1. Click to edit Master subtitle style 2/16/12 LEASE MANAGEMENT 2011/12 Financial year PRESENTATION TO THE PORTFOLIO COMMITTEE ON POLICE 2012-02-14

2. 2/16/12  DEFINITION OF LEASED FACILITIES  PROCEDURES IN DETERMINING HOW TO SATISFY THE NEED  LEASING PROCESS  TOTAL NUMBER OF LEASES  LEASE EXPENDITURE  SAPS LEASE VERIFICATION PROCESS  LEASING STRATEGY  DOWNSCALING OF LEASES IN SAPS  CHALLENGES  DEFINITION OF LEASED FACILITIES PROCEDURES IN DETERMINING HOW TO SATISFY THE NEED LEASING PROCESS TOTAL NUMBER OF LEASES LEASE EXPENDITURE SAPS LEASE VERIFICATION PROCESS LEASING STRATEGY DOWNSCALING OF LEASES IN SAPS CHALLENGES

3. 2/16/12  Official Accommodation: includes office accommodation  Living Quarters: includes single or married quarters, leased by the SAPS that are provided for the accommodation of employees/ members  Land: Includes High Sites, Grazing grounds, Security Fences, Access road, Shooting range, Parking, Water pipeline, Sites where Government constructed accommodation  Official Accommodation: includes office accommodation Living Quarters: includes single or married quarters, leased by the SAPS that are provided for the accommodation of employees/ members Land: Includes High Sites, Grazing grounds, Security Fences, Access road, Shooting range, Parking, Water pipeline, Sites where Government constructed accommodation

4. 2/16/12  Compare the need against current available accommodation  The Department of Public works is requested to provide available state owned facilities  Assessment is made to determine the immediate need versus our ability to accommodate the need through the capital works programme  Lease agreement concluded until such time the need can be addressed otherwise  Lease agreements are relatively quick to acquire  Compare the need against current available accommodation The Department of Public works is requested to provide available state owned facilities Assessment is made to determine the immediate need versus our ability to accommodate the need through the capital works programme Lease agreement concluded until such time the need can be addressed otherwise Lease agreements are relatively quick to acquire

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6. Type of LeaseNo of Leases 2011/12 Office Accommodation967 Living Quarters91 Land 307 TOTAL1 365 TOTAL NUMBER OF LEASES:

7. 2/16/12 PROVINCEOFFICE SPACE LIVING QUARTERS LAND TOTAL LEASES Eastern Cape 16416107287 Gauteng 173525203 KZN 1351671222 Western Cape 1241452190 Free State 7431592 Northern Cape 83149106 North West 7331389 Mpumalanga 7001181 Limpopo 7120495 TOTAL 967913071365 TOTAL NUMBER OF LEASES IN SAPS AS ON 31 JANUARY 2012

8. 2/16/12 Total Number of Leased Police Stations ProvincePolice Stations Satellite StationsContact Points Total per Province Eastern Cape122418 Gauteng277034 KZN1012022 Western Cape399452 Free State51612 Northern Cape80012 North West92112 Mpumalanga75012 Limpopo65011 Total1234315181

9. 2/16/12 AllocationR 911 562 000 Expenditure until Nov 2011R 568 775 996 Percentage62.4% AvailableR 342 786 004 LEASE MANAGEMENT EXPENDITURE 2011/2012 Claims for Dec 2011 and Jan 2012 are still outstanding from DPW

10. VERIFICATION process for saps LEASES  Provincial inspections by SAPS to all leased facilities and determine physical occupation and use  Conducted meetings with Regional offices of DPW to  Verify leases reflecting on Property Management Information System  Compare information from DPW against actual inspections conducted by SAPS  Reconciliation:  Removal of leases from SAPS portfolio where it was found that SAPS was not occupying the leased facility, and  Additions to SAPS portfolio where leases did not reflect on the Property Management Information System.

11. 2/16/12 Province Number of leases claimed not for SAPSTown Property CodeAction Taken Eastern Cape2 Graaff Reinett Guard house Payment Stopped East London Office Block Payment Stopped KZN1Ladysmith Office Block Payment Stopped North West1Themba Park Homes Still Paying to DPW BREAKDOWN OF LEASES NOT FOR SAPS

12. 2/16/12  Downscaling of Leases – Continuous efforts are being made to reduce leased facilities where possible.  Migrating of current leased accommodation to Capital Works Building Programme.  Lease to own – considering various options to ensure ownership of facilities rather than leases  Fixing of escalation costs of current leases to control exorbitant increase during lease period  Optimal utilisation of current leased facilities  Downscaling of Leases – Continuous efforts are being made to reduce leased facilities where possible. Migrating of current leased accommodation to Capital Works Building Programme. Lease to own – considering various options to ensure ownership of facilities rather than leases Fixing of escalation costs of current leases to control exorbitant increase during lease period Optimal utilisation of current leased facilities

13. 2/16/12 Capital Works ProjectLeased FacilityStatus Value per annum saved Bisho Police StationDetective Unit Completed Sept 2011 R 991 517 Lady Frere Police Station Police Station Detective Unit Completed Sept 2011 R 268 561 Jouberton Police StationPolice Station Completed April 2011 R 853 402 Kimberley ArchivesArchived Facility Completed July 2011 R 17 820 Cradock Police Station Detective Office Crime Prevention Unit Completed March 2011 R 1 051 720 Parow FSLForensic Units Delft & Sonchem Completed Dec 2011 R 1 147 657 DOWNSCALE ON LEASES by addressing need through capital works

14. 2/16/12 Capital Works Project Leased FacilityStatus Envisaged savings per annum Roedtan Police Station2013/2014R 272 064 Tzaneen Police Station2013/2014R 1 573 991 Greenwood Park Det Detective Unit2013/2014R 487 212 Carletonville Police Station2014/2015R1 380 312 CAPITAL WORKS PROJECTS PLANNED STILL TO BE APPROVED Goodwood Police Station & Detective Unit 2015/2016R1 300 007 VredenburgPolice Station2015/2016R1 722 642 StiklandPolice Station2015/2016R3 235 462 planned projects to downscale on leases

15. 2/16/12 07/0808/0909/1010/1111/12 Residential accommodation 101887414110591 DOWNSCALE ON LEASES by non-renewal of leases

16. 2/16/12 ChallengesImpact Non-payment of Landlords on leased properties Lock out and evictions of personnel from leased facilities Inability to render services Non-renewal of leases. All relevant documentation for 592 requests submitted to DPW. Leases expired between 1 April 2011 to 31 March 2012. Expired leases currently on month-to- month agreements Under Expenditure on Lease budget for 2011/12 Limit SAPS’ ability to consider additional accommodation needs Challenges with leases The Acting National Commissioner is engaging with the Department of Public Works to address this matter as well as all other needs within the SAPS.

17. 2/16/12 THANK YOU