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

2. 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

3. 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)

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

5. 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.

6. 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

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

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

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

10. 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%)

11. 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

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

13. 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

14. 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

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

16. Thank you..