1. DPW PRESENTATION TO PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES 09 FEBRUARY 2010

2. 2 Purpose Purpose of presentation is to brief the DCS Portfolio Committee on the accommodation services provided by the DPW, progress on Implementation, the challenges and way forward to ensure improved service delivery and support the DCS in their operational environment.

3. 3 GIAMA The Government Immovable Asset Management Act (Act 19 of 2007) (GIAMA) calls for more efficient and effective use of immovable assets by government and places an obligation on accounting officers to prepare Immovable Asset Management Plans to ensure prudent management of such assets. User must prepare a User Asset Management Plan (UAMP) in relation to immovable assets which aligns to the strategic plans of the user department. All planning must be done 3-5 years in advance. DPW is currently assisting DCS to compile UAMP UAMP will support the sourcing of appropriate budget from National Treasury.

4. 4 Size and Diversity of Portfolio Department of Correctional Services (DCS) has a vast portfolio of 241 correctional centres (Medium, Maximum, Female, Youth and Prison farms). Individually these comprise 17035 buildings. properties. The leased Portfolio comprises of 472 leased properties. DCS Portfolio has highly specialised installations such as Water and Sewerage Works, Integrated Security Systems (ISS), boilers etc. All maintenance requirements are addressed though Repair and Maintenance Programme RAMP) and day to day maintenance

5. 5 …Cont DPW manages the following programmes and budgets for DCS –Capital Work (Construction, Upgrades and Additions) –Leases (Office, Residential and Community Corrections Centres) Capital, Leasing and Municipal Services budgets were devolved to DCS as from 1 st April 2006, functions still remains with DPW Planned Maintenance budget is within the ambit of DPW and forms part of accommodation charges

6. 6 Client Relationship Management Memorandum of Understanding was concluded between DCS and DPW in November 2006. Service Delivery Standards (SDS) were developed and work shopped to DCS The SDS is a forerunner to the SLA Service Level Agreement is in draft while SDS is being refined to ensure appropriate delivery mechanism and an appropriate structure within DPW to ensure enhanced service delivery to all Users. SLA will be circulated by end February 2010 for User input..

7. 7 …Cont Monthly bilateral meetings are held with DCS where DPW reports on progress on all projects on the Implementation Programmes. -CWIP (Capital Works Implementation Programme) -PMIP (Planned Maintenance Implementation Programme) -LIP (Leasing Implementation Programme) Frequency of structured meetings: 9–client forums meetings and eight adhoc meetings with DCS in were held in 2009. Meeting held to jointly revise Housing Policy.

8. 8 Planned Maintenance Implementation Programme FINANCIAL YEARALLOCATIONEXPENDITURE% OF EXPENDITURE 2008/09354,491,535358,592,673101% 2009/10641,177,914485,163,332 as at end of December 2009 76% 2010/11831, 686, 611To commence in April 201037% of total Planned Maintenance allocation which is the highest as compared to all other clients

9. 9 …Cont DCS over the MTEF period 08/09 to 10/11 received the major portion of the Planned Maintenance allocation relative to all other User Departments. ISS projects initially implemented by DCS are now being funded and maintained at exorbitant costs that further erodes the DPW budget. Example is Durban RO –where the entire 2009/10 allocation is spread across 3 ISS projects (R120m ).

10. 10 CAPITAL IMPLEMENTATION PROGRAMME FINANCIAL YEARALLOCATIONEXPENDITURE% OF EXPENDITURE 2007/2008947,858,078704,588,27574% Allocations were signed by DCS in July 2007 2008/09808,974,099819,157,812101% 2009/10705,521,768516,614,53573% 2010/11Allocation (R531 Million) was Finalized on time, however DCS requested to redo the allocation as the received more funds than initially confirmed

11. 11 Strategic Capital Projects Kimberley New Generation Correctional Centre Facility constructed at a cost of R830 million. Occupation to be assumed shortly. Parole Boards 34 Completed and 15 – Construction Phase Facilities under construction : Brandvlei Correctional Centre Van Rhynsdorp Correctional Centre Ceres Correctional Centre Tzaneen Correctional Centre The above projects are progressing well and all efforts will be made to Expedite Delivery.

12. 12 Town Planning Sites Cleared - awaiting instruction from DCS to proceed with construction: Parys, Nkandla, Lichtenburg, Standerton, Zeerust, Burgersdorp Correctional Centres Constant request to regenerate options and re scope designs leads to delays in initiating and implementing these projects.

13. 13 ChallengesInterventions Overcrowding of Prisons leads deterioration of infrastructure. Construct new Prison Facilities. DCS to advise on status of PPP’s Insufficient Capital and Maintenance budget UAMP Process – request NT to increase Budgets Professional Capacity Constraints- leads to project delays DPW to increase professional capacity Adherence to SCM and compliance to Building regulations. DPW in process of refining SCM processes

14. 14 ChallengesInterventions Changes to scope of work by client Client to minimize scope changes. ISS and consumables absorbing bulk of Maintenance budget ISS and consumables be funded by DCS from April 2010 Security is core business of DCS

15. THANK YOU