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

2. 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.

3. 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.

4. 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.

5. 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

6. IAM Manuals

7. 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.

8. 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)

9. DBSA