The Department of Public Works (DPW) was working on a far-reaching initiative to extract greater economic and social value from its large property portfolio (reportedly the single largest property holding in the country), Minister Geoff Doidge has revealed.

Addressing the Construction Industry Development Board's (CIDB's) stakeholder forum in Boksburg, Ekurhuleni, of Friday, Doidge expressed unhappiness with the current management of the portfolio, which comprised more than 200 000 separate immovable assets and included everything from the Union Buildings, through to hospitals, schools, farms and even aircraft hangers.

Similar critiques had been made by several of his predecessors, but Doidge acknowledged that the problem persisted. In some instances, the ownership of some of the assets remained uncertain, despite the creation of an asset register in the late 1990s. In other instances, the department was contributing to the municipal debt burden by failing to honour rates and taxes obligations.

A "turnaround" strategy was being formulated, which would include the possibility of disposing of some of these immovable assets, as well as the creation of public-private partnerships, where such sales would not be possible.

"There is no point in me being the biggest landlord. What am I doing with this huge [government] asset?" Doidge asked rhetorically, before revealing that the department had already initiated discussions with some property practitioners, with the aim of transforming the portfolio into a "money spinner".

"Now, we can't sell the Union Buildings. But we could sell a number of other assets that shouldn't really be on the asset register of government," Doidge said.

A property management trading entity, the creation of which had been requested by the National Treasury three years ago, would be established, while two professional companies would help the department improve its internal systems and financial management.

The DPW recently received a qualified opinion by the Auditor-General (AG), with a failure to account for its immovable and movable assets having been flagged as a particular concern.

"Let us, once and for all, deal with government's immovable assets," Doidge asserted, indicating that it was unacceptable that some schools and offices were having their municipal services cut, owing to nonpayment by DPW.

Cabinet had reportedly given its backing to the department's clean-up campaign and the DPW would work with the AG in a bid to understand the threats and opportunities associated with its portfolio, as well as what the "worst case scenario" could be with regard to abuse and corruption.

"We are also looking for partnerships with the private sector so as to move the process forward as quickly as possible . . . and we intend turning to you [CIDB] members for expert advice," he concluded.