Portfolio Committee on Public Works National Department of Public Works Government-wide Immovable Asset Management (GIAMA) Policy & Legislation Portfolio Committee on Public Works 14 June 2005

Content The need for GIAMA Legal framework of GIAMA Objectives of GIAMA Guidelines & Requirements Immovable Asset Management Plans Consultation Applicability of GIAMA Timeframes 1

1. The need for GIAMA Government is confronted with service delivery needs which must be matched with efficient and effective use of resources, including immovable assets. Government’s extensive and diversified immovable assets have a significant impact on the overall macro-economic, socio-political & physical landscape. Decisions on immovable assets have long-term implications and should be based on the full impact of costs over the expected lifespan of such assets. It is therefore imperative that Government’s immovable assets be managed in a uniform, efficient, effective and accountable manner. 2

2. Legal framework of GIAMA The Constitution mandates the National Government to pass legislation for all spheres of government if the purpose is to establish uniformity and to set minimum norms and standards with regard to service delivery. Cabinet mandated the Minister of Public Works to develop an overarching policy framework to govern the management of immovable assets throughout Government and to implement that policy by means of legislation. 3

3. Objectives of GIAMA GIAMA makes it encumbent on all organs of State to promote Government’s objectives through the management of immovable assets under their control: Promoting accountability, fairness and transparency. Promoting effective, efficient and economic use and maintenance of immovable assets. Reducing the demand for new immovable assets by (inter alia) considering non-asset solutions. Supporting government’s socio-economic objectives including land reform, economic empowerment, poverty alleviation and job creation. 4

Objectives of GIAMA (Continued) Realising the best value for money from the disposal of immovable assets, whilst promoting Government’s socio-economic objectives. Increasing opportunities for partnering with the private sector throughout the life-cycle of immovable assets. Protecting the environment and South Africa’s diverse cultural and historic heritage. Improving health and safety in the working environment. 5

4. Guidelines & Requirements GIAMA legislation will empower the Minister of Public Works to determine immovable asset management guidelines and minimum requirements that will - complement general asset management guidelines issued by National Treasury in terms of the PFMA and MFMA; provide a framework for the management of immovable assets throughout their life-cycle (encompassing strategic planning, acquisition, maintenance & management and disposal); 6

Guidelines & Requirements (Continued) address the minimum content, format & processes required to compile immovable asset management plans; provide a planning framework for custodians to implement a portfolio management function; provide a framework for measuring the performance of immovable assets; and prescribe the minimum information required to manage immovable assets. 7

5. Immovable Asset Management Plans Each organ of State (users and custodians) will be required to produce an IAM plan that will form part of the strategic planning and budgeting process of Government. IAM plans must cover all the immovable assets which the organ of State uses or intends to use (State-owned & leased). Where a custodian makes immovable assets available to a user, the custodian and user should jointly conduct the strategic planning process. 8

Immovable Asset Management Plans (Continued) All IAM plans must be submitted to the relevant Treasury annually (on a date to be determined by that Treasury). IAM plans must inform the annual budgetary process and must be revised once budgetary allocations are finalised. Revised IAM plans must be included in the strategic plans of all organs of State. 9

Immovable Asset Management Plans (Continued) Custodians must assist users by making available information pertaining to the performance of immovable assets allocated to them. [This would include analysing such information in a manner that would enable users to make informed decisions] Users must provide custodians with a copy of the IAM plans they submit to Treasury. [Generally, custodians are in a position to view the management of immovable assets from a wider (“whole of government”) perspective than individual organs of State. The production of custodian IAM plans will enable these “whole of government” considerations to be taken into account during Governments’ strategic planning and budgetary processes] 10

6. Consultation DPW consulted with all National and Provincial Departments on the draft GIAMA policy and their comments will be incorporated in the revised policy and the GIAMA Bill. In particular, DPW consulted with National Treasury to ensure consistency with the Public Finance Management Act, 1999. The GIAMA Bill will be published for general comment in July 2005 and a workshop for all National and Provincial Departments will also be hosted in July 2005. 11

7. Applicability of GIAMA DPW has developed the GIAMA policy to govern the management of immovable asset throughout Government. However, the draft legislation currently under consideration will be applicable to National and Provincial Government only. Due to (a) complexity of legislation governing Local Government and (b) varying levels of autonomy of Public Entities, DPW will embark on more extensive consultation process before submitting legislation applicable to such organs of State. 12

8. Timeframes Subject to approval from Cabinet, Minister of Public Works will introduce draft legislation applicable to National & Provincial Government in Parliament in September 2005. Following promulgation of the legislation, Minister of Public Works will issue regulations, including norms and standards (such as cost & space standards). Following a more extensive consultation process, the Minister of Public Works will introduce draft legislation applicable to Local Government and Public Entities in 2006. 13