Sihlalo, ngithanda ukuthatha leli thuba ngibingelele uNgqongqoshe ovela kuMnyango wezemiSebenzi yoMphakathi, abasebenzi boMnyango wezemiSebenzi yoMphakathi, izivakashi ezikhona kanye nabahlonishwa. [Chairperson, I would like to take this opportunity to greet the Minister and the employees from the Department of Public Works, visitors present and hon members.] This speech is on government immovable asset management. This programme is the largest one and is allocated R5,4 billion, which constitutes 67% of the total department allocation of R7,9 billion. It has 12 subprogrammes in it. I will be touching on a few of the subprogrammes.
The first subprogramme is strategic asset investment analysis. This subprogramme is meant to be responsible for the management of an accurate, accessible and comprehensive asset register. I must say that the department is still struggling to complete its verification of all immovable assets.
A national definitive plan was developed in order to finalise the confirmation of ownership of state land in conjunction with the Department of Rural Development and Land Reform and provincial custodians.
I must also mention that provinces are still struggling to complete their asset registers. [Interjections.] As the portfolio committee, we are concerned that since the Government Immovable Asset Management Act, Act No 19 of 2007, is not extended to include the local sphere, where it is believed most of the immovable assets reside, a large proportion of assets is still unaccounted for or not in the national asset register database. It is unclear whether the department lacks capacity in handling verification and regarding the continual requirements to update the national and provincial asset registers. This means that the implementation of the Act itself is not effectively and efficiently co-ordinated.
When doing oversight work as the portfolio committee, we find that there are empty, dilapidated buildings whose ownership is unclear. Some buildings are occupied illegally. Certain people collect rent from the occupants. Most of our inner cities are turned into slum areas because of such buildings. This is where drugs and stolen goods are found, hence we are saying, as a committee, that the Government Immovable Asset Management Act, Act No 19 of 2007, should be extended to local municipalities. It looks like some of our local governments are not capable of handling such buildings. That impacts negatively on the country as a whole.
The department is still faced with the challenge of buildings in the former TBVC states, that is Transkei, Bophuthatswana, Venda and Ciskei. No one is taking care of these buildings. There are also assets situated internationally, and they need to be known to the department. There is no accurate information on such foreign assets. The portfolio committee was briefed that the Department of International Relations and Co-operation was in control of such assets. To us, that sounded as if there was no clear information from the Department of Public Works. They only rely on Dirco. It seems the two departments do not talk to each other. Dirco has no technical competency in foreign countries.
However, Minister, the department's strategic plan target is to ensure a complete and accurate Immovable Asset Register by 31 March 2014. As the committee, we appreciate that. We will continue doing our work, monitoring the progress made on a quarterly basis.
With regard to the vesting of land, some progress has been made by the department, in conjunction with the Department of Rural Development and Land Reform. During the financial year 2011-12, 2 000 hectares of land were released, and the Department of Public Works will continue releasing more land during the MTEF period. This land was released for purposes of human settlement. This means that the poorest of the poor benefited from the land.
We therefore congratulate the Department of Public Works on the number of land parcels vested. The number has increased from 8 388 land parcels vested in 2010-11 to 25 127 land parcels vested in the 2011-12 financial year. We are hoping that by the end of the 2014-15 financial year, the process of land parcels vested shall be finalised, as stated in the annual performance plan.
With regard to the custodian asset management plan, the department has a key role to play in supporting client departments to produce a custodian asset management plan for the continued safeguarding of the interests of the state in respect of immovable assets. We acknowledge the work done by the department to ensure that such assets are effectively and efficiently managed throughout their life cycle and meet the service delivery requirements of users. However, as the portfolio committee we are not satisfied to be told that some of the client departments are not paying their rent. We therefore urge all client departments to do the right thing and pay their rent.
Coming to inner city regeneration, I believe the purpose of the subprogramme is to rejuvenate inner towns and inner cities through the provision of improved physical working environments to national government departments in various inner cities. The project, which was supposed to start in Tshwane, is called "Re Kgabisa Tshwane". I want to point out that we have been briefed since I became a member of the portfolio committee, but there has been no movement. We have also been briefed that the project is to expand to other cities. According to the annual performance plan, the service level agreement was signed with the City of Tshwane in the 2010-11 financial year, in the hope that the department would get moving in this regard.
A memorandum of understanding was concluded with one city during the 2011- 12 financial year. I must point out that as the committee we do not know which city this memorandum of understanding was concluded with. Memoranda of understanding are to be concluded with eight cities during the MTEF period, and we hope that as the committee we will be briefed which cities these are.
Secondly, we will be doing monitoring on a quarterly basis. One of the department's strategic objectives is to promote an enabling environment for the creation of both short and sustainable work opportunities, so as to contribute to the national goals of job creation, poverty alleviation and skills development. The department aims to have created 800 jobs in the construction sector by the 2014-15 financial year, using the construction management methodology. That will promote an enabling environment for the creation of both short and sustainable work opportunities so as to contribute to the national goal of job creation and poverty alleviation.
We hope that those jobs will include women, youth and people living with disabilities. I mention this, Chairperson, because when doing our oversight as a committee, we saw that these sectors of the community are being ignored and are not catered for adequately. In some places there are no facilities for people with disabilities. Thank you, hon Chairperson. [Time expired.] [Applause.]