Briefing to the Portfolio
Committee on the DPW
Annual REPORT 2003/04
The agenda
 Provide high level highlights of the
2003/4Annual Report
 Focus on key initiatives
2
Introduction
 Managing in a dynamic environment
 Improving planning has been a pillar of our
processes and successes
 De-centralisation of functions has been a
feature of our service improvement
strategy
 Seeking new approaches to delivery
(KAM,SDI project)
 People management still remains a key
challenge
3
An analytical framework
 Mckinsey’s 7 S model will be used
1.
2.
3.
4.
5.
6.
7.
Shared vision
Strategy
Strategic leadership
Structures
Staff
Skills
Systems
4
Key strides
 New vision, mission, values and
strategic goals
 Team established
 New structure in place
 Staff-recruitment,retention,capacity
 Skills still a challenge
 Strategy evolving
 Report reveals measures to improve
systems and business processes
5
Operations
OPERATIONS
ACHIEVEMENTS
> RAMP

The objective of the programme is to address the disrepair of
facilities and a significant backlog associated with maintenance.

Since 1999 RAMP has awarded R1, 9 bn of contracts through
294 contracts of which 206 worth R1,28 bn were affirmable
Business enterprise.

The programme has made appointments of 491 Professional
Consultants to the value of R262 million of which 48% went to
Affirmable Professional Services Providers as contribution to
BEE.
7
OPERATIONS (Cont…)
ACHIEVEMENTS

A nation wide Call Centre has been established to deal
with repair breakdowns.

Departmental maintenance and operation personnel
have been trained in more appropriate maintenance and
repair techniques.

New Affirmative Business Enterprises (ABE) have been
identified and trained in appropriate business related
skills.

The sustainability of the established ABE’s has been
enhanced by the inclusion of minimum quotas of
appropriate work in contracts.
8
OPERATIONS (Cont…)

RAMP (cont..)

Empowerment of public sector officials through an increase in project
management skills.
Comprehensive ten year maintenance plan

The DPW has determined the total backlog of maintenance of state
owned buildings and installation, addressing repairs and continuous
maintenance.

A long-term maintenance plan based on 10, 15, and 20 yrs funding
scenarios was developed and submitted to NT.
New generation prisons

In order to create employment for small medium and large
construction companies, the building work has been divided into 20
separate nominated subcontracts ranging from R1 m to R20 m.
9
OPERATIONS (Cont…)
Capital works

Capital projects which were executed in the period under
review include:
 Port Elizabeth and Khayelitsha Magistrate Courts,
 Bisho Shooting Range for SAPS,
 Repair and Maintenance of 12 Proclaimed Fishing
Harbours,
 The completion of Kinshasa Chancery & Diplomatic
Village and Berlin Chancery
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Ramp (cont…)
ITEM
CLIENT DEPARTMENT
NO. OF
CONTRACTS
CONTRACT
VALUES
(R MILLION)
1.
1.1
1.2
1.3
Correctional Services
-2001/02
-2002/03
-2003/04
76
6
26
44
747
31
193
513
2.
2.1
Fishing Harbours
- 2003/04
2
2
4
4
3.
3.1
3.2
SAOS
2002/03
2003/04
5
1
4
11,3
1,7
9,6
4.
4.1
Defence
- 2003/04
31
31
98,5
98,5
5.
Lifts
0
0
114
868,8
GRAND TOTAL
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Asset Management
Asset Management
ACHIEVEMENTS
KAM
 DPW achieved a full expenditure on Capital Works and Planned
Maintenance.

Developed a generic SLA to formalise service relationships
between DPW and its Clients.
APOPS
 The receipt of a SABS-ISO 9001:2000 award for the Kutama
Sinthumule maximum prison at Makhado.
Professional Services
 Conservation management plans of Heritage Buildings were
developed in accordance with National Heritage Resources Act.
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ASSET MANAGEMENT (Cont…)

Leaseholds and Acquisitions

A total leasing amount of R1,07 bn was spent in 2003/04 which
indicates the increase in demand and associated costs for
accommodation and space.

Seventeen new properties were acquired and registered at the
Deeds Office at the total cost of R16,77 m.

The majority of these properties were for the purpose of
accommodating SAPS and Prosecuting Authority.

The State through DPW purchased back a property at the Parliament
precinct in Cape Town for R6,3 m from the British High Commission.


Non-commercial disposals
In the period under review the DPW disposed 121 properties in
extent of 4565 ha, with an estimated market value of R45 m.
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Asset Management
(cont..)
 Implementing the next phase of the asset
management framework has begun
 Joint task team set up with DLA to expedite
the vesting of fixed assets
 R10 million set aside to support the process
 Developing a proposal to increase the
capacity of the property management unit
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Financial Management
Financial Management
 Financial management has significantly improved
as indicated by the last AG report
 However, some areas such as the clearing of
suspense accounts with National Treasury is
currently being attended to; and
 Uniform documentation control is being
implemented
 System improvements achieved
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Financial management (cont…)
 Risk and fraud prevention plans in
place
 Co-sourcing of internal audit services
 Regional financial capacity developed
(27% increase in personnel)
 Training and recruitment were and
continue to be addressed
18
EPWP
EPWP
 EPWP framework successfully adopted by
Cabinet
 Government’s flagship launched by the
President in Limpompo
 EPWP unit approved by the Minister and set
up with the relevant coordinating structures
 Road shows conducted in every province
 Tender guidelines finalised and included in
DORA
20
Policy Unit
Policy Unit
ACHIEVEMENTS
ECDP

In 2003/04 financial year a total value of R791 million were awarded to
affirmable business Enterprises.

Contractors to the total value of R88 million were awarded to women
owned business enterprises.

DPW has developed an Incubator programme to promote the
development of sustainable emerging contractors.
CBPWP


In 2003/04 a total of 415 projects were created through CBPWP which
created a number of 23 196 employment opportunities.
Programme was closed out at the end of the Financial year
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Policy Unit (cont…)
Skills development strategy for the built environment
professionals
 The DPW has developed a strategy for SA built environment
professionals with the aim of enhancing the construction industry
capacity and performance.
 This strategy consists of the following 3 main components:
 Capacity development (including the transfer of knowledge and
skills),
 Enhancement of innovation and technology, and
 Creation of an enabling environment
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Human Resources
Management
ACHIEVEMENTS
 Managing transformation framework in line with Resolutions 7 & 8 of
Public Service restructuring.
 Conflict management- resolution of majority of disputes emanating from
matching and placing.
 A total of 111 employees graduated from the Management
Development Programme which was offered by PTA Univ.
 107 employees completed Supervisory Development training.
 More than 300 posts filled
Human Resources
Public entities
Public entities
 IDT
 Satisfied with their contribution to developed
 Instrumental in the implementation of the
CBPWP
 CIDB
 Becoming leader in industry development
 Achievements include the launch of toolkit and
the register of projects and contractors
 CBE
 Established to promote uniform application of
policy and coordination amongst professional
bodies
Performance management tool developed to
monitor performance of these bodies
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Challenges
Challenges cont’d
 Successfully coordinate the implementation
of the Expanded Public Works Programme
(EPWP)
 Valuation of State-owned properties
 Emerging contractors faced with lack of
sustainable opportunities, access to
finance and other problems
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Challenges
 To mobilise adequate funding for municipal
accounts
 To recruit and retain qualified project and property
management staff and address the scarce and
aging professional staff problem –
comprehensive HR plan is being developed
 Addressing the issues that gave rise to the
qualification of the AG’s report
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Conclusion
 It was a characterized by progress in
many key areas
 Key challenges still remain, but it is a
journey to be traveled
 Focus and focus will get us there-We
are focusing on the pillars that will
ensure sustainability of interventions
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Thank you