The Portfolio Committee on Public Works is not pleased with the fact that there are still state properties that are under-utilised while the department’s private sector leasing continues to expand, that was what the Chairperson of the Portfolio Committee of the Department of Public Works, Mr Freddie Adams, who is also the Member of the National Assembly (NA), told NA Members of Parliament (MPs) during the Budget Debate of the Department of Public Works at Parliament today.
“We are equally concerned that the Property Management Trading Entity (PMTE) is leasing out properties at below market rates, there is over-expenditure on maintenance, there is a maintenance backlog, ageing properties, a lack of professional property management skills in specifically the PMTE, a poor lease management system, a large number of bad debtors and a lack of client relations management,” said Mr Adams.
But notwithstanding those challenges, Mr Adams said there are notable achievements of the Turnaround Strategy of the Department of Public Works. He said those achievements include PMTE’s move from a disclaimer to qualified audit opinion, significant progress with regard to PMTE operationalisation and the stabilisation in management and leadership.
He said the department proposes the budget amount of R7.038bn and R6.055bn is earmarked for transfers and subsidies. According to Mr Adams, R960.4m is going to be used for the current payments, including administration and the Expanded Public Works Programme (EPWP).
In supporting the budget, Mr Adams said the transfers are primarily for PMTE, which is responsible for immovable asset management functions including leases. He said the department also makes transfer payments in the form of conditional grants to provinces and municipalities for the implementation of EPWP.
Participating in the same debate, the National Assembly (NA) Member of Parliament (MP) who is the member of the Economic Freedom Fighters, Ms Hlengiwe Hlophe (Maxon), argued that the state should build its internal capacity to construct and maintain infrastructure such as roads, railways and dams and basic services such as schools, houses, hospitals and recreational facilities. She said this will ensure sustainable development and offer South Africans secured jobs. “The Department of Public Works should be at the centre of state led infrastructure development,” said Ms Hlophe.
In rejecting the Budget Vote, Ms Hlengiwe Hlophe (Maxon) said there was a study in 2016 that highlighted that a major challenge with the construction industry is corruption of companies that pay government departments to have their tenders fast-tracked and cartels that limit the existence of healthy competition for tenders. She said the budget doesn’t offer any significant changes to the way Public Works has worked over the past 20 years.
Although the MP of the Inkatha Freedom Party, Mr Khethabala Sithole, said under the leadership of Mr Thulas Nxesi, the Department of Public Works regained some of its dignity, suppliers started getting paid within 30 days and the days of receiving the disclaimers and unqualified audit reports appeared to be over, but his party didn’t support the Budget Vote.
Mr Mncedisi Filtane of the United Democratic Movement also participating in the debate said whereas the Department of Public Works is supposed to play a leading role in the creation of six million job opportunities by 2019, but so far not a single one of its entities has reported the actual creation of sustainable jobs. The jobs that are reported to have been created, according to Mr Filtane, are temporary jobs. “Our support for this Budget Vote is a clarion call on the department to do more in terms of meeting the agreed targets and create more qualitative job opportunities,” said Mr Filtane.
By Mava Lukani
16 May 2017
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