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Government Immovable Assets Management Bill

Government Immovable Assets Management Bill. DBSA Comments. Barry Jackson, DBSA 7 March 2007. Immovable Asset Management. The Bill is an important initiative The need for GIAM is self-evident Many recent developments in the “science” of asset management Need for a systematic approach:

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Government Immovable Assets Management Bill

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  1. Government Immovable Assets Management Bill DBSA Comments Barry Jackson, DBSA 7 March 2007

  2. ImmovableAsset Management • The Bill is an important initiative • The need for GIAM is self-evident • Many recent developments in the “science” of asset management • Need for a systematic approach: • Building the right assets • Aware of the total cost of providing a service • Maintaining the value of assets • Maintaining quality of service.

  3. Implications of GIAMAfor South Africa • Range of state-owned assets: • Land, buildings • Roads, airfields, military bases • Dams, canals, pipes, treatment works • Range of capabilities of state entities • Caution when introducing requirements • Encourage adoption under conviction rather than compulsion (incentives?) • Aware of dangers of precedents.

  4. GIAMA as a precedent Municipalities of many sizes Under MFMA? Government Departments & Provinces Parastatals; eg SANRAL, ACSA, NWRA, EDIH/REDS Under PFMA? Statement of Long-Term Strategy? Need to consult on possible unintended consequences for other entities.

  5. GIAMA as a precedent:Notable SA IAM Initiatives • International Infrastructure Management Manual (IIMM)- SA version & endorsed by dplg, SALGA and IMESA • dplg and European Union- IAM implementation, best practices, tools and training • Handbook on Managing Community Assets by ASALGA & now available from DBSA • Municipal Infrastructure Investment Framework (MIIF) – dplg and DBSA • Water Services Infrastructure Asset Management Strategy- DWAF • Development of an Enabling Framework for…Municipal Infrastructure in SA by CSIR (funded by Parliament) • Municipal Infrastructure Asset Management – Towards a National Strategy – dplg and DBSA • CIDB Initiatives & Regulations • GIAMA Bill – DPW • Municipal IAM Guidelines – dplg • IDIP Programme – National Treasury • Audit Standards re Asset Registers -Accountant General and Auditor General (Qualified Audits) • Various Provincial and Local Government initiatives eg WC, Johannesburg Metro, Buffalo City, Ethekwini

  6. IAMManuals

  7. Giving effect to GIAMA The Minister - • Issue regulations – subject to consultation process Cl.20(2) • Issue standards & prescribe minimum standards – consultation not required?C.19(2)&(3).Must involve industry players, stakeholders & future stakeholders – given much weight Cl.10(b) “…guidelines prevail...” • Issue standards & prescribe minimum standards - begin with approaches which match capability • Vary according to type, size & capacity of custodians and users • May implement programmes to give effect – substantial budget required and strategic approach starting where greatest risk is evident.

  8. Detailed comments on GIAMA • Policy statements in legislation? Cl.5(1)(f)(iii) eg “redistribution of wealth” • User v. Custodian? Clauses 6 -14 • Who will best understand O&M needs? • Who does the costing? • Decision on “surplus” & disposal? • Whose performance measuring system takes precedence? • Processes: • Exemptions, sub-delegations, designate as custodian (ref DWAF experience)

  9. DBSA barry@dbsa.org www.dbsa.org

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