25 April 2007
Address to the provincial Legislature
Honourable Lydia Johnson, Member of the Executive Council KwaZulu-Natal
Works
'Building Communities through Construction'
Mr Speaker,
Honourable Premier,
Executive Council colleagues,
Honourable members,
Distinguished guests,
Introduction
Mr Speaker I am deeply humbled and honoured to present to you and the
honourable
house my 'maiden speech' as a member of the Executive Council for the
Department
of Works of KwaZulu-Natal.
Mr Speaker, allow me once more to thank the Honourable Premier JS Ndebele
for
inviting me to serve in his Executive Council. I commit myself to discharge
my
responsibility to the best of my ability. It is a privileged position, which I
am taking over from my predecessor's honourable MEC Mabuyakhulu and honourable
member Gwala. I thank them for the foundation they have laid. I use the analogy
of a relay race: I am taking off from where they have left off and I promise to
run faster in ensuring an efficient, effective and timeous service
delivery.
On assuming my portfolio in November 2006 I introduced an emphasis on
urgency and an end-user approach, moving beyond client department satisfaction
to end user satisfaction. A delay in service delivery results in prolonged
suffering and misery of learners� and communities who have been waiting
patiently on delivery.
As a department we have adopted a people centred approach guided by Batho
Pele
principles and the Citizen Charter. Our slogan is 'Building communities trough
construction'. One of our core functions is management and maintenance of
government facilities. Mr Speaker this function we cannot carry it out alone we
need communities as our partners. As we build infrastructure we need to build a
sense of ownership and pride by educating communities to look after and protect
their facilities from destruction and vandalism.
'Sithuthukisa imphakathi ngokwakha'
Between 13 and 22 of March 2007, the department embarked on a series of road
shows to all the regions, meeting our stakeholders, the contractors. The
main
aim was to listen and share information. It was indeed an eye-opening
experience. Not only did they raise concerns and problems but also possible
solutions, which we believe, will assist us to develop policies that will
improve the quality of life of the poor and marginalised. It was also
encouraging to learn from them that the department has improved in terms of
payment on work done. When delivering the State of the Province address on 14
February 2007, the honourable Premier JS Ndebele said: "the economic basis of
the apartheid regime was white economic empowerment by law and black economic
disempowerment by law. The democratic government has therefore identified black
economic empowerment as a means to redress this historic imbalance. When it
comes to the essence of uplifting the social economic profile of society,
no
government can be neutral."
Mr Speaker as a department we cannot be neutral when it comes to Broad Based
Black Economic Empowerment. During the road shows we discovered that the
majority of 2007/08 Budget Speech � Department of Works KwaZulu-Natal black
contractors was at lower grades according to the Construction Industry
Development Board registration. In KwaZulu-Natal there are 5 266
contractors
registered. Out of this 4 119 are on Grade one, which means they can only do
work up to the value of R200 000,00. The question is who then gets the millions
worth of work. In response to this question the department has developed the
Emerging Contractor Development Programme Policy, which will be implemented
this financial year.
On infrastructure delivery on behalf of our client departments, we want to
establish and maintain a healthy relationship. We urge the department to submit
their projects on time so that we can plan well in advance for timeous
delivery. We want to thank the Department of Education for submitting their
2007/08 projects in November 2006, which assisted the department to start
planning. I am pleased to report that planning has been done up to pre-tender
stage. Ideally we will appreciate if projects are submitted to us eight months
before the next financial year.
Mr Speaker when delivering his budget speech, the MEC for Finance and
Economic
Development Honourable, Mkhize, said: 'Infrastructure delivery will remain one
of the key focus areas of this government. We have taken a firm view that we
will not tolerate infrastructure under spending.' As a department we have taken
this statement seriously and commit ourselves to do everything in our power not
to under spend. Mr Speaker inside the bags given to members there is a clock
manufactured in- house, by our staff at Ethekwini region, committing us to
deliver on time. We promise to live up to this commitment.
Achievement and challenges of 2006/07
Mr Speaker, allow me to report on the achievements and challenges of
2006/07.
The department adopted a change agenda, which was aimed at reengineering
the
department. The change agenda highlighted the following:
* transformation of the department into a high performing organisation,
* redesign the department's service delivery model to effectively, efficiently
and timeously meet client expectations,
* development of new partnerships and service delivery agreements with
client
Departments,
* fast tracked development and implementation of a new flagship programme
for
elimination of the classroom backlog,
* development and implementation of a Provincial Fixed Asset Management
System,
* full engagement of the Expanded Public Works Programme.
Scarce skills
One of the challenges that faces the department and which continue to face
the country is scarce skills in the construction sector. These include civil
engineers, architects etc. Responding to this challenge directly, the
department held a scarce skills seminar last year, July 2006. This activity was
executed with a view to develop a comprehensive response to the challenge.
Various options were considered with regards to short term, medium term and
long term solutions. This resulted in the launch of an internship programme
where interns were placed within the department. The recruitment of retired
professionals on a contract basis has also commenced. In 2006, 4 interns were
hosted in the Department and have now successfully been employed outside the
department. We will intensify such initiatives in the new financial year and
ensure that we retain them.
Employment equity
The department functions within particular mandates, like all departments
one of these are the Employment Equity Act. This Act calls for representatively
in the workplace in terms of gender, race and people with disabilities. Our
employment Equity plans have been developed and implemented. Today, Mr Speaker,
the department has 7 women in management from level 13 upwards and 18 women
from level 11 and 12 women in middle management. We also have 34 people with
disabilities employed, however there is a need for improvement.
Abet (Adult Basic and Education Training)
One of the challenges facing the country and the province is adult
illiteracy. The Department of Works also mirrors the issue mostly at the
elementary levels. Therefore the department took a conscious decision to
respond to the issue at hand by providing by an Abet literacy programme for
employees at the lower levels. 507 employees took part in Abet classes. This is
in no way indicative of the staff illiteracy rate in the department, but rather
the levels that staff had progressed to, from Abet level 1 through to Abet
level 4 during the financial year.
In its quest to improve service delivery and a culture of good performance
the
Department continued on with operation 'Shonaphansi' an initiative that gives
an
opportunity to senior management to interact with staff at regional districts
and depots, in order to understand their challenges and give support. A
floating trophy was introduced to encourage and recognise good performance. The
Ethekwini region won the trophy in 2006 for good mid term performance. An
unannounced visit was undertaken at Jozini depot on 4 April 2007 and I was
pleased and encouraged to see staff at 08h00 at work and working. I hope this
culture permeates to other districts depots as well.
Fraud and corruption
The department has adopted a zero tolerance stance to fraud, corruption
and
nepotism. This attitude is supported by the implementation of a fraud
prevention policy. Workshops have been conducted on fraud and corruption
awareness to staff, in both IsiZulu and English. A risk management plan has
been developed and implemented. This resulted in 103 misconduct cases finalised
to ensure promotion of good sound labour relations. Mr Speaker, we will
continue to intensify our efforts on this aspect in our quest for good
governance, compliance and accountability.
Real estate
The department committed itself to develop a fixed asset register by May
2006. This commitment has been realised. We now have a fixed asset register in
place in line with phase I as planned. In 2007/2008 the focus will be on phase
2 of the system. The process of evictions of illegal occupants in Ulundi is
currently in court and the granting of eviction orders for 28 illegal
occupants. The rest have formalised tenancy agreements. The process of evicting
illegal occupants will be extended to other areas this financial year.
Infrastructure delivery 2006/07
Mr Speaker infrastructure delivery is our main core function and we intend
to improve from year to year.
Department of Education
The Department of Works was given 1 676 classrooms and 3 639 toilets to
build in the 2006/2007 financial year. As of 31 March 2007, 1 425 classrooms
and 2 750
toilets were completed. 174 classrooms and 300 toilets are to be completed in
the first quarter of the 2007/08 financial year. Some of these projects were
allocated to the Department of Works between August and September of 2006.
These projects were put on the fast track programme. On the expenditure side
the Department has spent R413 700 153,00 against the allocation of R440 219
813,00 which represent an overall expenditure of 94%.
Department of Health
During the 2006/07 financial year we did not have an Annual Infrastructure
Plan for the Department of Health, however we received the allocation of R492
925 076,00 for projects and an amount R409 134 304,00 was spent which
represents an
expenditure of 83%.
Other departments
The Department of Works did not receive the Annual Infrastructure Plan,
however the department was allocated with R278 726 237,00, an amount of
R220,855,771.00
was spent which represents 79%. The overall 2006/07 allocation received by the
Department of Works was R1 211 781 126,00 and the expenditure was R1 043
692,228,00 which represents an overall percentage of 86%.
In order to ensure effective infrastructure spending in the province, it is
critical that the Department of Works be provided with the annual
infrastructure plan 8 months in advance. This will allow forward planning and
real estate issues to be resolved before construction each year.
Expanded Public Works Programme
One of the critical programmes the department has implemented is the
Expanded
Public Works Programme (EPWP). The department set a target of creating 13 000
jobs in 2006/07 but has exceeded that target as more than 16 000 jobs have
been
created by the end of the financial year.
Mr Speaker R2,5 million was allocated for the training of officials,
contractors and project leaders on the implementation of labour intensive
methods of construction in EPWP projects. This resulted in more than 134
officials being trained on NQF 5 and 7 and 605 contractors trained in NQF 4.
One of the challenges the department is grappling with is the participation of
women
and youth in the construction industry, which historically has been dominated
by men.
The department held Women in Construction conference and Youth in
Construction
conference in 2006 to sensitise and encourage them to participate in
opportunities in the department. The department has awarded work to women to
the value of R178 028 332,19 and youth to value of R104 007 131,83. These
figures are inclusive of supply chain management. Mr Speaker this is an effort
we are making to advance women economic empowerment and to deal with the
challenge of youth unemployment.
Priorities for 2007/2008
Mr Speaker, this financial year we will continue with the transformation
process and place it at the top of our agenda. We will also inculcate a culture
that ensures that, timeous delivery of quality services is not a choice but a
must.
Building capacity
The recruitment of interns will be intensified in an effort to address
scarce skills. Multimedia adverts have been placed; the response has been
positive and encouraging. 14 interns will be identified to participate in the
programme. We will continue to offer bursaries to university students in the
fields of engineering, for the construction sector specifically.
Mr Speaker, the national Department of Public Works is working on the
recruitment of Cuban professionals in the construction sector. We are
optimistic about this initiative and that we will benefit out of it to improve
the current vacancy on a short-term basis.
Asset register
This financial year we will continue with the second phase of the
development and improvement of the fixed asset register. The promotion of
maximum integration with treasury and client departments remains a priority for
improved management. The intention is to have 80% of the provincial
government's properties vested within the financial year. New properties
constructed by other service providers will also be identified and included on
the system.
A geographic information system (GIS) will be developed to map all
properties in line with the Provincial Spatial Economic Development (PSED)
plan. This will facilitate planning on properties in line with the spatial
framework. The national Department of Public Works is in the process of
devolving the payment of government property rates to the provinces. Three
provinces have been identified as pilot sites of which KwaZulu-Natal is among
the three. We are waiting for confirmation.
The KwaZulu�Natal property disposal strategy has been developed and we will
ensure that it, as well as the employee housing policy, be approved by cabinet.
The employee housing policy will assist the provincial government to eliminate
the problem of illegal occupants in government properties. The Ulundi eviction
programme will be evaluated and concluded. Lessons learnt from the Ulundi
eviction process will assist us as we embark on a provincial wide eviction of
illegal occupants in government properties.
Professional services
Due to scarce skills in professional services the department procures
services from outside consultants. Mr Speaker there is a disturbing pattern of
the use of white consultants. On 30 March 2007, we had a meeting with
consultants and
established contractors. When consultants were asked to stand, the majority
were
white males, a few blacks and even fewer women. Some of the black
consultants
present complained that they do not get work from the Department of Works.
Currently there is no register for consultants in line with Construction
Industry Development Board (CIDB). We want to pay special attention
in this area .We are in the process of developing the emerging consultants'
development programme policy.
Construction Industry Development Board (CIDB) outreach centre
Mr Speaker, one of the problems which was constantly raised in the
departmental road shows was access to the Construction Industry Development
Board for registration, as it is based in Pretoria. The department has
successfully negotiated with the CIDB to establish an outreach centre in
KwaZulu-Natal. Currently the centre is under construction at the regional
office in Ethekwini. The centre will be completed by the end of April 2007. The
centre will serve not only contractors and consultants working with the
Department of Works but will also include contractors in the entire
province.
Contractor forums
Mr Speaker, the department has established regional contractor forums as a
platform for communication, information sharing and best practices, we will
ensure that these forums are strengthened and fully functional. This year we
will launch a provincial contractor forum.
Emerging contractor development programme
As I indicated earlier the department will implement an emerging
contractor
development programme as a means of narrowing the gap between emerging
and
established contractors. Mr Speaker, given the departments large spending and
contribution to the construction sector through its contractor engagement, it
follows for the department align itself and contribute towards the
transformation of this sector as determined in the construction
charter. To this end the department has put in place a process to develop
emerging contractors and companies aimed at improving their performance levels
and sustainability through a measurable and focused emerging contractor
development programme.
It is the resolve of the department, in line with its developmental agenda
to develop emerging contractors into viable business enterprises that partake
in the mainstream economy. The programme is aimed at ensuring that contractors
from previously disadvantaged backgrounds are given the opportunity to get into
the construction industry through a managed access to opportunity and mentoring
process for them to ultimately compete openly in the market with other
established companies.
Expanded Public Works Programme (EPWP)
Mr Speaker, the EPWP is one of the main second economy interventions of
government aimed at job creation, empowerment and poverty alleviation. The
honourable Minister of Public Works T Didiza in her budget speech said:
"A
critical component of our mandate is expanded public works programme that
establishes a bridge between the first and second economies enabling job and
skills opportunities, an essential foothold for those historically marginalised
from economic participation." We will intensify this programme, our target is
16 000 jobs for this financial year. We will also look at exit strategies to
ensure a degree of self-reliance and independence. We hope to repeat the same
by exceeding the set targets as we did last year.
National Youth Service (NYS)
Another programme is the National Youth Service as announced by the State
President in the state of the nation address. We will be participating in this
programme. The NYS is one of the sub-programmes of the infrastructure sector of
the Expanded Public Works Programme. The project focuses on the maintenance of
government facilities. The targeted groups are engaged in formal and accredited
skills programme learning consisting of 4 months of theory and 8 months of
practical active participation on a construction site. Towards the end of their
involvement on the construction site they will be capacitated on business
entrepreneurial skills. The programme will also encourage a work culture of
service among the Youth, induce a sense of national pride and patriotism and
encourage a work ethic among young people. The department has targeted 600
youth to participate in the programme. The department is also in the process of
developing a business plan.
Infrastructure delivery 2007/2008
Infrastructure delivery for the Department of Works for this financial year
is as follows:
* Ixopo office park,
* office accommodation for Works head office,
* additional office block for Works district office (Southern region),
* new Nongoma district office (North Coast),
* the department will also ensure that its buildings are disability compliant,
like ramps as the 1st phase,
* the Department of Education has given us all maintenance and renovation
work
to the value of R491 553 211,00,
* planning for other departments will be done when they submit their
infrastructure plans.
Conclusion
In conclusion I would like to express my sincere appreciation and thanks to
Dr FB Madlopha and her team of senior managers, regional managers and the
entire staff for their hard work, support and co-operation. To all members of
the oversight committee, the Public Works portfolio committee for all your
support and for joining us in the road shows, the finance portfolio committee
and
Standing Committee On Public Accounts (SCOPA) for the advice and guidance. We
hope that this year, the cordial relationship will continue.
The staff in my office led by NB Mconywa, for your support and going the
extra mile in ensuring the smooth running of the office.
Mr Speaker it is now my pleasure to present the budget for 2007/ 2008 for
approval as follows:
Programme 1: Administration = R160 958 000,00
Programme 2: Real estate = R13 664 000,00
Programme 3: Provision of building structure = R305 272 000,00
Total: R479 419 000,00
Sithuthukisa imphakathi ngokwakha
Issued by: Department of Public Works, KwaZulu-Natal Provincial
Government
25 April 2007
Source: Department of Public Works, KwaZulu-Natal Provincial Government
(http://www.kznworks.gov.za)
