Annual%20report%202003/04

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Briefing to the Portfolio Committee on the DPW
Annual REPORT 2003/04

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The agenda

• Provide high level highlights of the 2003/4Annual
  Report
• Focus on key initiatives

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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

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An analytical framework

• Mckinseys 7 S model will be used
• 1. Shared vision
• 2. Strategy
• 3. Strategic leadership
• 4. Structures
• 5. Staff
• 6. Skills
• 7. Systems

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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

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• Operations

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OPERATIONS

• ACHIEVEMENTS
• gt 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.

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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 ABEs has
  been enhanced by the inclusion of minimum quotas
  of appropriate work in contracts.

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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.

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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
GRAND TOTAL GRAND TOTAL 114 868,8
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Asset Management
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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 90012000 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
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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

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EPWP
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EPWP

• EPWP framework successfully adopted by Cabinet
• Governments 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

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Policy Unit
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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

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Human Resources
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Public entities
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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
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Challenges contd

• 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 AGs 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