1. INFRASTRUCTURE EXPANSION IN RELATION TO THE DEPARTMENT OF HOME AFFAIRS (DHA) Presentation to Portfolio Committees of Home Affairs and Public Works 19 September 2012

2. PRESENTATION OVERVIEW. 1.GIAMA: A structured approach to the provision of accommodation. 2.Prioritisation of DHA. 3.Long procurement process in provision of accommodation. 4.Lack of accommodation in rural areas. 5.Lack of funds to procure DHA-owned facilities. 6.Shortage of funds for devolution from DPW. 7.Budget for relocation of refugee reception centres at Border posts. 8.DPW’s responsibility and action on border fences. 2

3. GIAMA: A STRUCTURED APPROACH TO THE DEMAND FOR ACCOMMODATION. Deficiencies in the customary processes to procure and manage accommodation by the Custodian (DPW) and User Departments, resulted in DPW championing the enactment of the GIAMA legislation in 2007. GIAMA, inter alia, entrenches a rigorous and planned approach to the provisioning of accommodation requirements aligned to MTEF cycles. Intended benefits of GIAMA include the coordination of the use of immovable assets, and improved service delivery by the DPW as a result of proper planning. 3

4. PRIORITISATION OF DHA. DHA, and 50 other User Departments, are serviced by DPW through Key Account Management and implementation units at Head Office and its 11 regional offices. Current service delivery arrangements are not sufficiently responsive to the needs of individual User Departments. DPW has recently adopted a client-centric model offering dedicated resources as far as possible to all key customers. Institutional arrangements are being put in place to ensure requisite capacity in the short-to-medium term as a turnaround initiative to bolster service delivery across the accommodation value-chain. 4

5. LONG PROCUREMENT PROCESS IN THE PROVISION OF ACCOMMODATION. GIAMA requires that all User Departments compile User Asset Management Plans (UAMP’s) on annual basis (3 years in advance) indicating the immovable assets which the User uses or intends to use. DHA has not submitted its UAMP, as required by legislation, to enable DPW to fulfil its Custodial obligations and deliver the range of required accommodation services on time, qualitatively and within budget. Consequently, accommodation requirements are provided in a reactive manner impacting on delivery timeframes. 5

6. LACK OF ACCOMMODATION IN RURAL AREAS. DPW is cognisant of the fact that User Departments are required to render important services in rural areas. All User Departments operating in rural areas must provide an asset footprint on where their presence is required through the UAMP forward-planning processes. This will enable DPW to acquire suitable sites or buildings to accommodate User Departments timeously, in consultation with tribal authorities, where necessary. Forward-planning will also allow DPW to complete its acquisition and due diligence processes thoroughly. 6

7. LACK OF FUNDS TO PROCURE DHA-OWNED FACILITIES. User Departments must identify accommodation requirements in support of their service delivery imperatives. Such requirements need to be reflected by all User Departments on their annual UAMP’s, which UAMP’s become a bidding process document with National Treasury. DPW executes the approved, funded accommodation programs and bills User Departments for services rendered. DPW’s ability to render a service depends on whether DHA has completed a UAMP, responsive to its service delivery imperatives, and has obtained the necessary aligned funding. 7

8. SHORTAGE OF FUNDS FOR DEVOLUTION FROM DPW. DPW devolved its budgets for maintenance, property rates, municipal charges as well as leases to all User Departments in 2006, based on the number of properties occupied by a User Department at the time. User Departments were expected to approach National Treasury for funding of any additional or new requirements from then on. The amount originally devolved in 2006 is claimed back in 4 equal quarterly installments through the Accommodation Charges mechanism, to cover the operational costs incurred by DPW in accommodating the User Department. 8

9. SHORTAGE OF FUNDS FOR DEVOLUTION FROM DPW. A growth factor of 15% is added every year as contemplated in the original framework document. The basis of claiming State-Owned accommodation charges is the “Framework on the Devolution of Budgets – version 17; December 2005”. 9

10. BUDGET FOR RELOCATION OF REFUGEE RECEPTION CENTRES AT BORDER POSTS. R110m has been provided to DHA in the current financial year (ring-fenced on the budget of DPW), inter alia, for the construction of refugee reception centres in close proximity to selected Land Ports of Entry. The funding allocation was finalised ahead of project identification and planning. DPW is in consultation with DHA to identify, prioritise and program required projects. 10

11. DPW’S RESPONSIBILITY AND ACTION ON BORDER FENCES. DPW is mandated to construct and maintain border fencing with inputs aligned to MTEF cycles from Departments of Defence, Environmental Affairs and Agriculture, Forestry and Fisheries. DPW will plan, budget and develop appropriate specifications for maintenance and construction of border fencing and roads together with participating departments. Where participating departments indicate their capacity and capability to undertake construction and maintenance of border fencing and roads, these requirements will be quantified and costed by DPW Professional Services and permission granted to undertake this work. 11

12. THANK YOU. Secret 12