Enhancing Office Accommodation: Challenges, Solutions and Future Interventions

1. DEPARTMENT OF LABOUR PORTFOLIO COMMITTE PRESENTATION Presentation by: S Mkhonto Date: 19 August 2015 1

2. TABLE OF CONTENTS • Structure of Office Accommodation • Office Per Province • Procurement Process • Challenges and Intervention by DoL and DPW • Strategic Intervention by DoL and DPW • Other Infrastructural Interventions • Clients Department Proposal • Other Interventions by DoL and DPW • Capital Projects Registered with DPW

3. OFFICES OF THE DEPARTMENT

4. OFFICES OF THE DEPARTMENT

5. PROCUREMENT OF OFFICE ACCOMMODATION In term of Government Immovable Asset Management Act ( GIAMA) No 19, 2007, the Department of Public Works is entrusted with the responsibility to:- • Provide uniform immovable asset management framework to promote accountability and transparency • ensure effective immovable asset management within government • Ensure coordination of the use of immovable assets with service delivery objects of national or provincial department and efficient utilisation of immovable asset. Procurement of office accommodation is done through the National Department of Public Works.

6. CHALLENGES AND INTERVENTION OF OFFICE ACCOMMODATION

7. CHALLENGES AND INTERVENTION OF OFFICE ACCOMMODATION ( Cont...)

8. CHALLENGES AND INTERVENTION OF OFFICE ACCOMMODATION ( Cont...)

9. CHALLENGES AND INTERVENTION OF OFFICE ACCOMMODATION ( Cont...)

10. STRATEGIC INTEVENTIONS BY DOL AND DPW The Department of Labour had a high level meeting with DDG: Regional Coordination in DPW,the CFO and COO of DoL with EC, FS and NW CDPOs whereby the following were resolved:- • DPW Regional Offices to enforce the terms of the leases with the Landlord to ensure maintenance of offices and compliance to OHS; • High level meeting to held monthly to track progress by the DPW Regional Offices; • The Department of Labour set aside money to maintain state owned office accommodation, whereby R1million is already approved for KZN, EC and Mpumalanga Provinces and • The Department is in a process of obtaining exemption from GIAMA to procure office accommodation through the funds ( UIF and CF) on their investment portfolio

11. OTHER INFRASTRUCTURAL INTERVENTIONS • Problem Statement Client departments, including the DoL, have identified, amongst others, the following: • Protracted processes between project identification and implementation; • Funding constraints due to projects rolling over from one financial year to the next; • Budget constraints due to projects continually exceeding initial funding projections; and • Delays in the current DPW processes relating to Site Clearance and appointment of contractors.

12. CLIENT DEPARTMENTS PROPOSAL • The DPW has acknowledged the challenges identified by client departments: • Government Departments, including the DoL have identified funding to address challenges and have approached DPW for delegations in terms of GIAMA. • DPW has developed a Concept Paper to address these requests; • DPW has proposed a meeting with Home Affairs, National Treasury, Labour and the PIC to finalise the Concept Paper by end September 2015; • They further committed to the appointment of a consultant familiar with property development processes to facilitate Project Management by the DPW

13. OTHER INTEVENTIONS BY DOL AND DPW The Following office are earmarked by DPW to be Part of the Government Precinct Project spearheaded by DPW • Mahikeng LC • Mt Fletcher SO • Mandeni VP • Christiana LC • Idutywa LC • KwamhlangaLC • Vredendal LC; and • Howick LC

14. CAPITAL PROJECTS LISTED WITH DPW The Department has approved funds for the construction of the following offices for 2015/16 and 2016/17 financial years • Vredenburg LC • Belfast LC • Swellendam LC; • Bronkhorstspruit LC; • Carolina LC; and • Sabie LC

15. Thank you Thank You…