briefing to the portfolio committee on police, national assembly properties occupied by icd v227,...

Briefing to the Portfolio Committee on Police,

National Assembly

PROPERTIES OCCUPIED BY ICD

V227, Second Floor, Old Assembly Building Parliament, Cape Town

Tuesday, 21 February 2012 at 09:301

1. Lease process

2. Summary of ICD leased accommodation

3. Total monthly and annual expenditure

4. Locational suitability of ICD leased accommodation

5. Property and lease information on current ICD leases

6. ICD Head Office (City Forum Building): Current status

7. Progress on remedial interventions

8. Way forward

TABLE OF CONTENTS

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ICD National OfficeICD National Office Department of Public Works (DPW)Department of Public Works (DPW)ICD Provincial OfficeICD Provincial Office

Lease process

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• Submission of accommodation needs

• Auxiliary Service Unit compiles official Needs Assessment based on the Resource Allocation Guideline

• Auxiliary Service Unit compiles User Specified Accommodation Schedule

• Chief Financial Officer confirms funding

• Compiles Norms and Standards document

• Conducts Preliminary Cost Analysis

• Request confirmation of funding

• Receive copy of concluded lease

• View and recommend accommodation

• Draft refurbishment requirements

• Receive copy of concluded lease

• Facilitate and manage tender process

• Issue Procurement Instruction

• Negotiate lease terms and conditions with owner

• Conclude lease with owners

Summary of all propertiesOffices

The ICD currently occupies 16 leased buildings comprising of:– 1 National office;– 9 Provincial offices; and– 6 Satellite offices.

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Total monthly and annual expenditureCurrent ICD leased accommodation 2011/12 to 2014/15

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Office Monthly amount payable

Annual amount payable

Monthly amount payable






ICD National Office R 882,429.76 R 10,589,157.12 R 970,672.74 R 11,648,072.83 R 1,067,740.01 R 12,812,880.12 R 1,174,514.01 R 14,094,168.13

Eastern Cape Provincial Office R 75,080.74 R 900,968.88 R 82,588.81 R 991,065.77 R 90,847.70 R 1,090,172.34 R 99,932.46 R 1,199,189.58

Eastern Cape Satellite Office R 17,367.27 R 208,407.24 R 18,756.65 R 225,079.82 R 20,257.18 R 243,086.20 R 21,877.76 R 262,533.10

Free State Provincial Office R 47,425.82 R 569,109.84 R 51,219.89 R 614,638.63 R 55,317.48 R 663,809.72 R 59,742.87 R 716,914.49

Free State Satellite Office R 22,607.64 R 271,291.68 R 24,868.40 R 298,420.85 R 27,355.24 R 328,262.93 R 30,090.77 R 361,089.23

Gauteng Provincial Office R 70,917.12 R 851,005.44 R 76,590.49 R 919,085.88 R 82,717.73 R 992,612.75 R 89,335.15 R 1,072,021.76

KwaZulu-Natal Provincial Office R 142,178.21 R 1,706,138.52 R 156,396.03 R 1,876,752.37 R 172,035.63 R 2,064,427.61 R 189,239.20 R 2,270,870.37

KwaZulu-Natal Satellite Office R 20,806.80 R 249,681.60 R 22,679.41 R 272,152.94 R 24,720.56 R 296,646.71 R 26,945.41 R 323,344.91

Limpopo Provincial Office R 55,352.07 R 664,224.84 R 60,333.76 R 724,005.08 R 65,763.79 R 789,165.53 R 71,682.54 R 860,190.43

Limpopo Satellite Office R 18,142.08 R 217,704.96 R 19,412.03 R 232,944.31 R 20,770.87 R 249,250.41 R 22,224.83 R 266,697.94

Mpumalanga Provincial Office R 42,874.26 R 514,491.12 R 47,161.69 R 565,940.23 R 51,877.85 R 622,534.26 R 57,065.64 R 684,787.68

North West Provincial Office R 56,944.23 R 683,330.76 R 61,499.77 R 737,997.22 R 66,419.75 R 797,037.00 R 71,733.33 R 860,799.96

North West Satellite Office R 27,907.64 R 334,891.68 R 30,698.40 R 368,380.85 R 33,768.24 R 405,218.93 R 37,145.07 R 445,740.83

Northern Cape Provincial Office R 33,213.95 R 398,567.40 R 36,535.35 R 438,424.14 R 40,188.88 R 482,266.55 R 44,207.77 R 530,493.21

Northern Cape Satellite Office R 16,922.73 R 203,072.76 R 18,615.00 R 223,380.04 R 20,476.50 R 245,718.04 R 22,524.15 R 270,289.84

Western Cape Provincial Office R 74,686.34 R 896,236.08 R 81,408.11 R 976,897.33 R 88,734.84 R 1,064,818.09 R 96,720.98 R 1,160,651.71

Western Cape Satellite Office N/A N/A R 33,000.00 R 396,000.00 R 36,300.00 R 431,640.00 R 39,930.00 R 479,160.00

TOTALS R 1,604,856.66 R 19,258,279.92 R 1,792,436.52 R 21,509,238.27 R 1,965,292.27 R 23,579,547.19 R 2,154,911.93 R 25,858,943.18

2011/2012 2012/2013 2013/2014 2014/2015

PLEASE NOTE THAT THIS INFORMATION WAS PRESENTED TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON POLICE IN THE ICD’S WRITTEN RESPONSE ON QUESTIONS BY THE MEMBERS DURING THE ICD ANNUAL REPORT HEARING OF 1 NOVEMBER 2011.

Locational suitability of ICD leased accommodation

As the ICD is frequented by the public, it business operations require good public presentation and a high quality work environment. This implies that the accommodation needs to be in good operational and aesthetic condition.

As such, its location must:– Support service delivery objectives;– Be fairly accessible to the general public with moderately designed public areas and parking;– Fit into the neighbourhood and environmental elements; and– Is accessible (to the main areas) for the physically challenged.

The location of the ICD’s offices are adequate. One of the main criteria in the ICD’s selection of accommodation is its proximity and access to public transport. For the ICD, proximity to public transport routes takes precedent over the neighbourhood and environmental elements surrounding its offices.

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Property and lease information on current ICD leases

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ICD National office: Background

Current lease– Lease term: 9 years and 11 months– Termination date: 31 January 2019

Process– 01 March 2009: Commencement date as specified in the lease agreement– 14 April 2009: DPW concludes lease with owner– 15 September 2010: ICD takes occupation

Public enquiry– This lease is currently under enquiry by the Public Protector and the Special Investigations Unit– The outcome of this process will shed light on the validity of the lease– The ICD lodged comprehensive documentation with the Special Investigations Unit and the

Public Protector on 14 and 15 December 2011 respectively .

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ICD National office: Property and Lease information

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Building name: City Forum BuildingStreet address: 114 Vermeulen

Street, Pretoria, 0001

GLA (m2): 7614

Number of parking bays: 102Lease term: 9 years and 11 monthsParties: National Department of Public Works

Majestic Silver Trading 275 (Pty) LtdRepresentatives of parties: NPWD: Mr V Masiane

MST 275: Mr R ShabanguDate signed: 14 April 2009Commencement date: 01 March 2009Termination date: 31 January 2019Year 1 annual rent: 8,751,369.60R Year 1 monthly rent: 729,280.80R Proportion of parking to offi ce cost: 5.02%Proportion of parking to GLA: 1.34%Annual rent escalation 10.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (March 2009 - February 2010) 80.00R 609,120.00R 300.00R 30,600.00R -R 89,560.80R 729,280.80R 8,751,369.60R Year 2 (March 2010 - February 2011) 88.00R 670,032.00R 330.00R 33,660.00R -R 98,516.88R 802,208.88R 9,626,506.56R Year 3 (March 2011 - February 2012) 96.80R 737,035.20R 363.00R 37,026.00R -R 108,368.57R 882,429.77R 10,589,157.22R Year 4 (March 2012 - February 2013) 106.48R 810,738.72R 399.30R 40,728.60R -R 119,205.42R 970,672.74R 11,648,072.94R Year 5 (March 2013 - February 2014) 117.13R 891,812.59R 439.23R 44,801.46R -R 131,125.97R 1,067,740.02R 12,812,880.23R Year 6 (March 2014 - February 2015) 128.84R 980,993.85R 483.15R 49,281.61R -R 144,238.56R 1,174,514.02R 14,094,168.25R Year 7 (March 2015 - February 2016) 141.72R 1,079,093.24R 531.47R 54,209.77R -R 158,662.42R 1,291,965.42R 15,503,585.08R Year 8 (March 2016 - February 2017) 155.90R 1,187,002.56R 584.62R 59,630.74R -R 174,528.66R 1,421,161.97R 17,053,943.59R Year 9 (March 2017 - February 2018) 171.49R 1,305,702.82R 643.08R 65,593.82R -R 191,981.53R 1,563,278.16R 18,759,337.95R Year 10 (March 2018 - January 2019) 188.64R 1,436,273.10R 707.38R 72,153.20R -R 211,179.68R 1,719,605.98R 20,635,271.74R Total rent 139,474,293.16R

Eastern CapeProvincial office: Background

Current lease– Month-to-month until the renewal of the lease is finalised by DPW– Lease information relates to the lease that expired in December 2010

Process– 17 December 2010

The ICD requests the renewal of its lease of its offices in the Perm Building in East London, terminating in December 2010, for a period of 2 years.

– 28 January 2011 The ICD assesses its need for accommodation at 792m2

– 24 October 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation needs as 735m2

– 25 January 2012 The ICD indicates that the rent estimated in the DPW’s Preliminary Costs Analysis is in excess of the ICD’s budget The ICD confirms its budgetary allocation as funding available for the lease

– Matter is with DPW for consideration and action

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Eastern CapeProvincial office: Property and Lease information

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Building name: Perm BuildingStreet address: Oxford Street,

East London

GLA (m2): 702

Number of parking bays: 17Lease term: 2 yearsParties: National Department of Public Works

Java Capital Trustees (Pty) LtdRepresentatives of parties: NPWD: Mr JG van der Walt

JCT: Mr IS PetersenDate signed: 24 February 2009Commencement date: 01 January 2009Termination date: 31 December 2010Year 1 annual rent: 744,602.40R Year 1 monthly rent: 62,050.20R Proportion of parking to offi ce cost: 13.04%Proportion of parking to GLA: 2.42%Annual rent escalation 10.00%Annual operating costs escalation 10.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (January 2009 - December 2009) 65.00R 45,630.00R 350.00R 5,950.00R 2,850.00R 7,620.20R 62,050.20R 744,602.40R Year 2 (January 2010 - December 2010) 71.50R 50,193.00R 385.00R 6,545.00R 3,135.00R 8,382.22R 68,255.22R 819,062.64R Total rent 1,563,665.04R

Eastern CapeSatellite office: Background

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Current lease– Month-to-month until the renewal of the lease is finalised by DPW– Lease information relates to the lease that expired in March 2010

Process– 28 April 2010

The ICD requests the renewal of its lease of its offices in the PRD II Building in Mthatha, terminating in March 2010, for a period of 5 years.

– 28 January 2011 The ICD assesses its need for accommodation at 201.6m2

– Matter is with the DPW for consideration and action

Eastern CapeSatellite office: Property and Lease information

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Building name: PRD II BuildingStreet address: Sutherland

Street, Marshalltown, Mthatha

GLA (m2): 120


Colliers InternationalRepresentatives of parties: NPWD: Mr L Ndabeni

CI: Ms N MdingiDate signed: 04 February 2008Commencement date: 01 April 2008Termination date: 31 March 2010Year 1 annual rent: 166,534.85R Year 1 monthly rent: 13,877.90R Proportion of parking to offi ce cost: 18.01%Proportion of parking to GLA: 6.67%Annual rent escalation 8.00%Annual operating costs escalation 8.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (April 2008 - March 2009) 69.95R 8,393.60R 189.00R 1,512.00R 2,268.00R 1,704.30R 13,877.90R 166,534.85R Year 2 (April 2009 - March 2010) 75.54R 9,065.09R 204.12R 1,632.96R 2,449.44R 1,840.65R 14,988.14R 179,857.64R Total rent 346,392.48R

Free StateProvincial office: Background

Current lease– Lease term: 9 year and 11 month lease– Termination date: 31 January 2020

Process– 01 March 2010

Commencement date as specified by the lease

– 15 May 2010 DPW concludes lease with owner

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Free StateProvincial office: Property and Lease information

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Building name: Standard Bank BuildingStreet address: 15 West Street,

Bloemfontein

GLA (m2): 592

Number of parking bays: 10Lease term: 9 years and 11 monthsParties: National Department of Public Works

Encha Properties (Pty) LtdRepresentatives of parties: NPWD: Mr MJ Jabari

EP: Dr S MasenekeDate signed: 15 May 2010Commencement date: 01 March 2010Termination date: 31 January 2020Year 1 annual rent: 526,953.60R Year 1 monthly rent: 43,912.80R Proportion of parking to offi ce cost: 8.45%Proportion of parking to GLA: 1.69%Annual rent escalation 8.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (March 2010 - February 2011) 60.00R 35,520.00R 300.00R 3,000.00R -R 5,392.80R 43,912.80R 526,953.60R Year 2 (March 2011 - February 2012) 64.80R 38,361.60R 324.00R 3,240.00R -R 5,824.22R 47,425.82R 569,109.89R Year 3 (March 2012 - February 2013) 69.98R 41,430.53R 349.92R 3,499.20R -R 6,290.16R 51,219.89R 614,638.68R Year 4 (March 2013 - February 2014) 75.58R 44,744.97R 377.91R 3,779.14R -R 6,793.37R 55,317.48R 663,809.77R Year 5 (March 2014 - February 2015) 81.63R 48,324.57R 408.15R 4,081.47R -R 7,336.84R 59,742.88R 716,914.56R Year 6 (March 2015 - February 2016) 88.16R 52,190.53R 440.80R 4,407.98R -R 7,923.79R 64,522.31R 774,267.72R Year 7 (March 2016 - February 2017) 95.21R 56,365.78R 476.06R 4,760.62R -R 8,557.70R 69,684.09R 836,209.14R Year 8 (March 2017 - February 2018) 102.83R 60,875.04R 514.15R 5,141.47R -R 9,242.31R 75,258.82R 903,105.87R Year 9 (March 2018 - February 2019) 111.06R 65,745.04R 555.28R 5,552.79R -R 9,981.70R 81,279.53R 975,354.34R Year 10 (March 2019 - January 2020) 119.94R 71,004.64R 599.70R 5,997.01R -R 10,780.23R 87,781.89R 1,053,382.68R Total rent 7,633,746.24R

Free StateSatellite office: Background

Current lease– Month-to-month until alternative accommodation is procured by DPW– Lease information relates to the lease that expires in March 2011


The ICD requests the extension of its lease of its offices in the Meseroey Building in Bethlehem, terminating in March 2011, for a period of 1 year, while the DPW initiates the process of procuring alternative accommodation in Qwaqwa.

The main reason for the intended relocation is the building’s limitations in respect of public access, catering for the physically challenged and parking.


– 25 January 2012: The ICD requests the lease of its offices in the Meseroey Building in Bethlehem, to continue on a month-to-month basis, while the

DPW initiates the process of procuring alternative accommodation in Qwaqwa.


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Free StateSatellite office: Property and Lease information

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Building name: Meseroey BuildingStreet address: 28 Louw Street,

Bethlehem

GLA (m2): 282


Breeze Court Investments (Pty) LtdRepresentatives of parties: NPWD: Mr MJ Jabari

BCI: Ms B BestDate signed: 26 October 2009Commencement date: 01 April 2009Termination date: 31 March 2011Year 1 annual rent: 224,207.98R Year 1 monthly rent: 18,684.00R Proportion of parking to offi ce cost: 6.86%Proportion of parking to GLA: 2.84%Annual rent escalation 10.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (April 2009 - March 2010) 54.39R 15,336.83R 131.58R 1,052.64R -R 2,294.53R 18,684.00R 224,207.98R Year 2 (April 2010 - March 2011) 59.82R 16,870.52R 144.74R 1,157.90R -R 2,523.98R 20,552.40R 246,628.78R Total rent 470,836.76R

GautengProvincial office: Background

Current lease– Lease term: 5 years– Termination date: 31 March 2015

Process– 20 May 2009

The ICD requests the renewal of its lease of its offices in the Marble Towers Building in Johannesburg, terminating in December 2010, for a period of 2 years.

– 14 September 2009 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation need as 885m2

– 25 November 2009 The DPW requests confirmation of funding

– 05 February 2010 The ICD confirms the availability of funding for the renewal period

– 01 April 2010 Commencement date as specified by the lease

– 20 May 2010 DPW concludes lease with owner

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GautengProvincial office: Property and Lease information

19

Building name: Marble Towers BuildingStreet address: 208-212 Jeppe

Street, Johannesburg

GLA (m2): 885


Joburg Skyscraper (Pty) LtdRepresentatives of parties: NPWD: T Mngomezulu

JS: Mr JM HallDate signed: 20 May 2010Commencement date: 01 April 2010Termination date: 31 March 2015Year 1 annual rent: 787,967.99R Year 1 monthly rent: 65,664.00R Proportion of parking to offi ce cost: 0.00%Proportion of parking to GLA: 1.92%Annual rent escalation 8.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (April 2010 - March 2011) 65.08R 57,600.00R -R -R -R 8,064.00R 65,664.00R 787,967.99R Year 2 (April 2011 - March 2012) 70.29R 62,208.00R -R -R -R 8,709.12R 70,917.12R 851,005.43R Year 3 (April 2012 - March 2013) 75.91R 67,184.64R -R -R -R 9,405.85R 76,590.49R 919,085.86R Year 4 (April 2013 - March 2014) 81.99R 72,559.41R -R -R -R 10,158.32R 82,717.73R 992,612.73R Year 5 (April 2014 - March 2015) 88.55R 78,364.16R -R -R -R 10,970.98R 89,335.15R 1,072,021.75R Total rent 4,622,693.77R

KwaZulu-NatalProvincial office: Background

Current lease– Month-to-month until the renewal of the lease is finalised by DPW– Lease information relates to the lease that expired in October 2010


The ICD requests the renewal of the lease of its offices in the Marine Building, Durban, terminating in October 2010, for a period of 5 years.

The ICD assesses its need for accommodation at 1135.2m2

– 25 October 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation needs as 1113.43m2



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KwaZulu-NatalProvincial office: Property and Lease information

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Building name: Marine BuildingStreet address: 22 Gardiner

Street, Durban

GLA (m2): 1313


Old Mutual Investment Group: Property Investments (Pty) LtdRepresentatives of parties: NPWD: Mr N Kunene

OMIG: Ms G JorgensenDate signed: 03 November 2009 (DPW did not date its signature)Commencement date: 01 November 2008Termination date: 31 October 2010Year 1 annual rent: 1,167,519.60R Year 1 monthly rent: 97,293.30R Proportion of parking to offi ce cost: 0.00%Proportion of parking to GLA: 0.00%Annual rent escalation 9.00%Annual operating costs escalation 10.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (November 2008 - October 2009) 41.35R 54,292.55R -R -R 31,052.45R 11,948.30R 97,293.30R 1,167,519.60R Year 2 (November 2009 - October 2010) 45.07R 59,178.88R -R -R 34,157.70R 13,067.12R 106,403.69R 1,276,844.34R Total rent 2,444,363.94R

KwaZulu-NatalSatellite office: Background

Current lease– Month-to-month until the renewal of the lease is finalised by DPW– Lease information relates to the lease that expired in April 2011

Process– 10 November 2010

The ICD requests the renewal of the lease of its offices in the Edwards Building in Empangeni, terminating in April 2011, for a period of 6 months The ICD requests the DPW to assist (during the extension period) in the procurement of alternative office accommodation The main reason for the need for alternative accommodation is that the offices are not accessible to the public


– 27 October 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation needs as 346.39m2



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KwaZulu-NatalSatellite office: Property and Lease information

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Building name: Edwards BuildingStreet address: 10 Union Street,

Empangeni

GLA (m2): 242

Number of parking bays: 3Lease term: 2Parties: National Department of Public Works

Lot Eighty Three (Pty) LtdRepresentatives of parties: NPWD: Mr N Kunene

LET: Mr CJ EdwardsDate signed: 26 January 2009Commencement date: On Occupation (Occupation date: 01 June 2009)Termination date: 2 years after occupation (30 April 2011)Year 1 annual rent: 208,100.16R Year 1 monthly rent: 17,341.68R Proportion of parking to offi ce cost: 3.05%Proportion of parking to GLA: 1.24%Annual rent escalation 9.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (June 2009 - April 2010) 61.00R 14,762.00R 150.00R 450.00R -R 2,129.68R 17,341.68R 208,100.16R Year 2 June 2010 - April 2011) 66.49R 16,090.58R 163.50R 490.50R -R 2,321.35R 18,902.43R 226,829.17R Total rent 434,929.33R

LimpopoProvincial office: background

Current lease– Lease term: 5 years– Termination date: 30 June 2014

Process– 01 July 2009


– 22 July 2009 DPW concludes lease with owner

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LimpopoProvincial office: Property and Lease information

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Building name: Femnic BuildingStreet address: 67A Market

Street, Polokwane

GLA (m2): 500


Eli Stroh (Pty) LtdRepresentatives of parties: NPWD: Mr YT Siweya

ES: Ms SJ OlivierDate signed: 22 July 2009Commencement date: 01 July 2009Termination date: 30 June 2014Year 1 annual rent: 559,064.76R Year 1 monthly rent: 46,588.73R Proportion of parking to offi ce cost: 7.92%Proportion of parking to GLA: 2.40%Annual rent escalation: 9%Annual operating costs escalation 0%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (July 2009 - June 2010) 75.73R 37,867.31R 250.00R 3,000.00R -R 5,721.42R 46,588.73R 559,064.76R Year 2 (July 2010 - June 2011) 82.55R 41,275.36R 272.50R 3,270.00R -R 6,236.35R 50,781.72R 609,380.59R Year 2 (July 2011 - June 2012) 89.98R 44,990.15R 297.03R 3,564.30R -R 6,797.62R 55,352.07R 664,224.84R Year 2 (July 2012 - June 2013) 98.08R 49,039.26R 323.76R 3,885.09R -R 7,409.41R 60,333.76R 724,005.08R Year 2 (July 2013 - June 2014) 106.91R 53,452.79R 352.90R 4,234.74R -R 8,076.26R 65,763.79R 789,165.53R Total rent 1,168,445.35R

LimpopoSatellite office: Background

Current lease– Lease term: 5 years– Termination date: 31 August 2014

Process– 01 September 2009


– 26 October 2009 DPW concludes lease with owner

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LimpopoSatellite office: Property and Lease information

27

Building name: Limdev CBD D2 BuildingStreet address:

GLA (m2): 250


LimdevRepresentatives of parties: NPWD: Mr YT Siweya

L: Mr CT MolotoDate signed: 26 October 2009Commencement date: 01 September 2009Termination date: 31 August 2014Year 1 annual rent: 190,152.00R Year 1 monthly rent: 15,846.00R Proportion of parking to offi ce cost: 11.20%Proportion of parking to GLA: 4.00%Annual rent escalation 7.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (September 2009 - August 2010) 50.00R 12,500.00R 140.00R 1,400.00R -R 1,946.00R 15,846.00R 190,152.00R Year 2 (September 2010 - August 2011) 53.50R 13,375.00R 149.80R 1,498.00R -R 2,082.22R 16,955.22R 203,462.64R Year 3 (September 2011 - August 2012) 57.25R 14,311.25R 160.29R 1,602.86R -R 2,227.98R 18,142.09R 217,705.02R Year 4 (September 2012 - August 2013) 61.25R 15,313.04R 171.51R 1,715.06R -R 2,383.93R 19,412.03R 232,944.38R Year 5 (September 2013 - August 2014) 65.54R 16,384.95R 183.51R 1,835.11R -R 2,550.81R 20,770.87R 249,250.48R Total rent 1,093,514.52R

MpumalangaProvincial office: Background

Current lease– Month-to-month until the renewal of the lease is finalised by DPW– Lease information relates to the lease that expired in September 2011


The ICD requests the renewal of the lease of its offices in the Nedbank Building in Nelspruit, terminating in September 2012, for a period of 5 years.

– 16 September 2011 The ICD requests the DPW’s assistance in the procurement of alternative accommodation when its lease of its office in the

Nedbank Building in Nelspruit terminates in September 2012. The main reason for the intended move is the landlord’s failure to fulfil his obligations in respect of the existing lease The ICD assesses its need for accommodation at 744m2

– 27 October 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation needs as 570m2


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MpumalangaProvincial office: Property and Lease information

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Building name: Nedbank BuildingStreet address: 30 Brown Street,

Nelspruit

GLA (m2): 407


Apex-Hi PropertiesRepresentatives of parties: NPWD: Mr J Nyalungu

AHP: Mr R LaherDate signed: 14 September 2010Commencement date: On Occupation (Occupation date: 01 October 2010)Termination date: 2 years after occupation (30 September 2012)Year 1 annual rent: 467,719.20R Year 1 monthly rent: 38,976.60R Proportion of parking to offi ce cost: 20.01%Proportion of parking to GLA: 4.67%Annual rent escalation 10.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (October 2010 - September 2011) 70.00R 28,490.00R 300.00R 5,700.00R -R 4,786.60R 38,976.60R 467,719.20R Year 2 (October 2011 - September 2012) 77.00R 31,339.00R 330.00R 6,270.00R -R 5,265.26R 42,874.26R 514,491.12R Total rent 982,210.32R

Northern CapeProvincial office: Background

Current lease– Lease term: 2 years– Termination date: 31 May 2012


The ICD requests the renewal of the lease of its 39 George Street offices in Kimberley, terminating in May 2012, for a period of 2 years.

– 05 April 2011 The ICD assesses its need for accommodation at 602m2

– 17 May 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation needs as 657.5m2


– Matter with DPW for consideration and action

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Northern CapeProvincial office: Property and Lease information

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Building name:Street address: 39 George

Street, Kimberley

GLA (m2): 332.5


Ms BS PapenmeierRepresentatives of parties: NPWD: R Baulackey

Ms BS PapenmeierDate signed: 04 May 2010Commencement date: 01 June 2010Termination date: 31 May 2012Year 1 annual rent: 362,334.00R Year 1 monthly rent: 30,194.50R Proportion of parking to offi ce cost: 4.86%Proportion of parking to GLA: 4.21%Annual rent escalation 10.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (June 2010 - May 2011) 86.60R 28,794.50R 100.00R 1,400.00R -R -R 30,194.50R 362,334.00R Year 2 (June 2011 - May 2012) 95.26R 31,673.95R 110.00R 1,540.00R -R -R 33,213.95R 398,567.40R Total rent 760,901.40R

Northern CapeSatellite office: Background

Current lease– Lease term: 2 years– Termination date: 30 June 2012

Process– 17 March 2011

The ICD requests the renewal of the lease of its 13 Kooperasie Street offices in Upington, terminating in June 2012, for a period of 2 years.

The ICD assesses its need for accommodation at 220m2

– Matter with DPW for consideration and response

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Northern CapeSatellite office: Property and Lease information

33

Building name:Street address: 13 Kooperasie

Street, Upington

GLA (m2): 182.5


Flexkor Fifteen (Pty) Ltd and Becker Bergh & More Inc. - Joint VentureRepresentatives of parties: NDPW: N Riley

FF&BBM: Mr AHP de BeerDate signed: 30 June 2010Commencement date: 01 July 2010Termination date: 30 June 2012Year 1 annual rent: 184,611.60R Year 1 monthly rent: 15,384.30R Proportion of parking to offi ce cost: 5.64%Proportion of parking to GLA: 3.29%Annual rent escalation 10.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (July 2010 - June 2011) 70.00R 12,775.00R 120.00R 720.00R -R 1,889.30R 15,384.30R 184,611.60R Year 2 (July 2011 -June 2012) 77.00R 14,052.50R 132.00R 792.00R -R 2,078.23R 16,922.73R 203,072.76R Total rent 387,684.36R

North WestProvincial office: Background

Current lease– Lease term: 2 years– Termination date: 31 July 2013



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North WestProvincial office: Property and Lease information

35

Building name: Molopo Shopping CentreStreet address: 1 Station Road,

Mafikeng

GLA (m2): 557.5


Mafikeng Milling Co (Pty) LtdRepresentatives of parties: NPWD:

MMC: Mr SM GhoorDate signed:Commencement date: 01 August 2011Termination date: 31 July 2013Year 1 annual rent: 695,908.64R Year 1 monthly rent: 57,992.39R Proportion of parking to offi ce cost: 11.40%Proportion of parking to GLA: 3.41%Annual rent escalation 8.00%Annual operating costs escalation 8.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (August 2011 - July 2012) 74.73R 41,660.51R 250.00R 4,750.00R 4,460.00R 7,121.87R 57,992.39R 695,908.64R Year 2 (August 2012 - July 2013) 80.71R 44,993.36R 270.00R 5,130.00R 4,816.80R 7,691.62R 62,631.78R 751,581.33R Total rent 1,447,489.96R

North WestSatellite office: Background

Current lease– Month-to-month until the renewal of the lease is finalised by DPW– Lease information relates to the lease that expired in October 2011

Process– 10 November 2010

The ICD requests the renewal of its lease of its 165 Klopper Street offices in Rustenburg, terminating in October 2011, for a period of 2 years.

– 28 January 2011 The ICD assesses its need for accommodation at 312m2


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North WestSatellite office: Property and Lease information

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Building name:Street address: 165 Klopper Street,

Rustenburg(Lease does not identify the leased premises)

GLA (m2): 243

Number of parking bays: 8 (lease does not specify number of parking bays)Lease term: 2 yearsParties: National Department of Public Works

Kili TrustRepresentatives of parties: NPWD: Undecipherable from lease

KT: Mr JH van der WesthuizenDate signed: 29 June 2009Commencement date: 01 November 2009Termination date: 31 October 2011Year 1 annual rent: 304,448.40R Year 1 monthly rent: 25,370.70R Proportion of parking to offi ce cost: 7.75%Ratio of parking to GLA: 3.29%Annual rent escalation 10.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (November 2009 - October 2010) 85.00R 20,655.00R 200.00R 1,600.00R -R 3,115.70R 25,370.70R 304,448.40R Year 2 (November 2010 - October 2011) 93.50R 22,720.50R 220.00R 1,760.00R -R 3,427.27R 27,907.77R 334,893.24R Total rent 639,341.64R

Western CapeProvincial office: Background

Current lease– Lease term: 2 years– Termination date: 31 March 2013

Process– 20 May 2009

The ICD requested the renewal of the lease of its offices in the Fintrust Building in Bellville, that expires in March 2012 for a period of 5 years

– 16 September 2011 The ICD reaffirmed its request for the renewal of the lease The ICD indicates additional arrangements to cater for changes in respect of IPID The ICD assesses its accommodation needs as 753.6m2

– 27 October 2011 The DPW communicates the preliminary cost analysis The DPW assesses the ICD’s accommodation needs as 862.69m2



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Western CapeProvincial office: Property and Lease information

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Building name: Fintrust BuildingStreet address: Bellville

GLA (m2): 692


Edge to Edge 1146 CCRepresentatives of parties: NPWD: Mr NJ Poto

ETE: Mr I EssaDate signed: 01 April 2007Commencement date: 01 April 2007Termination date: 31 March 2012Year 1 annual rent: 634,916.16R Year 1 monthly rent: 52,909.68R Proportion of parking to offi ce cost: 9.95%Proportion of parking to GLA: 2.02%Annual rent escalation 9.00%Annual operating costs escalation 0.00%

Rent schedule: R/m2 Monthly office rent R/parking bay Parking cost Operating costs VAT Month rent Annual rentYear 1 (April 2007 - March 2008) 61.00R 42,212.00R 300.00R 4,200.00R -R 6,497.68R 52,909.68R 634,916.16R Year 2 (March 2008 - March 2009) 66.49R 46,011.08R 327.00R 4,578.00R -R 7,082.47R 57,671.55R 692,058.61R Year 3 (March 2009 - March 2010) 72.47R 50,152.08R 356.43R 4,990.02R -R 7,719.89R 62,861.99R 754,343.89R Year 4 (March 2010 - March 2011) 79.00R 54,665.76R 388.51R 5,439.12R -R 8,414.68R 68,519.57R 822,234.84R Year 5 (March 2011 - March 2012) 86.11R 59,585.68R 423.47R 5,928.64R -R 9,172.01R 74,686.33R 896,235.98R Total rent 3,799,789.48R

Western CapeSatellite office: Background


The ICD requested the DPW to facilitate the procurement of office space for the Western Cape Satellite office in George The ICD assesses its accommodation needs as 292.8m2

– 17 May 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the procurement The DPW assesses the ICD’s accommodation needs as 275m2

– 25 January 2012 The ICD confirms the availability of funding


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ICD Head Office (City Forum Building)Current status

Pending outcome of Public Protector and SIU investigation

Legal opinion

DPW interaction

Latent defects

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Progress on remedial interventions

Internal processesA reconstituted and strengthened Accommodation Committee (AC) was tasked with the oversight of the property and lease management functions of the Auxiliary Services Unit. As a point of departure, the AC considered the status of each lease and intervened in the facilitating of the conclusion of month-to-month leases as well as upcoming renewals.

ICD’s Internal Audit Unit conducted a review of all recent DPW invoices.

Establishment of a Corporate Governance Directorate (from 1 April 2012) to ensure –– Compliance with laws and regulations; and– Early detection of accommodation related risks.

Current review of departmental Financial Delegations.

Amendment of Budget Control Report completed.

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Progress on remedial interventions…/2

External processes

Ongoing engagements with National Treasury.

Engagements with DPW regarding its property and lease management. Meetings on 09 December 2011, 17 and 27 January 2012 resulted in:

– Improved relations and communication;– ICD/DPW co-operation: Re-conciliation of billing; and– Improved collaboration in the drafting and processing of User Asset

Management Plans (UAMP).

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Way Forward

Current status of leases– Concluded lease: 9– Pending DPW PI: 1– Month-to-month leases: 7

Addressing internal processes and challenges:– Property and lease management

Challenges: – Renewal and extension of leases– Short term (2 year) leases– Securing of alternative office accommodation

The AC is meeting monthly to oversee and expedite the process of renewing or securing leases that are currently on a month-to-month basis as well as monitoring expenditure related to the properties.

– Financial management Review of the ICD’s Financial Delegations to be complete before April 2012.44

Way Forward…/2

– 2013/14 UAMP: Finalised and submitted to the DPW. Addresses departmental performance requirements, condition and locational standards as well as

immediate and future property needs. Recognizes the trade-off between operational and locational requirements, available properties, funds

allocated by treasury as well as relocation and refurbishment costs.

Addressing the ICD’s alignment to external processes:– Continued engagement with the DPW to ensure effective and well coordinated property and

lease management. Particular emphasis in this regard is the: Revisiting the 18 months renewal notices as it relates to short-term leases in the Service Level

Agreement; The timing and prompt processing of renewal or procurement requests and documentation; The timing and prompt processing of maintenance related requests and documentation; and Continued scrutiny of billing.

– Continued engagement with National Treasury

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END

-THANK YOU -

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briefing to the portfolio committee on police, national assembly properties occupied by icd v227,...

Documents

summary of icd

icd v227

lease information

current icd leases

lease terms

submission of accommodation

annual expenditure current

locational suitability