DEPARTMENT OF PUBLIC WORKS
30 August 1999
PARLIAMENTARY MEDIA BRIEFING
Documents handed out:
Parliamentary Media Briefing
Introductory resume of the Minister
Fact Sheet
Strategic Issues and Programmes for 1999 – 2000
MINUTES
Ms S Sigcau, Minister of Public Works, said the solid foundation, built over the previous five years, will be used to improve and build service delivery over the next five years. The mission is to ensure that national State departments have a built environment that meets their financial, technical and social requirements. The DPW intends achieving this through the:
- Provision, development and maintenance of accommodation;
- Acquisition and disposal of fixed State property;
- Management and maintenance of the State property portfolio; and
- To implement the National Public Works Programme (NPWP).
The NPWP can play a role in ensuring that the country has a stable construction industry.
The Minister said that it is of utmost importance that under-utilised state property or state properties not being used are put to effective use. This could be done by creating partnerships with the private sector, thereby generating revenue for the State.
The DPW is aware of the increased squatting in urban areas and the Community Based Public Works programme is there to address this problem. In this area the DPW cannot work by itself, the DPW must work with provinces, local government and sometimes even the private sector. Examples of such involvement include the Clean and Green Campaign (in partnership with South African Breweries), Local and Industrial Parks (in partnership with Department of Trade and Industry) and Mbuzini Road (in partnership with Mpumalanga Department of Public Works). Furthermore in co-operation with the National Youth Commission (NYC) and the Office of the Status of Disabled Persons (OSDP) a project has been initiated to equip public buildings with access and enabling facilities for the disabled. In this project unemployed youth will be trained and developed.
The Minister said the DPW is an entity that must provide accommodation and maintenance in a businesslike manner. This would be done by means of a new cadre of managers who not only deal with community-based programmes but also identify, evaluate and make sure that programmes do take place. It must be ensured that competent people are appointed and training programmes are conducted in the provinces.
The Minister emphasised the importance of an efficient communications system. If the DPW is to run efficiently and delivery is to be speedy then this communication system is the foundation on which to build. There are problems in this area and the belief is that once systems are upgraded then there should be light at the end of the tunnel.
The Minister expressed her concern about the large amount of the department budget being spent on leasing from private bodies. One of the department’s priorities is to investigate this issue. This very much relates to the maintenance and restoration of state properties to a level of suitable occupancy which will reduce the amount of leasing from the private sector.
The Minister said that a weakness of the DPW is the non-existence of good maintenance back-up. Without good maintenance back-up, state property will lose value with each year. The belief is that it is going to be the key in unlocking potential and value, not just for government but also for revitalising the construction industry, which is not at an optimal level.
Questions by members of the media
A SABC news journalist asked how far investigations are into unused or under-utilised state property and, should a decision be made to sell such property, where do the proceeds go. The Minister said that investigations have shown that of assets identified some belong to the provinces and some to national government. Discussions are to be held with provinces this week to look into how to use these assets and should a decision be made to sell, the proceeds will go to Treasury. Discussions are to be held with Finance and State Expenditure about selling some of the redundant assets to create finances.
A journalist from the Business Day enquired about the renovation of the President’s house and whether our former President lived in the same house. The Minister said that there is a need to maintain some of the prestige houses which include those of Ministers. This should have been done some time ago. The Minister said that she prefers not to mention presidents, the important thing is that maintenance needs to be done to some properties.
SABC News journalist asked how much the state is spending on leases from the private sector. The Minister said that for the period 1999 – 2000 a total of R775m has been budgeted for leasing and R617m for maintenance.
A journalist from The Herald asked the Minister to give examples of state property that is be sold. The Minister said that the DPW must identify the needs of government, what sort of properties will be required and what property will not be used in future. Only once these matters have been established, will the department be able to confirm the sale of some property. An example is some military bases which will be considered for sale.
The Minister was asked by a Cape Times journalist to give details of repairs to Ministers’ houses. The minister said that only a broad figure and not a breakdown is available. The minister added that in the process the department looks at what type of maintenance should be done and what are the common repairs required for the houses and then it will be dealt with accordingly. The repair of leaking roofs is a common example of repairs to be done.
A journalist from The Herald asked the Minister about investigations into Magistrates misusing repair funds and the progress regarding prosecutions. The Minister’s response was that this is still under investigation and reports are forthcoming.
Appendix 1
Parliamentary Media Briefing
Monday, 30 August 1999
By the Minister of Public Works, Ms Stella Sigcau
Chairperson, representatives from the media, ladies and gentlemen ...
We all acknowledge that the first five years of our democratic state saw us through legislation and other forums of participation building a solid foundation on policy and strategy for the future.
Now delivery and accelerated delivery is what it is all about. Our President has made it very clear in his opening to Parliament - if we are to ensure a better life for our people.
Our delivery is aimed at accelerating the provision of basic services to all South Africans, creating sustainable jobs for the country's citizens, promoting sustainable rural development strategies, and utilising the resources available to the state to grow the economy of this country.
Public Works has a central role to play in ensuring a better life for all in South Africa.
It is our vision to be the leader in Africa and the Developing world in the provision and management of State property and Public Works Programmes.
Our mission is to ensure that the national State departments of South Africa have a built environment that meets their financial, technical and social requirements through the:
- Provision, development and maintenance of accommodation
- Acquisition and disposal of Fixed State property
- Management and maintenance of the State property portfolio and
- To implement the National Public Works Programme by:
- Creating assets through the Community Based Public Works Programme
- Influencing and stabilising the construction and property industries and ensuring that infrastructure is provided in a way that creates jobs, empowers communities and develops human resource.
As custodian of the State's fixed property portfolio, estimated at a value of R120 billion, this Department has an obligation to manage the portfolio efficiently and effectively, enabling the different critical components of government to function properly in an environment conducive to their appropriate performance.
This property portfolio also allows us the opportunity to unlock the latent economic potential of under-utilised state property via the promotion of creative partnerships with the private sector, thereby generating revenue to the State coffers. Public Works does not only expend State resources, but also has the ability to generate revenue to the State - a subject on which I have recently made several comments, in particular referring to the investigation of a possible establishment of a property agency.
The skewed development and investment in infrastructure over the last four decades has resulted in uneven development, with two parallel societies existing within or country - one fully developed and the other under-resourced. We have an obligation within Public Works to reconcile these two parallel streams, to build a united nation and via careful targeting of our resources where under-development has occurred.
The Community Based Public Works Programme is also addressing a number of special projects. This is in line with the Department's belief in partnership. These include the Clean and Green Campaign (partnership with SA Breweries); Local Industrial Parks (partnership with Department of Trade and Industry) and Mbuzini Road (partnership with Mpumalanga Department of Public Works).
The most notable of the special projects is the Youth Working Towards Environmental Accessibility (YOWOTEA). This special project is undertaken in cooperation with the National Youth Commission and the Office of the Status of Disabled Persons (OSDP). This is a challenging project, promoted by our President, to instil a new ethos of service in our youth and indeed in us all. The project will equip public buildings in urban and rural areas with access and enabling facilities for disabled persons. The construction of these facilities will be performed by groups of unemployed young people who will be trained and developed during the delivery process.
Challenges confronting us in the coming five years:
- Better provision and maintenance of State accommodation
- Unlocking the economic potential of the State's fixed property portfolio Intensifying the National Public Works Programme in specific focus on rural development.
- Co-operative governance at all three tiers need to be further promoted, and
- Project management should be further deployed.
Priorities in the next twelve months:
- Completion and effective management of the National Asset Register, with reinforcement of the provincial and national land committees' work
- Intensification of the deracialisation of the South African economy by providing entrepreneurial opportunities to black people and women in all spheres of activity. To this end, the application of the affirmative procurement policy needs to be intensified at all tiers of government
- The intensification of the National Public Works Programme as an integral part of the country's rural development strategy
- Combatting corruption in all its forms within Public Works, and the concurrent improvement of financial management within our Department
- The proactive development of a cadre of competent technical and managerial expertise within our Department linked to enhanced representivity in spheres where this is lacking.
CONCLUSION
I conclude my presentation by summarising the key challenges and opportunities for the Department of Public Works as I see it:
- The Department should be managed as a business, on sound business principles with due cognisance of accountability required and designing systems and procedures in such a way as to conform to the requirements of the Auditor-General. Notable progress has been made in drawing up business plans, linked to the performance contracts of senior management, to serve as management instruments.
- The Fraud Awareness and Special Investigation Directorate should intensify its endeavours in rooting out all forms of corruption affecting delivery by the Department and should prepare suggestions to this effect
- The economic potential of the huge property portfolio must in all respects be utilised
- Properties, including Prestige Properties, should be managed as cost units over a particular lifecycle
- The maintenance backlog must be addressed, considering the huge potential for training and employment in this sector to realise socioeconomic objectives while restoring the State properties to a level of suitable occupancy in order to reduce the amount of leasing from the private sector. This should happen in conjunction with assessing occupancy levels of large buildings by clients and the optimal utilisation of State accommodation by having Departments share buildings
- The creation of a Property Agency should be investigated in conjunction with State Expenditure and Finance, as well as an opportune environment for disposing of redundant State properties 10 generate income for the upkeep of the retained fixed property portfolio
- Throughout, systems and staff (including training, technology, programmes, procedures, measures and mechanisms) fit to execute
appropriate business management, should be improved and skilled to operationalise and ensure accelerated delivery.
- Regional Offices should be reorganised via decentralisation and upgrading. There should be a particular focus on assistance to clients, contractors (emerging and women included) and the public via helpdesks, which will strengthen the client orientation of the transformed Department. Stemming from the overall transformation of the Department since 1996, Head Office will be a core of strategic policy-making and management expertise, with regional offices dedicated to implementation. Regional offices will function as business units with enhanced autonomy, responsibilities and accountability. A regrouping of regional offices is to be effected for management and reporting purposes, upgrading the overseeing three regional offices in Cape Town, Durban and Johannesburg to the level of Chief Director.
- Public Works will be introducing legislation relating to the built environment during the current session of Parliament. This legislation emanates from a recently published policy document on the statutory regulation of the built environment. Both the policy document and the legislation are the products of a thorough and all encompassing consultation process over a period of five years with all the relevant stakeholders as well as the public at large. The new body to be created by this legislation is the Council for the Built Environment which will play a coordinating and capacitating role for the various professions. The various laws regulating the professions which are the administrative and legislative responsibility of this Department are also re-enacted and aligned with the said Council for the Built Environment. These are:
·
Architectural Profession Bill, 1999·
Engineering Profession Bill, 1999·
Landscape Architectural Profession Bill, 1999·
Valuation Profession Bill, 1999·
Construction Management Profession Bill, 1999 and·
Quantity Surveying Profession Bill, 1999The establishment of the Construction Industry Development Board would be a milestone to achieve, as will the continued poverty alleviation, particularly in rural areas and our continued contribution to the further roll-out of the Affirmative Procurement Programme throughout the public sector.
The policy environment has been created, refinements now should focus on implementation and accelerated delivery, and that is what I expect the Department to do.