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DEPARTMENT OF PUBLIC WORKS P RESENTATION TO PORTFOLIO COMMITTEE ON PUBLIC WORKS 07 SEPTEMBER 2010

DEPARTMENT OF PUBLIC WORKS P RESENTATION TO PORTFOLIO COMMITTEE ON PUBLIC WORKS 07 SEPTEMBER 2010. TABLE OF CONTENTS. Strategic Context Implementation of the Strategic Plan in relation to the Budget of the Department Under-spending on Provision of Land & Buildings;

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DEPARTMENT OF PUBLIC WORKS P RESENTATION TO PORTFOLIO COMMITTEE ON PUBLIC WORKS 07 SEPTEMBER 2010

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  1. DEPARTMENT OF PUBLIC WORKSPRESENTATION TO PORTFOLIO COMMITTEEON PUBLIC WORKS07 SEPTEMBER 2010

  2. TABLE OF CONTENTS • Strategic Context • Implementation of the Strategic Plan in relation to the Budget of the Department • Under-spending on Provision of Land & Buildings; • EPWP Incentive grants update; • Re Kgabisa Tshwane and the Inner City Regeneration Programme; • Legislative Plan; • Profile of Vacancies; • Progress report on the Asset Register; and • Implementation of GIAMA.

  3. Strategic Context • MTSF • Sector outcomes • DPW’s strategic priorities • Performance Agreement of Minister with the President • Risk Management

  4. Implementation of the Strategic Plan in relation to the Budget of the Department

  5. PROGRESS/ ACHIEVEMENTS PER PROGRAMME/ SUB-PROGRAMME • Programme 1: Finance & SCM

  6. Programme 1: Finance & SCM PROGRESS/ ACHIEVEMENTS PER PROGRAMME/ SUB-PROGRAMME

  7. PROGRESS/ ACHIEVEMENTS PER PROGRAMME/ SUB-PROGRAMME • Programme 1: Corporate Services

  8. PROGRESS/ ACHIEVEMENTS PER PROGRAMME/ SUB-PROGRAMME (cont…) • Programme 2: Immovable Asset Investment Management

  9. PROGRESS/ ACHIEVEMENTS PER PROGRAMME/ SUB-PROGRAMME (cont….) • Programme 2: Immovable Asset Investment Management

  10. PROGRESS/ ACHIEVEMENTS PER PROGRAMME/ SUB-PROGRAMME (cont…) • Programme 2: Immovable Asset Investment Management

  11. PROGRESS/ ACHIEVEMENTS PER PROGRAMME/ SUB-PROGRAMME (cont….) • Programme 2: Inner-City Regeneration

  12. PROGRESS/ ACHIEVEMENTS PER PROGRAMME/ SUB-PROGRAMME (cont…) • Programme 2: Special Projects

  13. PROGRESS/ ACHIEVEMENTS PER PROGRAMME/ SUB-PROGRAMME • Programme 2: Regional Operations

  14. PROGRESS/ ACHIEVEMENTS PER PROGRAMME/ SUB-PROGRAMME • Programme 4: Construction & Property Policy

  15. FINANCIAL PERFORMANCE UNDER-SPENDING ON PROVISION OF LAND & BUILDINGS

  16. Financial Performance per Programme *Amounts reported here differ from those reported to National Treasury as the Departments’ accounts were still open when reporting to National Treasury. The amounts reported here takes the Audit journals into account

  17. Expenditure Report 2009/10- Programme Two

  18. Expenditure Report 2009/10- Programme Three

  19. Breakdown of Capital Budget - Infrastructure

  20. Reasons for under spending on the infrastructure budget • Departmental • Delay in payment as part of DPW’s contribution to the replacement of the research base on Marion Island • Accessibility for people with disabilities • Non responsiveness of the bidders delayed the appointment of service providers • Cancellation of SAPS facilities as part of the programme due to devolution process • Change in the initial scope of works • Funds were spent against 126 of the 137 allocated projects

  21. Reasons for under spending on the infrastructure budget • Dolomite Risk Management • Delay in procurement of specialist consultants and contractors required to implement programme successfully • Land Ports of Entry • Skilpadhek: The project was delayed due to negotiations for the acquisition of a portion of a property in the middle of Border Post footprint. This is a National Key Point and the property had to be acquired • Lebombo: The One Stop Border Post project initially planned for Lebombo had to be restructured into phases due to financial constraints. Legal implications relating to operations and construction required on foreign territory further hampered the execution of the project

  22. Reasons for under spending on the infrastructure budget • Prestige • Under-expenditure due to delays experienced in the acquisition of Prestige house. This was caused by: • Suitability and availability of houses( challenge) • Price negotiation process (challenge) • Inner City Regeneration • Delay in obtaining approval for additional work at the Government Garage (accommodation for Government Printer) • Delay in the procurement process to appoint consultants for the joint DPW and Tshwane Inner City Precinct Plan • Procurement process has been finalised and the consultants consortium will be appointed shortly

  23. Reasons for under spending on the infrastructure budget • Macro Re-organisation of the State • Funding to the amount of R 150 million was made available • R 130 million of this amount was allocated to the provision of accommodation while the balance of R 20 million was allocated to the procurement of furniture for houses and offices • The amount allocated was to be used for residential and office accommodation • Accommodation to be acquired or leased depending on the need of the Client and the availability of accommodation

  24. Infrastructure Expenditure 86% 87% 57%

  25. Funding of the IDT • A request amounting to R800m over the MTEF period was included in the Department’s Policy Options submitted to National Treasury • This amount is made up of R200m, R300m & R300m for the 2011/12, 2012/13 and 2013/14 financial years respectively • The Department presented to MTEC on 26 August 2010 where this was once again emphasized as one of the Department’s priorities in terms of request for additional funding • The Department now has to await the final MTEC outcome.

  26. EPWP INCENTIVE GRANTS UPDATE

  27. Introduction • The EPWP incentive has now been introduced to all sectors of the EPWP from the 10/11 financial year. • The Infrastructure sector incentive is applicable to Provincial Departments and Municipalities. • The Environmental sector incentive is applicable to National Departments through their appropriations from National Treasury. • The Non-state sector grant is paid to Non-Government Organisations ( NGOs) and Non-Profit Organisations through the Independent Development Trust ( IDT) which was appointed as the intermediary. • The Social sector grant is paid as a schedule 5 grant to Provincial DSD and DoE

  28. Role of DPW Role of eligible Public bodies • Develop and review of policy framework for incentive • Determine targets, thresholds and incentive allocations • Provide technical support • Verify and report data for incentive payments • Audit public bodies – compliance to incentive requirements

  29. Role of Public bodies • Prepare EPWP project plans i.r.o. targets • Register and implement EPWP projects • Update project information monthly • Maintain project documentation and records for audit purposes

  30. Role of Provincial Treasury • Disburse incentive to Provincial Departments • Monitor incentive spending and compliance to the Division of Revenue Act (DORA)

  31. Role of National Treasury • Monitor compliance of DPW and Public Bodies to DORA i.t.o. the incentive • Monitor spending by DPW and Public Bodies on the incentive • Support DPW in the development of the incentive policy framework

  32. Performance on the EPWP incentive grant by Provinces after 3rd Quarter 09/10 financial year ( paid in 4th quarter 09/10)

  33. Performance on the EPWP incentive grant by municipalities after 3rd Quarter 09/10 financial year ( Paid in the 4th quarter of the 09/10 financial year).

  34. Performance on the EPWP infrastructure incentive by Provinces after the 1st Quarter of the 10/11 financial year reporting

  35. Performance on the EPWP infrastructure incentive by Municipalities after 1st quarter 10-11 reporting

  36. Inner-City Regeneration Programme

  37. Inner-City Regeneration Programme(Overview) • As per cabinet memorandum of 2005, objective is to improve the physical work environments of the headquarters of National Government departments in the Inner City of Tshwane. • Inner City regeneration of Tshwane & metropolitan Cities is the core responsibilities of Municipalities & DPW’s role in contributing to this is to upgrade its buildings in line with the spatial development planning framework (SDF).

  38. Inner City Regeneration Programme (Over view cont’d) • Memorandum of Understanding for the RKTP signed in November 2005 between the DPW and the CTMM, as well as the involvement of the Gauteng Province • MOU for the RKTP signed in February 2006 between the DPW and National Treasury • Participate in other Cities using the same principle, i.e. Upgrading of State buildings for use by National Government department’s in line with SDF of respective local authority

  39. OBJECTIVES of RKTP • Improve office accommodation to an acceptable norm; • Jointly develop solutions with departments • Improve urban environment, including urban security, public spaces, and accessibility • Attract private sector investment • Contribute to Inner City renewal and rejuvenation • Develop the image of Tshwane as an important capital city in Africa • Contribute to BEE

  40. LEGISLATIVE PLAN FOR DPW

  41. Agrément South Africa (ASA) • Agrément SA was established through a delegated authority by the then Minister of Public Works in 1969; • The Department has began a process of reviewing the governance of ASA as well as its performance and effectiveness; • After approval by the Public Works Minister, the Business Case will be submitted to the Joint Committee of the Ministries of Public Service and Administration and Finance (the JEC) for establishment of Agrément as a Schedule 3 entity; • The draft Bill will then be submitted to Parliament

  42. Expropriation Bill • The Expropriation Bill [B16-2008], was withdrawn from Parliament in September 2008 • The Department is currently finalising a discussion document on the review of the Expropriation Act • This will be distributed for comments to identified government role-players and state-owned enterprises • Comments received will be considered on the discussion document and Bill be drafted • Normal legislation consultation process will be followed including submission of the Bill to NEDLAC • The certified draft Bill will thereafter be submitted to Parliament

  43. PROFILE OF THE VACANCIES

  44. Vacancy Profile : April – August 2010

  45. Vacant Core Positions Per Salary Level

  46. Filled Vacant Posts per Regions-August 2010

  47. Possible Reasons For The High Vacancy Rate

  48. Current Interventions To Mitigate • Recruit graduates and young professionals • Advertisement of Scarce Skills on a higher notch • Corporate Social Investments – Bursaries, Outreach Programmes/Social Mobilization Campaigns, etc. (members of Portfolio Committee can also assist) • Retention Strategy – e.g. Counter offers • Assessment to abolish and/or refocus certain posts

  49. Status Report • 360 posts advertised since April 2010 • 101 appointments made (96 permanent/ 5 contract) • HCI Initiatives

  50. IMMOVABLE ASSET REGISTER

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