1. Briefing to the Portfolio Committee on Police, National Assembly PROPERTIES OCCUPIED BY ICD V227, Second Floor, Old Assembly Building Parliament, Cape Town Tuesday, 21 February 2012 at 09:30 1

2. 1.Lease process 2.Summary of ICD leased accommodation 3.Total monthly and annual expenditure 4.Locational suitability of ICD leased accommodation 5.Property and lease information on current ICD leases 6.ICD Head Office (City Forum Building): Current status 7.Progress on remedial interventions 8.Way forward TABLE OF CONTENTS 2

3. ICD National Office Department of Public Works (DPW) ICD Provincial Office Lease process 3 Submission of accommodation needs Auxiliary Service Unit compiles official Needs Assessment based on the Resource Allocation Guideline Auxiliary Service Unit compiles User Specified Accommodation Schedule Chief Financial Officer confirms funding Auxiliary Service Unit compiles User Specified Accommodation Schedule Chief Financial Officer confirms funding Compiles Norms and Standards document Conducts Preliminary Cost Analysis Request confirmation of funding Compiles Norms and Standards document Conducts Preliminary Cost Analysis Request confirmation of funding Receive copy of concluded lease View and recommend accommodation Draft refurbishment requirements View and recommend accommodation Draft refurbishment requirements Receive copy of concluded lease Facilitate and manage tender process Issue Procurement Instruction Negotiate lease terms and conditions with owner Conclude lease with owners Negotiate lease terms and conditions with owner Conclude lease with owners

4. Summary of all properties Offices The ICD currently occupies 16 leased buildings comprising of: – 1 National office; – 9 Provincial offices; and – 6 Satellite offices. 4

5. Total monthly and annual expenditure Current ICD leased accommodation 2011/12 to 2014/15 5 PLEASE NOTE THAT THIS INFORMATION WAS PRESENTED TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON POLICE IN THE ICD’S WRITTEN RESPONSE ON QUESTIONS BY THE MEMBERS DURING THE ICD ANNUAL REPORT HEARING OF 1 NOVEMBER 2011.

6. Locational suitability of ICD leased accommodation As the ICD is frequented by the public, it business operations require good public presentation and a high quality work environment. This implies that the accommodation needs to be in good operational and aesthetic condition. As such, its location must: – Support service delivery objectives; – Be fairly accessible to the general public with moderately designed public areas and parking; – Fit into the neighbourhood and environmental elements; and – Is accessible (to the main areas) for the physically challenged. The location of the ICD’s offices are adequate. One of the main criteria in the ICD’s selection of accommodation is its proximity and access to public transport. For the ICD, proximity to public transport routes takes precedent over the neighbourhood and environmental elements surrounding its offices. 6

7. Property and lease information on current ICD leases 7

8. ICD National office: Background Current lease – Lease term: 9 years and 11 months – Termination date: 31 January 2019 Process – 01 March 2009: Commencement date as specified in the lease agreement – 14 April 2009: DPW concludes lease with owner – 15 September 2010: ICD takes occupation Public enquiry – This lease is currently under enquiry by the Public Protector and the Special Investigations Unit – The outcome of this process will shed light on the validity of the lease – The ICD lodged comprehensive documentation with the Special Investigations Unit and the Public Protector on 14 and 15 December 2011 respectively. 8

9. ICD National office: Property and Lease information 9

10. Eastern Cape Provincial office: Background Current lease – Month-to-month until the renewal of the lease is finalised by DPW – Lease information relates to the lease that expired in December 2010 Process – 17 December 2010 The ICD requests the renewal of its lease of its offices in the Perm Building in East London, terminating in December 2010, for a period of 2 years. – 28 January 2011 The ICD assesses its need for accommodation at 792m 2 – 24 October 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation needs as 735m 2 – 25 January 2012 The ICD indicates that the rent estimated in the DPW’s Preliminary Costs Analysis is in excess of the ICD’s budget The ICD confirms its budgetary allocation as funding available for the lease – Matter is with DPW for consideration and action 10

11. Eastern Cape Provincial office: Property and Lease information 11

12. Eastern Cape Satellite office: Background 12 Current lease – Month-to-month until the renewal of the lease is finalised by DPW – Lease information relates to the lease that expired in March 2010 Process – 28 April 2010 The ICD requests the renewal of its lease of its offices in the PRD II Building in Mthatha, terminating in March 2010, for a period of 5 years. – 28 January 2011 The ICD assesses its need for accommodation at 201.6m 2 – Matter is with the DPW for consideration and action

13. Eastern Cape Satellite office: Property and Lease information 13

14. Free State Provincial office: Background Current lease – Lease term: 9 year and 11 month lease – Termination date: 31 January 2020 Process – 01 March 2010 Commencement date as specified by the lease – 15 May 2010 DPW concludes lease with owner 14

15. Free State Provincial office: Property and Lease information 15

16. Free State Satellite office: Background Current lease – Month-to-month until alternative accommodation is procured by DPW – Lease information relates to the lease that expires in March 2011 Process – 17 December 2010 The ICD requests the extension of its lease of its offices in the Meseroey Building in Bethlehem, terminating in March 2011, for a period of 1 year, while the DPW initiates the process of procuring alternative accommodation in Qwaqwa. The main reason for the intended relocation is the building’s limitations in respect of public access, catering for the physically challenged and parking. – 28 January 2011 The ICD assesses its need for accommodation at 235.2m 2 – 25 January 2012: The ICD requests the lease of its offices in the Meseroey Building in Bethlehem, to continue on a month-to-month basis, while the DPW initiates the process of procuring alternative accommodation in Qwaqwa. – Matter is with the DPW for consideration and action 16

17. Free State Satellite office: Property and Lease information 17

18. Gauteng Provincial office: Background Current lease – Lease term: 5 years – Termination date: 31 March 2015 Process – 20 May 2009 The ICD requests the renewal of its lease of its offices in the Marble Towers Building in Johannesburg, terminating in December 2010, for a period of 2 years. – 14 September 2009 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation need as 885m 2 – 25 November 2009 The DPW requests confirmation of funding – 05 February 2010 The ICD confirms the availability of funding for the renewal period – 01 April 2010 Commencement date as specified by the lease – 20 May 2010 DPW concludes lease with owner 18

19. Gauteng Provincial office: Property and Lease information 19

20. KwaZulu-Natal Provincial office: Background Current lease – Month-to-month until the renewal of the lease is finalised by DPW – Lease information relates to the lease that expired in October 2010 Process – 17 December 2010 The ICD requests the renewal of the lease of its offices in the Marine Building, Durban, terminating in October 2010, for a period of 5 years. The ICD assesses its need for accommodation at 1135.2m 2 – 25 October 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation needs as 1113.43m 2 – 25 January 2012 The ICD indicates that the rent estimated in the DPW’s Preliminary Costs Analysis is in excess of the ICD’s budget The ICD confirms its budgetary allocation as funding available for the lease – Matter is with the DPW for consideration and action 20

21. KwaZulu-Natal Provincial office: Property and Lease information 21

22. KwaZulu-Natal Satellite office: Background Current lease – Month-to-month until the renewal of the lease is finalised by DPW – Lease information relates to the lease that expired in April 2011 Process – 10 November 2010 The ICD requests the renewal of the lease of its offices in the Edwards Building in Empangeni, terminating in April 2011, for a period of 6 months The ICD requests the DPW to assist (during the extension period) in the procurement of alternative office accommodation The main reason for the need for alternative accommodation is that the offices are not accessible to the public – 28 January 2011 The ICD assesses its need for accommodation at 307.2m 2 – 27 October 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation needs as 346.39m 2 – 30 January 2012 The ICD indicates that the rent estimated in the DPW’s Preliminary Costs Analysis is in excess of the ICD’s budget The ICD confirms its budgetary allocation as funding available for the lease – Matter is with the DPW for consideration and action 22

23. KwaZulu-Natal Satellite office: Property and Lease information 23

24. Limpopo Provincial office: background Current lease – Lease term: 5 years – Termination date: 30 June 2014 Process – 01 July 2009 Commencement date as specified by the lease – 22 July 2009 DPW concludes lease with owner 24

25. Limpopo Provincial office: Property and Lease information 25

26. Limpopo Satellite office: Background Current lease – Lease term: 5 years – Termination date: 31 August 2014 Process – 01 September 2009 Commencement date as specified by the lease – 26 October 2009 DPW concludes lease with owner 26

27. Limpopo Satellite office: Property and Lease information 27

28. Mpumalanga Provincial office: Background Current lease – Month-to-month until the renewal of the lease is finalised by DPW – Lease information relates to the lease that expired in September 2011 Process – 17 December 2010 The ICD requests the renewal of the lease of its offices in the Nedbank Building in Nelspruit, terminating in September 2012, for a period of 5 years. – 16 September 2011 The ICD requests the DPW’s assistance in the procurement of alternative accommodation when its lease of its office in the Nedbank Building in Nelspruit terminates in September 2012. The main reason for the intended move is the landlord’s failure to fulfil his obligations in respect of the existing lease The ICD assesses its need for accommodation at 744m 2 – 27 October 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation needs as 570m 2 – Matter is with the DPW for consideration and action 28

29. Mpumalanga Provincial office: Property and Lease information 29

30. Northern Cape Provincial office: Background Current lease – Lease term: 2 years – Termination date: 31 May 2012 Process – 06 April 2011 The ICD requests the renewal of the lease of its 39 George Street offices in Kimberley, terminating in May 2012, for a period of 2 years. – 05 April 2011 The ICD assesses its need for accommodation at 602m 2 – 17 May 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the renewal The DPW assesses the ICD’s accommodation needs as 657.5m 2 – 25 January 2012 The ICD indicates that the rent estimated in the DPW’s Preliminary Costs Analysis is in excess of the ICD’s budget The ICD confirms its budgetary allocation as funding available for the lease – Matter with DPW for consideration and action 30

31. Northern Cape Provincial office: Property and Lease information 31

32. Northern Cape Satellite office: Background Current lease – Lease term: 2 years – Termination date: 30 June 2012 Process – 17 March 2011 The ICD requests the renewal of the lease of its 13 Kooperasie Street offices in Upington, terminating in June 2012, for a period of 2 years. The ICD assesses its need for accommodation at 220m 2 – Matter with DPW for consideration and response 32

33. Northern Cape Satellite office: Property and Lease information 33

34. North West Provincial office: Background Current lease – Lease term: 2 years – Termination date: 31 July 2013 Process – 01 April 2011 Commencement date as specified by the lease 34

35. North West Provincial office: Property and Lease information 35

36. North West Satellite office: Background Current lease – Month-to-month until the renewal of the lease is finalised by DPW – Lease information relates to the lease that expired in October 2011 Process – 10 November 2010 The ICD requests the renewal of its lease of its 165 Klopper Street offices in Rustenburg, terminating in October 2011, for a period of 2 years. – 28 January 2011 The ICD assesses its need for accommodation at 312m 2 – Matter with DPW for consideration and action 36

37. North West Satellite office: Property and Lease information 37

38. Western Cape Provincial office: Background Current lease – Lease term: 2 years – Termination date: 31 March 2013 Process – 20 May 2009 The ICD requested the renewal of the lease of its offices in the Fintrust Building in Bellville, that expires in March 2012 for a period of 5 years – 16 September 2011 The ICD reaffirmed its request for the renewal of the lease The ICD indicates additional arrangements to cater for changes in respect of IPID The ICD assesses its accommodation needs as 753.6m 2 – 27 October 2011 The DPW communicates the preliminary cost analysis The DPW assesses the ICD’s accommodation needs as 862.69m 2 – 30 January 2012 The ICD indicates that the rent estimated in the DPW’s Preliminary Costs Analysis is in excess of the ICD’s budget The ICD confirms its budgetary allocation as funding available for the lease – Matter with DPW for consideration and action 38

39. Western Cape Provincial office: Property and Lease information 39

40. Western Cape Satellite office: Background Process – 21 April 2011 The ICD requested the DPW to facilitate the procurement of office space for the Western Cape Satellite office in George The ICD assesses its accommodation needs as 292.8m 2 – 17 May 2011 The DPW requests the ICD to complete the User Specified Accommodation Schedule The DPW requests the ICD’s confirmation of funding in respect of the procurement The DPW assesses the ICD’s accommodation needs as 275m 2 – 25 January 2012 The ICD confirms the availability of funding – Matter with DPW for consideration and action 40

41. ICD Head Office (City Forum Building) Current status Pending outcome of Public Protector and SIU investigation Legal opinion DPW interaction Latent defects 41

42. Progress on remedial interventions Internal processes A reconstituted and strengthened Accommodation Committee (AC) was tasked with the oversight of the property and lease management functions of the Auxiliary Services Unit. As a point of departure, the AC considered the status of each lease and intervened in the facilitating of the conclusion of month-to-month leases as well as upcoming renewals. ICD’s Internal Audit Unit conducted a review of all recent DPW invoices. Establishment of a Corporate Governance Directorate (from 1 April 2012) to ensure – – Compliance with laws and regulations; and – Early detection of accommodation related risks. Current review of departmental Financial Delegations. Amendment of Budget Control Report completed. 42

43. Progress on remedial interventions…/2 External processes Ongoing engagements with National Treasury. Engagements with DPW regarding its property and lease management. Meetings on 09 December 2011, 17 and 27 January 2012 resulted in: – Improved relations and communication; – ICD/DPW co-operation: Re-conciliation of billing; and – Improved collaboration in the drafting and processing of User Asset Management Plans (UAMP). 43

44. Way Forward Current status of leases – Concluded lease:9 – Pending DPW PI:1 – Month-to-month leases:7 Addressing internal processes and challenges: – Property and lease management Challenges: – Renewal and extension of leases – Short term (2 year) leases – Securing of alternative office accommodation The AC is meeting monthly to oversee and expedite the process of renewing or securing leases that are currently on a month-to-month basis as well as monitoring expenditure related to the properties. – Financial management Review of the ICD’s Financial Delegations to be complete before April 2012. 44

45. Way Forward…/2 – 2013/14 UAMP: Finalised and submitted to the DPW. Addresses departmental performance requirements, condition and locational standards as well as immediate and future property needs. Recognizes the trade-off between operational and locational requirements, available properties, funds allocated by treasury as well as relocation and refurbishment costs. Addressing the ICD’s alignment to external processes: – Continued engagement with the DPW to ensure effective and well coordinated property and lease management. Particular emphasis in this regard is the: Revisiting the 18 months renewal notices as it relates to short-term leases in the Service Level Agreement; The timing and prompt processing of renewal or procurement requests and documentation; The timing and prompt processing of maintenance related requests and documentation; and Continued scrutiny of billing. – Continued engagement with National Treasury 45

46. END -THANK YOU - 46