5 895	4 520	1 375
	Property and Construction Industry Policy Regulations
TOTAL		7 367	5 775	1 592	1 101

 

The Department filled 257 of these critical positions (as well as an additional 49 posts additional to the establishment), but had a vacancy of 177.[28]  The largest vacancy was in the Engineers and related professionals field with a total of 106 vacant positions, of which only 152 of 258 posts were filled. Another 23 positions were filled additional to the establishment. The Department also had a vacancy of 21 from a total of 31 posts in the Civil Engineering Technicians field, with only 10 positions filled and 1 additional to the establishment. The Mechanical Engineering Technicians field had the highest vacancy of 14 in terms of available positions 17, with only 3 positions filled and 0 additional to the establishment.

 

The Department appointed a total of 49 people in posts that were filled additional to the establishment. The impact of this meant that the positions that were already vacant on the establishment’s organogram were therefore not filled.

 

 

 

 

 

 

Table 2: Reasons given for personnel leaving the Department

Termination Type	Number for 2014/15	Number for 2013/14[29]
Death
Resignation
Expiry of Contract
Discharged due to ill health
Dismissal – misconduct
Retirement

 

 

Matter of concern noted:

The Committee noted that a total of 646 (91.6%) of personnel left the Department due to contracts expiring, resignations and retirement. It is crucial that in future, the Department include in the section dealing with human resources, a comprehensive plan to ensure that it has measures in place to specifically deal with vacancies; such a plan should also show a succession plan that ensures a core personnel component, and the filling of professionals who possess scarce skills.

 

A total of 92 misconduct and disciplinary hearings were finalised and include:[30]

• 8 – Dismissals.
• 5 – Suspension.
• 3 – Demotion.
• 16 – Final written warnings.
• 49 – Written warnings.
• 4 – Verbal warnings.
• 5 – Corrective counselling.
• 1 – Case dismissed.
• 1 – Not guilty.

 

 

The reasons for the misconduct and disciplinary hearings included:[31]

• 3 due to allegations of bribes or committed fraud, corruption and nepotism.
• 1 due to allegations of theft.
• 5 due to failure to comply with procurement procedures, unauthorised, irregular, fruitless and wasteful expenditure.
• 4 due to alleged assault.
• 6 due to alleged misuse, abuse or unauthorised use of State property. 
• 25 due to alleged negligence and dereliction of duty.  

 

The Department reported that three persons were under precautionary suspension for a period exceeding 30 days. The average number of days of suspension equalled 90 days at a cost of R185 880.[32]

 

 

1. Matters raised by the Office of the Auditor-General and challenges noted by the Committee
   1. The quality of in-year quarterly performance reports
      1. The Department prepared quarterly financial statements that were used as the basis for the DPW and PMTE’s quarterly financial reports to the Portfolio Committee.
      2. The PMTE only prepared interim, half-yearly financial statements and this is not compliant with Generally Recognised Accounting Practice (GRAP).

 

1. Efficiency and effectiveness of internal control systems
   1. R35 billion reported as irregular expenditure in the 2013/14 financial year; due to consequence management the Department initiated investigations to reduce the amount and tighten up internal control systems.
   2. In spite of this, the Department and PMTE did not maintain consistent, effective, efficient and transparent internal control systems in the 2014/15 financial year.
   3. With regards to performance information, the Department (Main Vote) did not maintain the desired control system as regulated by the PFMA.

 

 

Challenges that emerged due to the above:

• Account balances under the PMTE were not fairly stated at the end of this financial year (2014/15).
• In spite of notable improvements due to the above consequence management, there is still much needed improvement needed due to turnaround times and low success rate of prosecuted cases.

 

1. Risk management
   1. In the second half of the 2013/14 financial year the Department operationalized the Governance Risk and Compliance Branch.
   2. This resulted in an increased focus throughout the Department on issues of Risk Management.

 

1. An Evaluation of Annual Financial Statements
   1. The Department received an unqualified audit opinion for the 2014/15 financial year.
   2. The key milestone in the current year was the resolution of the completeness and accuracy of Operating Leases. 
   3. Reasons for the PMTE’s qualified audit opinion in 2013/14:

• Incompleteness of the R35 billion that was reported, due to irregular expenditure;
• Incompleteness of Operating Lease Assets and Receivables and relating to Operating Leases Expenditure and Associated Liabilities;
• Accrual balance.
  1. Reasons for the PMTE’s qualified audit opinion in the 2014/15 financial year:

• The incompleteness of property maintenance accruals and its matching expense;
• The incompleteness of municipal services accruals as well as the matching completeness of revenue accrual given that such municipal services ordinarily would have been recovered as revenue from the relevant client departments.
• The validity of property rates expenditure as they could not be linked to the asset register.

 

The Committee noted that the Auditor-General reported that the Department (the Main Vote) has continued to maintain an unqualified audit report.

 

On the emphasis of matters, the Auditor-General reported on the inadequacy of the Performance Management Information wherein in particular the Expanded Public Works Programme (EPWP) was identified as having an inadequate portfolio of evidence to substantiate the reported level of performance. This matter was also reported as in the prior year and requires attention from the Accounting Officer and his team to ensure that this does not recur in the next financial year.

 

1. Matters that emerged related to the Annual Performance Reports of the entities reporting to the Minister of Public Works
   1. The Independent Development Trust (IDT)

The Independent Development Trust (IDT) was established in 1990 as an independent civil society, temporary grant-making agency with an initial endowment of R2 billion.  The IDT is now an important part of the broader Public Works family, with a focus on providing programme and project management capacity, along with social facilitation, in the construction and maintenance of social infrastructure, including schools, clinics, magistrates courts, and community centres.  The IDT is currently a Schedule 2A Public Entity governed by a Deed of Trust.  However, the IDT’s institutional structure is inappropriate for its current critically required, developmental operations and activities.

 

The IDT’s programme managed the delivery of programmes to the value of R6 372 billion. Approximately R5 734 billion amounting to 90% of its expenditure, was used to deliver social infrastructure. The IDT supported 44 Government Departments to achieve its social delivery programmes to the previously disadvantaged and vulnerable sectors of society. It did this by, in part, using R4.287 billion amounting to 67% of its annual programme through BBBEE compliant contractors. The IDT assisted in creating employment opportunities by creating 74,251 work opportunities through its contribution to the EPWP-NSS (Non-State Sector) and social infrastructure delivery programmes and working with 378 grassroots cooperatives, Not for Profit Organsiations (NPOs) and Community-based Organisations (CBOs).

 

Working in line with the Minister’s policy emphasis on women and youth, the IDT awarded contracts to the value of R1.72 billion and R1.08 billion respectively to women and youth-owned and controlled contractors. This has seen the participation of women in the Contractor Development Programme (CDP) reach 67% of total participants compared to 60% five years ago. Furthermore, the percentage of contracts awarded to CDP participants constituted 3.5%, that is, R225 million of the annual programme expenditure.

 

The Committee is concerned that the growth of the IDT’s workload is having unintended, negative consequences. This relates to finalising the reconfiguration of the entity into government’s key project management agency for social development and social infrastructure projects.

 

The DPW’s Construction and Property Policy Regulation branch is in the process of developing a Business Case for the IDT to ensure its long-term viability and to help to consolidate it as a key State implementing arm in the construction and maintenance of social infrastructure.

 

1. The Council for the Built Environment (CBE)

The CBE has the mission to be a responsive, relevant advisor and implementer of Government’s priorities in the built environment, to lead and support ongoing transformation, and the development and regulation of the built environment professions.

 

The CBE together with six Built Environment Professional Councils (BEPCs) derive their mandates from their enabling legislation.  The six BEPCs are the Engineering Council of South Africa (ECSA), the South African Council for the Architectural Professions (SACAP), the South African Council for the Quantity Surveying Profession (SAQSP), the South African Council for the Landscape Architectural Profession (SACLAP), the Project and Construction Management Council, and the SA Council for the Property Valuers Profession (SACPVP).

 

The CBE has aligned its five (5) year Strategic Plan and subsequent Annual Performance Plan to the outcomes of the National Development Plan (NDP). There is an ongoing sensitisation of the BEPCs of the importance to contribute to the outcomes outlined in the NDP as they form the core of the Minister’s policy that guides the on-going work of the Department and the entities reporting to him.

 

The CBE has three primary roles:

• A developmental role (human resource development, training and competence development, standards of education and skills training in the built environment).
• A regulatory role (it promotes sound governance of the built environment professions and ensures uniform application of norms and guidelines set by the BEPCs throughout the built environment).
• An advising role to government on built environment matters (it facilitates inter-ministerial cooperation related to issues in the construction industry and built environment).
• Built environment professions and skills are of national interest – they are key to the existing government infrastructure (service delivery issues) and planned government infrastructure programme (Strategic Infrastructure Projects (SIPs through Presidential Infrastructure Coordinating Commission (PICC).

 

In his inauguration speech to the 4th Term CBE Council[33] the Minister summarised the challenges in the sector as follows:

1. There are corporate governance challenges and the pace of transformation of the built environment professions in terms of race and gender is far too slow.
2. There is a lack of alignment to government policy by the six BEPCs.
3. There is a disjuncture in the business plans of the BEPCs and that of the DPW.
4. The six BEPCs have not sufficiently embedded in business plans their contributions to government’s national priorities.
5. There are challenges related to the accountability of the six BEPCs.
6. The BEPCs seems to perceive themselves as independent of the State, representing the interests of professionals in their respective sectors.
7. The BEPCs are not monitored on a regular basis to ensure implementation of their legislative mandates.

 

The Minister stated the following as priorities and expectations for the 4th Term of the CBE Council to address the mentioned challenges:

1. Ensuring effective alignment to government policies.
2. Drive the agenda of a built environment that is responsive to the needs and priorities of the country; including supporting initiatives for strengthening of built environment technical capacity for the State and the country.
3. Drive and support built environment professional councils and industry, in undertaking transformation initiatives at schools, tertiary institutions and entire skills value chain.
4. Undertaking quality assured workplace training programmes to increase registered and competent professionals.
5. The Council must ensure that the CBE partners with the Construction SETA (CETA) for workplace training of candidates and interns, including the Department of Public Works (including Provinces), Water Affairs, National Treasury, ESKOM, PRASA, SANRAL, Transnet and the Municipal Infrastructure Support Agency (MISA); as workplace host partners with the CBE.
6. Ensure that registered candidates gain structured workplace training and experience to allow them to upgrade to professional status within the prescribed period.
7. Engage academic institutions to incorporate health and safety and labour intensive construction modules, into built environment curricula.
8. Research and provide cutting edge information to guide decisions on a variety of built environment matters.
9. Promote and protect the interest of the public in the built environment and monitor professional councils.
10. Ensure that the CBE partners with countries in Africa with a special interest in Africa-wide infrastructure.

 

In his response to the Portfolio Committee’s oversight queries[34], the Minister stated that the CBE and the BEPCs have responded to the challenges mentioned and aligned its strategic actions with the NDP and its outcomes as follows:

MTSF OUTCOME	CBE MANDATE	ACTIONS IDENTIFIED FOR JOINT EXECUTION BY CBE/BEPCs
Outcome 4: Decent employment through inclusive economic growth.	Facilitate participation by the built environment professions in integrated development in the context of national goals.	Curricula and the education of built environment professionals embodied in educational programmes, influence their knowledge in infrastructure design and its performance against the goals of job creation through labour intensive construction and thus their contribution to job creation, poverty alleviation and sustainable economic development.
Outcome 4: Decent employment through inclusive economic growth.	Engage with BEPCs on implementation of Transformation Model, enriching of BE curricula and Continuous Professional Development (CPD) Policies	National standards set the conceptualisation and design parameters of infrastructure projects and it is imperative that they reflect adequate standards and performance criteria towards appropriate outcomes in job creation through labour intensive construction, operation and maintenance. The CBE working with DPW EPWP/ILO to design training programmes for professionals to adopt labour intensive techniques. During the 2016/17 financial year there will be vigorous campaigns to transform professional companies receiving work from the Government
Outcome 5: A skilled and capable workforce to support an inclusive economic growth.	Promote on-going human resource development in the built environment	The extension of the skills pipeline at different levels, i.e. Maths and Science support to grade 10 -12 learners. Structured Candidacy Training for interns and Candidates. Continuous Professional Development programmes through BEPCs

 

In its interactions over the period under review, the Committee was concerned that transformation in terms of race and gender in the built environment professions is almost stagnant. In spite of improving the alignment of mandates and key performance indicators and outputs in Annual Performance Plans and Strategic Plans to that of the National Development Plan, this remains the challenge that requires urgent attention.

 

The Minister unpacked components of this challenge as follows in his inauguration speech of the CBE Council on 5 September 2014:

1. Throughput challenges in the pipeline starting from poor mathematics and science base at schools, the throughput rate of tertiary graduates and bottlenecks in moving from candidacy to registered professionals.
2. The absence of a workplace training programme that links to professional registration.
3. No incentive/disincentive for any workplace to encourage professional registration.
4. No incentive/disincentive for any recent graduate/candidate to register with six BEPCs.
5. No framework to understand and monitor what happens at the workplace - no information on every graduate/candidate regarding what they do in the workplace.
6. A BE graduate’s fate in SA is determined by who becomes their first employer and subsequent employer.
7. There are allegations of side-lining, discrimination and deskilling of Black graduates, in the workplace.
8. Perception that the assessment process of candidates is uneven, not transparent and biased and a perception of gate-keeping by professional councils.
9. There is no system of periodic progress tracking of candidates acquisition of knowledge in the workplace, candidates only realise when they present themselves for registration, whether they are deemed registerable or not.
10. End-result: Example: 2/3 of graduated engineers in SA not registered with Engineering Council of South Africa (ECSA) and more than 50% architectural graduates, not registered with the South African Council of Architectural Professions (SACAP).

 

1. The Construction Industry Development Board (CIDB)

In its Strategic Plan and Annual Performance Plan, the CIDB stated its responsibilities as follows:

1. mitigating risks in the public sector construction procurement environment; and
2. providing leadership to the construction industry and to stimulate sustainable growth.

 

Although not specifically stated as such, the above means that the CIDB should:

1. Play a strong transformatory role in terms of setting standards through grading criteria for inclusion of contractors on the register of contractors;
2. Instead of the current focus on the ability of contractors to manage a particular size of budget per contract for grading, the CIDB must work on including other aspects that places a focus on how contractors ensure (i) quality of construction, (ii) development of their artisans, (iii) transformation of their companies to ensure greater gender and racial equity.
3. Criteria for inclusion in the register of contractors should be crafted to include punitive measures as regulatory tool to keep contractors from corrupt behaviour in the industry (such as collusive behaviour).

 

Outputs include:

1. developing standards for government tenders;
2. maintaining a national Register of Projects;
3. establishing and maintaining a grading system for contractors; and
4. establishing and maintaining a contractor register.

These outputs function as both a risk management tool for clients as well as a development tool for emerging contractors. The CIDB can de-register contractors for non-performance and for breaches of the CIDB Code of Conduct. This aspect makes it a useful tool to consider utilising to ensure that the quality and time-management of government projects are better managed. It can also be used to keep contractors to stated outputs in tenders and contracts that go before banks, and other development finance institutions.

 

Contractor development:

The National Contractor Development Programme (NCDP) programme is managed by the Construction Industry Development Board (CIDB) as the main driver of contractor development in the country. CIDB supports government departments and state entities in the development and implementation of contractor development programmes.

 

The Executive Authority has the responsibility to enhance support, to empower and to develop emerging female and black contractors in the construction sector.

 

8.4. Agrément South Africa

Agrément South Africa functions under a ministerial delegation of authority reporting to the Ministry of Public Works.

 

The organisation tests alternative building material, construction products and systems to be used in the built environment and construction industry. It “assesses the fitness-for-purpose of non-standardised building and construction products and systems by applying performance-based criteria in its assessment procedure.”[35] Once assessed, the manufacturers receive certification that provides the consent for the material, products or systems to be used by the construction industry and built environment. 

 

As an independent technical assessment organisation to the construction industry and built environment, Agrément South Africa is clearly plays a key role in ensuring that the social infrastructure needs of the country is adequately provided in line with the objectives of the National Development Plan.

 

The entity is a founding member and internationally affiliated through its membership of the World Federation of Technical Assessment Organisations (WFTAO).[36] This is a worldwide network for coordinating and facilitating the technical assessment of innovation in the construction field. The entity interacts with other key stakeholders such as the following:

·         The International Council for Building, Research Studies and Documentation (CID);

·         National, provincial, and local government departments (for example the Department of Human Settlements);

·         The South African Bureau of Standards (SABS);

·         The South African National Roads Agency Limited (SANRAL); and

• The National Home Builders’ Registration Council (NHBRC).

 

Agrément South Africa also works closely with the three entities that reports to the Minister of Public Works:

·         The Construction Industry Development Board (CIDB);

·         The Council for the Built Environment (CBE); and

·         The Independent Development Trust (IDT).

 

ASA will soon be established as a juristic person once the Bill in this regard is signed by the President of the Republic of South Africa. This legislative step is a progressive step moving the Department to an even more sustainable position as far as audit opinions are concerned; in the year under review, the transferal of funds to it as a non-juristic entity continued to be a negative matter in the opinion of the Office of the Auditor-General.

 

1. Recommendations

The Portfolio Committee recommends that the Minister of Public Works:

1. Ensures that urgent attention is given to the number of targets that were not met across the programmes as it indicates a lack of proper planning that hinders the efficient and effective use of allocated funds. Reports by March 2016 on measures taken to ensure that specifically lease management targets and making buildings accessible to people with disabilities, are reached so that allocated funds are effectively utilised.
2. Ensures that the Property Management Trading Entity (PMTE) complies with Generally Recognised Accounting Practice in its preparation of financial statements so that the positive effects of the audit improvement exercise continues to reap benefits.
3. Ensures that Property Performance Standards and Asset management Framework policies that had to be approved by 30 September 2014, is completed for the Accounting Officer’s approval. Reports on progress in this regard within 3 months from the date of this report.
4. Ensures that properties meant for the purposes of human settlement and rural development and land reform are released to the relevant departments to facilitate the implementation of social infrastructure as articulated in the National Development Plan.
5. Provides a report to the Committee in the first quarter of the new financial year on the low number of Infrastructure Programme Implementation Plans that were approved by User Departments.
6. Ensures that the DPW and PMTE deal with the irregular expenditure of old debt amounting to R35 billion as reported in the 2013/14 financial year. Reports on measures to reduce it in the next financial year and ensure consequence management for the flagrant flouting of prescripts and violation of supply chain management policies.
7. Ensures that the positive effects of the Department’s turnaround project is sustainable, by instructing the Chief Financial Officer to maintain consistent, effective, efficient and transparent internal control systems for the DPW as well as the Property Management Trading Entity (PMTE).
8. Provides a report on challenges in the built environment profession terrain with specific attention to corporate governance challenges and the pace of transformation of the built environment professions in terms of race and gender as well as the alignment of the Built Environment Professional Councils to their respective legislative mandates and the policy of government.
9. Provides a detailed report to the Committee by 31 March 2016 on progress with the revision of the Draft White Papers on Public Works and the Construction Industry, as well as the final Draft of the Immovable Asset Investment Policy.
10. Provides to the Committee a report by June 2016 on the Department’s plan to improve the ratio of project managers to projects to reach the target ratio of 1:10 from the current ratio of 1:45.
11. Provides a presentation to the Portfolio Committee within three months on the current human resource challenges in the Department with specific attention to the appropriateness of the existing skills, experience, and qualification set of existing personnel on the organogram, in relation to the manner in which the Department is evolving during the turnaround project.
12. Ensures the development of a Standard Operating Procedure (SOP) for audits to outline processes to be followed by all Expanded Public Works Programme stakeholders.
13. Reports on progress to ensure a complete Immovable Asset Management Register within three months from the date of this report.

 

Report to be considered.

 

 

References

Agrément South Africa (2015) Annual Report of Agrément South Africa for 2014/15.

 

Construction Industry Development Board (2015) Annual Report for the 2014-2015 Financial Year.

 

Council for the Built Environment (2015) Annual Report for the 2014-2015 Financial Year.

 

Department of Public Works (2014) Annual Report of the Department of Public Works for 2013/14.

 

Department of Public Works (2015) Annual Report of the Department of Public Works for 2014/15.

 

Department of Public Works (2015) Report to the Speaker of the National Assembly on the Recommendations of the Portfolio Committee on Public Works, 16 October.

 

Department of Public Works (2013) Strategic Plan of the Department of Public Works for 2012 to 2016.

 

Independent Development Trust (2015) Annual Report for the 2014-2015 Financial Year.

 

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.

 

Minister of Public Works, (2014) Inauguration Speech - Fourth Council of the Council for the Built Environment on 05 September.

 

National Treasury (2014) Estimates of National Expenditure for 2014.

 

National Treasury (2015) Estimates of National Expenditure for 2015.

 

The Presidency: National Planning Commission, The National Development Plan 2030: Our Future - Make it Work (2012), 15 August.

 

The Presidency: Department of Planning, Monitoring and Evaluation (2014) Medium Term Strategic Framework, 2014-2019.

 

 

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[1] The Money Bills Amendment Procedure and Related Matters Act, Section 5(4). 

[2] This was done at a meeting that took place on 9 June 2015.

[3] Department of Public Works (2015), p. 134.

[4] Department of Public Works (2015), p. 180.

[5] Department of Public Works (2015), p. 88.

[6] Department of Public Works (2015), p. 91.

[7] Department of Public Works (2015), p. 93.

[8] Department of Public Works (2015), pp. 100-121.

[9] Department of Public Works (2015), p. 180.

[10] Department of Public Works (2015), p. 222.

[11] Department of Public Works (2015), pp. 101-7.

[12] Department of Public Works (2015), pp. 108-112.

[13] Department of Public Works (2015), pp. 114-116.

[14] Department of Public Works (2015), p. 180.

[15] Department of Public Works (2015), pp. 121-2.

[16] Department of Public Works (2015), pp. 122.

[17] Department of Public Works (2015), p. 121.

[18] Department of Public Works (2015), p. 122.

[19] Department of Public Works (2015), p. 214.

[20] Department of Public Works (2015), p. 180.

[21] 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).

[22] Department of Public Works (2015), pp. 123 – 5.

[23] Department of Public Works (2015), p. 269

[24] Department of Public Works (2015), p. 126.

[25] Department of Public Works (2015), p. 269.

[26] Department of Public Works (2015), p. 180.

[27] Department of Public Works (2015), p. 180.

[28] Department of Public Works (2015), p. 181.

[29] Department of Public Works (2014), p. 151.

[30] Department of Public Works (2015), p. 201.

[31] Department of Public Works (2015), pp. 201-2.

[32] Department of Public Works (2015), p. 203.

[33] Minister’s inauguration speech on 05 September 2014 to the CBE Council.

[34] Report to the Speaker of the National Assembly on the Recommendations of the Portfolio Committee on Public Works, 16 October 2015

 

[35] Agrément SA, (2014), p.11.

[36] Agrément SA, (2014), pp.16-17. Agrément South Africa is one of 23 member organisations from 22 countries across the global market that is internationally affiliated through its membership of the World Federation of Technical Assessment Organisations (WFTAO). These member countries include: Australia, Brazil, the Czech Republic, Canada, Denmark, Finland, France, Germany, Hungary, Ireland, Israel, Japan, New Zealand, Norway, Poland, Portugal, Romania, the Russian Federation, Spain, United Kingdom and the United States.