Download - 07 APRIL 2005
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
07 APRIL 2005
JAMES MASEKODIRECTOR-GENERAL
BUDGET PREVIEW PRESENTATIONTO THE SELECT COMMITTEE ON
PUBLIC SERVICES
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Presentation Outline
AchievementsValue Plan and strategic driversExpanded Public Works
ProgrammeThe budget trendsChallenges
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Achievements 2004/05 (Cont…) Process instituted to clean up Asset register and speed
up the vesting process
Identification of unutilized properties for disposal – cost implications re rates and taxes
Evaluation and review of ECDP and RAMP to enable improved future design and planning
Development of a holistic maintenance plan
Recruitment process of young graduates underway
Launch of EPWP and meeting of targets
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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DPW strategic objectives/drivers
Grouped into three main objectives
Asset Management
Service
Capacity
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Value Plan & Strategic Drivers
CAPACITY
1. People
2. Business Systems/processes
3. Budget
ASSET MANAGEMENT
SERVICE 1. Service Delivery Improvement Programme
2. Transformation
3. Leadership way
1. Asset management information system
2. Asset lifecycle management/return on investment
3. Policy
•Custodian of National Government’s fixed property assets•Provide accommodation & facilities to National Government
•Coordinate EPWP•Regulate construction & property industry
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Asset Management
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Asset Management (Cont..)
Holistic maintenance plan – this is a plan for all state assets costing about R12,5 BN to repair assets to operational efficiency.
Private-Public-Partnership – to facilitate PPP transactions.
PICP – in partnership with Tshwane Municipality - provide accommodation for all government departments downtown.
Client service level agreements and clients specific value proposition.
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Asset Management (Cont..)
Government wide immovable asset management Act will be tabled which requires every accounting officer to prepare asset management plans annually
Performance standards – space and cost norms for buildings under review to improve service delivery.
Improving quality of data in the Immovable Asset Register – to improve data integrity of asset register and enhance property management function.
Risk management plan for immovable assets being drafted.
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Service
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Service The key initiative is the launch of the service delivery improvement
programme, SDIP and Leadership Way initiative It has the following components;
Customer relationship management
Management of core facilities management services
Project and contract management
Core facilities management services
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Service - The leadership Way
Leadership Way is a new initiative aimed at implementing Batho Pele
It focuses on issues such as
Defining minimum standards of behavior for staff and managers
Defines the preferred management styleDisciplinary action against non performanceSeeks to align DPW to Batho Pele initiativeAll staff to sign and recommit themselves Will be included in the performance
contracts for managers
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Transformation
Industry transformation will be dominated by the finalisation of BEE Charters for the Construction and Property industries
DPW is expected to develop construction industry strategy to be incorporated into MERS (January Cabinet Lekgotla)
Transforming the DPW culture to a more service and client oriented culture
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Capacity
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Capacity -People
An internal skills and competencies audit has been conducted and completed
Skills shortages experienced in the asset management and built environment skills-Graduates initiative launched
DPW needs a comprehensive HR strategy to address capacity shortages (Recruitment, training and development, retention
HRD Director has just been appointed
The CBE is assisting HR to establish strategic partnerships with tertiary institutions and Technikons to procure built environment skills
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Capacity- Systems and Business Processes
Systems
Public Works systems to be integrated to enable seamless delivery under the auspices of SITA and National Treasury
Business Processes
Public Works re-engineering business processes
The reengineered processes are meant to define the “To-be” business process architecture of Public Works
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Budget
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Budgeting Programmes
Programme 1: Administration
- Overall management of the National Department of Public Works – for example, policy development, implementation strategies, and providing support services
Programme 2: Provision of Land and Accommodation- Provision of Land and development, management
and maintenance of accommodation to ensure that national departments and institutions have a built environment that meets their financial, social, and technical requirement
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Budget Programmes (continued)
Programme 3: National Public Works
Programme- Promotion of sustainable growth of
Construction and Property Industries whilst fast-tracking their transformation and development;
- Custodial function of national state property portfolio under NDPW; and
- Address poverty and unemployment through EPWP
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Budget Programmes (continued)
Programme 4: Auxiliary and Associated ServicesProvision for various services, including:- Losses incurred in State housing guarantee
scheme;- Maintenance of war graves & national memorials;- Decorations for public functions such as State
funerals and inaugurations;- Acquisition of vehicles for Departmental use;- Skills Development Act levies; and - Financial assistance to Parliamentary Villages
Management Board
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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KEY FOCAL AREAS
The Department’s budgetary allocation is inadequate to fund the Department’s critical programmes as would be demonstrated
This is demonstrated by the Over-expenditure trend which amounted to R34m in 2001/02 and increased to R227 million in the 2002/03 financial year, decreased to R30 million in 2003/4
Capacity to spend has been built and is no longer a concern
In order to curb of overspending, the department had to stop certain services e.g. maintenance
Much stricter measures were implemented in the financial year (2004/2005) to ensure that the department does not exceed the approved allocation.
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Programme 2005/6 2006/7 2007/8
1 Administration 272 002 330 631 344 816
2 Provisioning of land and Accommodation
5 181 343 5 523 625 6 122 040
3 National Public Works Programme
82 610 85 629 89 860
4 Auxilliary and associated Services
18 096 19 895 20 890
5 Total 5 554 051 5 959 780 6 577 606
2004/5 5 513 909
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Allocations
Capital5%
Leases31%
Maintenance15%
Municipal Services
26%
Rates & Taxes23%
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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COMPARISON OF REQUESTED BUDGET WITH APPROVED ALLOCATION AT PROGRAMME LEVEL
AMOUNT REQUESTED FOR 2005/06 FINANCIAL R millions
AMOUNT ALLOCATED
FOR 2005/06R millions
DIFFERENCER millions
1Programme 1: Administration
262, 427 272, 002 9, 575
2
Programme 2: Provision of Land and Accommodation
6, 824, 448 5, 181, 343 -1, 643, 105
3
Programme 3: National Public Works Programme
93, 939 82, 610 -11, 329
4Programme 4: Auxiliary and Associated
18, 096 18, 096 0
TOTAL 7, 198, 910 5, 554, 051(1, 644,
859)
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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ENE allocation comparison 04/5 vs 05/06
ENE Allocation
R 0.00
R 200,000.00
R 400,000.00
R 600,000.00
R 800,000.00
R 1,000,000.00
R 1,200,000.00
R 1,400,000.00
R 1,600,000.00
capital leases rates and taxes maintenance municipal services
2004-2005
2005-2006
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Cost of maintenance backlog
Maintenance backlog is estimated at R12,5b
NDPW has a budget of R949m to maintain 100 972 facilities around the country, translating to about R9400,00 per building per annum
We require funding levels at R2.5 Billion a year for maintenance
This leaves us with a funding deficit of R1.5 Billion for recurrent maintenance per annum
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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IMPLICATIONS
The implications of under-funding as they relate to the main cost Items are:
- Leasing: We will not be able to meet the accommodation needs of our clients e.g. SAPS requires more accomodation for the new recruits
- Rates on State Property and Municipal Services: Services have to be paid to prevent termination which could have catastrophic results to public facilities like hospitals etc. In addition, this sphere of Government’s service delivery efforts will be greatly compromised
- Maintenance: May result to non compliance with Occupational Health and Safety Act as some buildings are already in dilapidated state.
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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EPWP
As a co-coordinator, our responsibility is as follows:
Create a supportive and enabling environment for the implementation of EPWP
Coordinate activities of public bodies involved in the programme
Facilitate learning between the various stakeholders
Monitoring, evaluating and reporting on the EPWP
Assist with the identification of opportunities to implement EPWP projects
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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Challenges
Co-ordination of the EPWP
Implementation of the Leadership way
Repair and maintenance of public buildings
Improving service delivery
Clarifying our role
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
29
President’s state of the nation/POA
Improving working spaces for government
Implementing the EPWPSupporting provinces to better
implement the classroom building programme
Improving service delivery
National Department of Public WorksRepublic of South Africa
National Department of Public WorksRepublic of South Africa
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THANK YOU