Briefing to the Portfolio Committee on the DPW Annual REPORT 2003/04

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The agenda

Provide high level highlights of the 2003/4Annual Report

Focus on key initiatives

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Introduction Managing in a dynamic environment Improving planning has been a pillar of our

processes and successes De-centralisation of functions has been a

feature of our service improvement strategy

Seeking new approaches to delivery (KAM,SDI project)

People management still remains a key challenge

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An analytical framework Mckinsey’s 7 S model will be used

1. Shared vision2. Strategy3. Strategic leadership4. Structures5. Staff6. Skills7. Systems

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Key strides New vision, mission, values and

strategic goals Team established New structure in place Staff-recruitment,retention,capacity Skills still a challenge Strategy evolving Report reveals measures to improve

systems and business processes

Operations

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OPERATIONS

ACHIEVEMENTS> RAMP

The objective of the programme is to address the disrepair of facilities and a significant backlog associated with maintenance.

Since 1999 RAMP has awarded R1, 9 bn of contracts through 294 contracts of which 206 worth R1,28 bn were affirmable Business enterprise.

The programme has made appointments of 491 Professional Consultants to the value of R262 million of which 48% went to Affirmable Professional Services Providers as contribution to BEE.

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OPERATIONS (Cont…)

ACHIEVEMENTS

A nation wide Call Centre has been established to deal with repair breakdowns.

Departmental maintenance and operation personnel have been trained in more appropriate maintenance and repair techniques.

New Affirmative Business Enterprises (ABE) have been identified and trained in appropriate business related skills.

The sustainability of the established ABE’s has been enhanced by the inclusion of minimum quotas of appropriate work in contracts.

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OPERATIONS (Cont…)

RAMP (cont..)

Empowerment of public sector officials through an increase in project management skills.

Comprehensive ten year maintenance plan

The DPW has determined the total backlog of maintenance of state owned buildings and installation, addressing repairs and continuous maintenance.

A long-term maintenance plan based on 10, 15, and 20 yrs funding scenarios was developed and submitted to NT.

New generation prisons

In order to create employment for small medium and large construction companies, the building work has been divided into 20 separate nominated subcontracts ranging from R1 m to R20 m.

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OPERATIONS (Cont…)

Capital works

Capital projects which were executed in the period under review include:

Port Elizabeth and Khayelitsha Magistrate Courts,

Bisho Shooting Range for SAPS,

Repair and Maintenance of 12 Proclaimed Fishing Harbours,

The completion of Kinshasa Chancery & Diplomatic Village and Berlin Chancery

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Ramp (cont…)

ITEM CLIENT DEPARTMENT NO. OF CONTRACTS

CONTRACT VALUES

(R MILLION)

1.

1.1

1.2

1.3

Correctional Services-2001/02-2002/03-2003/04

76

6

26

44

747

31

193

513

2.

2.1

Fishing Harbours

- 2003/04

2

2

4

4

3.

3.1

3.2

SAOS

2002/03

2003/04

5

1

4

11,3

1,7

9,6

4.

4.1

Defence

- 2003/04

31

31

98,5

98,5

5. Lifts 0 0

GRAND TOTAL 114 868,8

Asset Management

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Asset Management

ACHIEVEMENTS

KAM DPW achieved a full expenditure on Capital Works and Planned

Maintenance.

Developed a generic SLA to formalise service relationships between DPW and its Clients.

APOPS The receipt of a SABS-ISO 9001:2000 award for the Kutama

Sinthumule maximum prison at Makhado.

Professional Services Conservation management plans of Heritage Buildings were

developed in accordance with National Heritage Resources Act.

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ASSET MANAGEMENT (Cont…)

Leaseholds and Acquisitions

A total leasing amount of R1,07 bn was spent in 2003/04 which indicates the increase in demand and associated costs for accommodation and space.

Seventeen new properties were acquired and registered at the Deeds Office at the total cost of R16,77 m.

The majority of these properties were for the purpose of accommodating SAPS and Prosecuting Authority.

The State through DPW purchased back a property at the Parliament precinct in Cape Town for R6,3 m from the British High Commission.

Non-commercial disposals In the period under review the DPW disposed 121 properties in

extent of 4565 ha, with an estimated market value of R45 m.

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Asset Management (cont..)

Implementing the next phase of the asset management framework has begun

Joint task team set up with DLA to expedite the vesting of fixed assets

R10 million set aside to support the process Developing a proposal to increase the

capacity of the property management unit

Financial Management

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Financial Management

Financial management has significantly improved as indicated by the last AG report

However, some areas such as the clearing of suspense accounts with National Treasury is currently being attended to; and

Uniform documentation control is being implemented

System improvements achieved

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Financial management (cont…)

Risk and fraud prevention plans in place

Co-sourcing of internal audit services Regional financial capacity developed

(27% increase in personnel) Training and recruitment were and

continue to be addressed

EPWP

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EPWP

EPWP framework successfully adopted by Cabinet

Government’s flagship launched by the President in Limpompo

EPWP unit approved by the Minister and set up with the relevant coordinating structures

Road shows conducted in every province Tender guidelines finalised and included in

DORA

Policy Unit

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Policy Unit

ACHIEVEMENTS

ECDP

In 2003/04 financial year a total value of R791 million were awarded to affirmable business Enterprises.

Contractors to the total value of R88 million were awarded to women owned business enterprises.

DPW has developed an Incubator programme to promote the development of sustainable emerging contractors.

CBPWP

In 2003/04 a total of 415 projects were created through CBPWP which created a number of 23 196 employment opportunities.

Programme was closed out at the end of the Financial year

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Policy Unit (cont…)

Skills development strategy for the built environment professionals

The DPW has developed a strategy for SA built environment professionals with the aim of enhancing the construction industry capacity and performance.

This strategy consists of the following 3 main components:

Capacity development (including the transfer of knowledge and skills),

Enhancement of innovation and technology, and

Creation of an enabling environment

Human Resources Management

ACHIEVEMENTS

Managing transformation framework in line with Resolutions 7 & 8 of Public Service restructuring.

Conflict management- resolution of majority of disputes emanating from matching and placing.

A total of 111 employees graduated from the Management Development Programme which was offered by PTA Univ.

107 employees completed Supervisory Development training. More than 300 posts filled

Human Resources

Public entities

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Public entities

IDT Satisfied with their contribution to developed Instrumental in the implementation of the CBPWP

CIDB Becoming leader in industry development Achievements include the launch of toolkit and the

register of projects and contractors CBE

Established to promote uniform application of policy and coordination amongst professional bodies

Performance management tool developed to monitor performance of these bodies

Challenges

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Challenges cont’d

Successfully coordinate the implementation of the Expanded Public Works Programme (EPWP)

Valuation of State-owned properties Emerging contractors faced with lack of

sustainable opportunities, access to finance and other problems

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Challenges To mobilise adequate funding for municipal

accounts To recruit and retain qualified project and property

management staff and address the scarce and aging professional staff problem – comprehensive HR plan is being developed

Addressing the issues that gave rise to the qualification of the AG’s report

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Conclusion

It was a characterized by progress in many key areas

Key challenges still remain, but it is a journey to be traveled

Focus and focus will get us there-We are focusing on the pillars that will ensure sustainability of interventions

Thank you