1. DEPARTMENT OF PUBLIC WORKS Portfolio Committee Presentation 30 th October 2012 Parliament of the Republic of South Africa DEPARTMENT OF PUBLIC WORKS Portfolio Committee Presentation 30 th October 2012 Parliament of the Republic of South Africa 1

2. 2 Purpose of the Presentation by the Department of Public Works -To reflect on the Quarter 2 information and financial performance of the Department of Public Works in the financial year 2012/13 Objective of the Portfolio Committee on Public Works -Briefing by the Department of Public Works on the second quarter performance of the department for 2012/13.

3. 3 Asset Investment Analysis Key Account Management Professional Services & Project Management Underachieved: Actual vs. Target Comparison and Underachievement: Current Progress below the previous Quarter Overachieved: on target or over the target Tentative: Data to be confirmed/Validated Key

4. 4 Output Performance Indicator Annual target Q1Q2 Quarterly target Actual progress against target Quarterly target Actual progress against target To produce a complete and accurate immovable asset register on the assets by 31 March 2014 Number of properties populated with essential information. Populate 10 929 properties Populate 2 732 properties. 21 448 land parcels verified through desktop analysis and updated with Deeds’ Web information Populate 2 732 properties. 14 424 land parcels verified through desktop analysis and updated with Deeds’ Web information Confirmation of ownership of 35 895 land parcels under DPW’s custodianship Number of land parcels Vested Vest 1 190 land parcels Vest 297 land parcels. 352 land parcels vested Vest 297 land parcels. 58 land parcels vested (35 895 land parcels) 15 500 title deeds endorsed Number of title deeds endorsed. Endorse 500 title deeds Endorse 125 title deeds. 80 title deeds Endorse 125 title deeds. None

5. 5 Output Performance Indicator Annual target Q1Q2 Quarterly target Actual progress against target Quarterly target Actual progress against target Service level Agreement between the Custodian and user Department Signed Service Level Agreements for all user departments SLAs signed with 25 user departments Resubmit 25 SLAs not signed by user departments User Departments have been approached to conclude SLAs Follow up with monthly reminder to user departments who have not signed SLA’s. Intermittent follow-ups were done. Complete UAMP templates Populate UAMP template for 50 user departments Populate 50 user department UAMP templates Send system information to 50 user departments Information sent to 32 user Departments Interaction with 50 user departments, monthly and quarterly. Interacted with 39 user departments on UAMP template information. Approved Capital Works Implementation programme Signed Capital Works implementation Programs (CWIP) for user departments CWIP signed for 10 user departments Submit 10 signed CWIP’s to executing units 9 signed CWIP were submitted to executing units First revision of 10 implementation programmes. First revision completed for 4 user departments (i.e. DoD, DRDLR, DPW and DHA) Value adding progress information report Reports submitted monthly to each user department Reports submitted to 50 user departments Reports submitted monthly to 50 user departments Reports submitted to all 50 user Departments Reports submitted monthly to 50 user departments Reports submitted to 44 user departments.

6. 6 Output Performance Indicator Annual target Q1Q2 Quarterly target Actual progress against target Quarterly target Actual progress against target Construction Projects Are Completed Management of projects in a building programme between status 4 to 7 200 projects completed 50 projects completed 31 Projects Completed 50 projects completed 29 Projects Completed Short To Medium Term Job Opportunities Create jobs through the building programme (DPW and user departments) 40 000 jobs created 10 000 jobs created 13 202 jobs reported 10 000 jobs created 3 466 Professional Skills Development Create learning and training opportunities for graduates of built environment careers 100 training opportunities created 25 training opportunities created 8 Contracts for Graduates extended 25 training opportunities created No recruitment made. Affirmable Business Enterprises (Specialists) Access Job Opportunities As Sub Contractors Or Suppliers To Main Contractors 35% of annual construction budget expenditure, accrued to Emerging Contractors, Women Owned Enterprises, Disabled Persons, and Youth in terms of BBBEE scorecard Procurement Strategies to carry a minimum threshold of 35% of work to Sub- contracting (approval by Bid Committee 35% budget expenditure No Contract awarded with CPG: 35% budget expenditure No Contract awarded with CPG:

7. 7 Output Performance Indicator Annual target Q1Q2 Quarterly target Actual progress against target Quarterly target Actual progress against target Life Cycle management of Human Resources Reduced vacancy rate Vacancy rate is reduced to 15% as at 31 st March 2013 16.5% reduced vacancy rate Vacancy rate currently at 14.19% in quarter 1 5842 posts filled 966(14.19%) posts vacant 16.% reduced vacancy rate Vacancy rate currently at 15.12% in quarter 2 5715 posts filled 1018 (15.12%) posts vacant Post advertised: 10 Vacancy rate – moving target that changes over time and is based on the system's update at the time of reporting

8. 8 Output Performance Indicator Annual target Q1Q2 Quarterly target Actual progress against target Quarterly target Actual progress against target Tabling of draft Agrèment SA Bill in Parliament. Agrèment South Africa (ASA) established as a public entity by 31 March 2013. Receive approval from JEC for the creation of a Public Entity. Submit draft Bill for internal approval to submit to DG cluster. Business Case submitted for internal approval Draft Bill submitted for internal approval Engage stakeholders on draft Bill. Draft 3 of the ASA Bill under development. (Work in Progress) Work in Progress Draft Built Environment Professions (BEP) Policy. Legislative framework for the BEP amended within the 2012 – 2015 period. Tabling of BEP Bill(s) in Parliament. To commence in Q2. Draft BEP policy document submitted for internal approval and gazetting. Draft BEP policy developed and circulated for internal comments. Tabling of the Expropriation Bill in Parliament. New Expropriation Bill tabled in Parliament by 31 March 2013, to ensure consistency with the Constitution and uniformity in the expropriation of property by all organs of state. Tabling of Bill in Parliament. Engagement on the Draft Bill with NEDLAC. Draft Regulatory Impact Assessment and Bill being revised Cabinet approval to table Bill in Parliament. Comprehensive presentations taken place (Work in Progress) In this case, yellow code represents slow progress (Work in progress)

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10. 10 * 847 Correction Data to be confirmed later Output Performance Indicator Annual target Q1Q2 Quarterly target Actual progress against target Quarterly target Actual progress against target NYS learners recruited Number of youth participating in the NYS 3, 500 to participate in NYS 1200 to participate in NYS 660 (847)* 300 to participate in NYS 302 learners recruited Technical Support provided to municipalities implementing projects Number of municipalities reporting on EPWP targets 260 municipalities to report on EPWP targets 120 Municipalities to report on EPWP target 157 Municipalities reported to date 180 Municipalities to report on EPWP targets 200 Municipalities reported to-date Number of EPWP work opportunities across all spheres of government reported to EPWP Total number of work opportunities created through EPWP Create 1, 210, 000 work opportunities Create 302, 500 work opportunities 350 068 Work Opportunities Create 500,000 work opportunities Provincial roads projects implemented and reported on EPWP Total Number of EPWP work opportunities created on provincial access roads 80,000 work opportunities Create 40, 000 work opportunities 78 130 work opportunities created Create 80, 000 work opportunities 100,787 work opportunities created

11. 11 DPW still faces challenges of (inter Alia): Delays in SCM processes Under spending in key programmes and have an adverse impact on service delivery Capacity constraints to execute key and core programmes Coordination between Head Office and Regional Offices The Challenges are summed as follows: These challenges are to be addressed under the 14 Projects of the Turnaround and plans have been put in place to address these challenges PlanningStructural Fissure Resourcing/ Capacity Systematic Challenges

12. 12 PROJECTS NO:KEY FOCUS AREA Project 1IAR Project 2Leases Project 3Clean Audit of DPW and PMTE Project 4Regional Support Project 5Fraud Awareness Project 6Re-opening of workshop Building of Skills in DPW Project 7SCM Review Project 8Governance and Performance Management Review Project 9Compliance Review and Enforcement Project 10 Bills for Parliament  Built Environment Professions Bill;  Expropriation Bill;  Regulate relationship between DPW and IDT, Agrema SA;  Develop Policy position on: PMTE; Prestige Portfolio; Movable Asset Management, etc. Project 11Tshwane Inner City Regeneration Head Quarters (Correctional Services, Home Affairs, StatsSA, Communications, Higher Education, Pan African Precinct with associated facilities, United Nations Head Office Precinct) Project 12Change Management (Employee Issues/Grievances) Project 13Key Account Management Project 14Prestige Project 15IT Platform Project 16Limpopo

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14. Programme Budget Allocation 2012/13 Exp as at 30 September 2012 % Spent as at 30 September 2012 % Spent as at 30 September 2011 R'000 Prog 1. Administration893,978360,77740%53% Prog 2. Immovable Asset Management 5,364,0432,856,93053%40% Prog 3. Expanded Public Works Programme 1,659,000860,93051%36% Prog 4. Property and Construction Industry Policy Regulation 37,43616,06941%62% Prog 5. Auxiliary and Associated Services 39,33942,501109%75% Total7,993,7964,137,20752%41% 14 Figures are expressed cumulatively

15. Economic classification Budget Allocation 2012/13 Exp as at 30 Sept 2012 % Spent as at 30 September 2012 % Spent as at 31 Sep 2011 R'000 Compensation of employees1,260,154680,14754%49% Goods and services596,580278,22847%53% Office Accommodation469,052137,15229%47% Transfers and subsidies4,085,8262,747,64467%41% Infrastructure1,484,742276,43019%28% Machinery and equipment97,44217,60518%29% Total 7,993,7964,137,20752% 41% 15

16. Compensation of employees The overall expenditure for the department as at the end of the September is R4.137 billion, and expenditure is equivalent to 52% of the total allocation. Compensation of employees’ expenditure for the month ended September is R680 million, and the amount spent is equivalent to 54 % of the total allocation. Goods and Services expenditure for end of September is R278 million, and expenditure is equivalent to 47% of the total allocation. Expenditure for Office Accommodation is R137 million and expenditure is equivalent to 29% of the total allocation of R469 million. 16

17. Transfers and subsidies Transfers and subsidies expenditure for the end of September 2012 is R 2.7 billion, and expenditure is equivalent to 67% of the allocation of R4.1 billion. The expenditure for transfers and subsidies for payments to provinces and municipalities is in line with the approved payments schedule. Payments to entities were also made as per schedule. 17

18. Capital payments Infrastructure expenditure for the end of September is R276 million and expenditure is equivalent to 19% of the allocation of R 1.176 billion. Expenditure is far below the Linear Benchmark 50% and under spending is therefore projected. Machinery and equipment expenditure for the end of September is R17 million and expenditure is equivalent to 18% of the total allocation of R116 million. 18

19. Compensation of employees expenditure for Programme one is R108 million, and expenditure is equivalent to 54% of the total allocation of R198 million. Expenditure is higher than the guideline of 50%. Goods and services expenditure for programme one is R103 million and expenditure is equivalent to 52% which is in line with the guideline of 50%. Expenditure for Office Accommodation is R137 million and expenditure is equivalent to 28% of the total allocation. Expenditure for transfers and subsidies for programme one is R1 million and expenditure has exceeded the budget. Expenditure for machinery and equipment is R11 million and expenditure is equivalent to 44% of the total allocation. 19

20. The total expenditure for programme two is R2.9 billion and expenditure is equivalent to 53% of the allocation for the programme. Compensation of employees expenditure is R518 million, and expenditure is equivalent to 54%. Expenditure is 4% higher than the guideline of 50% for the straight line. Goods and services expenditure for the end of September is R86 million and expenditure is equivalent to 47% of the total allocation. Transfers and subsidies expenditure is R1.97 billion and expenditure is equivalent to 74%. The expenditure for transfers and is in line with the payment schedule as all payments were paid in accordance with the approved drawings. Infrastructure expenditure for the end of September 2012 is R 276 million and expenditure is equivalent to 19% of the allocation of R 1.484 billion. Expenditure for machinery and equipment is R5.8 million and expenditure is equivalent to 8% of the total allocation. 20

21. Total expenditure for programme three is R861 million and expenditure is equivalent to 51% of the total allocation. Compensation of employees expenditure is R50 million, and expenditure is equivalent 53%. Expenditure is higher than the guideline of 50%. Goods and services expenditure is R48 million and expenditure is equivalent to 28%. Transfers and subsidies expenditure is R761 million and expenditure is equivalent to 54% of the allocation. Machinery and equipment expenditure is R835 000 and expenditure is equivalent to 53% of the allocated budget. 21

22. Total expenditure for programme four is R16 million and expenditure is equivalent to 41% of the allocated budget. Compensation of employees expenditure for programme four is R3.7 million and expenditure is equivalent to 26% of the allocation. Goods and services expenditure is R12 million, and expenditure is equivalent to 50%. Expenditure for goods and service includes payment to Agrement SA. Machinery and equipment expenditure for the end of September is R17 000 and expenditure is equivalent to 15% of the total allocation. 22

23. Total expenditure for programme five is R45 million and expenditure is equivalent to 115% of the allocation. Over spending in programme five is due to high spending under goods and services. Goods and services expenditure for the month ended September is R30 million, and expenditure is equivalent to 173%. Overspending under goods and services relates to State Function for two funerals declared state events. Funding relating to the funerals has been requested as part of the Adjustment Estimates. Expenditure for transfers and subsidies is R15 million and expenditure is equivalent to 70% of the total allocation. 23

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25. BudgetClaimed to date Actual Received R’000 Revenue7,432,7333,552,4383,015,934 State Accommodation Charges3,431,0621,971,5311,553,226 Private Accommodation Charges3,224,6671,195,7081,057,744 Management Fees (Municipal)124,15561,77465,395 Augmentation646,849323,425 Other6,00016,144 Expenditure3,498,189 Cleaning & Gardening79,522 Private Leases1,523,516 Rehabilitation, Repair and Maintenance1,550,691 Property Rates340,070 Municipal Services (Arrears)1,091 Other3,299 Deficit as at end of September 2012-482,055 PMTE Bank Balance (Overdraft)-2,050,346 25

26. Client Devolved Funds Invoiced Amount Received % Rec Outstanding R'000 Agriculture, Forestry and fishing 56,77028,385 100%- Arts & Culture 23,10111,551 100%- Communications 57528814450%144 Correctional Services 828,579414,290 100%- Defence 1,453,127726,564469,86165%256,703 Environmental Affairs 11,5985,799-0%5,799 GCIS 1999100%- Health 8,9684,484 100%- Health (Civitas) -33,990 100%- Home Affairs 27,67513,837 100%- Independent Complaints Directorate 308154 100%- Justice and Constitutional Development 296,343148,172-0%148,172 Labour 32,51816,259 100%- National Treasury 3,3661,683 100%- 26

27. Client Devolved Funds Invoiced Amount Received % Rec Outstanding R'000 Public Service and Admin 17185 100%- Public Works 36,08618,0439,02150%9,021 Rural Development and Land Reform 15,8577,928 100%- Social Development 313157 100%- SA Revenue Service 19,0619,531 100%- Sports and Recreation 73250%1 Trade and industry 2111550%5 Water Affairs 76,88638,443 100%- Higher Education 481241 100%- Human Settlements 294147 100%- Mineral Resources 1,79789944950%449 SA Police Service 980,352490,176 100%- Statistics SA 809405 100%- Grand Total 3,875, 0821,971,5311,551,23679%420,295 27

28. 79% of the amounts invoiced have already been received. (This represents 40% of the amount to be invoiced for the year). Second quarter invoices were issued during July 2012 Third quarter invoices to be issued during October 2012 46% of the outstanding debt relates to accounts outstanding for 90 days. 95% of outstanding amounts in total relates to current year Clients are resistant to pay as we are still not in a position to compile itemized billing Justice has indicated in writing that they will not pay if not supplied with itemized billing Defence has short paid their invoice by R 128 million indicating that their budget has been reduced. This translates to a R 512 million reduction in the envisaged Revenue The total budget has been adjusted to accommodate that. 28

29. 29 Client Invoiced Amount Received % Rec Outstanding R'000 Agriculture, Forestry & Fishing 34,418 23,02367% 11,395 Arts & Culture 7,509 6,10281% 1,406 COGTA 10,425 6,25560% 4,170 Communications 1,812 1,814100% -2 Correctional Services 35,346 27,55978% 7,787 Defence 90,248 100% - Energy 6,052 741% 5,978 Environmental Affairs 13,436 7,10953% 6,327 Financial & Fiscal Commission 506 -0% 506 GCIS 4,786 2,88960% 1,897 Gender Equality Commission 599 -0% 599 Health 1,870 1,50180% 369 Higher Education 6,394 5,11580% 1,279 Home Affairs 95,640 61,15464% 34,486

30. 30 Client Invoiced Amount Received % Rec Outstanding R'000 Human Rights Commission 758 -0% 758 Human Settlements 11,056 3,86535% 7,191 ICD 9,214 2,30725% 6,907 Justice & Constitutional Development 98,805 16,97717% 81,828 Labour 55,892 8,76716% 47,125 Mineral 6,375 2,71743% 3,658 National Prosecuting Authority 8,327 -0% 8,327 National Treasury 12,832 10,82684% 2,006 Palama 6,487 1,30820% 5,180 Parliament 53 -0% 53 Public Enterprises 1,710 100% - Public Protector 2,092 1,58276% 510 Public Service & Adminstration 9,132 6,49771% 2,636 Public Service Commission 4,314 3,49181% 822 Public Works 36,798 7,65521% 29,143 Rural Development & Land Reform 52,025 30,43959% 21,586 SA Police Services 401,670 319,12379% 82,547

31. 31 Client Invoiced Amount Received % Rec Outstanding R'000 SAMAF 187 4022% 146 SASSA - BFN 1,841 1,37375% 468 SASSA - CT 3,367 2,65279% 715 SASSA - DBN 5,167 1,77034% 3,397 SASSA - JHB 4,953 2,58152% 2,372 SASSA - KIM 1,002 586% 944 SASSA - PE 21,161 -0% 21,161 SASSA - PTA 4,747 2,98963% 1,758 Social Development 12,368 1,99616% 10,372 Sports & Recreation 2,783 -0% 2,783 Statistics 28,475 -0% 28,475 Tourism 8,418 1,51318% 6,905 Trade & Industry 834 100% - Transport 12,358 7,06757% 5,291 Water Affairs 58,836 46,73979% 12,098 Women, Children & Persons with Dis 2,629 2,24385% 385 Grand Total 1,195,708 721,96660% 473,742

32. 32% of the money received against this item relates to prior years 60% of amounts invoiced have been received 80% of the outstanding amounts for the current financial year is less than 90 days An amount of R 25 million has not been claimed as it relates to disputed properties where the Client either disputed occupation or the rental being paid The Department will negotiate with National Treasury to move the amounts initially incorrectly allocated against Public Works for Constitutional Institutions (CGE, SAHRC, etc.) to the correct budgets. This was planned for the Adjustment Estimates, but we did not meet the deadline and it will therefore have to be included in the ENE exercise 32

33. Total amount of R 186 m outstanding for current year R 173 relates to Defence – Special Arms of Services projects Meeting are taking place with the Client to address the Arms of Service that are not paying their claims Older balances: – Government Printers are disputing the total cost of their project – DIRCO is disputing the total cost of their project 33

34. 34 ProgrammesFinancial Budget R’ 000 Performance information Prog: 1 Administration – HR PMTE Prog: 2 Immovable Asset Management Asset Register KAM Projects Prog: 3 EPWP Prog: 4 Policy Turnaround Projects No Progress/Grossly under-performing /expenditure Ratings between - 0 – 30% Progress but underachievement 51% - 79% On target/over achieved 100% & /Over expenditure Partial Progress and needs improvement - 31% - 50% Reasonable progress 80% - 99%

35. 35 National Department of Public Works (NDPW) Head Office: Public Works CGO Building Cnr Bosman and Madiba Pretoria Central Private Bag X65 Pretoria 0001 Website: http://www.publicworks.gov.zahttp://www.publicworks.gov.za