Chairperson, hon Minister, hon members of the NCOP, members of the public and guests, the Department of Public Works is the department in government structures meant to fulfil the wishes of the President when he declared in his state of the nation address that government would create millions of jobs in all the state departments to better the lives of the people in South Africa.
The Expanded Public Works Programme, EPWP, must reach more people, even if the economy grows faster. Half of the programme still aims to intensify labour absorption in public infrastructure projects, but the EPWP was also revamped to encourage municipalities, ward committees and nonprofit organisations to generate opportunities.
The budget is a little hard to follow, but funds allocated specifically to EPWP job creation rose from about R1,4 billion in 2010-11 to R2,5 billion in 2012-13. However, considerably more funding will be needed - up to five times more.
The mandate of the Department of Public Works is provided for in the Government Immovable Asset Management Act, Giama of 2007. If we look at the Medium-Term Strategic Framework, MTSF, it has as its vision speeding up growth, decent work and sustainable livelihoods; a massive programme to build social and economic infrastructure; the fight against crime and corruption; sustainable resource management; and building the developmental state and strengthening democratic institutions.
These are nice words, and beautiful sentences and sounds on the ears, but how many of these outcomes have really happened since 1994? Very few, because there is no discipline and no control, and a lack of strong leadership and motivation in the department to attain success in its goals.
Why did the Minister of Finance, hon Pravin Gordhan, withdraw eight of the nine provinces' money - R2,4 billion - for the development of infrastructure in the last financial year? The reason is underspending. Only the Western Cape spent its budget of R794,8 million.
The problems and handicaps around underspending in the provinces are caused by bad contract management, insufficient financial systems and badly obtained policies. Because of incompetence, the management of the department is really failing the people of South Africa in regard to its discharging its responsibilities. Incompetence leads to poor management.
Minister Pravin Gordhan finally cracked the whip on the departments and he wants government to ensure that the supply chain processes are as watertight as they can be. The DA also supports the announcement of strict new regulations designed to crack down on tender fraud and overpricing. Treasury will also monitor all tenders above R500 000 at all levels of government.
In the previous financial year, the department, as a custodian of all government properties, failed to manage 780 state-owned houses in Gauteng which were occupied by friends and relatives of government officials. This is according to the department's infrastructure and development report. The report goes further to say that some of the occupants had paid bribes to senior officials to gain access to the houses.
The provincial government of Gauteng owns 826 houses across six regions, but according to the report only 46 tenants had signed lease agreements.
In Mafikeng, North West province, it is estimated that about a third of public servants occupy state houses and apartments illegally, while many other properties are understood to have fallen into private hands over the years under the watch of the provincial public works department. Of serious concern is that most properties are neither recorded in the asset register of the department, nor even traceable.
What is going on in the department, if it does not have its own accurate records of state properties? I'm afraid, if the department can't take responsibility for immovable assets, I don't know how there will be accountability regarding all the other assets in the department. The Minister and her executive must take responsibility and see that there is discipline, that policies are in place, and that there is strong control and management in the department.
However, I do want to congratulate the Minister for having the guts to put a moratorium on the department's financial activities for the next six months. It is the only way to deal with the corruption and fraud going on in the department. The DA believes that the outcome of this brave action will be to the benefit of all South Africans. I thank you.