PC Public Works Budget Review Recommendation Report: preparation; Committee Programme for Free State Visit

Public Works and Infrastructure

12 September 2011
Chairperson: Ms G Oliphant (ANC)
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Meeting Summary

Draft Budgetary Review and Recommendation Report 2010
The purpose of the meeting was to check whether the Department of Public Works had attended to the Committee's previous recommendations, and update them, with reference to the Department's Annual Report, which the Committee had adopted last year. The Committee highlighted a number of issues, and observed that the report took note of the achievements in the Department, while it also presented a number of challenges. The report was sometimes inconsistent with the targets set in the strategic plan, and some of the targets were difficult to read, as their intended outcomes were ambiguous.

The Auditor-General had raised the issue that proper planning, including other legislative requirements in procurement, must be instituted to prevent the occurrence of fruitless and wasteful expenditure. That was a critical area and was still relevant. It must be checked whether those systems were in place.

Particular concern was raised about the youth development programme. The Department had agreed that the young people would be trained on renovating dilapidated Government buildings so that they could obtain skills that would lead to the creation of permanent employment. It was not an Expanded Public Works Project;, it was not temporary, and it was ongoing. The Committee would check whether the project was continuing.

It was understood that the previous Director-General had planned a dedicated fund for the project; that would need to be followed up. A special fund was needed for the skills development programme.

Committee Programme for Free State Visit 16 September 2011
Members were not happy with the travel arrangements, but the Chairperson explained it was not a final programme. Members were reminded that it was only a draft programme and Members would be informed of arrangements by the evening.

Members raised the issue of why Parliament hired transport from reputed companies such as Avis instead of using the local people, and asked that the matter be taken up.

Meeting report

Draft Budgetary Review and Recommendation Report 2010
The Committee noted that  the purpose of the meeting was to check whether the Department had attended to the Committee's previous recommendations, and update them, with reference to the Department's Annual Report, which the Committee had adopted last year. A number of issues were highlighted. The report took note of the achievements in the Department, while it also presented a number of challenges. The report was sometimes inconsistent with the targets set in the strategic plan, and some of the targets were difficult to read, as their intended outcomes were ambiguous.

Both the Department and the Property Management Trading Entity had received qualified audit opinions.

The challenges under the human resources section needed to be closely monitored. There seemed to be difficulty in filling some of the critical positions in the Department. While the Department made an effort by employing foreign workers (including the Cuban technical professionals, for example) it still had a large backlog of skilled workers. It was presumed that the lack of skilled personnel in those critical areas might hamper the Department’s service delivery efforts, and it was noted that the Department was struggling with the completion of a creditable asset register.

The implementation of the Government Immovable Asset Management Act 2007 (Act No. 19 of 2007), which only extended to national and provincial levels, proved to be a challenge. The exclusion of local government from the requirements of the Act was believed to be a contributing factor as that was where most of Government' s assets resided.

Recommendations
The Committee considered the following:

- Recommendation: The Minister and the Director-General of the Department of Public works, and National Treasury, needed to ensure the recapitalisation of the Independent Development Trust (IDT). The funding of the entity should be prioritised and the Department must report back to the Committee by end November 2010.

The Committee noted that this had not been done. There had been a discussion with the Department and the IDT to consider reviewing the IDT, and the competency of the Department to look into that. The Committee was still waiting for the Department to report back. The IDT had requested a workshop with the Committee, but the Committee did not agree to that.

- Recommendation: The review of Agrèment South Africa legislation should be finalised for presentation to the Committee in 2011.

That was not done. Agrèment South Africa  had to ensure that all public technologies were safe and user friendly. That recommendation still needed to proceed to tabling. It was agreed to add time frames as before the end of the financial year.

- Recommendation: The Minister should ensure coherent working relations between the Council for the Built Environment (CBE) and all the professional councils in the built environment. The Committee recommended that the Built Environment Professions Bill must be reintroduced to Parliament in 2011.

This was also agreed to, with the time frame of before the end of the financial year.

- Recommendation: Proper planning, including other legislative requirements in procurement, must be instituted to prevent the occurrence of fruitless and wasteful expenditure.

That was a critical area raised by the Auditor-General and was still relevant. It must be checked whether those systems were in place.

- Recommendation: In the financial year 211/2012 the Department of Public Works should table a strategic plan with adequate content, and must include measures and targets for all the Department’s programmes as required by Treasury Regulation 5.2.3(d).

It was agreed that that was still relevant.

- Recommendation: The Committee required that the Department present to Parliament a report upon the conclusion of the investigations conducted by the Special Investigating Unit (SIU).

That was agreed to as related to the document of 24 August 2010. It was to be ascertained as to whether there was any investigation.

- Recommendation: The Department must institute procedures to ensure that the National Youth Service provided unemployed youth with training in the built environment to assist the Department with the maintenance of Government’s immovable assets, which was the initial intention of the programme. To date the programme appeared to be overshadowed by the Expanded Public Works Programme (EPWP).

The Department had agreed that the youth would be trained on renovating dilapidated Government buildings so that they could obtain skills that would lead to the creation of permanent employment. It was not an EPWP project, it was not temporary, and it was ongoing. The Committee would check whether the project was continuing.

Mr L Gaehler (UDM) understood it was a special programme that also involved the CBE. The last Director-General (DG) had planned that there would be a dedicated fund for the project; that would need to be followed up.

500 youth members were identified from each province, with 600 from the Eastern Cape, specifically for this project. Unfortunately the Department initiated but did not continue. Details had to be checked because it was during the time of the previous DG. The Eastern Cape was expected to submit a report but it had not been received.

The recommendation was to stand; a special fund was needed for the skills development programme.

- Recommendation: The Department of Public Works should review its lease portfolio, with particular emphasis on streamlining it to a more market-related value letting.

The Department had indicated that payments by the Department were too little, which impacted on its maintenance plans, and had to be reviewed to bring them into line with the Act.

- Recommendation: The Department must provide the Committee with a detailed report on the land it released for land reform and other purposes, to date, including the purpose for which it was utilised.

It was reported that in the Free State land was released to land reform and human settlements. The recommendation was still relevant as the Committee was only aware of land being released in the Free State, not in other provinces.

- Recommendation: The Department should ensure the filling of critical vacancies, especially those related to finance, project management and property management, as soon as possible. The Department was also to provide the Committee with quarterly reports on progress made in this regard.

The recommendation was still relevant. It had been indicated that some of the vacancies were advertised but it was not known whether people had been appointed or had started working.

- Recommendation: The Department should facilitate the completion of the signing of all service level agreements between the Department of Public Works and other affected departments.

The recommendation was still relevant.

- Recommendation: The Department should ensure proper alignment of the two reporting systems it currently utilised with regard to the disbursement of incentive grants.

There had been a discussion on the system; the municipalities had not been able to access the funds because of the model that Treasury recommended to Public Works. It was requested that the Department seek a meeting with Treasury with regard to the model, and that the model be changed. The Committee was still waiting for response from the Department of Public Works.

- Recommendation: The Inner City Regeneration Programme should be extended to other provinces, including rural areas.

A report had been received; the Committee requested that the Programme be taken to rural areas and other provinces. A quarterly report was needed.

- Recommendation: The Department was to provide the Committee with a comprehensive report by the end of November 2010 on the role, function and location of the 90 data capturers appointed to assist municipalities with the reporting on the EPWP Phase II.

Ms N Ngcengwane (ANC) said the Committee would need a report. When Members visited the Eastern Cape in 2010 it was reported that there were no data capturers; it was now 2011. There were only two in the Northern Cape. Each province should have 10, or at least not less than five, according to the size of the province.

Mr Gaehler added that the written report should also inform where the data capturers were deployed and what they did there.

It was also important to get a report on the EPWP systems; it would assist the Committee in its oversight role.

The data capturers would need to be trained as to what was expected of them.

- Recommendation: The Department was to provide the Committee with a report on progress made on Operation Re Ya Patala [Operation We Pay] that was introduced to ensure that the Department complied with the 30-day payment period as per Treasury Regulations.

The recommendation was very relevant.

- Recommendation: The Committee strongly recommended that the Expropriation Bill that was withdrawn from Parliament in 2008 should be reintroduced at the beginning of the 2010/11 financial year.

The Bill had not been reintroduced; it should be reintroduced before the end of the financial year. As the Bill had already missed two deadlines, the time frame would have to be checked.

- Recommendation: The Department should formulate a skills transfer policy to assist it with the implementation of a proper mentorship and apprentice programme to ensure it retained and replenished its skills base.

The recommendation was still relevant but the Department must present its skills plan as soon as possible.

It was agreed that the report be considered.

The Chairperson explained that the 2010/11 Financial Report was also tabled, and was to be used together with the Draft Budgetary Review and Recommendation Report 2010.


Committee Oversight Visit to Free State 16 September
Members were not happy with the travel arrangements, but the Chairperson explained it was not a final programme. About 10 committees from Parliament were also going and had the same problems, so Parliament was negotiating with South African Airways (SAA) that, if all the committees were expected to leave for Bloemfontein on Thursday, SAA should consider a special flight to Bloemfontein. If SAA did not do that, the three options were that, after plenary on Wednesday evening, the Committee would have to fly to Johannesburg and stay overnight there or drive straight through to Kimberley.

The Committee discussed several scenarios, but were reminded that the programme was only a draft and Members would be informed of arrangements by the evening.

Members raised the issue of why Parliament hired transport from reputed companies such as Avis instead of using the local people, and asked that the matter be taken up.


Committee minutes: adoption
The Committee adopted, with corrections, the minutes of 30 August 2011. 

It was proposed that there should, in future, be a section for matters arising, with an action column.

The meeting was adjourned.



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