ATC130507: Report of the Portfolio Committee on Public Works on Budget Vote 7: Public Works and on the Strategic Plans, 2012 - 2016 and Annual Performance Plans 2013 - 2014 of the Department and its entities, dated 30 April 2013

Report of the Portfolio Committee on Public Works on Budget Vote 7: Public Works and on the Strategic Plans, 2012 - 2016 and Annual Performance Plans 2013 - 2014 of the Department and its entities, dated 30 April 2013

The Portfolio Committee on Public Works, having considered the budget vote of the Department of Public Works, the strategic plans and the annual performance plans of the department and its entities, wishes to report as follows:

1. Introduction

Following the tabling of the Department of Public Works Strategic Plan, the Portfolio Committee on Public Works conducted public hearings with the Department of Public Works, Independent Development Trust (IDT), Agrément South Africa (ASA), Construction Industry Development Board ( cidb ) and the Council for the Built Environment (CBE).

2. Presentations by the Department of Public Works and entities

2.1 Department of Public Works

The mandate of the Department of Public Works (DPW) is the custodianship and management of a significant portfolio of national government’s immovable assets. This includes the provision of accommodation, rendering of expert built environment services to user departments at national government level in the planning, acquisition, management and disposal of immovable assets. DPW is also mandated to coordinate and provide strategic leadership in the implementation of the Expanded Public Works Programme (EPWP).

During the 2013 MTEF (Medium Term Expenditure Framework) process, departments were requested to reprioritise and reduce their baseline without requesting additional funding. Under reprioritisation of the allocation, funds were shifted from low efficiency/priority expenditures towards areas of higher efficiency/priority in determining new 2013 MTEF baseline expenditure estimates. The funds emanating from the reductions will allow government to increase allocations to infrastructure projects, and to finance the impact of higher than expected wage increases.

Over the MTEF an amount of R1.1 billion was reprioritised with R1 billion being reprioritised from infrastructure and the balance of R100 million from Transfers and Subsidies (municipal services) and machinery and equipment. The reprioritisation of funds was intended for the following projects under the turnaround strategy that was announced by the Minister of Public Works in January 2012: Turnaround team, Special Investigating Unit (SIU), Clean Audit, Project Management Support, Immovable Asset Register, Lease review, Internal Audit Support and Treasury Technical Support Unit.

The reprioritisation of funds over the MTEF for turnaround is for both Programme 1 and 2 under the following economic classification:

· Compensation of employees at R 329 million, Goods and services at R 508 million and Capital assets (Software) at R 5 million.

· Other reprioritised budget over the MTEF is for the following:

· The Independent Development Trust (IDT) at R 150 million, EPWP Incentives Non-State Sector at R 247 million and Council for the Built Environment (CBE) at R 30 million.

Over the MTEF the budget for the department was reduced by R8.407 billion and the reduction was under the following:

· Infrastructure at R1.810 billion, Devolution of property rates at R6.487 billion and EPWP integrated to municipalities at R110 million.

· Infrastructure budget was initially reduced by R810 million with R1 billion being further reduced in January 2013 in line with Cabinet decision of creating fiscal space through the implementation of further savings measure.

The reduced infrastructure budget includes R290 million being shifted to Department of Home Affairs for Land Port of Entry infrastructure projects. Devolution of Property Rates Fund to Provinces was reduced with the phasing out of the grant to Provincial equitable share. The reduced EPWP integrated to municipalities was reduced in line with the expected reduction of one percent in 2013/14, two percent in 2014/15 and three percent in 2015/16. The department received additional budget for compensation of employees of R 124 million over the MTEF for higher than expected salary increase for salary level one (1) to 12 in 2012.

2.2 Public Works’ performance targets, as set out in its Strategic and Annual

Performance Plans for 2013/14

The performance of the Department is influenced by the Turnaround Strategy that was announced by the Minister of Public Works in January 2012.

2.2.1 Programme 1: Administration provides strategic leadership and support services, including the accommodation and overall management of the Department.

The following is reported:

Internal Audit and Investigation Services: Comprises an approved structure of 61 positions. The 61 positions are reported as inadequate to meet the demands of the Unit and require an additional 15 positions to carry out its required functions, which will bring the total staff compliment to 76.

The annual and quarterly targets are reported as follows:

(a) An internal Audit Plan was developed and approved by 25 April 2013 by the Audit and Risk Management Committee in the 1 ^st Quarter, and the Plan will be revised and approved by the Audit and Risk Management Committee in the 3 ^rd Quarter.

(b) A total of 12 Fraud Awareness Programmes/Workshops will be conducted across the Department by 31 March 2014. Over the 4 Quarters, 3 Fraud Awareness Workshops will be conducted over each Quarter.

(c) Management and the Audit and Risk Management Committee will receive 1 progress report on investigated cases per quarter.

Strategic Management Unit: Staff complement of 19, but requires an additional 14 to bring it up to the required 33 personnel to fully meet the objectives of the sub-programme.

The Unit is responsible for:

(a) Tabling Strategic and Annual Performance Plans by March/April of each year.

(b) Provides training to Branches and Business Units and Regions on performance information by 31 March 2014.

(c) Update one (1) Risk Register per Branch/Business Unit at Head Office and Regional Offices for 2013/14.

(d) Department to centralise policy and procedures portal created within the Knowledge Base System.

(e) The Departmental Risk Registers are to be updated at Head Office and the 11 Regions over the 4 Quarters.

(f) Complete Risk Management training in the 2 ^nd Quarter for the Risk Management Committee members; EXCO; and Chief Directors.

(g) Letters of appointment to be issued to 8 risk champions at Head Office and the 11 Regions in the 2 ^nd Quarter.

(h) Draft guideline/manual to be developed in the 1 ^st Quarter for uploading of policies and procedures on the Knowledge Base System.

(i) The guidelines/manual submitted for approval for implementation by the business Units in the 3 ^rd Quarter.

Monitoring and Evaluation (M & E) sub-programme: The Unit was established in 2008 and remained with a vacancy rate of 75 per cent. The Unit requires capacity building to function and its current compensation of R4.7 million is expected to increase to R6.9 million over five years with the filling of vacant positions.

The M&E sub-programme to:

(a) Institutionalise the M&E Policy through training and reviewing the M&E Policy by 31 March 2014.

(b) Develop customised performance indicators with the Provincial Public Works Sector by 31 March 2014.

(c) Complete 4 Quarterly Reports on predetermined objectives.

(d) Complete the Performance Information contained in Chapter 2 of the Annual Report according to National Treasury Guidelines.

Intergovernmental Relations and Strategic Services (IGR) sub-programme: Since 2008/09, the IGR consisted of a staff establishment of 10 officials. The IGR requires the following additional service provision areas: Secretariat Services; Parliamentary Services; Stakeholder Management and Public Entities sub-Units.

Finance and Supply Chain Management (SCM) sub-programme: In 2005, the Department implemented an SCM Unit (which consisted of a minimal structure) at Head Office and Regions. Personnel in Units were not necessarily SCM practitioners and comprised of contract workers and interns.

In 2013/14, the focus will be on capacity building and adding an additional 70 new qualified SCM practitioners at Head Office and the Regions. A dedicated Demand Management Unit will be established at Head Office and Regional level to provide support to line managers in the analysis of procurement spending patterns. The Unit must also “scan the market to develop effective sourcing strategies”.

The sub-programme will develop and review the following 3 frameworks by the end of March 2016:

(a) Framework for the institutionalisation of A cquisition Management.

(b) Framework for Contract Management Capability.

(c) Framework for Documentation Management.

For the 2013/14 reporting period, the Department reports the following:

SCM policy directives, delegations, business processes and structure developed by 31 March 2014:

(a) 1 ^st Quarter the review and analysis of amendments of SCM Policy and directives.

(b) 2 ^nd Quarter consultation on draft revisions of SCM Policy.

(c) 3 ^rd Quarter Approval of SCM Policy by Accounting Officer.

(d) 4 ^th Quarter Training on revised SCM Policy.

Corporate Services sub-programme : With a vacancy rate of 21.7 per cent, the sub-programme has a total of 536 filled posts.

The Corporate Services sub-programme to:

(a) Compile the Department’s Human Resources (HR) Plan and submit to Department of Public Service and Administration (DPSA) by 1 April 2014.

(b) HR Plan to include: Workplace Skills Plan; Artisan Programme; and resourcing of core business of the Department.

(c) Update the Department’s organisational structure by 31 March 2014.

(d) Develop 4 Health and Wellness Programmes (emotional; substance abuse; debt management; awareness and education, physical wellness), in line with the Employee Health and Wellness Policy.

(e) Department and external stakeholders to conduct 12 workshop/seminars on gender, disability and youth mainstreaming.

(f) Screen 150 companies (including those appointed by the regional Offices) by 31 March 2014.

(g) Prioritise 100 personnel at head Office and the Regional Offices for vetting by 31 March 2014.

(h) Test and Install the Works Control Module on the Integrated Asset Management System.

(i) Begin phasing in the (requirements, business case and procurement), for the Integrated Financial Management System (IFMS) HR module by 31 March 2014.

(j) Undertake 10 Public Participation programmes to reposition the Department brand to citizens by 31 March 2014.

(k) Participate in 2 exchange programmes and institutional capacity building initiatives conducted within the Public Works Sector in the Southern African Development Community (SADC) region, (for example Zambia), by 31 March 2013.

(l) Identify and facilitate 2 areas for training opportunities in the Brazil , Russia , India , China and South Africa (BRICS) countries by 31 March 2014.

2.2.2 Programme 2: Immovable Asset Investment Management seeks to provide and manage Government’s immovable property portfolio in support of Government’s social, economic, functional and political objectives.

The total approved establishment posts for Programme 2 equal 5 707 of which 5 098 positions were filled as of 30 September 2012, and a vacancy of 618 posts.

The Asset Register Management Unit was established in August 2009 and experiences inadequate current capacity.

The Department reported the following plans to achieve its quarterly and annual targets for 2013/14:

(a) Plans to verify and update a total of 54 647 according to National Treasury Minimum requirements by 31 March 2014. In the 1 ^st and 2 ^nd Quarters, a total of 13 657 properties respectively; 13 663 in 3 ^rd Quarter and 13 670 in the 4 ^th Quarter.

(b) Plans to make 100 buildings accessible to people with disabilities in terms of the Capital Works Implementation Programme (CWIP) in phases from the 2 ^nd to 4 ^th Quarters.

The Projects and Professional Services sub-programme requires skilled professionals to implement the Government’s infrastructure programme. In the past 3 years, the Department was unable to attract the required skills in line with the Occupational Specific Dispensation, as it also competes with the private sector.

(a) The Department plans to create training opportunities for 500 graduates over the five-year Medium Term Expenditure Framework (MTEF) period. The programme will require an annual allocation of R170 million over five years and an additional R100 million to provide resources and working tools for the graduates.

(b) A total of 140 Level 3-4 Exempted Micro Enterprises will be appointed in 2013/14.

(c) A total of 7 contractors each will be appointed in 11 regions.

(d) A total of 55 contractors will receive Competency Certificates upon completion of training and mentoring at the end of the 4 ^th Quarter.

(e) Construction and refurbishment of artisan workshop facilities in 4 Regions ( Polokwane ; Umtata ; Pretoria and Cape Town ) by the end of March 2014.

(f) The procurement (1 ^st Quarter); appointment (2 ^nd Quarter); and refurbishment of existing structures (3 ^rd Quarter); and continued construction of the facilities (4 ^th Quarter).

Inner City Regeneration sub-programme: consists of 11 establishment posts of which (6 are vacant) and 5 are filled. In March 2011/12, a proposal was made for 2 Construction Management Chief Directorates aimed at creating more jobs in the built environment. The Directorates currently consist of 2 officials and require an additional 14 officials.

The Department reported the following:

(a) The sub-programme requires improvement of its information technology (IT) systems over the 5-year period. The system must include the capacity to deal with large scale drawings; geographical information; and extended presentations.

(b) There is a lack of adequate funding to implement programmes.

(c) Difficulty in attracting professionals which results in delays in planning outcomes.

(d) Complete development plans for 2 precincts (West Capital and Paul Kruger) by September 2013.

(e) Submit application to City of Tshwane in the 4 ^th Quarter to have Salvokop proclaimed as a township by March 2014.

(f) Identify 4 sites within the Paul Kruger Precinct by the end of March 2014 for Head Office accommodation of national departments.

(g) In 2013/14, an allocation of R70.1 million was made towards the 6 Precincts.

Operations Management sub-programme: Requires additional funding for the newly established Chief Directorate Property and Facilities Management and its operations. In 2012/13, the sub-programme had a staff compliment of 4 838.

The Operations Management sub-programme will:

(a) Annually manage 2 723 leases at the Regional Offices, according to approved business practices and directives.

(b) Develop a business case for Property Management to guide process of leasing private property by 31 March 2014.

(c) Implement the Lease Review Turnaround Recommendations by 31 March 2014.

(d) Appoint a service provider to manage the day-to-day Call Centre by 31 March 2014.

(e) Manage 51 049 day-to-day maintenance calls (opened and closed) according to day-to-day guidelines.

(f) Conduct 2 376 main and follow-up inspections for State and leased facilities, and verify occupation by 31 March 2014.

(g) Each Regional Office should conduct at least 216 inspections by 31 March 2014.

(h) Conduct main and follow-up inspections of 589 construction projects by 31 March 2014.

(i) Verify 10 590 under the custodianship of the Department to pay rates and taxes to municipalities by 31 March 2014.

(j) Verify 7 700 State properties for the payment of municipal services.

Key Account Management (KAM) sub-programme: has a staff complement of 60 people. Additional 12 staff members are required due to the increased service delivery demands and the needs of User Departments.

(a) The remaining (21 from a total of 46) Service Level Agreements to be signed with identified User Departments by 31 March 2014.

(b) Ten User Departments from a total of 43 will receive training on User Asset Management Plans (UAMP) in compliance with the Government Immovable Asset Management Act (No. 19 of 2007) (GIAMA) by 31 March 2014.

(c) Complete 43 UAMP Templates (1-12) by 31 March 2014.

(d) Submit 11 Monthly Reports to 45 User Departments by 31 March 2014.

(e) Submit bi-annual reports to the Accounting Officer on the compilation and submission of UAMPs by 43 User Departments and Entities to National Treasury in compliance with GIAMA.

Prestige Management sub-programme: The staff complement consisted of 30 people in 2012/13. Over the MTEF period, a total of 85 prestige structures (against a target of 154), will be upgraded and constructed by the Department. The Department will also implement the maintenance plan for prestige assets.

The Department plans to develop two frameworks, provide training and sign SLA by 31 March 2014:

(a) Framework for Client Value Propositions defining service packages for two major Prestige clients.

(b) Policy Framework for Domestic Services and Interior Design and Décor.

(c) Sign Service Level Agreements with two Prestige clients’.

(d) Two key Prestige Clients will receive training on User Asset Management Plans (UAMP) in compliance with the Government Immovable Asset Management Act (No. 19 of 2007) (GIAMA).

(f) Provide Quarterly Reports on the compilation, submission and implementation of UAMPs by two Prestige Clients through the planning process in compliance with GIAMA.

(e) Provide Quarterly Reports on the progress on implementation of all planning; acquisition; maintenance and disposal of accommodation programmes for 2 key Prestige Clients.

2.2.3 Programme 3: Expanded Public Works Programme seeks to ensure the creation of work opportunities and the provision of training for unskilled, marginalised and unemployed people in South Africa by coordinating the implementation of the Expanded Public Works Programme.

The EPWP sub-programme consists of a staff compliment of 260 (funded and posts including additional posts to the establishment), from a staff establishment of 282. The sub-programme has a vacancy rate of 22 people.

The following quarterly targets are reported:

(a) A total of 255 municipalities are targeted to report on the EPWP by the end of the 2013/14 financial year. The quarterly target gradually increased by 60 for the first 3 Quarters and 75 in the 4 ^th Quarter.

(b) The annual target for creating work opportunities is 1 230 000. The quarterly targets increases by 300 000 in Quarters 1 to 3; and 330 000 in Quarter 4.

(c) A total target of 3 500 was set for youth participation in the EPWP. The quarterly target increases from 500 in the 1 ^st Quarter 750 in 2 ^nd Quarter; 1 000 in 3 ^rd Quarter and 1 250 in the 4 ^th Quarter to reach annual target.

2.2.4 Programme 4: Construction and Property Policy Regulation promotes the growth and transformation of the construction and property industries, including uniformity and best practice in construction and immovable asset management in the public sector.

The current staff complement consists of 25 officials. The Construction and Property Policy Regulation Branch will require the following to fulfil the set priorities over the five year period: two Directors, one Deputy Director and four Assistant-Directors.

The five-year budget requirement of the Programme was estimated at R78.5 million.

The following quarterly targets are reported:

(a) Two sets of legislation to be tabled in Parliament: Expropriation Bill by June 2013 and Agrément South Africa (ASA) Bill by 31 July 2013.

(b) The Draft Expropriation Bill was sent out for public comment in March 2013. The public comment phase ends on Tuesday 30 April 2013.

(c) Final Built Environment Professions Policy submitted for Ministerial Approval by 31 December 2013.

(d) Two business cases submitted for Ministerial Approval by end of March 2014: Independent Development Trust (IDT) and Property Management Trading Entity (PMTE).

2.2.5 Programme 5: Auxiliary and Associated Services seeks 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.

The Programme does not have any staff and the support on State Functions is outsourced.

The programme reports the following targets for the 4 Quarters:

(a) Received a total of R50.8 million, an increase mainly to support State Functions (allocated a total of R27.1 million), to provide for inauguration in 2014 and other related functions.

(b) A total of 12 Prestige events supported with infrastructure related services: 4 each for Quarters 1 and 2; and 2 each for Quarters 3 and 4.

(c) The programme does not have a staff complement as most of its tasks are related to transfers of funding.

(d) Infrastructure support related to State Functions is outsourced to consultants.

2.3 Independent Development Trust (IDT)

The Independent Development Trust (IDT) is a Schedule 2 public entity in terms of the Public Finance Management Act (No. 1 of 1999) (PFMA), reporting to the Minister of Public Works as the Executive Authority. It is a development agency offering programme management and development advisory services to Government departments and other development partners. The entity’s emphasis is on the eradication of intergenerational poverty, especially among rural poor communities.

A new Board of Trustees was appointed by the Minister of Public Works on 1 July 2012 to serve a 4-year term from 1 July 2012 to 30 June 2016. The Board, inaugurated by the Minister on 25 July 2012, is comprised of 11 members.

2.3.1 Strategic goals of the IDT

The strategic goals articulate the IDT’s responsibility to promote sustainable development in poor and marginalised areas through delivery of integrated social infrastructure. The institution aims to achieve these strategic goals by using resources in a prudent and efficient manner.

Programme 1: Integrated service delivery

Programme 2: Administration

2.3.2 Summary of the IDT 2012/13 Annual Performance Plan

The IDT reports on two programmes:

(a) Programme 1: Integrated Service Delivery.

(b) Programme 2: Administration.

These two programmes have key performance areas, (Programme 1 consisting of two and Programme 2 containing nine) stipulated areas.

Programme 1 focuses on enhancing government’s delivery capacity and integrated social infrastructure development.

Programme 2 concentrates mainly on administrative matters which include governance issues; performance planning and management; risk management; corporate governance; sustainability and monitoring and evaluations, amongst others.

The IDT has two sources of income:

· Management Fees: R280 million for 2013/14 from R242.5 million in 2012/13

· Provision based on 10% of gross Management Fees: Deficit of R28 million in 2013/14

· Initiative Funding: 0 in 2013/14, but received R30 million in 2012/13.

The overhead expenditure of the IDT also increased from R419.3 million in 2012/13 to R437.7 million in 2013/14. The increase of R18.4 million is mainly due to an increased expenditure on employee costs.

The cost increased from R249.7 million to 270.2 million in 2013/14, an increase of R20.4 million, an increase of 8.2 per cent in nominal terms. National Treasury projects an inflation rate of 5.6 per cent for 2013/14.

The expenditure of the Entity exceeds its Revenue by R130.7 million, a slight decline of its 2012/13 deficit of R137.8 million.

A total of 50 new or replacement schools have been targeted for the 2013/14 financial year which is an increase of 10 schools. The quarterly report indicates a gradual increase in the number of schools completed. However, reading the figures set out for the 4 Quarters is not very clear. If one reads it at face value then the stated quarterly targets all exceed the total annual target for 2013/14.

2.4 Agrément South Africa (ASA)

Agrément South Africa is the national centre for the assessment and certification of non-standardized building and construction products and systems. It facilitates the introduction, application and innovation of technologically sound solutions for the construction industry, by issuing fitness-for-purpose certificates for non-standard products.

2.4.1 Agrément South Africa ’s Activities for 2013/14

During the year under review, Agrément South Africa highlights some of its activities which have local and international impact. The activities planned for 2013/14 include the:

(a) Assessments and certification of non-standardised construction products.

(b) Facilitating the introduction, application and utilisation of satisfactory innovation and technology development, in a manner that adds value to, and supports the construction industry.

(c) Undertaking technical certification of new labour-intensive construction methods that include the development of criteria for using thin concrete technology in road construction

(d) Awarding Agrément South Africa certificate of fitness-for-purpose for a new design for low income housing. The design provides better indoor air quality; uses ‘zero wastage’; and modular construction approaches; an innovative thin concrete foundation (reducing concrete use by 1 tonne per house); thereby decreasing construction time.

(e) Technically assessing technologies that can improve the performance of dwellings in rural areas (through improved traditional building methods) using lightweight building construction technologies and materials.

(f) Focusing on technical assessments of innovative products, which include environmental assessments in accordance with SANS 10400-XA (Energy efficiency and Energy use in the Built Environment).

(g) Improving the thermal performance of buildings to adapt to climate change and to reduce the carbon footprint in the construction industry.

(h) Participating in the CSIR initiative to form and build strategic partnerships with the DBSA, Sasol , Transnet and Eskom.

(i) Delivering and transferring key technical assessment solutions that have a social and public-good impact.

(j) Implementing key solutions for government and communities through social and public good projects.

(k) Managing cost control containment prudently to position itself for significant growth in the near future. Maintain financial sustainability by increasing total technical assessment income (reported as Other Income on page 43) to at least R1.695 million in 2013/14 and R1.839 million in 2014/15.

(l) Achieving a total of at least R10.662 million in 2013/14 and R11.569 million by 2014/15.

(m) Enhancing internal project management and technical assessment methodology.

(n) Member of the World Federation of Technical Assessment Organisations (WFTAO).

(o) Participating in the 17 ^th Annual General Meeting of WFTAO in September 2013.

In addition to its ties with the WFTAO, it maintains close working relationships with the:

(a) Construction Industry Development Board ( cidb ) .

(b) Council for the Built Environment (CBE).

(c) Independent Development Trust (IDT).

(d) International Council for Building, Research Studies and Documentation (CIB report).

(e) National, provincial, and local government departments (for example the Departments of Human Settlements, Science and Technology, Transport, and Public Works).

(f) South African Bureau of Standards (SABS).

(g) South African National Roads Agency Limited (SANRAL).

(h) National Home Builders’ Registration Council (NHBRC).

2.5 Construction Industry Development Board ( cidb )

The cidb is a schedule 3A public entity and its main objective is to provide leadership to stakeholders and to stimulate sustainable growth in, and reform and improvement of the construction sector for effective delivery. It seeks to enhance the construction industry’s role in the country’s economy.

2.5.1 Strategic outcome oriented goals of the cidb

(a) Strategic Goal 1: Provide contractor and client support through cidb Provincial Offices. Through this goal the cidb plans to increase the participation of the emerging sector in the construction industry, provide support in the enterprise development and reform the industry players.

(b) Strategic Goal 2: Improve the Construction Registers Service through business excellence. The cidb plans to maintain the integrity and reliability of the construction registers and improve the efficiency of the contractor registration process.

(c) Strategic Goal 3: Improve compliance to and maintenance of the cidb prescripts and combat fraud and corruption in the construction industry. The cidb plans to promote compliance with cidb’s prescripts and minimize the rate of fraud and corruption.

(d) Strategic Goal 4: Promote uniformity of construction procurement systems in the organs of state. The cidb plans to improve infrastructure delivery.

(e) Strategic Goal 5: Monitoring the performance of the construction industry. The cidb plans to monitor and evaluate the performance of construction industry.

(f) Strategic Goal 6: Improve the performance of the sector, and value to clients. The cidb plans to promote contractor development and promote performance improvement.

(g) Strategic Goal 7: Improve the infrastructure delivery skills and management practices in the construction industry. The cidb plans to support the development of infrastructure delivery skills

(h) Strategic Goal 8: Build, strengthen and maintain relationships with stakeholders. The cidb plans to facilitate information sharing amongst industry stakeholders to continuously improve the performance and growth of the sector.

2.6. Council for the Built Environment (CBE)

The CBE is a schedule 3A public entity and one of its main roles is to oversee the six built environment professional councils who regulate the professions of Architects, Engineers, Landscape Architects, Quantity Surveyors, Project and Construction Managers, as well as Property Valuers .

The CBE is responsible for the provision of strategic leadership to the six Professional Councils, and it must also ensure that the various Professional Councils operate and adhere to the industries regulatory norms and standards.

2.6.1 The CBE plans to focus on the following over the Medium Term Expenditure Framework (MTEF):

(a) Knowledge and practices of the Built Environment Professionals.

(b) Upgrade internal infrastructure that will assist the Research Department to become an efficient knowledge hub for the Built Environment.

(c) School support programmes, through awareness campaigns and workshops to support academic staff within universities.

(d) Roll-out of Built Environment career awareness programme; Mathematics and Science support programmes in schools.

(e) Structured Candidacy Programme as well as work place training to accelerate professional registration.

(f) Initiate mentorship projects to assess and accredit mentors within the CBE.

(g) The CBE to continue engagement with African counterparts and expand partnerships within the Built Environment Professions through current international Memoranda of Understanding ( MOUs ).

(h) Increasing the representation of women and black people within the Built Environment Professions.

(i) Quarterly reports on three public functions of the professional councils, namely, professional registration, appeal, and continued professional development.

3. Conclusions

The Committee following its deliberations noted the following:

3.1 The Annual Performance Plans ( APPs ) of the Department of Public Works and some of the entities were not specific; measurable; achievable; relevant and time-bound (SMART). The APPs and the Strategic Plans were also not aligned.

3.2 The collusion in the construction industry delays the progress of emerging contractors to move up into higher grades as set out by the cidb Register of Contractors. The collusion may create room for the misuse of State funds.

3.3 The Department of Public Works lacks several policies in its key programmes, including the Department’ carrying out its role in terms of State functions.

3.4 The Department of Public Works and some entities do not meet the employment equity targets in terms of its staff complement.

3.5 The challenges in the built environment professions are ongoing (particularly the provision of experiential training for previously disadvantaged individuals and women) and can only be rectified by the re-introduction of the Built Environment Professions Bill.

3.6 The contract signed between the Department and the service providers in the completion of the Immovable Asset Register must stipulate that the consultants must not retain any information on the Asset Register once the project has been completed.

3.7 The construction products certified by Agrément South Africa have wider application including building energy efficient houses, and schools using innovative technologies that can assist in reducing the large backlogs.

3.8 The implementation of Turnaround Strategy of the Department should be implemented with the aim of stabilising the Department so it can deliver on its mandate.

4. Committee recommendations

The Committee recommends that the Minister of Public Works should:

4.1 Ensure that the Annual Performance Plans of the Department of Public Works and the entities reporting to Public Works are specific, measurable, achievable, relevant and time-bound (following the SMART-principle) by March 2014.

4.2 Ensure that in the next reporting period, the Strategic Plan documents and the Annual Performance Plans of the Department of Public Works and entities are aligned.

4.3 Ensure that through the Construction Industry Development Board ( cidb ) and the Council for the Built Environment (CBE) should make the engineering consultants accountable for the services and professional advice that they provide in the built environment industry and a mechanism should be created for accountability purposes.

4.4 Ensure that there are policies in place to regulate how the Department deals with State funerals and other State functions.

4.5 Ensure that the Department has a policy on Prestige projects that would regulate the maximum costs, type of furniture to be provided for offices and homes of the Ministers and the Deputy Ministers. A separate policy should outline the minimum requirements of furniture to be provided in the houses that accommodate ordinary members of Parliament.

4.6 Ensure that the Department has a Disposal Policy for the disposal of assets that are no longer required by the Department.

4.7 Ensure that the Department complies with the Employment Equity Act. The Department and entities should adhere to the required employment percentage of the people with disabilities.

4.8 Ensure that the service providers contracted to assist with the Asset Register must hand over all the information they have collected to the Department of Public Works as the custodian of such information.

4.9 Ensure that the Expanded Public Works Programme (EPWP) principles are included in the design of the projects within Public Works. The EPWP projects ensure that the major parts of all projects are strictly labour intensive.

4.10 Ensure that the entities reporting to Public Works, e.g. CBE, should be involved in ensuring that EPWP projects are designed to create jobs, and that the cidb should assist the emerging contractors through its grading processes.

4.11 Investigate the impact of collusion in the construction industry, over and above the investigations of the Competition Commission.

4.12 Investigate the role of consultants in collusion on large projects, for example, the Kimberley New Generation Prison, that ended up with large variations, thereby inflating the initial budget allocation for the project and report to the Committee before the end of the current financial year.

4.13 Focus on ensuring that transformation in the Built Environment industry is sped up by reintroducing the Built Environment Professions Bill in Parliament.

4.14 Ensure that Agrément South Africa is provided with the necessary support for the entity to popularise its products to other government departments.

Report to be considered.