ATC210513: Report of the Portfolio Committee on Public Works and Infrastructure on the 2021/2022 Budget Vote 13: Public Works and Infrastructure, Dated 11 May 2021

Public Works and Infrastructure

REPORT OF THE Portfolio Committee on Public Works and Infrastructureon the 2021/2022 budget vote 13: public works and infrastructure, dated 11 MAY 2021

The Portfolio Committee on Public Works and Infrastructure, having met on 4, 6and 11 May 2021; and having deliberated on the Annual Performance Plans (APPs) of the Department of Public Works and Infrastructure (DPWI, and in the rest of the report, department), the Property Management Trading Entity (PMTE), and the public works and infrastructure entities,reports as follows:

1. Introduction

ThePublic Finance Management Act (1999) describes the Minister of Public Works and Infrastructure as the executive authority of the department. In this role, she has the responsibility to provide leadership overhow the DPWI and the public works and infrastructure entities[1], use the allocated budgetary and human resources to translate policy ideals into implementable programmes. This leadership includes a monitoring function over the in-year monthly and quarterly expenditure and performance reports that the (Acting) Director-General[2] (ADG), Deputy Directors-General (DDGs), and senior management service personnel must timeously submit to her office.

The Portfolio Committee of Public Works and Infrastructure in turn, does oversight over how the Minister performs in the role of executive authority of the department.In order to do its oversight, the committee interacts with, and receives monitoring reports from the Minister, Deputy Minister and the senior management teams of the DPWI, its Property Management and Trading Entity (PMTE), and boards of the public works and infrastructure entities The committee uses matters and oversight issues that emerge from these meetings and deliberations, as information/data to analyse, assess and monitor the work of the Minister, as well as the department. It also makes recommendations to the Minister to addressoversight issues that might have emerged. These are contained in the committee’s reports that are published in parliament’s Announcements, Tablings, and Committee reports (ATCs) throughout the year.

The committee further receives and interacts with the Office of the Auditor-General (OAG) and its auditing analysis and opinions on the operations of the department. The committee performs visits to key project sites that might have been identified as challenging in performance and annual reports, but also from media reports and alternate stakeholder sources. Due to the Covid-19 pandemic, for the purpose of dealing with the quarterly performance reports, and the Annual Performance Plans (APPs) and Strategic Plans (SPs) reports and the budget vote for this financial year, meetings were held in virtual mode and took place on 4,6 and 11 May 2021.

1.1. The mandate of the DPWI

The Constitution of the Republic of South Africa, 1996, and the Government Immovable Asset Management Act (No. 19 of 2007) (hereafter, GIAMA) outlines the mandate of the DPWI and describes it as the custodian and portfolio manager of government’s immovable assets.


In the 2015/16 financial year the policy leader initiated a shift in the focus of the department so that it could remain the policy making and regulatingarms, while the practical implementation of the department’s mandate shifted to the PMTE. This shift allowed the department to renew its focus on:

  • policy formulation.
  • setting uniform standards for the coordination, collection, and validation of employment creation at national, provincial and municipal government and other public bodies.
  • setting uniform standards for the management, leasing, contracting,and maintenance of immovable assets.
  • maintaining intergovernmental relationships with user/client departments.
  • managing the coordination, standardisation, and regulation relating to the provision of accommodation, and public employment programmes, and expert professional built environment services to user/client departments.
  • importantly, the department and PMTE has an oversight role over the standards and regulation that the Minister of Public Works and Infrastructure makes as leader of the functions that Schedule 4 of the Constitution confers to national, provincial departments of public works and infrastructure, and municipalities that also perform public works and infrastructure implementation roles.


Thebroad policy of government, and planning documents of the department and its entities are instruments that aidsthe monitoring of how policy ideals are translated into implementable programmes. The APPsshow the department’s stated policy objectives, programmes and sub-programmes, human and financial resources, and budget that will be applied to implement the broad policies of government. These APPs as planningdocuments specifically provide the performance targets, performance indicators, and timeframes within which the aims will be achieved.

In this report, before dealing with the APP and budgetary resource analysis, the committee first assesses whether thepolicy and programmatic objectives are aligned with the broad policy of government, the transformative trajectory of the NDP, Economic Recovery and Reconstruction Plan (ERRP), Medium Term Strategic Framework (MTSF) 2019 to 2024, and the policy imperatives set out by the President in the State of the Nation Address (SoNA).

2. Alignment of the DPWI Strategic Outcomes with the policy priorities of the NDP,the ERRPand the SONA

The President listed seven priorities aligned to the NDP namely:

  1. Economic transformation and jobcreation.
  2. Education, skills andhealth.
  3. Consolidating the social wage through reliable and quality basicservices.
  4. Spatial integration, human settlements and localgovernment.
  5. Social cohesion and safecommunities.
  6. A capable, ethical and developmental state;and
  7. A better Africa andWorld.

In line with the broad policy objectives, the2021SONA[3]emphasised public works and infrastructure responsibilities of jobcreation,theimplementationoflarge-scaleinfrastructure projects and maintenance. Apart from these, the departmenthad to ensure that it used the budgetary and human resources to implement thefollowing:

  1. DefeatingtheCoronaViruspandemic.
  2. Acceleratingeconomicrecovery.
  3. Implementingeconomicreformstocreatesustainablejobsanddriveinclusivegrowth.
  4. FightingcorruptionandstrengtheningtheState.
  5. Overcomingpoverty andhunger,joblessnessandinequality.
  6. RebuildingtechnicalskillswithinGovernmenttoprepareandmanagelarge-scaleinfrastructureprojects.
  7. OverseeingthemanagementofthefullyoperationalisedR100billionInfrastructureFundbytheDevelopmentBank ofSouthern Africa(DBSA)[4].
  8. Revivingtheconstructionindustryandcreatingjobsthroughtheinfrastructureprojects.

Matters revealed through oversight over the past three years that hamper the proper alignment with the policy priorities of the NDP, ERRP, and the SONA

In the 2021 APP, the Minister emphasised the important role of Infrastructure South Africa (ISA) that had been established within the DPWI organogram in the previous financial year. She further highlighted that the DPWI was also responsible for the coordinating function of the Infrastructure Delivery Management System (IDMS) and the District Development Model that facilitates infrastructure developmentand maintenance across the municipalities throughout the country.

In its report on the APP and Strategic Plan 2020-2025, that was included in the 2020/21 budget vote report, and following its oversight over the 2019/20 and 2020/21 quarterly performance of the department and the PMTE, this committee emphasized serious challenges with capacity and instability has set in as a feature in its operations.

It highlighted that the department did not have the required legislation that established its mandate strongly as the coordinating department of government that acts as landlord, accommodator, and policy leader and regulator of the construction and built environment professions of the country. As evidenced in the legacy report of the former Portfolio Committee on Public Works, this was a stated objective that the DPWI failed to achieve by 2018. It is a key deliverable of the Minister as the policy leader of the department. While it is therefore the failure of the former Minister, the trend was continuing that very little progress was noted with the development of such a bill; instead, very positive sounding intended plans continued to be stated as were made throughout the period 2014 to 2018.

The committee also used the quarterly performance reports to monitor the stated objectives and outcomes of the APP. In spite of the undertakings stated, the quarterly performance reports showed:

1. A lack of control in the reporting and accounting systems of the DPWI and the PMTE. The department explained that it was due to the incomplete renewal of information and communication technology (ICT) reporting systems[5]. This is the SAGE software roll out to ensure compliance and proper reporting in the shared supply chain management system of the department and the PMTE.

2. Slow progress in establishing a credible, legally and financially compliant Immovable Asset Register delays the PMTE to unlock the value of the state’s immovable assets. This was with reference to the incomplete rollout of ARCHIBUS software.

3. The maintenance of the entire property portfolio of government was not adequately funded in User Departments’ baseline expenditures. This resulted in significant repair and refurbishment backlog which led to the continued deterioration of the condition of portfolio.

4. The financial impact of addressing the condition of the portfolio to an acceptable level to operate a sustainable business would be significant to the PMTE.

5. The erosion of the DPWI mandate as client departments were increasingly taking over the infrastructure and property construction and maintenance functions and budgetary allocations of the DPWI.

6. The high rate of under-expenditure on compensation for employees and branches from one financial quarter to the next required attention.

In addition to these matters raised through the committee’s own oversight, in the previous financial year, the AG emphasized non-compliance with the PFMA as mattersthat threaten the achievement of a clean audit report. This added to what the committee’s own oversight reports on quarterly performance showed. Ongoing inconsistencies related to the roll-out of SAGE and Archibus software, where the cost of training staff on the latter,over three years from 2015 to 2017, totalled R68.3 million. In the EPWP,the AG raised a matter of emphasis related to performance information due to the manners in which employment creating opportunities were captured, verified and recorded on the Expanded Public Works Programmes (EPWP) Recording System (EPWP RS). The problem is that the EPWP stated this as its performance indicator which means that the AG requires properly recorded information as per Section12 of the Minister of Labour’s Determination for EPWP. Section 12 prescribes that every employer (not the regulating department) must, for a period of at least three years after the completion of the project, keep a written record of the workers’ names; positions; copies of identification; where relevant - numbers of tasks completed; where relevant - time worked; and payments made to each worker. In spite of section 12 referring to the employers, which are public bodies, having this responsibility, the EPWP takes responsibility for this in the APP. This sets itself up to receive another matter of emphasis in the audited financial statements of the coming financial year.

The committee further emphasised the ongoingchallenges that the PMTE faced to collect outstanding debt amounts that continued to grow each year, and the overdraft facility that continued to grow, as matters that hampered the efficient achievement of stated objectives in the APP.

It must be added that the continuous explanation by the department that the slow, and in some cases, non-spending of funds allocated for compensation of employees, goods and services, was merely due to the slow-down of the economy caused by the lockdown due to the Covid-19 spreading through the country from early 2020, did not hold water. This trend of slow or non-spending in fact started prior to the pandemic set in; the slowdown of the economy really cemented it as another unfortunate feature of the operations of the department and the PMTE.

The instability in leadership positions of the DG, and the DDGs(in the department and PMTE)that should lead programmes such as Governance, Risk and Compliance; EPWP;Construction Policy, Research and Regulation; Real Estate Management; Real Estate and Information Registry Services; Project Management; and Intergovernmental Relations was crippling the department at a time when it should show agilityand adaptation abilities that is acutely required to deal with the current economic crisis.


3. Analytic comments - the DPWI, PMTE APPs and its links with enablers for priority policy interventions

The ERRP provides a list of key enablers (in line with the NDP and the MTSF) that enables this committee to check on how the DPWI, PMTE and public works entities are faring in its APPs and outputs to put these in place.

The programmes of the DPWI, PMTE and public works entities, as infrastructure developers, property managers, accommodators, and maintainers of government assets, play a key role in the economic recovery and reconstruction of the country. The DPWI, PMTE and public works and infrastructure entities must in its APPs and budgetary allocation for this financial year show that its programmes are going to implement these as enablers that ensure recovery and reconstruction. Of course, the recovery and reconstruction described in the ERRP is aligned with the NDP and Vision 2030 and the SONA is the plan along which those objectives will be implemented in the 2021/22 financial year.

The APP therefore must be strongly aligned with the South African ERRP. It is reasonable to expect the followinginterventions to feature in its programmes:

  • Aggressiveinfrastructure investment.
  • Employmentorientatedstrategiclocalization,reindustrializationandexportpromotion.
  • Gender equalityandeconomicinclusionofwomenandyouth.
  • Greeneconomyinterventions – across the portfolio, but especially through the work of the Agrément South Africa; and
  • Masspublicemploymentinterventions – through the coordination of EPWP projects through Programme 3 of the DPWI.


DPWI and PMTE misalignments with ERRP enablers

After each enabler, we make analytic comments[6] on the misalignments that require attention:

  • Resourcemobilisation:
  • in spite of claiming the opposite, the department consistently underspends the allocation to compensation of employees. The analysis in the budgetary analysis section will show that there has not been clear evidence of the full mobilization of resources to programmes and sub-programmes.
  • There is no visionary HR plan to ensure that the DPWI and especially PMTE is an institution of choice for the best strategists, technical built environment professionals, economists; property managers; chartered accountants; property lawyers andproperty valuers. The lack of these specialist skills, leaves the government’s property trading entity at a significant disadvantage, particularly when signing lease agreementswithlandlordsinthe privatesector.
  • Symbolic statements and reasonable sounding explanations are often given for reasons why experienced personnel are not retained rather than concrete proof that every one of its five programmes are well resourced in terms of capacitated staff, their tools of trade, information and communication technology (the long outstanding Enterprise Resource Plan (ERP) the latter is dealt with in more detail in the rest of the report.
  • Regulatory changes, a supportive policy environment and enabling conditions for easeofdoingbusiness:
  • The department has the policy regime in place for many years (White Papers 1997 and 1999) but failed in translating this into an enforceable legal mandate.
  • This failure of putting its own enabling conditions in place, makes client departments distrust it.
  • In spite of it being the government’s legally mandated property manager, and regulator of the construction and professional built environment, the DPWI and PMTE does not have the necessary cooperation of the private property sector and professional built environment sector - much work is required to turn this situation around.
  • the work of the CIDB with contractors (electronic registration, and some changes to the contractors register) has in some ways assisted, but challenges related to transforming the industry remain an element that slows down economic recovery.
  • The regulatory effect of the CBE on the built environment professional councils (BEPCs) is marginal; many councils operate with more gravitas than the CBE, and the latter does not have much influence over these professions.
  • The committee heard from several individuals in BEPCs how qualified, unregistered colleagues tender for contracts and perform work in especially the municipal government level; much work is needed to turn this situation around.
  • Through the committee’s oversight[7], several construction projects revealed bottlenecks and irregularities.
  • There has been little progress in using small harbours to unlock the business potential in rural areas where they are situated (in part because experienced, visionary managers had contracts lapsed and the project to involve and make profitable gains in cooperation with businesses is largely stagnant).
  • Unlocking the value of the immovable asset portfolio to show a profit in the PMTE remains outstanding – the APP shows no plan to unlock the value and use it to trade.
  • The PMTE is in dire need of a turnaround to a fully-fledged government property management agency as it is notfunction fully as a trading entity.
  • Buildinga capablestate:
  • In the PMTE this matter is serious – the entity has not been able to operate as a going concern.
  • Over the last three years of this administration and the five years of the previous administration, there has been little to no improvement to address the inability to collect debt and lease out government buildings at a profitable rate.
  • Skillsdevelopment:
  • It has also not shown the strategic vision and ability to, with the CBE, design programmes and use its projects to draw young qualified built environment graduates into large construction projects through which they can gain professional registration.
  • Similarly, it has not shown the strategic vision and ability to, with the CIDB, design programmes and use its projects to draw young people from technical high schools, Further Education and Training (FET) institutions, and technical universities, into large construction projects through which they can gain construction experience and registration.
  • There has been no evidence in the APPs that the department and its entities had resourced plans in place to use its infrastructure muscle and develop a cross departmental plan to draw young people, women, and people living with physical challenges into a well-structured construction-focused small business development pipeline.


4. The budget allocation for 2021/2022[8]







Real Randchange

Nominal %change










Per cent




























3.Expanded PublicWorksProgramme(EPWP)












































Source:National Treasury(2021)andowncalculations

Thedepartmentreceivesa votedallocation ofR8.34 billionfor 2021/22with which toaccomplish the priorities listed above. This represents an increase of 8.0 per cent in nominalterms,and3.7percentinrealterms(calculatingtheimpactofinflation)fromthe2020/21adjustedappropriationofR7.72billion.Thedepartment’sbudgetrepresentsapproximately0.1per centofthenationalappropriationbyvote,excludingdirectcharges.

Intermsofeconomicclassification,thedepartmentalbudgetincludesTransfersandSubsidies totalling 87.1 per cent of the budget, with a total monetary value of R7.27 billion(compared to R6.79 billion in the adjustment period). This constitutes a 7.0 per cent nominalincrease, and a decline of 2.7 per cent in real terms since the growth in the allocation isbelowthe projectedaverage inflationrateof4.2per centfor2021/22.

R1.59 billion of the Transfers and Subsidies is in the form of conditional grants to provincesand Municipalities, while a total of R4.52 billion is allocated to Departmental Agencies andAccounts. For 2021/22, Current Payments amount to 11.9 per cent (i.e. R1.05 billion) andCapitalpaymentsto0.2percentofthe budget(i.e.R24.5million).

Compensation of Employees increases by R13.0 million (from R558.7 million in the 2020/21adjustedperiod)to R571.7millionin 2021/22

GoodsandServicesincreasesbyR114.2million(fromR366.2millioninthe2020/21adjusted period) to R480.4 million, of which the following line items are subcategorised in the table below:

Goods and Services






NominalIncrease /Decrease in


RealIncrease /Decrease in




Real Percentchange in2021/22











2.Computer Services











































Revenue generated

The department generates revenue through the PMTE, by letting properties and officialquarters, and the sale of land and buildings. It is projected, that the department will collectrevenue to the total value of R2.22 million for 2021/22[9]. This is an exact amount of R2.22million as reported in 2020/21. The Department sub-categorises the sale of Goods andServices it produces according to Sales generated through market establishments and Other sales.

R280000isexpectedtobegeneratedthroughtheSaleofGoodsandServices producedbythe department,ofwhich R120000Marketestablishment(coveredandopenrentalparking)

  • R160000Other Sales:Tender documents.


  • R40000 Sales:Waste.
  • R600000Interest,dividends andrentonland.
  • R600000Transactionsinfinancialassetsandliabilities[10].


4.1. Budgetary allocations per programme

Programme 1: Administration

Programme 1 provides strategic leadership, management and support services to the Department.

This programme plays an important role in giving effect to first priority of the National Development Plan (NDP) and Vision 30; that is, to build a capable, ethical and developmental state. This priority is also expressed in the Medium Term Strategic Framework (MTSF) for the five-year term 2019-2024, as a crucial mode that is required to achieve Vision 2030.

The department translated priority one of the NDP and Vision 2030 into a predetermined outcome that states the policy intent to reorganise the DPWI into a resilient, ethical and capable department.The department started this process during the fourth parliament that continued in the previous five-year term, as part of a Turnaround Programme in the 2011/2012 financial year. During this first phase of the programme, the department identified the need to remain consistently compliant with financial legislation and National Treasury regulations so that it could improve its operations and audit outcomes. Even more important, it wanted to eradicate corruption and malpractice in its ranks. Within Programme 1, it established a Governance, Risk and Compliance unit that continues to assist with investigations with the Special Investigations Unit (SIU) into alleged malpractice and corruption.

The department is in the initial stages of including various functions that come with its new infrastructure mandate.  Accordingly, some funds that were allocated as above to the various sub-programmes of Programme 1, will be used to achieve the aim to organise it into a “streamlined andoutcomes-based”[11] department that is “focused on implementation”[12]. The Strategic Plan of the Department therefore states that it wants to be agile, ethical, compliant and capable, “where everyone wants to work, with improved efficiencies achieved through seamless automated processes and a robust support infrastructure to enable effective servicedelivery.”[13]


The Administration programme receives a total allocation of R511.2million that is allocated to sub-programmes as follows:

  • Ministry receives R 39.7 million;
  • Management receives R 109.1 million;
  • Corporate Services receives R 257.1 million;
  • Finance and Supply Chain Management (SCM) receives R 54.7 million; and
  • Office Accommodation receives R 50.7 million.

NOTE: SCM, Corporate Services, Management, and Office accommodation are shared services that funds the functions of the DPWI and the Property Management and Trading Entity (PMTE).

A total of R14.8 million is allocated towards Capital expenditure. This constitutes an increase of R8.7 million (or 142.6 per cent in nominal terms and 132.8 per cent in real terms), from the R6.1 million of the previous year. The above-allocation is for Machinery and Equipment.


As noted above, a large portion of the Administration budget is allocated towards Compensation of Employees and Goods and Services.

Goodsand Services:Programme1




NominalIncrease /Decreasein


RealIncrease /Decreasein




Real Percentchangein2021/22











2. Consultants: BusinessandAdvisory Service





















5.Property Payments





















Source:National Treasury(2021)andowncalculations

A total of R14.8 million is allocated towards Capital expenditure. This constitutes an increase of R8.7 million (or 142.6 per cent in nominal terms and 132.8 per cent in real terms), from the R6.1 million of the previous year. The above-allocation is for Machinery and Equipment.

As noted above, a large portion of the Administration budget is allocated towards Compensation of Employees and Goods and Services. The Department indicates that the key role is to align people to processes and systems to drive organisational performance.

Asnotedabove,alargeportionoftheAdministrationbudgetisallocatedtowardsCompensation of Employees and Goods and Services. The department indicates that thekeyroleis toalignpeopletoprocessesandsystemstodriveorganisationalperformance.


Programme 2: Intergovernmental Coordination


DPW is a coordinating department that must manage sound relations and strategic partnership with all client/user departments if it is to reach policy goals set out in the SoNA and the NDP. Programme 2 seeks to promote sound intergovernmental relations and strategic partnerships. It coordinates with provinces and municipalities on Immovable Asset Registers; construction and property management; the implementation of the Government Immovable Asset Management Act (No. 19 of 2007); and the reporting on performance information within the Public Works Sector.

The budget allocation is R63.6 million, which is an increase of R5.3 million. This is a nominal increase of 9.1 per cent (and 4.7 per cent in real terms) from the R58.3 millionallocatedin the2020/21financialyear.


The allocation will fund these sub-programmes:

  • Monitoring, Evaluation and Reporting receives an allocation of R6.2 million. This is an increase of R3.4 million from the R27.5 million received in 2020/21, which constitutes a nominal increase of 12.4 per cent (and 7.8 per cent in real terms) from the previous year.
  • Intergovernmental Relations and Coordination receives an allocation of R26.6 million, an increase of the R3.8 million from the R22.8 million received in 2020/21, whichconstitutes a nominal increase of 16.7 per cent (and 12 per cent in real terms) from theprevious year.
  • Professional Services is allocated R30.9 million, an increase of R3.4 millionfrom the R27.5 million received in 2020/21, which constitutes a nominal increase of 12.4per cent (and7.8percentinreal terms)fromthepreviousyear.


In terms of economic classification, R55.6 million is allocated to Current payments. Thisconstitutes an increase of R3.2 million or 6.1 per cent in nominal terms (1.8 per cent in realterms)fromtheR52.4million ofthepreviousyear.Ofthisamount:

  • Compensationofemployeesconsists of R40.2million(anincreaseofR1.8million).
  • GoodsandServicesisallocatedR15.4million(anincreaseofR1.4millionfromR14.0million in 2020/21).


In terms of assisting to build a capable State and placing the economy on the path torecovery,theProfessionalServicesBranch(PSB)contributestothedevelopment of competent, skilled and motivated Built Environment professionals throughsupportedlearninginterventions andfocusedexperientiallearningprocesses.

The Professional Services Branch (PSB) of Programme 2 is aligned with the policy objectives of the NDP to “build a capable State” and “placing the economy on the path to recovery”. Note that it states its functions as oversight, coordination, and providing guidance and advice on successful capacity building programmes/initiatives towards contribution of transformation objectives in the built environment. The DPWI states its intention that the PSB will coordinate and manage the supply of built environment skills to support the State infrastructure delivery.


Programme 3: Expanded Public Works Programme (EPWP):

The EPWP gives effect to the policy goals to create work opportunities for marginal people. It works on the coordination of the implementation of the Expanded Public Works Programme (EPWP) in public bodies, non-profit organisations, the non-state sector, across national, provincial and local government levels to create work opportunities; it also works on the provision of training for unskilled, marginalised and unemployed people in South Africa.

Theallocations arereportedunderthefollowingfiveEPWPsub-programmes:

  • EPWP: Monitoring and Evaluation receive R62.5 million. In real terms this sub- programme allocation increases by 29.6 per cent from the previous year.
  • EPWP: Infrastructure receives R1.29 billion. In real terms, this sub-programme
  • allocation decreases by 2.2 per cent from the previous year.
  • EPWP: Operations receives R1.52 billion. In real terms, this sub-programme allocation increases by 36.2 per cent from the previous year.
  • EPWP: Partnership Support receives R86.3 million. This sub-programme allocation increases by 11.9 per cent in nominal terms and 7.4 per cent in real terms in the from the previous financial year.
  • EPWP: Public Employment Coordinating Committee receives R8.0 million. In real terms, this sub-programme allocation increases by 21.9 per cent from the previous year.

In terms of economic classification, Programme 3’s budget includes Current Payments to the value of R351.8 million, of which R183.4 million is allocated to Compensation of Employees. Compensation of Employees increases with R300 000 from the R183.1 million of the previous year.

Expenditure on Goods and Services amounts to R168.5 million and increase of R45.1 million (which translates into a real increase of 31.4 per cent from the previous year).

The bulk of the expenditure under Programme 3 constitute Transfers and Subsidies amounting to R2.62 billion, (from the R2.16 billion in 2020/21) representing a nominal increase of R455.1 million or 21.1 per cent and (16.2 per cent in real terms). Of this amount, R1.59 billion is assigned to Provinces and Municipalities and is allocated as follows:

  • R1 billion is allocated to Non-profit institutions.
  • R758.7 million towards the Integrated Grant for Municipalities.
  • R422.5 million towards the Integrated Grant for Provinces.
  • R414.4 million towards the Social Sector Incentive Grant for Provinces.


Programme 4: Property and Construction Industry Policy and Research[14]

Programme 4 promotes the growth and transformation of the construction and property industries, as well as a standardised approach and best practice in construction and immovable asset management in the public sector.

The programme transfers a large portion of the R4.65 billion across eight sub-programmes[15]. Of this total allocation, the Property Management Trading Entity (PMTE) receives the bulk totalling R4.36 billion. This budget allocation is dealt with in detail with a focus on the PMTE as the implementation agency of the DPWI later in this report. The rest of its funding are transferred to public works entities that report to the Minister.

Programme 4 has the specific task to research and develop[16] policies and legislative prescripts for the construction and property sectors. This is strongly tied to the implementation work that the PMTE performs to concretise the policies that are stated in the NDP, MTSF, SONA, and the five-year Strategic Plan 2020-2025. In addition, every performance indicator and predetermined outcome stated in each APP from 2020 to 2025 can only be properly implemented if this programme effectively use the allocated amounts stated in the budget. In the Budgetary Review and Recommendations, Budget Vote, and Legacy Reports during the five-year term 2014/15 to 2019/20, this committee highlighted that this programme was unsuccessful in reviewing the white papers dated 1997 and 1999. In those reports we stated that this left a vacuum within which the PMTE and DPW (this was prior to the Infrastructure component was added to the Department’s mandate) and entities, specifically the social infrastructure delivery entity, namely the IDT, struggled to function and exercise its property management, project management, property maintenance, and leasing functions. To be more specific, the on-going challenge of the PMTE and the IDT to collect service fees from client departments after construction projects were completed, was in part because the mandate of the department as landlord of the state, and construction regulator, was never properly legislated which meant it could not enforce contractual obligations and struggled to collect outstanding debt.

While a comparably small amount of the total budget of Programme 4 is allocated to this policy development and coordination role, it plays a core function in strengthening the mandate of the department and the transformation of respectively the professional built environment, and the construction industry.

The budget allocation for this programme nominally increases from an allocation of R4.66 billion in 2020/21 to R4.70 billion in 2021/22, which proportionally represents 56.4 per cent of the overall departmental budget. This allocation constitutes an increase of 1 per cent in nominal termsanda decline of3 percentinrealterms.

The programme is organized into 9 sub-programmes, including the Property Management TradingEntity (PMTE), which receives the bulk of the allocation, with R4.35 billion for 2021/22 fromtheR4.24billion ofthe previousyear.

The PMTE was established in April 2006, as part of a longer-term reform programme toprovideimprovedpropertymanagementservicestoClientDepartments.Withitsestablishmentallaccommodation-relatedcostsweredevolvedtoClientDepartments. In this regard, it has been issuing invoices and collecting user charges fromClients on a quarterly basis, based on amounts devolved to them. In March 2015, theDepartment operationalised the PMTE, which resulted in it being shifted (along with itsfunctions),toProgramme 4.

A large portion of the budget for 2021/22 is allocated to Transfers and Subsidies, whichamount to R4.63 billion and accounts for 98.5 per cent of the programme budget. Thisconstitutes an increase of R22.5 million (but a decrease of 3.6 per cent in real terms) fromthetotal allocationofR4.61billion in 2020/21.

DepartmentalAgenciesandAccounts(non-businessentities)receivesR4.52billion,whichisanincreaseR124.2million fromtheR4.39billion receivedin2021/22.

Thesub-programmesbelowreceivedthefollowingallocations for2021/22:

  • Construction Policy Development Programme is allocated R44.5 million, a realincreaseof6.0per centin realtermsfromthepreviousyear.
  • Property Policy Development Programme is allocated R12.9 million, (a nominaldecrease ofR400 000 from the R13.3 million)and a realdecrease of 6.9percent.
  • Construction Industry Development Board (CIDB) is allocated R78.2 million (anominalincreaseofR5.8millionfromR72.4million),anincreaseof3.7percentinreal termsfromthe previousyear.
  • Council for the Built Environment (CBE) receive an allocation of R53.5 million (anincrease of R4.7 million from R48.8 million), and a 5.2 per cent increase in realterms.
  • Construction, Education and Training Authority (CETA) receive an allocation ofR600 000, (an increase of R0 from the R600 000 in 2020/21), which constitutes adecreaseof4percentin real terms.
  • ThePMTE(asnotedabove)receivesanallocationofR4.35billion,adecreaseof

1.6percent inrealterms.

The new sub-programme InfrastructureDevelopmentCoordinationthat was initiated in 2020/21, provides supportto the Presidential Infrastructure Coordinating Commission, in line with the InfrastructureDevelopmentAct(No.23 of 2014)receivesanallocationofR136.6 million,(anincreaseofR52.7million,fromtheR83.9millionfor2020/21),anincreaseof56.3per centinrealterms.


  • ForeignGovernmentsandInternationalOrganisations,tothevalueofR28.7million,adecreaseofR300000(5percentinrealterms)fromtheR29millionallocatedin 2020/21.Thisismainlytoaddressthefluctuationsintheexchangeratewhentransferring the funds. Theunpredictableweakening ofthe Randagainstthe majorforeign currencies may result in the Department requiring an increase in its allocationfrom NationalTreasury.
  • AgrémentSouthAfricaisallocatedR33.1million,(anincreaseofR4.1million)fromthe R29millionallocationof2020/21.
  • The Independent DevelopmentTrust (IDT), receivesno allocation for 2021/22, fromthe R128.5 million allocation of 2020/21. The IDT is listed in the Public Finance Management Act (1999) as a Schedule 2 entity, that should strictly speaking, be self-sustainingandnotreceiveanallocationfromtheDepartment,asisthecaseforSchedule3entities.The department explained past transfers to this entity as assisting in the continuedoperational functioning of the entity, in the context of the IDT being aresponsive social infrastructure development agency with a well-established presence across the country.The IDT’s total revenue for 2021/22 is R236.5 million, a decline of R156.7 million fromtheR393.2milliontotalrevised revenue0f2020/21.

CurrentPayments totals R72.4 million,which is an increase of R25.2 million(or 47.2 percent in real terms) from the R47.2 million adjusted allocation in 2020/21. Compensation ofemployeesreceivesanallocationofR33.7million,whichisanincreaseofR8.0million(or25.8 per cent in real terms) from the R25.7 million adjusted allocation in 2020/21. Goods andServicestotalsR38.7millionfor2021/22.ThisconstitutesanincreaseofR17.2million(or72.7per centinrealterms)fromtheR21.5millionallocationofthepreviousyear.


Programme 5: Prestige Policy[17]

Programme 5 seeks to provide norms and standards for the Prestige Accommodation Portfolio and meeting the protocol responsibilities.

ThebudgetforProgramme5equalsR94.5millionin2021/22andproportionallyrepresents 1.1 per cent of the overall departmental budget. The allocation increased by R30.4 millionfrom the R64.1 million in the previous year and represents a nominal increase of 47.4 percentand41.5percentinrealterms.

A large portion of the budget is allocated to Current Payments, which amount to R76.8million.A total of R27.9millionis allocated towardsCompensationofEmployees. TheTransfers and Subsidies budget of R11.6 million includes an allocation of R11.4 million toDepartmentalAgenciesandAccounts(i.e.ParliamentaryVillagesManagementBoard);R200 000 to Households and R6.1 million to Payment for Capital Assets (i.e. Machinery andEquipment).


4.2. The Property Management Trading Entity (PMTE)

The PMTE was operationalised in the 2015/16 financial year, when the department transferred property management functions, (including those related to immovable assets, liabilities and staff), to the PMTE to align the expenses and revenue to the underlying assets.”[18]

The DPWI describes the purpose and functions of the PMTE as a government component that has been created “… to manage properties under the custodianship of the Department.

As mentioned previously, the operationalisation of the PMTE in 2015 shifted the operational or implementation focus from the DPWI to the PMTE. Its focus is to execute all property management related functions for national government. The PMTE thus implements all public works related functions such as the maintenance of properties, the leasing, and the payments of property rates on behalf of client departments of the DPWI. All accommodation-related costs were devolved to client departments when the PMTE was operationalised. This means that the department issues invoices and collect user charges from clients on a quarterly basis.

This function of leasing, collecting the accommodation-related, and maintenance costs from clients requires legislation that enforces client departments to pay user-charges, project management, professional property management, and construction costs to the PMTE. This legislation unfortunately remains outstanding. This requires Programme 4Property and Construction Industry Policy and Researchto complete the review of the White Papers 1997 and 1999 as the precursor to the draft Public Works Bill and amendments to some of the entities that would give enforcement powers to collect such fees and charges.

In addition to collecting user-charges and providing specialist property and construction management services to government departments, the PMTE is correctly placed to unlock the value of the large property portfolio of government that is contained in the immovable asset register (IAR). The full operationalisation of the PMTE should lead to full cost recovery through the application of business principles in the management of government’s property portfolio. Together with the collection of user-charges, the PMTE should generate funds with which government could undertake maintenance as well as other crucial tasks in the public works sector. This remains a challenge that the DPW and PMTE is working to put into action in the medium to long term.

In its meetings with the PMTE during the 2014/15-2019/20 MTSF period, this committee found that it did not work efficiently. The entity faces challenges to attract and retain relevantly qualified and experienced property specialists in its Real Estate and Investment Services branch that should play a key role in unlocking the value of government immovable property.

The Government Immovable Asset Act (GIAMA) amongst others, stipulates that for each government building, User, and Custodian Immovable Asset Maintenance Plans (UIAMPs and CIAMPS) had to be developedas tools with which to keep track of the conditions of properties, and the different duties that the custodian and the user had to play. This is crucial if the PMTE is to concretise its stated vision of providing “Convenient access to dignified public services.” The South African public must feel secure and safe while they access services. In addition, the public administration that work inside government properties also need to be secure and well catered for in terms of work conditions.

The PMTE Registry Services branch that should manage the Immovable Asset Register (IAR) and coordinate UIAMPs and CIAMPs also struggled to attract and retain qualified and experienced property specialists. The department consistently reported that these positions were being filled, yet the vacancy rate remains high from one financial year to the next. Because these specialist skills make it a very competitive terrain so that properly qualified and experienced personnel easily move from the PMTE to private property companies, the PMTE and the DPWI will have to undertake a property specialist retention strategy. The challenge is to fill and retainsuch personnel in positions in the PMTE. Failure to do this means that the DPWI and PMTE continue to operate at a disadvantage.

TheReal Estate Investment Services (REIS) of the PMTE focuses on achieving an efficient and competitive Real Estate Portfolio for the State. It states that it does this through effective planning, analysis and informed investments. Five years since the PMTE has been operationalised, the programme continues to struggle to have an authoritative grasp of the value that is contained in the IAR and struggles to invest the property portfolio in manners that benefit the state and its beneficiaries. It has thus far not been able to implement strategies with which to unlock the value of government’s immovable asset portfolio. The current five-year strategic plan and this year’s performance plan also do not show evidence of a focused strategy to progress in that direction. The assessment, verification, and progressive completion of the state property portfolio remains in progress. The committee is not unreasonable in this regard; it understands that by its very nature, the IAR will not be absolutely completed as older buildings may be removed when sold, while newly constructed and procured properties may be added on an annual basis. It is, however, fair to expect the IAR to be in a much better state with the Real Estate Registry branch having a measured control over all immovable assets and the condition, value, and debt associated with each. The information contained in the IAR is the foundation that the REIS branch requires to unlock the value of government property. A reasonably completed IAR means that the value of government property is regularly updated in compliance with the Generally Recognised Accounting Practice (GRAP) requirement, which enables the REIS to perform its function.

4.3. The PMTE Budget[19]:





NominalRand change

Real Randchange











Per cent










2.RealEstateInvestment Services



































































































The PMTE receives an allocation of R21.35 billion for the 2021/22 financial year, which is anincrease of R2.32 billion.This constitutes a nominal increase of 12.2 per cent (or 7.7 percent in real terms) from the revised appropriation of R19.03 billion for 2020/21. Table belowshows thebudgetallocation perprogramme.

In terms of economic classification, the PMTE budget includes revenue with a total monetaryvalueofR16.99billion,adecreaseofR2.53billionfromtheR19.53billionadjustedallocation in 2020/21.The PMTE generates revenue mainly through charging rental fees toUser Departmentsforaccommodation.

Compensation of employees decreases by R103.8 million (from R2.14 billion in the 2020/21adjustedperiod)to R2.04 billion in 2021/22.


Programme 1: Administration:

This programmeprovides strategic management, governance and administrative support to thePMTE.

The total allocation for Programme 1 equals R897.7 million for the 2021/22 financial year,whichisanincreaseofR85.1million.Thisconstitutesanominalincreaseof10.5percent(or6.0percentinrealterms)fromtherevisedappropriationofR812.6millionin 2020/21.

Programme 1 reports on one target for2021/22:which is to ensure 100 per cent expenditure of its allocatedbudget.


Programme 2:Real Estate Investment Services (REIS):

This programme works to achieve an efficient and competitive Real Estate Portfolio for the State through effective planning, analysis and informed investments.

The total allocation for Programme 2 isR219.6 million for the 2021/22 financial year,which is an increase of R1.5 million. This constitutes a nominal increase of0.69 per cent(and a decrease of 3.4 per cent in real terms) from the revised appropriation ofR218.1millionforthe 2020/21.

The following targets have been set for the 20221/22 financial year:

  • EstablishfoursitesforPrecinctdevelopment.
  • Complete90percent valuations withinscheduledtimeframes.
  • Release21132hectaresfromtheDepartment’sportfoliofordevelopmentofinfrastructureand socio-economicobjectives.9
  • ApproveoneCustodianAssetManagementPlan(CAMP)submittedtoNationalTreasury.
  • IdentifyaGovernmentPrecinct DevelopmentPlanfor Salvokop.


Programme 3:Construction Project Management (CPM):

This programme focuses on providing effective and efficient delivery of accommodation needs for the Department of Public Works and User Departments through construction and other infrastructure improvement programmes.

The total allocation for Programme 3 equals R5.09 billion for the 2021/22 financial year,which is an increase of R4.60 billion. This constitutes a nominal increase of 940.1 per cent(or898.2percentinreal terms)fromtherevisedappropriationofR489.3million in2020/21.

The following targets are reported for the 2021/22 financial year:

  • Completeonedesignsolutionfor identifiedUserDepartment.
  • Complete85infrastructureprojectswithinagreedconstructionperiod.
  • Complete85infrastructureprojectswithinagreedbudget.
  • Handover90infrastructure sitesforconstruction.
  • Complete95infrastructureprojects.
  • Create9020EPWPworkopportunitiesthroughconstructionprojects


Programme 4:Real Estate Management Services (REMS):

This programme provides and manages government’s real estate portfolio in support of stated social, economic, and political objectives that we stated in the first section of this report.

The total allocation for Programme 4 equals R11.22billionforthe2021/22financialyear,which isadecreaseofR2.17billion.Thisconstitutesanominaldecreaseof16.2percent (or19.6per centinrealterms)fromtherevisedappropriationof R13.39billionin2020/21.

The following targets have been set for this financial year (2021/22):

  • Reduceprivateleases withintheSecurity Clusterby6.
  • RealiseR100millionsavingonidentifiedfunctionspecificprivateleases.
  • Increaserevenuegenerationby8percentthroughthelettingofState-ownedproperties(excludingharbour-related properties).
  • Let out 70un-utilisedvacant State-ownedproperties.
  • Award35percentofnewleasestoBlack-ownedcompanies(e.g.empoweringdesignatedgroupsofwomen,youthandpeoplewith disabilities).
  • Letout4percent ofleasestocompanieswith B-BBEE[20]of 4andabove.
  • Procure100percentofnew privateleasescontractswithmaintenanceplan.
  • Create10BusinessOpportunitiesthatcreateactualjobs(SmallHarbourandStatecoastalproperties).
  • Increaserevenueby10percentthroughtherentalsofState-ownedsmallharboursandcoastalproperties.


Programme 5: Real Estate Information and Registry Services(REIRS):

The programme develops and manages a complete, accurate and compliant Immovable Asset Register (IAR) to meet service delivery objectives for the State, Department and PMTE business requirements.

The total allocation for Programme 5 equals R61.8 million for the 2021/22 financial year,which is a decrease of R54.4 million.This constitutes a nominaldecrease of46.8 percent(or49per centinrealterms)fromtheadjustedappropriationofR116.2millionin2020/21.

The following target is reported for the 2021/22 financial year:

  • AssessnineProvincialImmovableAssetRegistersforcompliance.
  • Physicallyverifytovalidatetheexistenceandassesstheconditionof21000immovableassets.
  • Vesting(confirmationofownership) of1000landparcels.


Programme 6:Facilities Management:

This programme seeks to ensure that immovable assets used by Government Departments and the public, are optimally utilised and maintained in a safe, secure healthy and ergonomic environment while contributing to job creation, skills development and poverty alleviation.

The total allocation for Programme 6 equals R3.86billionforthe2021/22financialyear,whichisa decreaseofR139.2million.Thisisadecreaseof3.5per cent innominalterms(or7.4per cent inrealterms)fromtherevisedappropriationofR4.00billionin2020/21. The following target is reported for the 2021/22 financial year:

  • 200Conditionassessmentsconductedonidentified/prioritisedproperties.
  • Assesscriticalcomponentstodeterminetheconditionof400components(lifts,boilers, HVAC[21]andGensets[22]andWatersystems).
  • 165preventativemaintenancecontracts inplacetoreducereactivemaintenance.


5. Matters that emerged from the deliberations between the committee and the DPWI and PMTE:

Having deliberated on the Annual Performance Plan (APP) 2021/22, the Committee noted that:

5.1. The Covid-19 pandemic created a situation in which many workers worked from home and for the foreseeable future this will remain the case. This impacts on the budget allocation for employee salaries, the use of buildings, and goods and services. While the department mentioned it, the APP did not show evidence of how this may impact this department that manages and coordinates accommodation for client departments across the country. In the context of the PMTE facing debt collection and overdraft challenges that form the basis of its challenge to operate as a going concern, this matter required attention in the near future.

5.2. The committee stated its concern about that on-going instability in leadership of the department, PMTE and senior management positions of branches have become a feature of the department. The cases where staff (including DDGs) whose contracts were found to have been terminated unprocedurally by the Public Service Co-ordinating Bargaining Council (PSCBC) was of particular concern. The committee worried that the DPWI planned to take the awards in favour of the staff to the Labour Court at further cost to the state. The response given added to this concern as it focused on negligible detail of the starting and end dates of contracts if these staff members were to be reinstated. This had to be brought to resolution as salaries and monies to be paid back had to calculated with added interest from the reinstatement date[23]. This may lead to increased cost to the department if it continued to postpone these reinstatements. 

5.3. The committee raised concern that the financial administration, supply chain management, and management seemed to continue to comply consistently with the PFMA and financial regulatory notes that Treasury issued to ensure proper management, administration and functioning.

5.4. The APP correctly refers to an intention to be an agile, organization that addressed challenges and clear delivery blockages as part of its daily practices. This required the ability have systems in place that were operated by experienced, well qualified financial administrators, financial, and project managers, who quickly identify problems, and make the relevant adjustments to turn these into challenges that are efficiently fixed. Unfortunately, the APP did not show enough evidence of this. Instead, it provided a wish list of very positive sounding intentions that were over-technical and mostly unclear. This did not bode well for the new financial year.

5.5. The audit outcomes improved from 2012/13 when it received a disqualification due to three outstanding matters. It improved significantly from then to only get audited for matters of emphasis, namely Material Impairment, and Performance information (the latter due to the manners in which employment creating opportunities were captured, verified and recorded on the Expanded Public Works Programmes (EPWP) Recording System (EPWP RS). It is noteworthy, that most of the matters that were claimed as improvements did not mean that there were improvements in the department and the PMTE’s operational structures.

5.6. During what could be termed “the period of ‘bad’ audit opinions”, the DPW was both the policy regulating as well as the implementing department. One of the main outcomes of the turnaround plan was to move the implementing functions of the DPW to the Property Management and Trading Entity (PMTE). This brought about significant improvements to its audit outcomes; so, the weaknesses were moved into the PMTE which inherited weaknesses from the DPW and carried the debt and overdraft problems that the DPW used to have. It must, however, be noted that already in 2011/12, the PMTE showed serious problems with twelve weaknesses listed. Some of the most concerning were:  Irregular Expenditure; Fruitless and WastefulExpenditure; Lease rentals; Municipal rates and taxes; Other commitments; Lease commitments; and Contingent assets.

5.7. The presentation showed that there were indeed improvements in the audit outcomes, from the worst audit opinions, namely Disclaimers, to the least, which were Matters of Emphasis. It was further noteworthy from the presentation that there were weaknesses that were never solved:

5.7.1.    While Irregular Expenditure improved, Material Misstatements continued to occur throughout the period.

5.7.2.    Matters related to the Immovable Asset Register, such as leases, continue to be a problem.

5.7.3.    Due to the continued weaknesses in the EPWP RS, Performance Information continued to prevent a clean audit.

5.7.4. The plan to get a clean audit for the 2021/22 financial year was for thePMTE to implement a Generally Recognized Accounting Practice (GRAP) compliant Immovable Asset Register (IAR).

5.7.5.    To achieve this, the department and PMTE had to complete the implementation of the Enterprise Resource Planning (ERP) solution (comprising of the SAGE accounting software, and ARCHIBUS property management software).

5.7.6.    Archibus was chosen as the software of choice to ensure that the Immovable Asset Register comply with the Public Finance Management Act (1999), Government Immovable Asset Management Act (2007) and GRAP;

5.7.7.    The movement of data verification and ensuring that it complied with the data-language of the new software took place over several financial years from 2015/16 to 2018/19 this included anoperational call centre to address the matter of unscheduled maintenance of immovable assets (which often leads to irregular payments and corrupt activities).

5.7.8.    Regarding matters of emphasis that could lead to emphasis of matter for 2021/22, the DPWI Management listed a number of assertions related to the matters of emphasis and provided their technical responses to it. Amongst the outstanding issues that required attention to get a clean audit were that:

a) the IAR was understated by R2,7 billion (2% of R123 billion)1% understatement or overstatement on the total value of immovable assets was not considered material by AG -

Management stated that the AG findings on the Deemed Cost and Assets Under Construction have already been addressed. The DPWI undertook to apply the Fair Value/Deemed Cost Model on land, buildings and significant components to eliminate assets recorded at R1;

b)  EPWP participants and projects not reported on the EPWP RS. This matter relates to Section 12of the Ministerial Determination (issued by the Minister of Labour) prescribes that every employer must keep a written record of at least the following for a period of at least three years after the completion of the EPWP:

  1. the workers’ names and positions on each project.
  2. copy of acceptable worker identification.
  3. in the case of task-rated workers, the numbers of tasks completed by workers.
  4. in the case of time-rated workers, the time worked by them.
  5. payments made to each worker.

5.7.9.      In previous deliberations on this matter, this committee stated that a problem existed with the department being held responsible for a performance indicator for EPWP that was materially not in its powers. TheAPP 2021/22 continues to state this performance indicator for the EPWP in spite of projects at national, provincial and municipal government level lie with each employer as stated in Section 12 of the Ministerial Determination (MD), using the words “every employer” were responsible for the list of information stated in 5.7.8. above, and not the regulating department. The DPWI had to correct this matter to deal with this emphasis of matter.

5.7.10.    Instead of correcting the matter, the DPWI dealt with it by making regulation and attempting to reinforce it through a number of costly measures. It developed the EPWP Audit Standard Operating Procedure (SOP) that was signed by the Director-General of the Department of Public Works and Infrastructure (DPWI).  The SOP informed public bodies on the requirements as per section 12 of the MD when reporting on the implementation of EPWP projects and guides public bodies on how to perform audits or perform verification on EPWP performance information. It further undertook physical visits to check on the implementation of the SOP to ensure compliance with section 12 of the MD.

5.7.11. TheDPWI further developed and maintained the EPWP-RS, against which 352 Accounting Officers had to provide quarterly progress reports on work opportunities created.

5.7.12. The EPWP branch senior management makes a valiant effort to annually visit public bodies (in 2020/21 a total of 227)to inspect the records of public bodies to ensure compliance with section 12 of the DM and the SOP (checking projects for attendance registers, proof of payment, etc.). This takes them away from other management duties that may have unintended negative consequences.

5.7.13. The DPWI senior management ensures that feedback reports on non-compliance were forwarded to the public bodies.  In this regard the Acting DG (ADG) sent 104 letters to Accounting Officers escalating persistent non-compliance. ADG requested that public bodies address the areas of poor record keeping, in relation to section 12 of the Ministerial Determination.


6. The Budgetary Allocations and programmes of each of the Public Works and Infrastructure Entities:

6.1. The Construction Industry Development Board (CIDB)

The entity is mandated to:

  • Providestrategicleadershiptoconstructionindustrystakeholders developingeffectivepartnershipsfor growth, reformandimprovementof theconstruction sector.
  • Promotethesustainablegrowthof the constructionindustryandtheparticipationoftheemergingsectorintheindustry.
  • Determine, establish and promote improved performance and best practice of publicand private sector clients, contractors and other participants in the constructiondeliveryprocess.
  • Promotetheuniformapplicationofpolicythroughoutall spheresof governmentandpromote uniform and ethical standards, construction procurement reform, andimprovedprocurement anddeliverymanagement–includingacodeof conduct.
  • Developsystematicmethodsformonitoringandregulatingtheperformanceof theindustry anditsstakeholders,includingtheregistrationofprojects andcontractors.


The entity identified two key themes to drive its outcomes. The budgetary allocation for 2021/22 will be used to work on outcomes under each of these. They are as follows:

1. A transformed and developed construction industry.

1.1. Increased black ownership and participation.

1.2. Increased women and youth ownership and participation.

1.3. Contractor Development.

2. An ethical and performance driven construction industry.

2.1. Performance driven clients.

2.2. Reduced non-compliance and fraud.

2.3. An ethical and performance driven CIDB.


Targets to ensure mandatedIndicators to reach outcomes:

  • The transformation targets to increase youth ownership and participation - 35% over five years against a 29% baseline target.
  • The target to increase black ownership grades 7 to 9 on the contractor register is stated as 75% over five years against a 67% baseline.
  • The target for women owned registered contractors in grades 2 to 9 is stated as 40% over five years against a 30% baseline.
  • The target to increase the percentage access to work for women-owned contractors is stated as 35% against the baseline of 24%.
  • Monitoring the number of upgrades of women-owned contractors is stated to move to 50% from the baseline of 40% over the next five years.
  • Monitoring black owned contractors is stated as moving to 60% from the baseline of 50% over the next five years.
  • Under developing performance driven clients, to drive increased spending on infrastructure budgets, it set a five-year target of 90 from a baseline of 82%.
  • Under the objective to drive reduce non-compliance and corruption in the construction sector - it states an indicator of average number of non-compliance cases reported per year, to move from the baseline of 72 to 36 over five years. 
  • For the stated target to drive towards good governance, it wants to achieve a clean audit for the year 2021/22.


The key issue for the committee is that the CIDB should have interventions in place to achieve these stated targets.

With regard to the targets toenabletransformationwithintheindustry the committee notes that it would apply the budget to the following interventions:






89.3%wasrecordedforprovincialbusinessadvisoryservicesprovided to contractors at grades 2 to 6 index against a target of75%. The development needs analysis has been conducted. Thedraftingoftheframeworkisunderway.

Capacitation of clients to drivetransformation in infrastructureprocurement,includingawarenessofprocurementreforms

Target on track and revised due to the Covid-19 pandemic,CapacitationsessionswerescheduledandhadtobecancelledduetotheCOVID-19Pandemic.Onlinecapacitationunderway.

Review and revision of the NationalContractorDevelopmentProgrammeframeworktoenabletransformation

Improvementinthegaps ofthecurrent NCDPframeworkhasbeenidentified.


To achieve the stated targets to drive transformation, infrastructure development, and clean governance the following new interventions are also notable:

  • Developasystemtoexpand andaligntheRegisterofContractorsto the Registerof Projects:
    • Herecontractors’trackrecordwouldautomaticallybe updatedthroughtheprojectsregisteredby ClientDepartments.
  • CIDB systems upgrade for integration with Central SupplierDatabase.
  • Implementation of industry best practices (CIDB B.U.I.L.D.Programme[24]).


To monitor the drive towards increased municipal expenditure of infrastructure budgets the following comparative information was provided:





Budgetedcapital expenditure(Rm)




Actualcapitalexpenditure (Rm)








Number of metros, municipalities, and district






The intervention to ensure increased infrastructure expenditure in municipalities are as follows:



Consult with all organs of state to identify construction-related budgets and the application thereof. Assessing theimpactofpublicexpenditureontheconstructionindustryandadvisingtheMinisteraccordingly.



Capacitation building is ongoing, e.g. IDMSclient support. Causes of cancellation oftendersresearchunderway.Expandingtheresearch on the impact of Covid-19 on theindustry.



Implementing the cidb Competence Framework forProcurementandtheunderpinningtoolstoassessSCM officials.





The intervention to regulate to compliance is as follows:




(OD)Process to capacitate theorganisation

ODprocessconcluded.Criticalpositionsbeingfilledwithinbudget provisions.

Promoting the use of SANS[25] 1734Specification for an Anti-BriberyManagement System (ABMS) for largecontractingenterprises

ABMS1734wasgazettedasaBestPractice.Cidb is consulting on theapplication of the ABMS against thecontractorregistration criteria.





6.1.3. The budgetary allocations to perform its mandate per programme for 2021/22 is as follows:

The budget consists of the allocation from the transfers from DPWI programme 4, registration fees from contractors, and investments.













































Total Budget







6.1.3. Action items to be performed with the R205.3 million budget:

  • The CIDB shall revisit and ensure that the Contractor Register, as detailed in Chapter 3, Section 16 of the Act, is up-to-date in terms of all aspects for all contractors that are registered, and in particular in relation to empowerment and B-BBEE compliance. It is essential that this is actioned and completed within the next 6 months.
  • The CIDB shall commence with the process of developing a database and Register of Professional Service Providers. This has not been compulsory up until now. The Minister, however, shall require that this will become compulsory as at the beginning of the 2021/22 financial year, especially for Special Infrastructure Projects, as determined by the Infrastructure Development Act, No 23 of 2014.
  • The CIDB, in partnership with DPWI, to develop a programme and implementation manual of how to mainstream the Expanded Public Works Programme (EPWP) in all built environment departments across all spheres of government, as well as within other Public Employment Programmes.


6.1.4. Matters that emerged from deliberations:[26] CIDB requested the assistance of the committee and the Auditor-General with the matter of compliance from client departments and municipalities with the B.U.I.L.D. programme. Without compliance from government stakeholders, the infrastructure development budgets will be compromised. The B.U.I.L.D. is a new intervention that sets uniform standards with the development of skills of contractors, and for enterprise development so that contractors can progress to higher grades; it was alsoan intervention to get higher graded contractors to participate in the transformation of contractors that were graded lower on the CIDB register. The development programme for women in construction was not mentioned in the APP but the Board Chairperson made it clear that it consists of a coaching programme and awards. It was funded by the DPWI and the objective was to grow it exponentially in coming years. Developing lower grade contractors was crucial; lower grade contractors functioning as sub-contractors quoted in terms of their lower purchasing power. The CIDB needed to take this into consideration so that when lower grade contractors are contracted in government projects, this was factored into in its standard setting and regulatory part of the B.U.I.L.D intervention. Small Medium and Micro Enterprise (SMME) contractors are underperforming in terms of financial management due to payments for building materials, medical assessments, and worker benefits not being standardised amongst all contractors on project sites. The CIDB needed to find a mechanism through which to identify and blacklist formations that hold construction project sites to ransom by demanding payment of their allocation and not working for it. They also did not work with the contractors and causedcompletion backlogs and increased cost on government project sites. The grading of contractors on the CIDB Contractor Register should not only be based on criteria such as bank balances and cash flow, and the cost to completion of their last contractedprojects. The committee urged the entity that instead of merely using financial criteria alone, important qualitative criteria such as number ofprojects completed on time and within budget, the manner of managing labour relations, and prevention of injuries on worksiteswereaddedcriteria to advance on the CIDB Contractor Register.

The committee urged the CIDB to provide timelinesalong which the review of the grading of contractors on the CIDB Contractor Register would take place. The matter of non-compliance to standards set by the CIDB interventions to ensure compliance and fight corruptionin the construction sector could be achieved by imposing fines. In spite of the assertion by the CIDB that deregistration may be hampered by international agreements as it protects large contractor enterprises, the committee strongly arguedthat deregistration had to be considered as a stronger measure to fight corruption. The weakness of the Contractor Development Framework related to client departments and entities that required CIDB assistance, which did not include funding for contractor development programmes across the life of projects. Project leadership also often did not remain consistent through the life of projects which caused contractor development to be implemented haphazardly. After two years of collaboration on the review of the CIDB Act with the DPWI,theamendment of the legal framework is at an advanced stage. The amendment to the CIDBAct was in the pipeline and would assist the CIDB to ensure compliance to the regulatory, uniform standardization task of the CIDB and further strengthen the fight against corruption, the transformation of the construction sector, and the equalization of opportunities in the build environment. The committee noted the on-going work to get the ISA set up, funded and staffed. Given that it was year three of the 2020-2025 administrative term, it seemed as if the completion of the process may not be concluded within this term.


6.2.The Council for the Built Environment (CBE):

The CBE is a schedule 3A entity established by the Council for the Built Environment Act (No. 43 of 2000). It is an entity of the National Department of Public Works and Infrastructure.

The CBE is responsible for regulating the following six built environment professional councils:

  1. South African Council for Architectural Professions(SACAP).
  2. Engineering Council of South Africa(ECSA).
  3. South African Council for the Project and Construction Management Professions (SACPCMP).
  4. South African Council for the Landscape Architectural Profession(SACLAP).
  5. South African Council for the Quantity Surveying Profession(SACQSP).
  6. South African Council for the Property Valuers Profession(SACPVP).


The CBEoversees and regulates the six professional councils responsible for regulating built environment professionals such as architects, engineers, quantity surveyors, landscape architects, property valuers, and project and construction managers.


In its planning documents for this financial year, the CBE shows an alignment with the broad policy objectives of the NDP, ERRP, and the SONA.


It states its mandate as follows:

“The scope of the CBE and councils for the professions in the Built Environment (BE) value chain is to regulate those Built Environment Professions (BEPs) which conceptualise, design, build, maintain and transfer social and economic infrastructure. The CBE executes its mandate from the Council for the Built Environment Act (No. 43 of 2000) (the CBE Act), while also being mindful of the following legislations, regulations, policies and best practice guidelines to exercise good governance, ethical leadership and corporate citizenship. The CBE adopted a Compliance Policy and implements a compliance action plan for identified compliance obligations with quarterlydisclosure.”



6.2.1. CBE Budget for 2021/22:
























Programme4:Research andAdvisory















All figures as per National Treasury ENE, p 217


The total revenue of the CBE equals R55.1 million, which is a decrease of R3.6 million from the R58.7 million in 2020/21.

Like the other Public Works and Infrastructure entities, the CBE receives part of its revenue as a transfer from the DPWI’s Programme 4, while the rest consists of sales of goods and services, and non-tax revenue.


6.2.2. Matters that emerged from deliberations: The two matters that required urgent attention from the Minister was that of consistent corporative leadership of the Boards of each council to ensure that they quorate throughout their terms in office. The lack of consistent corporate governance by boards of the BEPCs led to instability of professional councils over a number of years. This caused key matters related to transformation of the administrations of the councils toremain outstanding in the regulatory and training regimes of the councils.

The interrelated matter of the slow progress of the transformation tasks of the BEPCs in each sector to drive gender equity, andadminister thestructured pipeline candidacy programme for graduates to progress to professional registration remained a concerning issue. The committee signalled theneed for agile, pre-emptive work and responses by Ministry and departmental officials on matters related employee rights being eroded in all entities and built environment professional councils (BEPCs) was of concern. It was unacceptable that women were complaining about bullying in SACAP and the responses were so slow that it added to the burden of the victims. The committee noted progress with the Identification of Work (IoW) for the BEPCs as an outcome of the collaborative work of the CBE with the Competition Commission. CBE had a history of doing well with programmes to attract learners to mathematics, science and learning areas that assist them to graduate in built environment professional qualifications. The weakness remains the participation of established enterprises in the BEP sector to take on graduates and implement the Structured Candidacy Programme. Without this graduates exiting universities take too long to be professionally registered which leads to stagnation and the unfortunate dwindling of important capacity that is required to achieve the country’s infrastructure development plans. This matter required the participation of all well-established BEP companies, and the amendment of the CBE Act could assist to get their participation to establish a standardised professional registration programme regulated by the CBE. Matters from specific BEPCs such as the South African Council for the Project and Construction Management Professions (SACPCMP) – the administration seemed to be compromised specifically with regards to professional registration both in terms of the process, and in terms of on-going training for professionals. Members of voluntary associations were reportedly crowding membership of Boards of BEPCS such as the SACPCMP. The CBE needed to be more agile and act with urgency in its oversight mandate over such matters in these councils. The Cuban Technical Assistance Programme – DPWI view: A protocol existed at an executive level between the Cuban government and the Department of International Cooperation. This was coming to an end and the programme was being reviewed. The CBE and ECSA had a critical role to play in sourcing capacity in the country prior to utilising the protocol. The CBE had to act as the overarching body of BEPCs in matters such as the Engineering Council of South Africa and the regulatory question of whether foreign engineers that are brought into the country to assist with infrastructure development had to be registered with the ECSA before practicing in project within the country. The CBE explained that departments have been working in silos for a long while. Since infrastructure were situated within the DPWI, the CBE was trying to find capacities within the country prior to taking on board foreign BEP professionals. The matter had to still be discussed with the sister Department of Water and Sanitation to take firm decisions on the matter. As CBE is responsible for regulatory frameworks, it is concerned about gatekeeping in the BEPCs on boards and registration processes. It is amending its regulating frameworks and allowingacademics into its ranks toassist with identifying and designing methodsthat curb on-going practices of gatekeeping in all councils.

6.3. The Independent Development Trust (IDT):

In the previous financial year, the Minister withdrew the formal submission of the Strategic Plan (2020-2025) and the APP of the IDT. In spite of,in the Budget Vote report of 2020/21, requesting the updated plans to transform, restructure, or dissolve the entity,the committee did not receive information from the Minister or the DPWI.

In the absence of updated information of what would happen to the entity, the important social infrastructure mandate it has to deliver, and the personnel that were employed in its organizational structure, the Portfolio Committee listed the following as background and a summary of the challenges that the entity faced involving the key task of project managing social infrastructure delivery across the provinces and regions of the country.

6.3.1. Background:

The IDT evolved from a grant‐making organisation into a responsive development agency with a well‐established footprint across South Africa.

The IDT augments government’s capacity to achieve the objectives of the National Development Plan (NDP) and Vision 2030. A review and transformation process has been started during the 2014 to 2019 five-year administration to strengthen this role. This included a confirmation of the IDT’s mandate to deliver social infrastructure cost effectively.

The IDT is the public works and infrastructure entity that should use its resources in the initiation, planning and implementation of innovative and sustainable development projects, to positively address the challenges in which geo-spatial patterns of poverty, inequality, unemployment and underdevelopment occurs in the regions and provinces of the country.


This function of the entity was underpinned by the 1997 government resolution to reconstitute the IDT as a development agency and public entity to support all spheres of government. It followed Cabinet endorsement of a recommendation of a Cabinet Advisory Committee that, inter alia, “The IDT must be transformed into a government development agency that will implement projects which are commissioned by government departments. It must cease to be a civil society organisation, an independent agency or funding agency.”[27] Building on its effectiveness as a civil society body and redistributive mechanism, the IDT was integrated into the public service delivery system in 1999 with the promulgation of the Public Finance Management Act (PFMA) (Act 1 of 1999), as amended, and listed as a Schedule 2 Major Public Entity. The 1997 mandate of the IDT remains in place.

Over the last few years, the entity, and the Minister recognised the operational and financial challenges that it faced due to its inability to collect management fees owed to it. This resulted reduced trust between the entity, client departments, and a decline in its business portfolio caused its deficits to grow substantially. The entity had been undergoing a long drawn outtransformationprocess thatincludedarevisionofitsoperatingmodel and organisational redesign. It remained firmly focused on achieving business growth and achieving long-term sustainability. The Board and management approved a turnaround plan aimed at repositioning the entity to be financially viable and self-sustaining.


All development reviews conducted by government, i.e. 5, 10 and 20 years[28], as well as the NDP 2030 placed emphasis on the need to build the capacity of government as a prerequisite for the attainment of its development imperatives. Thus, rather than duplicate programmes, or possibly positioning the IDT as a super agency that could usurp the functions of the DPW, the PMTE, or other government departments, the review of the IDT’s mandate was important to enhance the objective of building a capable developmental state. The functions of the IDT is crucial for social infrastructure development across the urban and rural divide including redressing town and city geo-spatial planning that continued the inherited apartheid model. This role of the DPWI, PMTE and an entity such as the IDT is a key pillar on which future economic growth must take place. It is therefore strategically aligned to the policy objectives stated in the NDP, ERRP, and the tasks listed in the 2021/22 SONA.


6.3.2. Summary of Challenges:

  1. In spite of a long drawn-out transformation process, the IDT was not converted from a schedule 2 to a schedule 3A public entity;
  2. The policy leader and the DPWI as lead department did not report on progress with the implementation of any aspect of the 2018 Turnaround Plan including how to align the IDT and the DPWI’s mandates.
  3. In spite of the knowledge that the IDT was unable to collect management fees from client departments for project management services to construct social infrastructure projects, nothing was done to enforce debt payment by client departments.
  4. The long drawn-out transformation process of the IDT caused competent administration and financial management personnel to leave and this weakened its abilities to collect debt, and negatively affected financial management, and caused compliance with legislation and regulations to suffer.
  5. These resulted in negative audit findings made by the Auditor-General in its latest Management Report and previous Annual Financial Performance Reports.
  6. The IDT suffered from a trust deficit with government departments looking for project management, and maintenance services from other entities such as Coega Development Corporation and the Development Bank of South Africa (DBSA).
  7. The Board of the IDT lost members, which meant that it could not appoint financial, and management personnel.
  8. The Minister as Executive Authority and policy leadership did not timeously assist to ensure that the Board was quorate to develop restructuring and organizational design processes. The on-going inconsistencies in the composition of the Board to ensure that it is quorate bedeviled attempts to put it on a path of recovery. The Minister as Executive Authority has a duty to ensure this is returned to stability, as it has led to several staff members suffering job losses - security of employment for all staff must be urgently restored.


6.3.3. Strategy to deal with the entity’s challenge:

In meetings with the PC on PWI during the 2017/18 financial year, the Minister, Deputy Minister, DPWI, and IDT reported on the strategy to reconfigure, the entity into a streamlined social infrastructure agency.

The DPW stated that the IDT had to be transformed into a more technically proficient, social infrastructure delivery agency. This process would be undertaken by a task team that include the National Treasury, DPW, the IDT, Public Service and Administration and other key role players.

The plan was to pattern the newly configured IDT along the same model as that of the Government Technical Advisory Centre (GTAC)[29]. This model results in a highly professional advanced technical advisory agency that provides programme, project management and transactionsupport to National Treasury and the Minister of Finance. Similar to the GTAC, the new social infrastructure agency would be established as a government component in terms of the Public Service Act.

The DPW asserted that the committee had to keep in mind that the process required a new mandate from the Minister as policy leader.

The committee stressed that the Minister as policy leader and the DPWI as the implementer of this policy had to do oversight that is more stringent over the IDT. The Deputy Minister and Minister agreed with this point and stressed that the IDT could not continue in its current format. It stressed, however, that the policy leader and the DPWI was committed to drive the process of restructuring it.












Mediumterm expenditureestimate







































6.3.4. Budgetary Allocation per programme:


Over the medium term, the entity will continue to focus on implementing infrastructure projects aimed at empowering poor communities. To achieve this, the trust expects to spend R19.6 billion over the period ahead on its infrastructure portfolio, which is funded by client departments. These projects are expected to create 14 718 work opportunities through the expanded public works programme.


Expenditure is set to increase at an average annual rate of 5.1 per cent, from R271.8 million in 2020/21 to R315.7 million in 2023/24. Compensation of employees accounts for an estimated 63.7 per cent (R547.6 million) of total expenditure over the MTEF period.


The IDT expects to generate 83.9 per cent (R777.8 million) of its revenue over the medium term period through management fees for projects it implements on behalf of government departments, and will intensify its collection of outstanding revenue owed by client departments.

Key matters to note on the budget indicated for the IDT:

  • Theoutputofstrategyisnotfactoredintosubsequentyears.Thebudgetisconservativeand reflectsrestrainedrevenue increases due to challenges such as internal (Board inconsistencies that leads to insecurities experienced by staff) and external trust deficiencies (client departments eroding the IDT’s mandate, as well as refusing to honour contracts by paying outstanding debt).
  • The entity needs confirmed business not less than the expected expenditure for thesubsequentyears of the medium-term expenditure framework period.
  • The indicated surplus budgeted for the 2020/21 financial year is stated theoretically. It remains fully dependent on the entity receiving a grantallocation of R160 million. Note that theoretically, this surplus would be carried forward into thesubsequent years to fund the operating deficit.It is critical that additional new business begeneratedtofundthebudgeteddeficit.TheadditionalrequiredprogrammeexpenditureisR254 million forthe2021/22financialyear.


6.4. Agrément South Africa

This entity is mandated to certify non‐standardised or unconventional built environment construction products, materials and systems through technical assessments that verify whether such products, materials and systems are fit for purpose.

The increased focus on the DPWI as sector leader of infrastructure development, the long-term policy objective in the NDP[30] to increasingly provide human settlements where people can live in dignity, with social service infrastructure close to their homes, make the work of the ASA quite important.

The entity’s legal mandate is described in the ASAActNo.11of2015 as follows:

  • Provide assurance to specifiers and users of the fitness-for-purpose of non-standardisedconstructionrelated productsorsystems.
  • Support and promote the process of integrated socio-economic development in the republicas itrelatestotheconstruction industry.
  • Support and promote the introduction and use of certified non-standardised constructionrelatedproductsorsystemsinthe localorinternationalmarket.
  • Support policy makers to minimize the risk associated with the use of a non-standardisedconstructionrelated product orsystem;and
  • Be an impartial and internationally acknowledged South African centre for the assessmentandconfirmationoffitness-for-purposeofnon-standardisedconstructionrelatedproductsorsystems.

6.4.1. Tasks that ASA must achieve:

In its planning documentation tabled to Parliament, the ASA notes that the NDP guides it to play an integral role as part of government, which would include[31]:

  • Systematically responding to entrenched spatial patterns across all geographical scales that exacerbate social inequality and economicinefficiency.
  • Takingaccountoftheuniqueneedsandpotentialofdifferentruralandurbanareasinthe context of emerging development corridors in the Southern African sub-region before making decisions ondevelopments.
  • Reviewing State housing policies to better realise constitutional housing rights, ensuring that the delivery of housing is used to restructure towns and cities and strengthen the livelihood prospects ofhouseholds.
  • Supporting active citizenry and developing incentives through a range of interventions, which includes the establishment of social compacts;and
  • Planningforhumansettlementsbeguidedbyasetofnormativeprinciplesthatwillcreate liveable, equitable, sustainable, resilient and efficient spaces, including supporting economicopportunitiesandsocialcohesion.(NationalDHSStrategicPlan2015to2020).

The ASA therefore stated a strategic intention to continue with its core certification function of non-standardised fit-for purpose building material and systems. It will simultaneously work out alternative ways to use the allocated budgetary transfer from the DPWI and use itsresourcesmoreefficiently to support government’s policies to create opportunitiesforsocioeconomicimpactandbuiltenvironmenttransformation.

6.4.2. Budgetary Allocation

ASA receivesanannualgovernmentgrantand generates its ownrevenues. Forthe2021/22financialyear,ASAhadtotalrevenuesofR36.6millioncomprisingR 31.1 million in the annual transfer from Programme 4 of the DPWI (85.0% of total income) and R 5.5 million revenue that it generates from its testing, registration and licencing services and investments. The latter comprised R 4.2 million for the rendering of services and a further R 1,3 millionfromreturnoninvestments.

The table below summarises the MTEF budget allocation for ASA. A key challenge evident in the medium term isthereducedbudgetallocationwhichwillrequireASAtobemorecostefficientandseektoincreaseits ownrevenuesgoing forward.

ASA Budgetary allocation for 2021/22



Medium term estimate


















Statement of financial performance:































Sale of goods andservicesotherthan capital assets ofwhich:














Sales bymarket establishment







Other non-taxrevenue



































Compensationof employees





















Solidarity Fund


















6.5. Matters that emerged from the committee deliberations on the planning documents of the ASA:

6.5.1.    The ASA should find a way of getting its certified products popularised in departments such as Human Settlement so that social infrastructure development projects can benefit from the work that the entity does. Similarly, the DPWI itself do not use the certified products and systems to maintain and construct in its own projects.

The entity worked on a marketing strategy that was approved by the Board. They are looking at getting more partners to enhance its user footprint through branding across the sector. It wanted to report back in a year’s time that this was improved.

6.5.2.      The matter of employment creation and empowerment of designated groups required attention.

Further, thatthe ASA worked in partnership with the NHBRC and universities through internships to perform the function of inspection of its products. This is aimed at ensuring employment and empowerment to designated groups.

Regarding the matter of business continuity, the pandemic necessitated that it innovatively works to ensure continuity through partnerships with stakeholders.

7. Recommendations:

Having considered the planning documents and budgetary allocations for this financial year, the committee recommends that the Minister of Public Works and Infrastructure:

  1. Ensures that the in-year reporting synergy is restored between the office of the Director-General and the Office of the Minister to strengthen the department into a resilient, ethical, and capable government department and performing organisation. Reports on the regularity, structured content, and consistent monitoring is required to prevent the tendency of one office reporting differently on matters before the committee in its interactions, especially in quarterly, and annual performance reports.
  2. Provides a report to the committee on steps taken to ensure employment security for all DPWI and PMTE public service employees. Included in this report, to provide detailed progress (including cost incurred) that has been made to reinstate staff (including DDGs) who were found to have been dismissed unfairly in 2019 by an award dated 31 March 2021of the Public Service Sector Coordinating Bargaining Council (PSSCBC).
  3. Ensures that the audit action plan be updated and the steps to make the Immovable Asset Register GRAP compliant, be presented to the committee with the DPWI information and communication technology (ICT) staff who are responsible for maintaining the register in attendance. The committee requires a demonstration that shows how the ARCHIBUSis used to make the IAR complete. Members requirethe ICT staff to show the register in operation so that it can gain material understanding of the value of ARCHIBUS to the IAR.
  4. Provides a comprehensive report to the committee ofits consequence managementplan with its phases and practical stepsto ensure compliance throughout the financial year. This should indicate the responsible senior managers, the reports they regularly must present, the dates when these are presented per month, quarter, and year. This report with the relevant detail on outstanding matters of the audit actionplan to ensure compliance, a clean audit in the DPWI and PMTE, must be presented to the committee by the end of August 2021.
  5. Provides a comprehensive report on the framework that remains outstanding to the committee since the previous financial year, to develop the legislative work that is required to strengthen the DPWI mandate as accommodator and landlord of the state, so that it can properly claim management fees from client and user departments for construction, maintenance, and rehabilitation work completed within each financial year. Reports on this matter to be provided to the committee by the end of August 2021.
  6. Provides a comprehensive report to the committee by end of August 2021, on the funding, performance reporting, and accounting flow in which the facilitation and coordination of public infrastructure development will unfold under the newly created Infrastructure South Africa (ISA).
  7. Ensures that the DPWI legislative and regulatory regime is properly aligned to the Spatial Land Use Management Act (SPLUMA), and the Infrastructure Development Management Framework of government. Reports on this by end of August 2021.
  8. Instructs the DG and the senior management team to complete the establishment of the Information and Communication Technology (ICT) Executive Committee as a precursor to completing an ICT Strategy that is aligned to its organisational strategy as per the five-year Strategic Plan and APP. Reports to this committee remains outstanding since 2020 and should now reach the committee by the end of June 2021.
  9. Instructs the PMTE, to report in everyquarterly performance reports to this committee on the operations of the call centre that has been set up to progress towards scheduled rather than unscheduled maintenance. The first report is due by August 2021.
  10. Instructs the EPWP branch in its quarterly performance reports to report on innovative ways to up-skill beneficiaries, in order to reduce our national skills deficit.
  11. Provides a report by the end of May 2022 on progress made by the task team that had to include the National Treasury, DPWI, the IDT, Department of Public Service and Administration and other key role players to restructure the IDT into a more technically proficient social infrastructure delivery agency.
  12. Improves the monitoring and oversight function of the Minister’s Office over all the public works and infrastructure entities, so that all governing structures/Boards quorate, and the serious matter of transformation, and employment securityin each entity is addressed, and so that the administration of each entity remains fully functional to complete its mandated responsibilities. Reports on this matter by 31 August 2021.
  13. Provides a comprehensive report on expenditure during the Covid-19 disaster period and the provision of personal protection equipment and professional services to put quarantine sites in place across national, provincial and local government level. The report to be made to the committee by the end of September 2021 and in subsequent quarterly performance reports throughout this five-year administration.
  14. Completes the legislation and amendments to existing Acts, to align the mandates of the public works entities, PMTE and DPWI, and provide for improved enforcement, regulatory, and coordination power (that is also required for the DPWI and the PMTE to perform its sector oversight, regulation, coordination, and enforcement) for transformation purposes as well as to collect management fees for infrastructure projects completed on behalf of client departments. Reports on this matter by 28 February 2022.
  15. Ensures that unfair competition and conflict of interest is avoided at all cost in the establishment of Boards of entities that are responsible for governance throughout the public works and infrastructure sector. This principle should specifically be given attention in built environment professional councils (BEPCs) that have bodies established that administer assessments, registrations, and similar activities on behalf of the relevant entity or BEPC.
  16. Ensures strong oversight and monitoring of crowding of members of voluntary associations on Boards membership of BEPCS. The CBE as overarching body of BEPCs to act with agility and urgency in its oversight mandate over such matters in the BEPCs; perform an audit of the Board Membership of BEPCs with regards to voluntary association members in the sector that possibly crowd out elements of transformation, and report to the Minister.The Minister to submit a report in this regard to this committee by March 2022.
  17. Ensures that the CBE Board and the department acts pre-emptively and with urgency to address the matter of reported sexual harassment, bullying, and marginalisation of black women that serve on the South African Council of Architectural Professions (SACAP). The on-going governance challenges requires drastic but strategic intervention with the aim of restoring the trust deficit that has set in as a characteristic of this BEPC. A report in this regard should reach the committee by the 1 March 2022.
  18. Provides a report to the committee on senior management contracts that should be linked to performance targetsstated in the APP for specific branches. The feasibility of such linkages as preventive measure for non-compliance to fight corruption and move the department and its entities to efficient performance and a clean audit to be investigated with the Departments of Public Service and Administration and the Department of Performance Management and Monitoring and Evaluation. A report to be made to this committee by 1 March 2022 and quarterly thereafter, on progress with measures to ensure consequence management and a clean audit.
  19. Provides a report on a programme and implementation manual developed by the CIDB in collaboration with the DPWI of how to mainstream the Expanded Public Works Programme (EPWP) in all built environment departments across all spheres of government. Progress on this work to be reported by the end of June 2022 and in every quarterly performance report thereafter.


Report to be considered.


[1] These are the Council for the Built Environment (CBE), the Construction Industry Development Board (CIDB), Agrément South Africa (ASA), and the Independent Development Trust (IDT).

[2]See page 30 of this report. In the case of the DPWI, over the last two financial years, the Director-General has been suspended and an Acting Director-General (ADG) is performing these tasks. The tendency of unstable and inconsistent administrative leadership has become a feature of this administration– the analytic and deliberations sections refer to this instability and the consequences to its mandated deliverables.

[3]Ramaphosa,C.(2021),pp.3 -11.

[4] The ISA, National Treasury, and the DBSA play a collaborative role, through a Service Level Agreement (SLA) in this regard. The challenge is that even though ISA is a structure within the DPWI, it does not have a personnel structure, organogram, and specific funding for how it performs its functions. Later in this report (see pp.21 and 40), and its recommendations, this is referred to as a matter that requires urgent attention as the absence of this information hampers the committee’s oversight attempts.

[5]This refers to the Enterprise Resource Plan (ERP) that consists of the SAGE accounting software and the ARCHIBUS property management software. The renewal of the EPWP Reporting System (EPWP RS) also require attention as part of the ERP.

[6]Note that all enablers are not related to this portfolio. Also, the analytic comments are not intended to cover every single misalignment related to the listed enabler as the rest of the analysis is in the body of this report.

[7] Evidence of this is available in this committee’s oversight reports on the Beitbridge, Khosi-Bay projects, as well as in the Quarterly Performance, and Budgetary Review and Recommendation Reports over the last three years.

[8] All figures in the analyses are from NationalTreasury(2021),p.201.

[9]NationalTreasury (2021),p.203.

[10] Ibid.

[11] DPWI Strategic Plan 2020-2025, p.9

[12] Ibid.

[13] Ibid.

[14] This programme was known as Property and Construction Industry Policy Regulation that promoted the growth and transformation of the construction and property industries, and uniformity and best practice in construction, and immovable asset management in the public sector.

[15]Up until 2009/10 the two programmes: Construction Industry Development Programme and the Property Industry Development Programme) fell under Programme 3 but since the 2014/15 financial year has been renamed as Property and Construction Industry Policy and Research.

[16] National Treasury (2021), p. 208.

[17] This programme was known as Auxiliary and Associated Services in previous years. It used to fund various services, including compensation for losses on the Government-assisted housing scheme; assistance to organisations for the preservation of national memorials; and meeting protocol responsibilities for State functions. Currently, it focuses on meeting protocol responsibilities for State functions with an additional function to provide norms and standards for the Prestige Accommodation Portfolio.

[18] Department of Public Works (2016), p. 325.

[19]All amounts in the following tables as provided in the Estimates of National Expenditure (ENE) for the Department of Public Works and Infrastructure, Budget Vote 13, National Treasury, 2021/22.

[20]This is as per the Broad-Based Black Economic Empowerment(B-BBEE) Act of 2013 that establishes a legislative framework for the promotion of black economic empowerment.

[21] Heating, Ventilation, and Air conditioning

[22] Gensets refer to any combination of diesel engine and electric generators used to generate electricity. These are critical components especially in areas of untrustworthy/intermittent power supply.

[23] Public Service Commission, Guide on Governance Practice for Executive Authorities (EAs) and Heads of Department (HoDs) (March 2019), paragraph 8.5 on page 55 that deals with Executive Authorities and Arbitration Awards/Court Orders: EAs and HoDs should not unreasonably refuse to have arbitration awards and court orders issued against a department implemented, as this may have a negative impact on the financial and Human Resources of the Department and may compromise Service Delivery.

[24] The CIDB Act 38 of 2000 mandates the entity to lead efforts to optimize the construction sector’s contribution to social and development goals. It developed the Best Practice Project Assessment Scheme, simply known as the CIDB B.U.I.L.D. Programme.

[25] South African national Standards.

[26]Thesematters emerged from deliberations on focused on the Strategic Plan 2020-2025 during the 2020/21 financial year as the first year of the five-year administrative term. This section was further updated through the committee’s deliberations on the 2021/22 APP on 11 May 2021.

[27] “Structural Relationships between Government and Civil Society Organisations”, Report prepared for the Deputy President, Thabo Mbeki, South Africa. p. 3

[28] Government’s 10, 15, and 20 Year Review was done by the Presidency, in collaboration with all Ministers and departments, and printed and disseminated by the Government Communication and Information Services (GCIS).

[29]The Government Technical Advisory Centre (GTAC) is an agency of the National Treasury. It was established to support public finance management through professional advisory services, programme and project management and transaction support. GTAC promotes public sector capacity building through partnerships with academic and research institutions, civil society and business organisations. GTAC reports to the minister of finance and is established as a government component in terms of the public service act. See for further information.

[30]The NDP stresses the need to fundamentally reshape the apartheid geo-spatial form. It acknowledges that it may take many decades butdirectsthatall government departments and entities shouldstriveformeaningfulprogressincreatingurbansettlementsthatare functionally integrated, balanced and vibrant, including the revival of rural areas.

[31]ASA, APP, pp. 31 and 32, Annual Performance Plan 2020/21.


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