The Department of Public Works (DPW) is “moving seamlessly” into the second phase of its turnaround strategy, following the completion of the first phase.

“In the first phase, we stabilised the department, leading to improved lease management. We have developed and verified an immovable asset register of State assets, [which allowed] us to leverage this massive portfolio for development, job creation, empowerment and revenue generation to reduce costs of accommodation to government, while providing a tool for investigating fraudulent activity on State assets,” Public Works Minister Thulas Nxesi said in his Budget Vote speech.

He added that the DPW had greatly improved audit outcomes. “Strengthened financial management also includes improved compliance with the requirement to pay creditors within 30 days of receipt of invoices – key to the financial health of small and emerging businesses.”

Further, the Construction Industry Development Board (CIDB) – an entity of the DPW – is publishing for public comment draft regulations designed to encourage prompt payment of contractors, while penalising late payment.

The second phase of the turnaround will focus on efficiency enhancement, to improve the way that Public Works does business. This will be captured in the five strategic priorities for the next five years.

The first priority will see the creation of six-million Expanded Public Works Programme work opportunities, aimed at mitigating the effects of structural unemployment.

The second priority will be the operationalisation of the Property Management Trading Entity (PMTE), which will ringfence, professionally manage, secure, maintain and optimally use the “massive” State property portfolio.

This will build value and bring savings to the State, promote job creation and empowerment and improve service to client departments by better projecting demand and client needs.

Nxesi noted that PMTE targets for 2015/16 included making 100 vacant, unused freehold properties available for redevelopment by black developers, while making 600 surplus freehold properties available to let for revenue through the services of black real estate agents.

The PMTE five-year targets included 75 000 work opportunities created through construction projects; 60% of construction projects allocated to broad-based black economic-empowerment (BBBEE) contractors; 25 000 job opportunities created through maintenance programmes; and 65% of facilities management contracts allocated to BBBEE businesses.

Nxesi added that the third priority was to “jack up” fraud awareness and investigations. The department’s special investigations unit recommended disciplinary action against 41 officials, three of whom had since resigned, while seven were dismissed, seven received final written warnings. Disciplinary actions against the rest of the officials was still in progress.

“The department is also relaunching ‘Operation Bring Back’ to reclaim State properties that have been misappropriated or unlawfully occupied – drawing on unusual land and property transfers identified in the process of compiling the Immovable Asset Register,” Nxesi noted.

“The message is clear: You can run, but you can’t hide,” he added.

The department’s governance, risk and compliance branch also spearheaded the efficiency enhancement phase of the turnaround – using the tools of strategic planning and performance management.

To develop a new Public Works White Paper, which will review the mandate and role of the department, is Nxesi’s fourth priority. This will lead to the development of a Public Works Act by 2017/18.

Nxesi said the country could not be complacent, given that only 25% of registered construction professionals were black. Thus, the department would work towards transformation, to better reflect the demographics of the country and to support black enterprise and skills development.

This would be carried out by aligning sector codes to the revised BBBEE Act of 2013; through the National Contractor Development Programme led by the CIDB; and by including clauses supporting black contractors, supplier and skills development in State contracts.