On the basis of recent media reports on upgrades to Presidential and other VIP facilities, the Department of Public Works feels it is necessary to explain some of the projects and processes involved in this work, and to sketch a broader context that will hopefully enhance public understanding of these issues.

By way of context, it is important for us to understand that the Department of Public
Works is the single biggest property manager in the country as it provides physical accommodation and related services across the entire public service that has a staff complement of around 1,3million.

The properties we develop function not only as office accommodation, but are, of course, also centres where close to 50 million South Africans access public services.

We create facilities where citizens can interact and transact with the public service in conditions that are dignified, safe and comfortable. The properties we create are designed to reflect the development of our society and economy at large.

A great deal of the work we undertake is executed by service providers in the private sector, and serves to stimulate not just the construction sector but the economy as a whole.

In issuing tenders and appointing contractors, the Department of Public Works is vigorous in ensuring that all procurement is legal and administratively sound and justifiable.

It is our mandate as the Department of Public Works to support the Presidency and the Executive, the Department is guided by the Ministerial Handbook and the applicable prescripts of government procurement.

It is, therefore, erroneous to suggest that government should have to make choices between creating or refurbishing Executive facilities, on the one hand, and building social amenities or providing social services, on the other.

Our level of development as a country means that we need to exercise difficult choices all the time – and when we do so, we are guided by our social and economic conditions and the means at our disposal.

The recent Budget reflects the choices we make, and reflects the balance we are striking. In view of the five priorities of government – security, health, employment, education and rural development – more than half of the Budget is allocated to health and education respectively.

This government is therefore investing in the key social priorities. This work sits alongside many competing programmes, including Public Works.

Let us now turn our attention to the specifics of key Prestige Unit projects:

VIP RESIDENCE

The VIP Residence has been built at the Bryntirion Estate, Tshwane, at a cost of R93million to accommodate visiting Heads of State and Government.
The construction of the new VIP residence at the Bryntirion Estate was initiated to help alleviate the shortage of Ministerial housing in the Estate and was approved accordingly.

Due to the renovations that were planned to take place at Mahlamba Ndlopfu, a proposal to temporarily relocate the President to the new residence was made.

Minister’s intervention

The Minister has taken note of the high cost related to building of the VIP Residence and has since intervened by calling for an Investigation to determine what processes were followed and if there has been any miss- management of public funds.

HEALTH FACILITY/CLINIC
Public attention has also been drawn recently to the construction of an executive health facility that will replace a service that is currently housed in a caravan.

The health facility/clinic is being constructed at a cost of R42 million and will be used to provide care or emergency support to…(the Community of Bryntirion including visiting Heads of States and Foreign Ministers, etc).

The full scope of the work is currently being reviewed and this process will have an effect on the initial budget.

Minister’s intervention
Minister’s intervention has made the Department of Public Works to review the scope of work related to the health facility.
This review is also informed by the work done to upgrade One Military Health Facility at the Department of Defence.

The Department of Defence is ready to do the work in house, using its own capacity.
The Minister believes that this review and the use of the defence capacity will go a long way in saving the high costs related to the construction of the Health Facility

MAHLAMBA NDLOPFU

The Department of Public Works is also preparing for major renovations to the President’s official residence, the 70-year-old Mahlamba Ndlopfu. It is a three phase project that started in 2008.

One of the drivers of this cost is the fact that the residence is a national heritage building. As part of the national reconciliation effort in our country that followed the political transition, the new, democratic administration adopted longstanding premises as office and personal accommodation.

This was important symbolically and in terms of the smoothness and efficiency of the transition.

Heritage properties dating back to the colonial and apartheid era in many instances do however require specialist management and workmanship, which incurs premium costs.

Mahlamba Ndlopfu has been maintained in order to reflect the heritage and history of the country.

This residence has endured repairs and maintance in phases since 2000 but these interventions have not been sufficient to arrest dilapidation.

Minister’s intervention

The Minister’s call to retired Artisans and Engineers to submit their CV’s to the Department will help to curb the high costs that are related to renovations of heritage buildings.

The Minister wish to make it clear that no tender has been awarded to any contractor/ company for the renovations at Mahlampa Ndhlovu therefore it will not be difficult for the department to review all the high costs related to the renovations of Mahlampa-Ndhlovu.

After Minister’s intervention the department will use an approach of utilising an in-house capacity relying mostly on the experience and the expertise that will be brought to the department by the retired Artisans and engineers as well as the current pool of professionals in the department.

CUTLERY AND CARPETS
The Minister has noted with concern the high cost related to the planned purchase of cutlery, carpets and other items for VIP residents. The Minister has since directed that instead of outsourcing this function as was planned, the matter be dealt wit through own capacity, using our professionals and interior décor,

MINISTERIAL ACCOMODATION

Media reports in a number of newspapers have in the past alluded to certain members of cabinet owing money to the Department of Public Works.

The Department would like to indicate that the discrepancies in the payments by the Ministers were a result of malfunctions in the system used by the Department to collect payments, and not , as it was reported, due to the negligence of the affected Ministers.

Public Works would like to announce that after having corrected the wrongs in the payment system, the accounts of the Ministers mentioned in the reports have been rectified and the accounts have been balanced. The Department would like to apologize to the Ministers and former Ministers for the inconvenience caused.

SAPS LEASE AND PUBLIC PROTECTOR’S REPORT
The Department is still studying the report of the Public Protector with regards to the SAPS lease and a full response will be issued after the process is completed.

DG AND COO’S SUSPENSIONS
The matters are sub judice.

PUBLIC WORKS INITIATIVES

The Department has embarked on the following programmes subsequent to Ministerial MINMEC of January 15th 2011 aimed at job creation:

1. The pothole rehabilitation programme
2. The bridge construction in partnership with the Department Of Defence
3. The Youth Co-operatives development

Progress to date on the programmes:

POTHOLE REHABILITATION:

The Department commenced with the City of Tshwane metro, Mahikeng and the Johannesburg Road Agency (JRA). The programme will create 400 jobs per Metro/municipality for a period of six months at a stipend amount of R90.00 per day.

CITY OF TSHWANE (COT)

• Five contractors have been appointed for CoT
• 400 youth will be employed in the areas identified
• The CSIR pothole rehabilitation and EPWP orientation will commence from 23rd March until the 25th March 2011.
• The programme will be launched on 22nd March 2011

JOHANNESBURG ROAD AGENCY (JRA)

• From engagements with JRA we have received areas and routes identified for pothole rehab and 200 young people are to be utilized.
• Consultants compiled the scope for tendering purpose.
• Nine Tenders were advertised on Friday 18th March 2011 to close on the 07th April 2011.
• The commencement of the project is on 15 April 2011.

MAHIKENG MUNICIPALITY (NGAKA MODIRI-MOLEMA DISTRICT)
• From engagements with Mahikeng we have received Ditsobotla and Mahikeng roads as the starting point for pothole rehabilitation programme.

YOUTH CO-OPERATIVES INITIATIVE IN ALL BORDER POSTS

• The inception of the Youth Co-Operatives was initiated at the Lebombo Border Post with a view to appoint 80 individuals on the project. The utilization has been identified for cleaning, gardening and site keeping purpose. Their appointment is for a duration of 36 months at a stipend rate of R90.00per day.
• The beneficiaries will be appointed on a twelve month contract under the department to be converted into Youth Co-operatives on month 13 of the 36 months earmarked.
• A contractor has been appointed for landscaping for duration four months.
• The 80 beneficiaries have been appointed and orientated on 10th-11th March 2011.
• Four service providers have been appointed to procure cleaning equipment, gardening tools, protective clothing and leasing of two vehicles.
• The beneficiaries will commence work from the 1st April 2011.

BRIDGE CONSTRUCTION

The programme involves the construction of low cost bridges in rural areas in partnership with the Department of Defence. This programme was launched on the 8th March 2011 in Comfivaba District Municipality. This programme will be rolled out to other provinces.

The estimated total number of job opportunities to be created under the above mentioned programmes is 10 000 by end of financial year 2011/12.

REGISTRATION OF PROFESSIONALS AND ARTISANS PROGRAMME
Since the programme was announced by the Minister on the 21st February 2011, the department has received 18 007 enquiries. These include calls made to the call centres and walk-ins to our regional offices.
• A total of 9 321 CV’s have been received.
• A total of 4 009 received CVs are of qualified artisans
• A total of 2 420 received CVs are of qualified engineers and 69 are of retired engineers.
• A total of 2 823 received CVs are of unqualified engineers and artisans

This programme is one of the first embarked upon to establish the necessary in house capacity for the department to reduce the extent to which work has been outsourced. This will contribute to reducing cost incurred in the conduct of departmental core business namely, maintenance, construction and renovation of State infrastructure.

AMNESTY CALL

The Minister will launch an Amnesty Call Campaign on all state assets that are unaccounted for and illegally occupied next week. The Amnesty Call Campaign is aimed at encouraging members of the public to voluntarily come forward and declare state immovable assets that unaccounted for. A confirmed date for the launch of the campaign will be communicated soon.

REFURBISHMENT OF UTILIZED AND UNUTILIZED BUILDINGS

In addition to conventional procurement processes, the Department has adopted a construction management methodology to rehabilitate and upgrade selected underutilized and unutilized immovable state asset. The objectives of this programme are:
a. Enhancing the performance and integrity of immovable assets.
b. Direct job creation by employing artisans, engineers, national youth beneficiaries in accordance with EPWP job-creation strategies.
c. To make state assets available and accessible to client departments, schools and ordinary South Africans.

ERADICATION OF UNDESIRABLE SCHOOLS INFRASTRUCTURE & BUILDING SCHOOLS USING ALTERNATIVE TECHNOLOGY/METHODS

Minister will launch the first phase of the eradication of mud schools campaign at Engcobo in the Eastern Cape on the 4th of April 2011.

CONCLUSION

The Prestige Unit of the Department of Public Works creates and manages national assets that support the President, the Executives, Members of Parliament, Judiciary, NCOP and Presiding Officers.

These are assets that enhance the efficiency and effectiveness of government and of guests. This reflects our respect for guests, and our pride as a nation.

The Department diligently applies the law and the Ministerial Handbook as it undertakes its work.

The Department’s work and its contracts with private-sector service providers create opportunities in the broader economy.

The context of its work should dispel any undue political capital that anyone may want to make out of what is a routine programme of government.

We are a modern, efficient and respectful country and government. We will always perform our work within the prescripts of the law and always adhere to the Public Finance Management Act.

Indeed much still needs to be done to put our department at its rightful place and I have all the confidence that together with the management team of the department, we will be able to take the department to a higher trajectory of rendering services.