National Department of Public Works Government-wide Immovable Asset Management (GIAMA) Policy - PowerPoint PPT Presentation

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National Department of Public Works Government-wide Immovable Asset Management (GIAMA) Policy

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Title: National Department of Public Works Government-wide Immovable Asset Management (GIAMA) Policy


1
National Department of Public
WorksGovernment-wide Immovable Asset
Management (GIAMA) Policy Legislation
  • Portfolio Committee on Public Works
  • 14 June 2005

2
Content
  1. The need for GIAMA
  2. Legal framework of GIAMA
  3. Objectives of GIAMA
  4. Guidelines Requirements
  5. Immovable Asset Management Plans
  6. Consultation
  7. Applicability of GIAMA
  8. Timeframes

1
3
1. The need for GIAMA
  • Government is confronted with service delivery
    needs which must be matched with efficient and
    effective use of resources, including immovable
    assets.
  • Governments extensive and diversified immovable
    assets have a significant impact on the overall
    macro-economic, socio-political physical
    landscape.
  • Decisions on immovable assets have long-term
    implications and should be based on the full
    impact of costs over the expected lifespan
    of such assets.
  • It is therefore imperative that Governments
    immovable assets be managed in a uniform,
    efficient, effective and accountable manner.

2
4
2. Legal framework of GIAMA
  • The Constitution mandates the National Government
    to pass legislation for all spheres of government
    if the purpose is to establish uniformity and
    to set minimum norms and standards with
    regard to service delivery.
  • Cabinet mandated the Minister of Public Works to
    develop an overarching policy framework to govern
    the management of immovable assets throughout
    Government and to implement that policy by means
    of legislation.

3
5
3. Objectives of GIAMA
  • GIAMA makes it encumbent on all organs of State
    to promote Governments objectives through the
    management of immovable assets under their
    control
  • Promoting accountability, fairness and
    transparency.
  • Promoting effective, efficient and economic use
    and maintenance of immovable assets.
  • Reducing the demand for new immovable assets by
    (inter alia) considering non-asset solutions.
  • Supporting governments socio-economic objectives
    including land reform, economic empowerment,
    poverty alleviation and job creation.

4
6
Objectives of GIAMA (Continued)
  • Realising the best value for money from the
    disposal of immovable assets, whilst promoting
    Governments socio-economic objectives.
  • Increasing opportunities for partnering with
    the private sector throughout the life-cycle
    of immovable assets.
  • Protecting the environment and South Africas
    diverse cultural and historic heritage.
  • Improving health and safety in the working
    environment.

5
7
4. Guidelines Requirements
  • GIAMA legislation will empower the Minister of
    Public Works to determine immovable asset
    management guidelines and minimum requirements
    that will -
  • complement general asset management guidelines
    issued by National Treasury in terms of the
    PFMA and MFMA
  • provide a framework for the management of
    immovable assets throughout their life-cycle
    (encompassing strategic planning, acquisition,
    maintenance management and disposal)

6
8
Guidelines Requirements (Continued)
  • address the minimum content, format processes
    required to compile immovable asset management
    plans
  • provide a planning framework for custodians
    to implement a portfolio management function
  • provide a framework for measuring the performance
    of immovable assets and
  • prescribe the minimum information required
    to manage immovable assets.

7
9
5. Immovable Asset Management Plans
  • Each organ of State (users and custodians) will
    be required to produce an IAM plan that will form
    part of the strategic planning and budgeting
    process of Government.
  • IAM plans must cover all the immovable assets
    which the organ of State uses or intends to use
    (State-owned leased).
  • Where a custodian makes immovable assets
    available to a user, the custodian and user
    should jointly conduct the strategic planning
    process.

8
10
Immovable Asset Management Plans (Continued)
  • All IAM plans must be submitted to the relevant
    Treasury annually (on a date to be determined
    by that Treasury).
  • IAM plans must inform the annual budgetary
    process and must be revised once budgetary
    allocations are finalised.
  • Revised IAM plans must be included in the
    strategic plans of all organs of State.

9
11
Immovable Asset Management Plans (Continued)
  • Custodians must assist users by making available
    information pertaining to the performance of
    immovable assets allocated to them.
  • This would include analysing such information in
    a manner that would enable users
    to make informed decisions
  • Users must provide custodians with a copy of the
    IAM plans they submit to Treasury.
  • Generally, custodians are in a position to view
    the management of immovable assets from a wider
    (whole of government) perspective than
    individual organs of State.
  • The production of custodian IAM plans will enable
    these whole of government considerations
    to be taken into account during Governments
    strategic planning and budgetary processes

10
12
6. Consultation
  • DPW consulted with all National and Provincial
    Departments on the draft GIAMA policy and their
    comments will be incorporated in the revised
    policy and the GIAMA Bill.
  • In particular, DPW consulted with National
    Treasury to ensure consistency with the Public
    Finance Management Act, 1999.
  • The GIAMA Bill will be published for general
    comment in July 2005 and a workshop for all
    National and Provincial Departments will also
    be hosted in July 2005.

11
13
7. Applicability of GIAMA
  • DPW has developed the GIAMA policy to govern the
    management of immovable asset throughout
    Government.
  • However, the draft legislation currently under
    consideration will be applicable to National
    and Provincial Government only.
  • Due to (a) complexity of legislation governing
    Local Government and (b) varying levels of
    autonomy of Public Entities, DPW will embark on
    more extensive consultation process before
    submitting legislation applicable to such organs
    of State.

12
14
8. Timeframes
  • Subject to approval from Cabinet, Minister of
    Public Works will introduce draft legislation
    applicable to National Provincial Government in
    Parliament in September 2005.
  • Following promulgation of the legislation,
    Minister of Public Works will issue regulations,
    including norms and standards (such as cost
    space standards).
  • Following a more extensive consultation process,
    the Minister of Public Works will introduce
    draft legislation applicable to Local Government
    and Public Entities in 2006.

13
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