SA on track to complete Assets Register

Thulas Nxesi (Source: GCIS)

Briefing the media on the eve of his budget speech on Tuesday, Nxesi said to establish an Immovable Assets Register, the records of 180,000 land parcels which ascribed custodianship to a responsible department or level of government, were investigated.

He said a physical verification process will start in July and by 31 March 2015 an Immoveable Assets Register was expected to be completed.

However, he said still waiting to be completed was the allocation of custodianship of 4500 land parcels, while about 24,000 land parcels also had to be vested. This process would be rounded off by March 2016.

On track

"My main point: although this is a lengthy exercise, I am very confident that we are on track for the creation of an Assets Register that will - for the first time ever - accurately reflect the state's assets. Let me make a further point: that this is a real game-changer. With a sustainable register of state immoveable assets in place, we will have at our disposal the tools to leverage this massive portfolio for economic development."

The department manages 2788 leased properties in South Africa. All these leases have been reviewed. Of these 1316 needed attention, revision or renewal, while 365 have already been addressed. Recommendations for the remaining 951 leases were expected to be in place by the end of next month.

To jack up its financial management as part of the Clean Audit Project, 64 unemployed commerce graduates have been employed. A further 40 unemployed graduates will also be employed.

"A key area of focus is the reduction of late payment and compliance with the President's injunction to pay suppliers within 30 days. The verification of expenditure - and the highlighting of irregular expenditure - is also a key area of focus of the Clean Audit Project."

Turnaround project

The department had experienced major challenges 18 months ago when it opted for a turnaround project to rebuild the department. A Business Improvement Unit was created to drive this process. The core of this unit is located in the office of the Director-General to ensure that the process is not derailed in the event of the minister being recalled.

The turnaround strategy honed in on five areas, among them were to develop a credible register of state immovable assets, auditing leases, and reducing fraud and corruption.

Working closely with the Special Investigations Unit, the department had investigated a number of irregular leases and projects, with 23 out of a total of 40 investigations completed. Six officials, including a Deputy Director-General, have been axed.

The department was also awaiting the reports of disciplinary hearings involving another Deputy Director-General and a Chief Director.

Following an investigation into the renovations of ministerial houses (called Prestige) in Pretoria, the SIU recommended that officials involved be disciplined which was being done.

On collusion in the department, Nxesi said: "SIU investigations, together with recent findings of the Competition Commission, tell the same story: over-pricing and collusion between some officials and sections of the construction industry - a timely reminder that it takes two to tango, that corruption and greed in the private and public sectors are mutually reinforcing each other."

Prestige projects constituted a major area of collusion and irregular expenditure. Prestige has now been centralized with a direct reporting line to the Director-General. Already two high-priced projects have been cancelled, saving the department R18 million.

Focus shifted to Cape Town

With all Prestige projects now under investigation, the focus has shifted to Cape Town, where about R100 million was spent to renovate 11 ministerial houses.

"Similarly many of the problems surrounding the security upgrade at Nkandla are rooted in the failure of supply management processes, poor management and lack of accountability."

The department has completed its investigation into Nkandla and has referred its findings to the SIU for further investigation. Public Works was also cooperating with the Public Protector, while Parliament was also planning on how to deal with the report, which Nxesi said, was classified.

He said some service providers had to answer some questions, adding that action would be taken against any official if evidence of wrong-doing was uncovered.

Referring to the Expanded Public Works Programme, Nxesi said projects such as building low cost bridges over rivers, were making a real difference to people's lives.