1. 1 BUDGET VOTE 5: DEPARTMENT OF PUBLIC WORKS Inez Stephney Research: Portfolio Committee on Public Works 18 June 2009

2. 2 Budget Allocation of Department per programme Programme 1: Administration Programme 2: Provision of Land and Accommodation Programme 3: National Expanded Public Works Programme Programme 4: Auxiliary and Associated Services Conclusion Issues for consideration

3. 3 “South Africa Works because of Public Works”

4. 4 Budget Allocations 2009/10 Programme Budget Nominal Rand chang e Real Rand chang e Nominal % change Real % change R million2008/092009/102010/112011/122008/09 - 2009/10 Administration741.9778.0781.0881.336.1- 3.84.87 percent-0.51 percent Provision of Land and Accommodation3 300.73 709.34 062.14 591.8408.6218.612.38 percent6.62 percent National Public Works Programme233.5768.51 726.92 681.7535.0495.6229.12 percent212.26 percent Auxiliary and Associated Services25.942.228.830.616.314.162.93 percent54.59 percent TOTAL4 302.05 298.06 598.88 185.4996.0644.823.15 percent14.99 percent

5. 5 Provides strategic leadership and support services, including, accommodation needs, and overall management of the Department. Monitor the Department’s vacancy rate. Determine if the vacant posts are filled within the expected timeframe of 6 months. Monitor the allocated posts, against those that are filled. According to the Department’s 2009-2012 Strategic Plan for 2009/10 of the 6 183 total positions in the Department, 5 506 are filled with a vacancy rate of 677. Programme 1: Administration

6. 6 Programme 2: Provision of Land and Accommodation Provides and manages Government’s immovable property portfolio in support of Government’s social, economic, functional and political objectives. Issues to consider: Mega projects such as the redevelopment of the different boarder posts in preparation for the 2010 FIFA Soccer World Cup. Prestige programme – Re Kgabisa Tshwane (Inner-city renewal programme) status on the development of a national precinct. Property Management Trading Entity Study the management of the Trading Entity Request quarterly reports on the performance of the Accounting Officers in terms of paying property rates and municipal charges on properties managed by national Government on their behalf. Avoid accumulation of arrears on property rates and municipal charges. The leasing and sale of state-owned property, as the Auditor-General noted that the Department had instituted fraud investigations for the 2008/09 financial year.

7. 7. Programme: 3 National Public Works Programme Seeks to promote the growth, and transformation of the construction and property industries, promote uniformity and best practice in construction and immovable asset management in the public sector, as well as ensure the creation of work opportunities coupled with training for the unskilled, marginalised and unemployed people in South Africa by coordinating the implementation of the Expanded Public Works Programme (EPWP). Expanded Public Works Programme II – President Zuma noted in the June 2009 State of the Nation Address that the EPWP would provide 500 000 work opportunities by December 2009. Entities 4 entities report to the Minister of Public Works: (Agrèment South Africa; Independent Development Trust; Construction Industry Development Board; Council for the Built Environment). Concerns raised by the entities include: That their allocated budget is inadequate for their commitments. That they are often faced with capacity constraints. That they also are recipients of ‘fiscal dumping’ which undermines their planning. 2009 - Council for the Built Environment Bill to be re-introduced to Parliament.

8. 8 Auxiliary and Associated Services Seeks to fund various services, including compensation for losses on Government assisted housing scheme, assistance to organisations for the preservation of national memorials, managing grants for the Parliamentary Villages Management Board, and meeting the protocol responsibilities for state functions. Issues for consideration: Department notes that as this programme is expected to make transfers in foreign currency, its allocation fluctuates. Indicates that transfers should be made before the end of the financial cycle with the assistance of International Relations (to avoid additional charges) re Commonwealth War Graves Commission and the United Nations.

9. 9 Conclusion The following areas should be monitored: The Department’s and the entities capacity constraints and how they fill the vacancies. Mega infrastructure, especially those with targeted dates, such as the border control posts linked to security for the FIFA 2010 Soccer World Cup. Property Management Trading Entity – especially the devolution of property rates. Energy efficiency in all state-owned immovable assets and if the targets are being reached. Expanded Public Works Phase II reaching targets and working with the non- state sector. Entities – and ‘fiscal dumping’. Auxiliary and Associated Services especially the fluctuation of foreign currency and the uncertainty in terms of unexpected events related to its state function responsibilities.