1. 1 Highlights from the 2004/5 DPW Annual Report Year ended 31 March 2005 Delivered by the Director General, James Maseko

2. 2 Agenda Recap on the vision and mission Strategic drivers and score card Summary of our performance per programme Financial Performance Summary of achievements Conclude with strategic challenges

3. 3 VISION The department of Public Works (DPW) is committed to facilitating delivery by other departments by providing accommodation and property management services and meeting the objectives of poverty alleviation and transformation.

4. 4 MISSION The DPW aims to promote the governments objectives of economic development, good governance and rising living standards and prosperity by providing and managing the accommodation, housing, land and infrastructure needs of national departments, by promoting the Expanded Public Works (EPWP) and by encouraging the transformation of the construction and property industries.

5. 5 Strategic Drivers Have kept the ship on track Turn around financial management Zero tolerance to corruption Drive govt’s flagship EPWP Ensure an integrated human resources strategy

6. 6 Strategic Drivers Strengthen our leadership role in the construction and property industries Intensify industry transformation Finalise GIAMF Re-inforce our custodianship role

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8. 8 Financial management turn around Unqualified audit report Improved financial controls Systems related issues resolved e.g. business and financial systems not aligned Better sense of where the rand and cents are going-under-spending a thing of the past Challenges: sustainability of improvement and improving efficiency of expenditure

9. 9 Zero tolerance on corruption Corruption is a disease that requires continuous and determined effort Fronting is corruption and it is fraud Not good enough to deal with symptoms Internal audit investigations a key feature of our environment Challenge; continuous review of systems and processes, reduction of reliance on consultants

10. 10 Summary of Performance Indicators IndicatorProgress* (1 Apr 2004 - 31 Mar 2005) Number of EPWP projects being implemented or completed 3483 projects Expenditure to date on EPWP projectsR 3.2 billion Number of gross work opportunities created 223,410 gross work opportunities Number of net work opportunities created to date 174,845 net work opportunities Person-years of employment created71,087 person-years Average duration of work opportunity4.4 months

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12. 12 Integrated HR strategy HR strategy continuously reviewed to align it with the strategic plan Wellness programme in place to support our staff A representative EE committee in place to advise management Departmental Bargaining committee in place

13. 13 2003/042004/05 Vacancy rate40.2%18.% Staff turnover10.9%6.3% Job evaluation0%71% Summary of some of the HR stats

14. 14 Role in the industry Our role has grown from strength to strength Led the construction and property charter processes Co-convened the construction industry conference Actively involved in the CETA Promoting labour intensive technology via EPWP CIDB’s contractor registers

15. 15 Summary of programme performance

16. 16 Programme 1 Achievements: Strategic planning aligned to budgetting All DDG Posts now filled Performance bonuses brought tightly monitored Leadership Way introduced to change organisational culture Re-engineering of Business Processes A determined focus on systems yielded results in key areas

17. 17 Programme 2 Achievements: Improved optimal utilisation of immovable asset Minimum management standards developed Improved relationships developed with clients enabling a high standard of co-operation Service Delivery Improvement Programme being implemented Expenditure on key responsibilities have been achieved

18. 18 Programme 2 Challenges : Fragmented immovable asset management Utilisation of Immovable Asset Management (IAM) techniques Skills shortage of built environment professionals Lack of Integrated State Property Information System

19. 19 Programme 2 Cont Solutions : Government-wide Immovable Asset Management Framework Service Level Agreements and Client Value Propositions established Calculations of replacement costs for inner city buildings, investment analysis and property valuation

20. 20 Programme 3 Achievements: Launch of the following: –Construction Industry Charter –Property Sector Charter Solutions : The department initiated a number of programmes to further the goals of transformation and Black Economic Empowerment (BEE) including : –the pilot Incubator programme to benefit emerging contractors –Classifying, registering and initiating development of contractors through the Construction Industry Development Board (CIDB)

21. 21 Programme 4 Auxillary and associated services  Main expenditure is in the area of decorating public functions  Our role is being the logistics arm for national government including inaugurations, state funerals, state visits, national day celebrations  Not our core function but important enough to make us proud

22. 22 The numbers in summary

23. 23 3 year expenditure Trend YEARTOTAL BUDGET EXPENDIT URE OVER/UN DER (%) R’000 2002/033 975 0994 202 187-227 088 (5.7) 2003/044 651 9854 682 345-30 360 (0.65) 2004/055 513 9095 304 916208 993 (3.8)

24. 24 Capital budget vs expenditure YEARDPW CAPITAL BUDGET EXPENDIT URE OVER/UND ER (%) R’000 2002/03135 148119 86415 284 (11.31) 2003/04238 266271 069-32 803 (13.77) 2004/05292 655 0

25. 25 Key points from financial performance review  Slight under-expenditure in 04/05 due to late additional allocation for property rates arrears:  additional allocation made on basis of DPLG submission to Cabinet re municipality claims of arrears  non-submission of substantiating documentation by municipalities  municipalities submitted current invoices as arrears  municipalities submitted invoices for non-government properties  Generally, figures indicate that DPW has capacity to spend on infrastructure

26. 26 Summary of achievements

27. 27 Summary of achievements  Moved from disclaimer to qualified to unqualified audit report from 02/03 to 03/04 to 04/05  04/05 audit report has no matters of emphasis on the immovable asset register  Programme to verify and update information on immovable asset register formulated and now in implementation  Proactive disposal programme initiated, in implementation  Exceeded EPWP targets for first year

28. 28  Drafted Government Wide Immovable Asset Management Bill ( GIAMA), approved by Cabinet, currently with State Law Advisor  Over past three years, put in place new structure based on asset management principles in GIAMA, with decentralised implementation  Conceptualised Tshwane Inner City Programme, obtained cabinet approval, in implementation, options analysis methodology developed  CIDB Act implemented:  CIDB formulated and rolling out Contractor’s Register  Various standards for construction industry issued Summary of achievements cont..

29. 29 Challenges going forward How to sustain the gains to ensure that we don’t regress Communicating our successes to all our stakeholders (staff, clients, government, PC, public, media, etc) Focussing our energies on those things that can still go wrong Introducing knowledge management to institutionalise our Intellectual property (IP) Overall-a good year on all accounts

30. 30 Thank you Staff for their resilience and dedication Portfolio committee for all constructive criticism All our stakeholders My management team for the hard work and helping to drive the change