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

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National Department of Public
WorksGovernment-wide Immovable Asset
Management (GIAMA) Policy Legislation

• Portfolio Committee on Public Works
• 14 June 2005

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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

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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.

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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.

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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.

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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.

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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)

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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.

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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.

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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.

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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

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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.

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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.

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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.

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