Transformation Charter for the Property Sector Presentation to Public Works Portfolio Committee 13 June 2006

The Process (1) Process Initiation Management of the process Process initiated in Sept 2004 All property sector stakeholders invited to participate Launched by Minister Sigcau in November 2004 Management of the process Integrated Management Committee Government led by National Department of Public Works Other State Agencies: Provincial DPW, Metro’s (PE, Durban, CT) SOEs (Propnet, Johannesburg Property, Eskom) National Depts (DPE, DoT) Business: All Associations involved Technical Committees: constituted by all stakeholders

The Process (2) Engagement with stakeholders Integrated Management Committee – engaging with the different stakeholders through the mandated representatives in the IMC Provincial road shows (Feb & Mar 05) targeting private and public sector stakeholders Property Charter Indaba (June 05)

The Process (3) Engagement with stakeholders (cont) Public Sector Workshop (June 05) Various informal engagement between stakeholders Parliamentary briefing (Sept 05)

The Process (4) Charter development process Charter Framework – lays a foundation for the charter and a vision for the sector for the next 5 years Technical Committees – research & proposals on the charter Scorecard – weightings and targets across all elements Sign off all stakeholders in March 2006.

The Charter Framework Preamble Status quo of the property sector Commitment of stakeholders to the charter Application and reporting Components of the scorecard Definitions Scorecard

The Scorecard - 1 (Elements) Direct Empowerment Ownership Control Management HRD Employment Equity Skills Development (training, learnerships, bursaries, mentorship)

The Scorecard - 2 (Elements) Preferential Procurement Enterprise Development Residual CSI Other

The Scorecard - 3 (Weightings - %) Ownership 20 Management Control 10 Employment Equity Skills Development 15 Preferential Procurement Enterprise Development Residual

Targets Negotiations finalised on Oct 2005 Have achieved the ownership target of 25% (less than the 30% challenge by the late Minister of Public Works; Other key achievements: Development in under-develop areas (8%)

Way Forward - 1 Charter submitted to lawyers for legal verification Submission to Minister by 15 June 2006 Submission to Minister of Trade & Industry by 30 June 2006; Communication to stakeholders: - Portfolio Committee

Way Forward - 2 - Select Committee - Min-MEC - HOD meeting - other relevant DGs - Operational staff Establishment of a representative Property Charter Council

Observations (1) The signed Property charter in line with BBBEE Act [section 12 (a) to (g)] Consultation voting rights, economic entitlement, net economic interest Women participation Designated groups participation

Observations (2) Opportunity for racial transformation within the sector: Ownership Control Management Opportunity for growth & development of the sector and enhancing skills base: Employment equity Skills development Procurement Enterprise development Development in under-developed areas

Challenges Commitment by other govt departments / agencies Fronting Synergy in govt supporting programmes to maximise economies of scale.

Thank you..