PORTFOLIO COMMITTE PRESENTATION DEPARTMENT OF LABOUR PORTFOLIO COMMITTE PRESENTATION Presentation by: S Mkhonto Date: 19 August 2015 1 1

TABLE OF CONTENTS Structure of Office Accommodation Office Per Province Procurement Process Challenges and Intervention by DoL and DPW Strategic Intervention by DoL and DPW Other Infrastructural Interventions Clients Department Proposal Other Interventions by DoL and DPW Capital Projects Registered with DPW

OFFICES OF THE DEPARTMENT STRUCTURE OF OFFICE ACCOMMODATION OFFICES STATE OWNED LEASED Head Office 1 Provincial Offices 2*portion of EC office is in state owned 8 Labour Centres 21 103 Satellite Offices 9 33 Visiting Points 80 60 Total 113 204

OFFICES OF THE DEPARTMENT OFFICES PER PROVINCE OFFICES STATE OWNED LEASED Head Office 1 Eastern Cape 20 58 Free State 7 17 Gauteng 12 18 KwaZulu Natal 23 31 Limpopo 11 19 Mpumalanga 25 Northern Cape 10 5 North West 8 Western Cape Total 113 204

PROCUREMENT OF OFFICE ACCOMMODATION In term of Government Immovable Asset Management Act ( GIAMA) No 19, 2007, the Department of Public Works is entrusted with the responsibility to:- Provide uniform immovable asset management framework to promote accountability and transparency ensure effective immovable asset management within government Ensure coordination of the use of immovable assets with service delivery objects of national or provincial department and efficient utilisation of immovable asset. Procurement of office accommodation is done through the National Department of Public Works.

CHALLENGES AND INTERVENTION OF OFFICE ACCOMMODATION INTERVENSION Ulundi KZN Maintenance of the office, location; parking and the size Alternative accommodation identified in the city centre The Department approved funds to attend to critical maintenance challenges in the current building Prospection Maintenance The Department approved funds for the province to attend to maintenance challenges. DOL requested DPW to speed the process of vesting to enable the Department to do planned maintenance in the building Parkryne The Department approved funds for the province to attend to maintenance challenges Meeting scheduled for 26 August 2015 with HOD in Provincial DPW to speed us procurement process

CHALLENGES AND INTERVENTION OF OFFICE ACCOMMODATION ( Cont...) Umtata Maintenance, location and size DoL applied for alternative accommodation, DPW tested the market and only bid was received. DPW is in the process of obtaining deviation to consider the only bid received Lusikisi Condition of the buildings and size DOL applied for alternative accommodation , the process of acquiring the alternative accommodation is with DW Mt Aliff

CHALLENGES AND INTERVENTION OF OFFICE ACCOMMODATION ( Cont...) INTERVENSION Sebokeng Procurement of accommodation since closure in 2012 DoL applied for office accommodation DPW tested the market but no bids received Johannesburg Labour Centre Closure of the office due to non compliance with OHS Staff distributed to other offices and consultants appointed to deal with OHS non compliance claims Rustenburg Small waiting area DoL and DPW is erecting shelter to be used as waiting area to protect members of public from unfavourable weather conditions

CHALLENGES AND INTERVENTION OF OFFICE ACCOMMODATION ( Cont...) INTERVENSION Carolina Procurement of accommodation since closure in 2013 DPW procure the office, the Department approved refurbishment funds and the office is due for occupation in September 2015 Kwamhluswa VP Office closed Kriel VP Office Closed

STRATEGIC INTEVENTIONS BY DOL AND DPW The Department of Labour had a high level meeting with DDG: Regional Coordination in DPW,the CFO and COO of DoL with EC, FS and NW CDPOs whereby the following were resolved:- DPW Regional Offices to enforce the terms of the leases with the Landlord to ensure maintenance of offices and compliance to OHS; High level meeting to held monthly to track progress by the DPW Regional Offices; The Department of Labour set aside money to maintain state owned office accommodation, whereby R1million is already approved for KZN, EC and Mpumalanga Provinces and The Department is in a process of obtaining exemption from GIAMA to procure office accommodation through the funds ( UIF and CF) on their investment portfolio

OTHER INFRASTRUCTURAL INTERVENTIONS Problem Statement Client departments, including the DoL, have identified, amongst others, the following: Protracted processes between project identification and implementation; Funding constraints due to projects rolling over from one financial year to the next; Budget constraints due to projects continually exceeding initial funding projections; and Delays in the current DPW processes relating to Site Clearance and appointment of contractors.

CLIENT DEPARTMENTS PROPOSAL The DPW has acknowledged the challenges identified by client departments: Government Departments, including the DoL have identified funding to address challenges and have approached DPW for delegations in terms of GIAMA. DPW has developed a Concept Paper to address these requests; DPW has proposed a meeting with Home Affairs, National Treasury, Labour and the PIC to finalise the Concept Paper by end September 2015; They further committed to the appointment of a consultant familiar with property development processes to facilitate Project Management by the DPW

OTHER INTEVENTIONS BY DOL AND DPW The Following office are earmarked by DPW to be Part of the Government Precinct Project spearheaded by DPW Mahikeng LC Mt Fletcher SO Mandeni VP Christiana LC Idutywa LC Kwamhlanga LC Vredendal LC; and Howick LC

CAPITAL PROJECTS LISTED WITH DPW The Department has approved funds for the construction of the following offices for 2015/16 and 2016/17 financial years Vredenburg LC Belfast LC Swellendam LC; Bronkhorstspruit LC; Carolina LC; and Sabie LC

Thank you Thank You…