The Department of Public Works (DPW) on Wednesday said it was “moving seamlessly” into the second phase of its turnaround strategy, following the successful implementation of the first phase.

“In the first phase, we stabilised the department leading to improved lease management. We have developed and verified an immovable asset register of State assets, [which allowed] us to leverage this massive portfolio for development, job creation, empowerment and revenue generation to reduce costs of accommodation to government, while providing a tool for investigating fraudulent activity on State assets,” Public Works Minister Thulas Nxesi said in his budget vote speech.

He added that the DPW had greatly improved audit outcomes. “Strengthened financial management also includes improved compliance with the requirement to pay creditors within 30 days of receipt of invoices – key to the financial health of small and emerging businesses.”

Further, the Construction Industry Development Board (CIDB) – an entity of the DPW – was publishing for public comment draft regulations designed to encourage prompt payment of contractors, while penalising late payment.

The second phase of the turnaround would focus on efficiency enhancement, to improve the way that Public Works did business. This would be captured in the five strategic priorities for the next five years.

The first priority would see the creation of six-million Expanded Public Works Programme work opportunities, aimed at mitigating the effects of structural unemployment.

The second priority would be the operationalisation of the Property Management Trading Entity (PMTE), which would ring-fence, professionally manage, secure, maintain and optimally use the “massive” State property portfolio.

This would build value and bring savings to the State, promote job creation and empowerment and improve service to client departments by better projecting demand and client needs.

Nxesi noted that PMTE targets for 2015/16 included making 100 vacant, unused freehold properties available for redevelopment by black developers, while making 600 surplus freehold properties available to let for revenue through the services of black real estate agents.

The PMTE five-year targets included 75 000 work opportunities created through construction projects; 60% of construction projects allocated to broad-based black economic-empowerment (BBBEE) contractors; 25 000 job opportunities created through maintenance programmes; and 65% of facilities management contracts allocated to BBBEE businesses.

Nxesi added that the third priority was to “jack up” fraud awareness and investigations. The department’s special investigations unit recommended disciplinary action against 41 officials, of which three resigned, seven were dismissed, seven received final written warnings, and the rest were still in progress.

“The department is also relaunching ‘Operation Bring Back’ to reclaim State properties that have been misappropriated or unlawfully occupied – drawing on unusual land and property transfers identified in the process of compiling the Immovable Asset Register,” Nxesi noted.

“The message is clear: You can run, but you can’t hide,” he added.

The department’s governance, risk and compliance branch also spearheaded the efficiency enhancement phase of the turnaround – using the tools of strategic planning and performance management.

To develop a new Public Works White Paper, which would review the mandate and role of the department, was Nxesi’s fourth priority. This would lead to the development of a Public Works Act by 2017/18.

TRANSFORMATION OF THE BUILT ENVIRONMENT
Nxesi lamented that the country could not be complacent that only 25% of registered construction professionals were black. Thus, the department would work towards transformation, to better reflect the demographics of the country and to support black enterprise and skills development.

This would be carried out by aligning sector codes to the revised BBBEE Act of 2013; through the National Contractor Development Programme led by CIDB; and by including clauses supporting black contractors, supplier and skills development in State contracts.