2. Briefing to the Portfolio Committee on the DPW Annual REPORT 2003/04

3. 2 The agenda  Provide high level highlights of the 2003/4Annual Report  Focus on key initiatives

4. 3 Introduction  Managing in a dynamic environment  Improving planning has been a pillar of our processes and successes  De-centralisation of functions has been a feature of our service improvement strategy  Seeking new approaches to delivery (KAM,SDI project)  People management still remains a key challenge

5. 4 An analytical framework  Mckinsey’s 7 S model will be used 1. Shared vision 2. Strategy 3. Strategic leadership 4. Structures 5. Staff 6. Skills 7. Systems

6. 5 Key strides  New vision, mission, values and strategic goals  Team established  New structure in place  Staff-recruitment,retention,capacity  Skills still a challenge  Strategy evolving  Report reveals measures to improve systems and business processes

7. Operations

8. 7 OPERATIONS ACHIEVEMENTS > RAMP  The objective of the programme is to address the disrepair of facilities and a significant backlog associated with maintenance.  Since 1999 RAMP has awarded R1, 9 bn of contracts through 294 contracts of which 206 worth R1,28 bn were affirmable Business enterprise.  The programme has made appointments of 491 Professional Consultants to the value of R262 million of which 48% went to Affirmable Professional Services Providers as contribution to BEE.

9. 8 OPERATIONS (Cont…) ACHIEVEMENTS  A nation wide Call Centre has been established to deal with repair breakdowns.  Departmental maintenance and operation personnel have been trained in more appropriate maintenance and repair techniques.  New Affirmative Business Enterprises (ABE) have been identified and trained in appropriate business related skills.  The sustainability of the established ABE’s has been enhanced by the inclusion of minimum quotas of appropriate work in contracts.

10. 9 OPERATIONS (Cont…)  RAMP (cont..)  Empowerment of public sector officials through an increase in project management skills. Comprehensive ten year maintenance plan  The DPW has determined the total backlog of maintenance of state owned buildings and installation, addressing repairs and continuous maintenance.  A long-term maintenance plan based on 10, 15, and 20 yrs funding scenarios was developed and submitted to NT. New generation prisons  In order to create employment for small medium and large construction companies, the building work has been divided into 20 separate nominated subcontracts ranging from R1 m to R20 m.

11. 10 OPERATIONS (Cont…) Capital works  Capital projects which were executed in the period under review include: Port Elizabeth and Khayelitsha Magistrate Courts, Bisho Shooting Range for SAPS, Repair and Maintenance of 12 Proclaimed Fishing Harbours, The completion of Kinshasa Chancery & Diplomatic Village and Berlin Chancery

12. 11 Ramp (cont…) ITEMCLIENT DEPARTMENTNO. OF CONTRACTS CONTRACT VALUES (R MILLION) 1. 1.1 1.2 1.3 Correctional Services -2001/02 -2002/03 -2003/04 76 6 26 44 747 31 193 513 2. 2.1 Fishing Harbours - 2003/04 2222 4444 3. 3.1 3.2 SAOS 2002/03 2003/04 514514 11,3 1,7 9,6 4. 4.1 Defence - 2003/04 31 98,5 5.Lifts00 GRAND TOTAL114868,8

13. Asset Management

14. 13 Asset Management ACHIEVEMENTS KAM  DPW achieved a full expenditure on Capital Works and Planned Maintenance.  Developed a generic SLA to formalise service relationships between DPW and its Clients. APOPS  The receipt of a SABS-ISO 9001:2000 award for the Kutama Sinthumule maximum prison at Makhado. Professional Services  Conservation management plans of Heritage Buildings were developed in accordance with National Heritage Resources Act.

15. 14 ASSET MANAGEMENT (Cont…)  Leaseholds and Acquisitions  A total leasing amount of R1,07 bn was spent in 2003/04 which indicates the increase in demand and associated costs for accommodation and space.  Seventeen new properties were acquired and registered at the Deeds Office at the total cost of R16,77 m.  The majority of these properties were for the purpose of accommodating SAPS and Prosecuting Authority.  The State through DPW purchased back a property at the Parliament precinct in Cape Town for R6,3 m from the British High Commission.  Non-commercial disposals  In the period under review the DPW disposed 121 properties in extent of 4565 ha, with an estimated market value of R45 m.

16. 15 Asset Management (cont..)  Implementing the next phase of the asset management framework has begun  Joint task team set up with DLA to expedite the vesting of fixed assets  R10 million set aside to support the process  Developing a proposal to increase the capacity of the property management unit

17. Financial Management

18. 17 Financial Management  Financial management has significantly improved as indicated by the last AG report  However, some areas such as the clearing of suspense accounts with National Treasury is currently being attended to; and  Uniform documentation control is being implemented  System improvements achieved

19. 18 Financial management (cont…)  Risk and fraud prevention plans in place  Co-sourcing of internal audit services  Regional financial capacity developed (27% increase in personnel)  Training and recruitment were and continue to be addressed

20. EPWP

21. 20 EPWP  EPWP framework successfully adopted by Cabinet  Government’s flagship launched by the President in Limpompo  EPWP unit approved by the Minister and set up with the relevant coordinating structures  Road shows conducted in every province  Tender guidelines finalised and included in DORA

22. Policy Unit

23. 22 Policy Unit ACHIEVEMENTS ECDP  In 2003/04 financial year a total value of R791 million were awarded to affirmable business Enterprises.  Contractors to the total value of R88 million were awarded to women owned business enterprises.  DPW has developed an Incubator programme to promote the development of sustainable emerging contractors. CBPWP  In 2003/04 a total of 415 projects were created through CBPWP which created a number of 23 196 employment opportunities.  Programme was closed out at the end of the Financial year

24. 23 Policy Unit (cont…) Skills development strategy for the built environment professionals  The DPW has developed a strategy for SA built environment professionals with the aim of enhancing the construction industry capacity and performance.  This strategy consists of the following 3 main components: Capacity development (including the transfer of knowledge and skills), Enhancement of innovation and technology, and Creation of an enabling environment

25. Human Resources Management ACHIEVEMENTS  Managing transformation framework in line with Resolutions 7 & 8 of Public Service restructuring.  Conflict management- resolution of majority of disputes emanating from matching and placing.  A total of 111 employees graduated from the Management Development Programme which was offered by PTA Univ.  107 employees completed Supervisory Development training.  More than 300 posts filled

26. Human Resources

27. Public entities

28. 27 Public entities  IDT Satisfied with their contribution to developed Instrumental in the implementation of the CBPWP  CIDB Becoming leader in industry development Achievements include the launch of toolkit and the register of projects and contractors  CBE Established to promote uniform application of policy and coordination amongst professional bodies Performance management tool developed to monitor performance of these bodies

29. Challenges

30. 29 Challenges cont’d  Successfully coordinate the implementation of the Expanded Public Works Programme (EPWP)  Valuation of State-owned properties  Emerging contractors faced with lack of sustainable opportunities, access to finance and other problems

31. 30 Challenges  To mobilise adequate funding for municipal accounts  To recruit and retain qualified project and property management staff and address the scarce and aging professional staff problem – comprehensive HR plan is being developed  Addressing the issues that gave rise to the qualification of the AG’s report

32. 31 Conclusion  It was a characterized by progress in many key areas  Key challenges still remain, but it is a journey to be traveled  Focus and focus will get us there-We are focusing on the pillars that will ensure sustainability of interventions

33. Thank you