Chairperson and Deputy Chairperson of the NCOP, hon colleague Minister Sexwale - I am the landlord-general and I will put up your rent! - hon Deputy Minister Bogopane-Zulu and hon Deputy Minister Kota, members of the provincial executive councils, hon delegates, hon members, fellow South Africans and ladies and gentlemen, looking back at the past 15 years since the advent of our democracy, we can confidently proclaim that a lot has been done but much more still needs to be done. Our challenge therefore, in the coming years, is to ensure that we maintain the gains we've made in committing ourselves to the values of our founding forebears since the advent of the ANC almost 100 years ago. We dare not fail them.
It was in this spirit last year that I gave an undertaking that the Department of Public Works would be physically and culturally reconfigured to raise the bar in the execution of its mandate and to improve delivery of property development and management. This strategy aims to improve functional efficiencies, inject new performance energy, improve optimal service delivery and enhance organisational excellence. These are tenets upon which our government's strategic outcomes have been rooted, and which we have signed an agreement with the President to carry out.
In the fulfilment of these strategic outcomes, the department welcomes the allocation of R6,4 billion for the financial year 2010-11. In addition, the department will, through the network of its regional office, execute the R2,4 billion on behalf of our client departments, injecting the much-needed capital and stimulating economic activities in various provinces. We have started reconfiguring the network of our regional offices, strengthening our presence in the provinces and making the structure more responsive to service delivery imperatives at the point of contact with the clients.
This is because the department, through its competencies in the construction and property development industries, plays a pivotal role in contributing to the integrated economic growth of the developmental state. In utilising these funds, the department gives effect to accelerating shared growth by continuing to roll out a state-led infrastructure investment programme, and promoting strategic investments in productive activities.
In line with our ethos to raise the bar in service delivery and client relationship, the department has handed over the pristine Civitas Building in central Pretoria to the Department of Health. This is to ensure that they have integrated head office accommodation out of which they will drive policies to improve health services in the country.
It has also handed over the completed Phase One of the renovated Waterkloof Airbase to the Department of Defence for utilisation. Phase Two of the defence project, encompassing the upgrade of taxiways and storm water drainage, is due for completion in May 2010.
In the Northern Cape we have completed the building of the "new generation" prison in Kimberley, and handed over the magistrate's court in Colesburg.
While work has began with the construction of the correctional facility at Tzaneen in Limpopo, our building programme is extensive and more infrastructure-related projects will be delivered in the country, increasing our fixed asset investment in the benefiting provinces.
Inherent in our capital programme will be the accelerated drive to improve access to all state buildings under our care in the country for persons with disabilities. This will align the department's draft policy framework for persons with disabilities, which aims to promote employment equity, social inclusion and economic empowerment with the ethos of a caring nation.
The Expanded Public Works Programme, EPWP, remains our governmentwide poverty alleviation programme through labour-intensive opportunities. Through this implementation of protocols that have been signed with the Premiers and MECs of provinces we will, from Monday 10 May 2010, be embarking on road shows to maintain the momentum in maximising efforts to realise the outcomes of this programme. The contribution of the provinces and local government in the attainment of the EPWP targets is commendable and their continued co-operation will be vital. I wish to call on all the Premiers and MECs to optimise the benefits in the interests of accelerated service delivery.
Contrary to conventional perception, the EPWP is not a "numbers game" but is an essential imperative to promote a people-centred and people-driven development project and programmed delivery service.
The recent handing over of the pilot projects of three bridges in the local municipalities of Intsika Yethu, Port St Johns and Umzimvubu in the Eastern Cape is indicative of a responsive government. They were constructed as a result of the Department of Public Works' funding the project and utilising the specific bridge-making expertise of the Department of Defence and Military Veterans. As a result, schoolchildren and the elderly can now safely cross rivers to get to schools and clinics without risk to life and limb, especially when rivers are flooded.
On the recent visit to EPWP projects I was introduced to men and women who are working selflessly and tirelessly to preserve our precious flora and fauna under the Working on Fire and Working for Water projects of the programme. Some of those beneficiaries are with us today and we commend their courage and diligence.
The department will strive to ensure best use of the existing assets and to balance the ownership and lease portfolio. Furthermore, by 2013, 90% of state land will be vested in accordance with the national vesting plan, developed in consultation with the provincial governments and the Department of Rural Development and Land Reform.
A task team chaired by me, which includes Ministers Nkwinti and Gordhan, the Auditor-General and the Accountant-General, has as its key focus the management of state property. We will be reconvening shortly to consider the technical report from the team headed by the Accountant-General.
The plan to establish the final Amnesty Call Campaign is quite advanced, and the launch of this initiative in this financial year will further encourage those in illegal possession or occupation of state assets to surrender them without having to face prosecution. I invite hon members to join me in the lead to seek, recover and return to the government those assets that were siphoned from the state, particularly during the transition from the Bantustan system. This will help us to bring closure to our asset register enhancement initiative.
Transformation in the property sector in provinces remains a challenge, as the property market remains recalcitrant in the face of transformation, and government has been forced to transact with entities that are empty of transformation and monopolistic in outlook. An intervention is under way currently to sharpen the application of our black economic empowerment property management proposition and the Property Charter, which seek to ensure that we promote real economic transformation in the property sector.
On the matters raised by the Auditor-General in his last report, I'm pleased to announce that the process of cleaning up the Property Management Trading Entity, PMTE, is at an advanced stage. This includes financial systems integration, risk management and a substantial reduction in the debtors' book. The department is also finalising the business case on the establishment of the Property Management Entity, PME, as a strategic measure to improve management of its asset portfolio and enhance the value chain. It is envisaged that the PME will offer professional, seamless and integrated functionality, thus restoring value for money, improving operational efficiencies, offering quality service delivery and achieving client satisfaction.
Ours is a procurement-intensive environment, and the lack of timely payment by government to small, medium and micro enterprises has been raised. This has to stop. The launch of our Re Ya Patala - We Pay - initiative by the department in 2009 has committed us to ensuring the restricted adherence to the 30 days payment policy, as provided for in the Public Finance Management Act, for services rendered. As such, we will continue to monitor that this practice is not breached and reinforce this principle through Minmec.
In helping the country to host the Fifa tournament, the department has co- operated with the hosting cities in the provinces. This is expediting the completion and handover of stadia through undertaking regular technical assessments of the construction projects. This is in addition to the construction regulatory regime that the department established through the Construction Industry Development Board, CIDB, which has enabled construction companies to be timeously and appropriately graded, ensuring that there are minimum comebacks. In addition, we have finalised various cross-border projects, which will have positive spin-offs for local economies.
Public Works is an area of concurrent legislative authority listed in Schedule 4 of the Constitution. Both the provincial legislatures and national Parliament have legislative competence in relation to the matters listed in this Schedule. The concurrence often leads to some confusion in practical terms, and requires a closer study of other constitutional provisions regarding which sphere of government will prevail over another and under what circumstances such prevalence is permissible.
There are vexing issues that we like to discuss, not least the issue of property rates and taxes, which from time to time frustrates the delivery of services and negatively affects the viability of local governments. The present confusion brought by the allocation for and subsequent payment of rates and taxes is a case in point. The devolution of budgets for property rates and taxes to provinces was effected in April 2008. However, we continue to experience challenges around late payments, poor billing systems and processing of invoices, and capacity challenges.
The department is working with the provinces, together with Co-operative Governance and Traditional Affairs, the SA Local Government Association, Salga, and the National Treasury to streamline processes to clear the backlog. Achieving our strategic imperatives demands that the department attracts and retains relevant skills formation. Equally, it requires that the department be properly structured and have proper systems, processes and policies. As part of our turnaround plan we will ensure that critical skills are concentrated in the core business of the department. This is to bring about an agile, responsive and result-driven organisation supported by prudent systems and information technology.
As part of promoting accountability and integrity management, the department has commissioned the services of the Special Investigating Unit. As my colleague has said, it is unfortunate that we as the government have to rely on the services of the Special Investigating Unit to do what we are getting paid to do. But this follows consistent allegations of financial mismanagement, deliberate inefficiencies, escalation of costs, noncompliance with proper supply chain management processes, lack of integrity around the procurement processes, and wasteful and fruitless expenditure in the department. Fraud and corruption remain a cancer that eats away at service delivery. This will not be tolerated and I remain steadfast in rooting out all forms of corruption within the department.
Our public entities must share our vision and become responsive to our developmental agenda. The Independent Development Trust, IDT, as the development agency within the Public Works family, will continue to pursue its developmental model of social infrastructure delivery, in particular in areas that are economically deprived.
In my interaction with emerging contractors, they have raised their concerns and suggestions on some of the registration regulations. I have engaged the CIDB to review some of these regulations in a manner that will progressively benefit emerging contractors.
By the same token, the Council for the Built Environment, CBE, and the professional councils continue to work together to increase the number of university programmes accredited by the professions. The CBE, the six councils and sector stakeholders will continue in the important role they play in enabling the Human Resource Development Strategy in the built environment in an effort to reduce scarce skills shortages.
In the case of Agrment South Africa, the agency will fill an important role by facilitating the introduction, application and use of innovative and nonstandard construction products. It is important for us to finalise an organisational model that will best enable Agrment to significantly increase its delivery capability over the next cycle.
On the legislative front, the Expropriation Bill will be tabled next year. It is currently receiving attention in our department and is co-ordinated with the Department of Rural Development and Land Reform. The joint technical teams are at work and both Ministers will be receiving reports soon. As a department, we are of the view that this legislation is imperative for real economic transformation in our country, more importantly as we move towards the centenary of the Land Act of 1913.
The review of the State Land Disposal Act of 1961 is currently receiving urgent attention. Equally, the review of the department's White Paper is in the pipeline.
As I conclude, I would like to reiterate that as part of reclaiming our mandate, we will have to revisit the resolution that devolved the capital budgets to line departments. We will be engaging with Parliament and the Cabinet on this matter to ensure that proper consultations are done as we seek to improve instruments of efficiency and service delivery.
As hon members are aware, the NCOP occupies a unique position in our constitutional system of governance. This derives from the fact that it is the only institution within this system that straddles all three spheres of our co-operative governance construct - the national, provincial and local. I am certain that the NCOP will rise to this challenge and continue to stand in the front ranks of the institutions in our country, committed to building a people-centred society consistent with the founding visions of our movement.
I wish to thank the Chairperson, the hon Minister of Human Settlements, the Deputy Ministers, the MECs present and all committee members of the select committee, as well as the members of this House, for giving us this opportunity. I thank you. [Applause.]