Briefing on the oversight role of the DPW over IDT Department of Public Works presentation to the Select Committee on Public Services Briefing on the oversight role of the DPW over IDT Director General Mr. M. Dlabantu 25 February 2014

2. Background information The Independent Development Trust (Trust Registration no. 669/91) was established in 1990, as an independent, civil society, temporary grant-making agency with a R2 billion Government endowment to be invested, with the returns to be utilised to achieve the IDT’s primary goal of enabling disadvantaged communities to access resources, and recognise and unlock their potential to continuously improve their quality of life. This was to be achieved together with strategic partners. In March 1997, Cabinet endorsed a recommendation of a Cabinet Advisory Committee that, inter alia, “The IDT must be transformed into a government development agency that will implement projects which are commissioned by government departments. It must cease to be a civil society organization, an independent agency or a funding agency”. With the establishment of the National Development Agency (NDA) in 1997, the IDT ‘handed over’ its funding agency role by way of a R100 million grant to the NDA. Select Committee Presentation 25 February 2014

2. Background information … cont… In October 2001, the Trust was amended to make provision for appointment of new Trustees; its goals and objectives to complement Government’s national development policies and priorities; and ensuring co-operation with Government, development agencies and the private sector. Its primary goal was to “use its resources together with strategic partners, in ways which in the opinion of the Trustees will best serve to enable poor communities in the Republic of South Africa to access resources and recognise and unlock their own potential, so as to continuously improve their quality of life”. From 1998 to 2005, the IDT provided programme management services to Government, initially at no cost and later at a nominal fee. The no cost/nominal fee service offering was largely funded by capital endowment the IDT received in 1990 and the interest accrued thereon. As a Schedule 2 Public Entity IDT received no funding from the State. IDT markets itself as state delivery institution for social infrastructure to infrastructure clients (National & Provincial). Select Committee Presentation 25 February 2014

3. DPW’s oversight role over IDT In line with the PFMA, the IDT is required to develop its corporate plan which sets out annual service delivery targets that it commits to achieve. The Executive Authority approves the plan. On a quarterly basis, IDT submits its performance review report that indicates how the entity has performed against its set targets. Scheduled quarterly performance review meetings are held with the Executive Authority where the entity is afforded the opportunity to account on its performance and seek the intervention of the Executive Authority when required. Reporting includes: Performance Information Financial Performance Governance Issues These meetings are supplemented by technical meetings between the DG and CEO to address technical and administrative matters. IDT participates in Public Works MinMec and Technical MinMec meetings as well as strategic planning sessions to ensure policy alignment and strategic matters. Select Committee Presentation 25 February 2014

3. DPW’s oversight role over IDT Challenges between Public Works sector (National & Provincial) and IDT: The IDT engage client departments directly without consulting Public Works – competing with public works sector. Public Works only involved when there is a challenge with the asset delivered by IDT. When IDT builds a school for example, it requires basic and socio-economic services such as access roads, water, electricity which needs the participation of the provincial government and local authorities. In addressing the above challenges within the public works sector and IDT a Protocol Framework was approved by DPW MinMec, which amongst other state: The IDT shall advocate to render its services in relations to social infrastructure and related social programs that are part of the public works mandate, through the Public Works sector. When IDT is requested to render its services which falls within the Public Works mandate, IDT shall advise the line function department of the Protocol Framework. Should the line function department prefer IDT over public works as its implementing agent, the IDT shall advise the relevant public works in writing, prior to assenting to undertake such services. Select Committee Presentation 25 February 2014

Select Committee Presentation The End Select Committee Presentation 25 February 2014