Immovable Assets Management Bill

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Presentation transcript:

Immovable Assets Management Bill Government Immovable Assets Management Bill DBSA Comments Barry Jackson, DBSA 7 March 2007

Immovable Asset Management The Bill is an important initiative The need for GIAM is self-evident Many recent developments in the “science” of asset management Need for a systematic approach: Building the right assets Aware of the total cost of providing a service Maintaining the value of assets Maintaining quality of service.

Implications of GIAMA for South Africa Range of state-owned assets: Land, buildings Roads, airfields, military bases Dams, canals, pipes, treatment works Range of capabilities of state entities Caution when introducing requirements Encourage adoption under conviction rather than compulsion (incentives?) Aware of dangers of precedents.

GIAMA as a precedent Government Departments & Provinces Municipalities of many sizes Under MFMA? Parastatals; eg SANRAL, ACSA, NWRA, EDIH/REDS Under PFMA? Statement of Long-Term Strategy? Need to consult on possible unintended consequences for other entities.

GIAMA as a precedent: Notable SA IAM Initiatives International Infrastructure Management Manual (IIMM)- SA version & endorsed by dplg, SALGA and IMESA dplg and European Union- IAM implementation, best practices, tools and training Handbook on Managing Community Assets by ASALGA & now available from DBSA Municipal Infrastructure Investment Framework (MIIF) – dplg and DBSA Water Services Infrastructure Asset Management Strategy- DWAF Development of an Enabling Framework for…Municipal Infrastructure in SA by CSIR (funded by Parliament) Municipal Infrastructure Asset Management – Towards a National Strategy – dplg and DBSA CIDB Initiatives & Regulations GIAMA Bill – DPW Municipal IAM Guidelines – dplg IDIP Programme – National Treasury Audit Standards re Asset Registers -Accountant General and Auditor General (Qualified Audits) Various Provincial and Local Government initiatives eg WC, Johannesburg Metro, Buffalo City, Ethekwini

IAM Manuals

Giving effect to GIAMA The Minister - Issue regulations – subject to consultation process Cl.20(2) Issue standards & prescribe minimum standards – consultation not required? C.19(2)&(3). Must involve industry players, stakeholders & future stakeholders – given much weight Cl.10(b) “…guidelines prevail...” Issue standards & prescribe minimum standards - begin with approaches which match capability Vary according to type, size & capacity of custodians and users May implement programmes to give effect – substantial budget required and strategic approach starting where greatest risk is evident.

Detailed comments on GIAMA Policy statements in legislation? Cl.5(1)(f)(iii) eg “redistribution of wealth” User v. Custodian? Clauses 6 -14 Who will best understand O&M needs? Who does the costing? Decision on “surplus” & disposal? Whose performance measuring system takes precedence? Processes: Exemptions, sub-delegations, designate as custodian (ref DWAF experience)

DBSA barry@dbsa.org www.dbsa.org