DEPARTMENT OF PUBLIC WORKS PRESENTATION OF 2010 11

DEPARTMENT OF PUBLIC WORKS PRESENTATION OF 2010/11 ANNUAL REPORT TO THE SELECT COMMITTEE ON PUBLIC SERVICES 22 NOVEMBER 2011 PCMS GEN: 383698 1

OUTLINE OF THE PRESENTATION • • Minister’s Foreword Accounting Officer’s Overview Achievement per Programme/ Sub-Programme Financial Performance and Audit Reports for the year ended 31 March 2011 • Update on the process to address asset register challenges • Update on the audit of land for human settlement purposes PCMS GEN: 383698 2

MINISTER’S FOREWORD Planning for the fiscal year 2010/11 was guided by the following government policy priorities: • Poverty alleviation and addressing unemployment • Building the state’s capacity to implement programmes and policies of government • Investment in productive infrastructure • Implementation of government-priority projects Critical attention was paid to the following flagship programmes: • Up-scaling of Expanded Public Works Programme • Enhancement of the Immovable Asset Register • Energy Efficiency • Implementation of the Government Immovable Asset Management Act (GIAMA) • Improvement to the Land Ports of Entry PCMS GEN: 383698 3

MINISTER’S FOREWORD cont… The Annual Report of the Department of Public Works articulates the enormity of the task that confronted the Department in the financial year 2010/11: • Reconfiguring the Department to address the ten priority areas of Government • Strengthening institutional pillars and guidelines for implementation of the Government Immovable Asset Management Act (GIAMA) of 2007. • The Department has made progressive attempts to manage assets of the State (a complex portfolio indeed) evident through – development of Asset Management Plans, – the enhancement of the data integrity of the Asset Register, – the acceleration of unutilized property disposals. PCMS GEN: 383698 4

MINISTER’S FOREWORD cont… Despite the global economic downturn, the Department managed to deliver the following infrastructure projects: • • • Completion of a significant number of police stations and magistrates courts; Completed construction of Golela Land Port of Entry and upgraded Vioolsdrif (Namibia) Lebombo (Mozambique) ahead of the country hosting the 2010 FIFA World Cup tournament. Embassy residences were completed and handed-over in Nigeria, Ethiopia and Lesotho while the Oliver Reginald Tambo Military Development Academy was officially opened and handed over by President Jacob Zuma to the people of Uganda Foundations were laid for memorial structures at Matola in Mozambique as well as in Angola. In collaboration with the Department of Defence, the Department accelerated the construction of community bridges. The eradication of inappropriate school structures across the rural landscape of South Africa. PCMS GEN: 383698 5

ACCOUNTING OFFICER’S OVERVIEW In support of Government national goals, the Department continued to enhance it’s legislative environment through the review of the Expropriation Act, the Built Environment Professions Act s and the process of establishing Agrément South Africa as a juristic person. The Department has prioritised the management of its immovable asset portfolio through: • Enhancement of the Asset Register and vesting of assets in collaboration with DRDLR and Provinces The Department has intensified collaboration with other spheres of government for improved service delivery to communities. This includes: • release of 6327 hectares for land 1031 hectares for human settlement, • the bridge building project together with the Department of Defence for six bridges in the following areas: – – – Nquqhu river crossing. Port St Johns Ntafutufu bridge Daluhlanga bridge in Umzimvubu Municipality Bailey bridge constructed across Lefuku river in Tsomo Macoza pedestrian bridge in King Sabata Dalindyebo Municipality in Umtata Cezu pedestrian bridge in King Sabata Dalindyebo Municipality in Umtata PCMS GEN: 383698 6

ACCOUNTING OFFICER’S OVERVIEW cont… For the year under review the Department undertook many construction and maintenance projects amounting to approximately R 5, 7 billion. The building programme consists of minor projects (3 months) and major projects running over three years with various start and completion dates. Some examples of the projects completed and handed over were the following: • Free State: Newly constructed DPW Regional offices • Limpopo: Nylstroom Prison and Leshego Treatment Centre • North West: Joubertinah Police Station, Klerksdorp • Eastern Cape: Renovations & repairs for Home Affairs, Justice & Royal (Great) Place • Gauteng: Magistrate Courts in Tsakane & Thokoza • Mpumalanga: Magistrate Court in Ekangala • Northern Cape: New Generation Prison & Galeshewe Magistrate Court • Kwa. Zulu – Natal: Renovations & repairs to Chatsworth Police Station Facilities on behalf of Justice were recently completed and handed over at places as diverse as Galeshewe (Kimberley), Colesburg, Pietermaritzburg and Butterworth, amongst others. PCMS GEN: 383698 7

ACHIEVEMENTS PER PROGRAMME / SUB-PROGRAMME PCMS GEN: 383698 8

1. FINANCE AND SUPPLY CHAIN MANAGEMENT Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation Create an efficient, competitive and responsive infrastructure network Implemented action plan for GAAP compliance on PMTE Implemented action plan 70% achievement 44% Target Achieved. Out of the 16 action outputs on the PMTE action plan, only 7 actions were achieved. The outputs not achieved are due to the delays in the acquisition of the financial systems. The system will be acquired once the PMTE data is completed. Improved revenue & debtors management on the PMTE Reduced debtors book 50% reduction 62% Achieved. During the period under review on the reduction of the debtors book - (R 1, 3 billion of the R 2 billion). Collected Revenue 80% collection 97% Achieved. Revenue collected on invoices issued during the period under review. PCMS GEN: 383698 9

1. FINANCE AND SUPPLY CHAIN MANAGEMENT Cont. . Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation Create an efficient, competitive and responsive infrastructure network Improved Internal financial controls Developed policies and procedures (7 policies) 90% implementation 80% Achieved. During the period under review, Seven (7) policies developed/reviewed for implementation, namely: • Petty cash, • Irregular expenditure, • Unauthorized expenditure, • Fruitless expenditure, • Corporate Credit card, • Movable assets policy, • Travel & cellular phone • Logis user manual management. The Debt management compliance checklist, PFMA Year end process (accruals/ commitments) drafted. PCMS GEN: 383698 10

1. FINANCE AND SUPPLY CHAIN MANAGEMENT Cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Create an efficient, competitive and responsive infrastructure network Improved management of movable assets credible Asset Register 90% compliance by 31 March 2011 90% Achieved. The movable asset register is compliant Improved Payments of invoices Payment register 80% 66. 7% Achieved. Reasons for deviation Non compliance and late submission of invoices PCMS GEN: 383698 11

1. FINANCE AND SUPPLY CHAIN MANAGEMENT Cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Create an efficient, competitive and responsive infrastructure network Improved Supply Chain Management Compliance with SLA - contract awarded to HDI (BEE) above R 100 000 80% compliance 82. 69% Achieved. (a) Number of contracts awarded to HDI (BEE) Companies = 1080. Value of contracts awarded to HDIs = R 471 432 657. 35 (b) Number of contracts awarded to Non HDIs = 224. Value of contacts awarded to Non-HDIs = R 131 336 941. 25 Compliance with SLA - contract awarded to HDI (BEE) above R 100 000 80% compliance Reasons for deviation Credible DPW Suppliers Accredited 607 application forms of the 3749. Total of 4330 suppliers received application forms. Total accreditation of suppliers = 16. 19%. PCMS GEN: 383698 12

2. CORPORATE SERVICES Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation An efficient, effective and Developmentoriented public service and an empowered, fair and inclusive citizenship Enabling IT systems to support core operational areas Functional IT systems headlined by: I-E Works 100% implementati on 50% Achieved SCOA: The challenges are with business rules governing matching fields per payment types. DATA MIGRATION: The structural differences between the two databases. EPWP-Web Based System 100% implementation achieved. Virtual Private Network VPN project is 100% complete and is in operation. Video. Conferencing 100% implementation complete between AVN and Cape Town. Business Intelligence System (SAS) 100% implementation of BAS and EPWP, 75% interface to IEWorks. PCMS GEN: 383698 13

2. CORPORATE SERVICES cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation An efficient, effective and Developmentoriented public service and an empowered, fair and inclusive citizenship Human Resources Management Plan Reduced vacancy rate Vacancy 10% of the establishment. 20. 68% vacancy (536 filled of the total establishment) Only critical vacant and funded positions were prioritised for filling Creation of new positions PCMS GEN: 383698 14

2. CORPORATE SERVICES cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation An efficient, effective and Developmentoriented public service and an empowered, fair and inclusive citizenship Compliance with National Intelligence Agency Requirements Number of employees vetted 180 employees per year 78 employees were vetted thirty six (36) Secret Clearances, thirteen (13) Top Secret and twenty nine (29) Confidential). NIA’s internal processes. Number of companies vetted 1000 companies per year 413 companies were cleared and incorporated into the database. Dependency on the client (projects) to provide requests for clearance for service providers. Employment statistics for the disabled people 1% of staff establishment 1. 15% Achieved. Total employed is 56 (1. 15%) –out of staff complement Skill transfer programmes linked to international agreements 200 beneficiaries 450 beneficiaries received critical skills from 91 Cuban Technical advisors Implement the new Disability Strategy Transfer critical skills courtesy of international bilateral & agreements (CTAs PCMS GEN: 383698 ). 15

2. CORPORATE SERVICES cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation An efficient, effective and Developmentoriented public service and an empowered, fair and inclusive citizenship Provide legal expertise & advice that offers compliance Reduction in backlog of legal cases 30% reduction 15% Achieved. Depend upon Court processes Litigation Cases cumulatively: 878 Actual cases : 294 Finalised : 45 Pending : 188 New matters : 61 100% Achieved. Total no. of Contract Admin cases handled: 1426 Drafted : 232 Commented: 145 Signed: 920 Amended : 48 Guarantees released: 32 Guarantees received: 48 100% Achieved. Total legal advisory Services: 510 Oral : 263 Written: 247 PCMS GEN: 383698 16

3. INTERNAL AUDIT Outcome Output Performance Indicator Target 2010/11 Progress Report Create efficient, competitive and responsive infrastructure network Improved compliance with all prescripts Audit reports Functional Audit Committees 80% compliance 92% Achieved; • 100% Risk Assessment, • 100% Audit Committee meetings • 76% Implementation of Audit Plan. PCMS GEN: 383698 Reasons for deviation 17

4. STRATEGIC MANAGEMENT UNIT Outcome Output Performance Indicator Target 2010/11 Progress Report Create efficient, competitive and responsive infrastructure network Integrated Risk Management Strategy/Policy Approved strategy/ policy 60% compliance 60% Achieved: • Enterprise Risk Management Strategy approved • All risk registers cleaned up in preparation for 2011/12 risk assessment • High risk registers have been reviewed and updated PCMS GEN: 383698 Reasons for deviation 18

5. MONITORING & EVALUATION Outcome Output Performance Indicator Target 2010/11 Progress Report Skilled and capable workforce to support an inclusive growth path M&E policy formulation and implementation (guided by the implementation of the M&E Green Paper) M&E Framework/ Policy M&E Policy/ Framework 100% Achieved, : • M&E policy developed – currently undergoing internal consultation Policy implementation 30% Quarterly performance reports submitted to relevant structures. Development and implementation of an M&E Framework Compliance with M&E policy 80% Achieved: Consultative workshops held to ensure: (a) alignment to the reporting template (b) qualitative and quantitative verification (c) submission of Portfolio of Evidence (Po. Es). PCMS GEN: 383698 Reasons for deviation 19

6. INTERGOVERNMENTAL RELATIONS Outcome Output Performance Indicator Target 2010/11 Progress Report Efficient and development oriented public service and empowering, fair citizenship. Improved, sound relations with spheres of government and entities through relevant intergovernmental structures Scheduled intergovernmental and other related structures 100% compliance with prescripts (8 meetings coordinated per annum – 2 per quarter) 32 intergovernmental and other related meetings coordinated : • 8 public participation imbizos, • 24 Parliamentary meetings, • 5 oversight visits Manage entities Reasons for deviation 8 Meetings facilitated between the Minister and entities, Appointment of Board members for CBE, Agrement SA and CIDB concluded PCMS GEN: 383698 20

7. ASSET INVESTMENT MANAGEMENT Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation Create efficient, competitive and responsive infrastructure network Accurate and complete information on immovable assets in the Asset Register (Land = 35 746 Structures (on property level) = 72 816. Total = 108 562) as at October 2009 AR fields populated with essential information 90% populated 97 705 properties 82% of the Asset Register fields populated. Improvements for essential Information concentrated on properties confirmed as National Properties. *AR fields populated with supplementary information 10% populated 10 856 properties Not achieved Project on Supplementary info put on hold until essential is completed. Priority on AG findings (minimum requirements) Approved & Implemented National Vesting plan 100% completed plan 100% achieved Vested State land 55% 19 660 land parcels 35% of land parcels vested Approved Amnesty Call Strategy and Campaign 100% completed strategy 100% Achieved In process of aligning Dept Rural Dev & Land Reform statistics to DPW Asset Register PCMS GEN: 383698 21

7. ASSET INVESTMENT MANAGEMENT cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Create efficient, competitive and responsive infrastructure network User Asset Management templates 1 – 12 Populated templates for 27 National Depts & 7 Entities 90% complete 90% Achieved: • 34 User Asset Management Plan templates completed for 2010/11. Prioritised and funded projects identified in collaboration with Clients. Implementation Programmes (CWIP, PMIP) 100% approved and signed off 100% Achieved: • implementation programme for 2011/12 signed by all client depts Draft a& finalised Service Level Agreements (SLA) & Service Delivery Standards (SDS) Signed SLA by users Signed SLA 16 out of 34 SLAs signed with users. Client request on amendment of the SLA caused delays in signing Well managed immovable assets in line with Property Portfolio strategies Approved portfolio strategies Property portfolio strategies developed (70%) 59% Achieved on Property Portfolio Strategies development. Inadequate resources Effective C-AMPS that address User Requirements (U-AMPS) Approved C-AMP document for each Department User Departments have C-AMPs in place (70%). 45 % of C-AMPS developed Inadequate resources PCMS GEN: 383698 Reasons for deviation 22

7. ASSET INVESTMENT MANAGEMENT cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Create efficient, competitive and responsive infrastructure network Developed strategies to increase revenue on superfluous but not redundant State assets Approved and implemented revenue generating strategy. Revenue increase on leased out State owned properties (10 %). Investment strategy completed and undergoing internal consultation. Well implemented special AIM programs (Energy efficiency, Water efficiency, Accessibility to State buildings and Rehabilitation program). Reduced energy consumption 3% reduction on kilowatts hour used on State owned buildings (37 180 KW/H) 206 134 499 kilowatts (kw/h) reduced. Reduced water consumption. 2% reduction on kilolitres consumed on State buildings. 10% Achieved on the reduction of water consumption during the period under review. Accessible buildings to people with disability. 64 Buildings identified and made accessible. 121 buildings were made accessible. Rehabilitated buildings Buildings identified for the implementation of rehabilitation programme within MTEF (64) 7 out of 64 buildings were completed during the period under review. PCMS GEN: 383698 Reasons for deviation 23

7. ASSET INVESTMENT MANAGEMENT cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation Create efficient, competitive and responsive infrastructure network Developed disposal program Approved disposal program b. Facilitate disposal of properties for commercial purposes (30). Foreign properties identified for disposal (20). 6 properties were disposed during the period under review, while 7 properties identified for disposal. Subject to release of approvals by DIRCO 14 properties approved for disposal by Minister for commercial purposes. 25 properties in the process of approval Effective release of land for land reform purpose Letters of release of land to Regional Land Claims Commissioners Properties to be disposed for land reform purposes (55). 34 out of 55 properties were disposed for land reform purposes Effective release of land for housing and agricultural purposes or any other socioeconomic objectives. MOUs signed with Human Settlement, Agriculture, etc List of properties sent to relevant Departments. 1 000 hectares of land parcels 1031 hectares of land were released for human settlement purposes PCMS GEN: 383698 21 properties are in the process of being approved. 24

7. ASSET INVESTMENT MANAGEMENT cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Create efficient, competitive and responsive infrastructure network Analyses informing immovable asset portfolio, property and project investments Completed and approved analyses with recommendations on investment for the DPW immovable asset portfolio List of identified possibilities of Portfolio segmentation for analysis 50% completion of annual requests for analysis of immovable asset portfolio per segments A consolidated list has been completed. 96% of Annual requests completed. Completed and approved analyses and recommendations on investment for the DPW unutilised, non-project related immovable properties 50% completion of annual requests for analysis of unutilised, non-project related assets 65% of Property analysis completed Completed and approved analyses and recommendations on investment options for DPW immovable asset projects 80% completion of annual requests for project investment analysis 76% of Project investment analysis completed. Reasons for deviation Inadequate resources. PCMS GEN: 383698 25

7. ASSET INVESTMENT MANAGEMENT cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation Create efficient, competitive and responsive infrastructure network Valuation of immovable asset portfolio and properties Completed and approved valuation of the DPW immovable asset portfolio in compliance with accounting requirements 80% immovable assets in the portfolio valued The principle of value benchmark has been agreed with all parties concerned as R 1 plus improvements. Proposed Accounting Valuation methodology is in discussion with relevant authorities. Approved market valuations of immovable asset properties 50% completion of requests for immovable property market 86% of requests for new market valuations have been completed. Successful negotiation with local authorities on municipal valuations Compilation of a calendar tracking municipal valuations The calendar tracking for municipal valuations was compiled. 50% annual municipal valuation calendar appraised and negotiated. Target not achieved during the period under review. PCMS GEN: 383698 Inadequate resources to process and contest municipal valuations. 26

8. INNER CITY REGENERATION, PROJECT MANAGEMENT & PROFESSIONAL SERVICES Outcome Output Performance Indicator Target 2010/11 Progress Report An efficient, competitive and responsive economic infrastructure network Toolkit for design & Technical solutions informed by policy position papers. Reviewed and updated norms and standards for Departmental Infrastructure. 50% review of current norms and Standards. 50% of current norms and standards reviewed. Revitalisation and development of ICR - rural towns to serve as service centres for rural Economies. Feasibility studies and projects on all prioritised towns, sites and projects. Feasibility studies on 5 prioritised towns / sites Preliminary workplan approach for development of smaller centres compiled: • Mthatha • Modjadji • Kokstad • Mount Frere Limited human resources focused on Tshwane. Revitalisation of the Capital City. Precinct planning for Pretoria prioritising Salvokop. The development of the precinct plan project for Pretoria Inner City, and the completion of Salvokop precinct. Precinct Master Plan in operational phase following the signing of SLA with the City of Tshwane on the 2 February 2011 and subsequent appointment of a consortium by the City in collaboration with DPW. Complex open tender adjudication processes. PCMS GEN: 383698 Reasons for deviation 27

8. INNER CITY REGENERATION, PROJECT MANAGEMENT & PROFESSIONAL SERVICES Cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation Maximise utilisation of State properties within Major cities Partnerships and Mo. U’s with Metro’s to improve or to find alternative utilisation of identified facilities in line with inner city rejuvenation. Agreements with 3 cities. Not Achieved : • SLA & related Addendum between the Department & City of Tshwane signed by both parties on 2 Feb 2011 and 11 March 2011, respectively. Focus on Tshwane Inner City as a pilot. Construction of Capital Projects. Completion of capital and refurbishment projects in accordance with the Capital Works Implementation Program. 80% completion of projects within time, cost and Quality. 79% Achieved; Capital projects targeted: 342: Capital projects on: • Construction – 72 • Practical Completion Stage – 72 • Final Delivery Stage – 91 • Projects Closed – 107. Delays due to site clearance processes and Environmental Impact Assessment (EIA) studies required for new developments. PCMS GEN: 383698 28

8. INNER CITY REGENERATION, PROJECT MANAGEMENT & PROFESSIONAL SERVICES Cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation An efficient, competitive and responsible economic infrastructure Network. Construction of Maintenance Projects. Completion of maintenance projects in accordance with the Planned Maintenance Implementation Plan. 80% completion of projects within time, cost and Quality. 59% Achieved; Total projects targeted - 133 Planned Maintenance Projects on • Construction – 55 • Practical Completion Stage – 36 • Final Delivery Stage – 30 • Projects Closed – 12 Multi year nature of projects. PCMS GEN: 383698 29

9. SPECIAL PROJECTS Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation An efficient, competitive and responsible economic infrastructure Network. Construction of bulk earthworks for PAP. Completed Earthworks. 99% Project has been deferred Process for Environmental Impact Assessment has been re-started due to discovery of a wetland. Decent employment through inclusive economic growth. Built and upgrade 2010 stadia at host Cities. Safe infrastructure as per the building Regulations 100% safe and functional stadia before June 2010 Projects completed and handed over in Q 1 Built, upgrade and maintained border Posts. Improved operational areas at the border 100% functional border post Progress on Border Posts: • Golela: 100% complete; • Skilpadhek: 65% complete and operational for 2010 purposes • Lebombo: phase 1 completed PCMS GEN: 383698 Delays due to performance challenges of contractors. Contractors terminated in January 2011. New contractors will complete work in August 2011. 30

10. REGIONAL OPERATIONS MANAGEMENT Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation To create an efficient, competitive and responsive economic infrastructure network Capital projects Completion of capital and refurbishment projects in accordance with the Capital Works implementation Program. 80% completion of projects within time, cost and Quality. Cumulative expenditure at 92%; 732 projects on construction Stage; 99 projects completed; 255 projects retention period. Completed; Final accounts for 72 project paid off. Delays due to site clearance processes and Environmental Impact Assessment (EIA) studies required for new developments. Maintenance projects Completion of maintenance projects in accordance with the planned maintenance implementation Plan. 80% completion of projects within time, cost and Quality. 100% cumulative expenditure; 29% completion of maintenance projects; 298 projects on construction; 119 projects completed. Final accounts for 15 projects completed. PCMS GEN: 383698 31

10. REGIONAL OPERATIONS MANAGEMENT Cont… Outcome Output Performance Indicator Target 2010/11 Progress Report To create an efficient, competitive and responsive economic infrastructure network Procured leased accommodation and state owned accommodation. Conclusion of new leases, renewals and management of existing leases in accordance with the leasing implementation Programme. 80% of leases managed within time, costs and Prescripts. Total no. of leases= 2985 of 3029 • 44 terminated from the system). Renewals/management of existing leases: • 507 expire in 18 months • 818 expire beyond 18 months • 813 expire in 6 months • 702 expire in 12 months • 145 expired by end March 2011 Cumulative expenditure = R 2 729 373 689 (100%). PCMS GEN: 383698 Reasons for deviation 32

10. REGIONAL OPERATIONS MANAGEMENT Cont… Outcome Output Performance Indicator Target 2010/11 Progress Report To create an efficient, competitive and responsive economic infrastructure network Property and facilities management and maintenance projects Letting, Cleaning, Day-to-Day Maintenance, utilisation, Condition Assessment, Asset Register updating and provision of Security in accordance with prescripts and contractual Obligations. 70% of prescripts requirements and contractual obligations met. Total number of projects managed = 593. Cleaning and Garden Services = 557 Day-to-Day maintenance ± 4, 950 PCMS GEN: 383698 Reasons for deviation 593 projects managed. The Department attended to 25 365 unplanned maintenance calls. 33

11. EXPANDED PUBLIC WORKS PROGRAMME Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation 4. 5 M work opportunities created for poor and unemployed by 2014 Number of work opportunities created per annum in EPWP Programmes Work opportunities and FTE 642 000 work opportunities and 260 000 full time Equivalents. 626 935 work opportunities were created. 203 690 full time equivalents Validations of work opportunities were still underway. Overall participation targets Annual Designated Group Targets: At least 55% of workers are women At least 40% of the workers are youth At least 2% of workers are People With Disabilities 62% women 51% are youth 0. 45% people with disabilities Project description inconsistent with the target group. Wage incentive disbursed to qualifying bodies Percentage of wage incentive disbursed 65% disbursement 59% of the incentive has been accessed. Public Bodies are under reporting on EPWP as well as not implementing their projects labourintensively PCMS GEN: 383698 34

12. CONSTRUCTION & PROPERTY POLICY REGULATION Outcome Output Performance Indicator Target 2010/11 Progress Report Efficient and effective Development oriented Public Service and an empowered, fair and inclusive citizenship. GIAMA life-cycle Asset Management policies Life-cycle property management policies developed/ aligned to GIAMA 50% development/ alignment of policies • Planning, • Acquisition, • Maintenance, • Disposal, • Outdoor Advertising, • Leasing • Letting for Commercial Purposes and • Demolition. 50% Target achieved. Framework and plan of action for roll-out of GIAMA to Local Government. Approved framework and Plan of Action. 50% of plan of action implemented A framework and an action plan developed and undergoing consultation. PCMS GEN: 383698 Reasons for deviation Extensive engagement of Internal and external stakeholders (COGTA, NT) on the best approach towards extension of GIAMA to local government. 35

12. CONSTRUCTION & PROPERTY POLICY REGULATION Cont… Outcome Output Performance Indicator Target 2010/11 Progress Report Reasons for deviation Efficient and effective Development oriented Public Service and an empowered, fair and inclusive citizenship. Legislative Review/ development to ensure relevance and optimal contribution to national goals. Agrément SA and Expropriation Bills submitted to Parliament and Expropriation Act. Tabling of Agrément SA Bill to Parliament The business case for the establishment of Agrèment SA as an National Public Entity in terms of the PFMA has been developed for submission to National Treasury for approval Consultation with stakeholders took longer than anticipated DPW’s contribution to the transformation of the Construction and Property Sectors Plans to roll-out implementation of Construction and Property Charters to other spheres of government 50% rollout Gazetting of Property Charter as a ‘code of good practice’. Application to gazette the Property Charter as a ‘code of good practice’ (in terms of section 9 of the BBBEE Act, 2003) submitted to Minister of Trade & Industry for approval. PCMS GEN: 383698 36

FINANCIAL PERFORMANCE AND AUDIT REPORTS FOR THE YEAR ENDED 31 MARCH 2011

Financial Performance – Economic Classification Current Financial Year (2010/11) Economic Classification Compensation of Employees Goods & Services Interest and Rent on land Payments for Financial Assets Transfers & Subsidies Payment for Capital Assets TOTAL Final Budget Allocated R’ 000 Expenditure % Spent Previous Financial Year (2009/10) Under – Final Budget Expenditure % expenditure Allocated Spent R’ 000 1 112 717 1 089 693 98% 23 024 988 148 976 101 99% 883 003 819 046 92% 63 957 899 933 894 397 99% 8 848 100% 0 2 962 100% 54 836 100% 0 40 341 100% 3 788 130 3 302 542 87% 485 588 2 607 897 2 478 372 95% 1 517 263 1 340 569 88% 172 140 1 509 849 1 295 976 85% 7 364 797 6 615 534 90% 749 263 6 049 130 5 688 149 94% PCMS GEN: 383698 38

Financial Performance Report 2010/11 2009/10 2010/11 Budget Prog 1. Administration Expenditure Exp % Budget Expenditure Exp % R'000 % 679, 45 5 679, 455 Prog 2. Immovable asset management 5, 203, 72 2 4, 968, 520 Prog 3. Expanded public works programme 1, 415, 78 3 Prog 4. Property and construction industry policy regulation Prog 5. Auxiliary and associated services Subtotal 914, 940 100% 774, 2 28 773, 429 100% 96% 4, 480, 6 25 4, 265, 082 95% 65% 715, 7 22 584, 042 82% 39, 02 1 38, 0 28, 029 72% 31 26, 81 6 68% 39, 600 98% 40, 5 24, 139 7, 364, 79 7 6, 615, 534 PCMS GEN: 383698 25, 996 90% 24 6, 049, 130 5, 688, 149 94% 39

Analysis of the under-spending Compensation of employees: • The under spending of R 23, 024 million is due to additional funds reprioritized for the filling of vacant posts. During the third quarter of the financial year the Department commenced with a high recruitment drive aimed at filling all the funded vacant posts. • The lag period between the interviews, appointment letters and the assumption of duty usually averages two months. Consequently for some of the appointments made in February and March, assumption of duty took place in the new financial year. Goods & Services: • The savings of R 63, 957 million under goods and services relates to commitments under the energy efficiency programme with the IDT. A roll over amount of R 40, 9 million has been requested. PCMS GEN: 383698 40

Analysis of the under-spending cont. Capital and Infrastructure: • Under spending of R 120, 109 million for infrastructure relates to funds committed through the IDT as an implementing agent for the transformation of mud schools. A rollover amount has been requested for the committed amount. Machinery & Equipment: • The under spending of R 56 585 million largely relates to furniture and IT equipment which was planned for DPW’s new premises at the CGO building. Due to some incomplete construction work and interior design work, the move was deferred to the second quarter of the new financial year. Transfers & Subsidies: • The under spending of R 485, 588 million by EPWP is largely attributable to the slow reporting of EPWP work opportunities created by municipalities and provinces. Payments for financial assets: • The expenditure of R 54. 8 million relates to amounts written off against savings from current payments. PCMS GEN: 383698 41

Virements Pr 1 Pr 3 Pr 4 R’ 000 Pr 5 Total R’ 000 (13 810) 39 521 13 810 (41 550) 1 752 13 533 1 800 8 778 12 50 111 268 (9 793) 4 285 (8 982) 1 015 (63 327) 8 982 (8 982) (2 068) 265 -51 277 0 R’ 000 Compensation of employees Goods and services Interest and rent Transfers and subsidies Capital assets Financial assets Total Pr 2 Programme 1 was increased by R 50 million to offset over spending in goods and services, transfers and capital payments. Programme 2 was increased by R 4, 2 million to offset current payments (goods and services). The amount of R 4, 2 million was the net effect of R 13, 8 million virement of current payments from Programme 3 and R 9, 8 million to Programme 1 and 3 for machinery and equipment and virement from Programme 5 for transfers and subsidies. PCMS GEN: 383698 42

Virements cont. • Programme Three was reduced by R 63, 3 million to offset goods and services in programme One and Two, and transfers and subsidies in programme Four. The R 63, 3 million is the net effect of current payment of R 55, 4 million, R 8, 9 million of transfers and subsidies to programme One and Five for current payments and programme four for transfers and subsidies. R 1 million virement for machinery and equipment from programme Two. • Programme Four was increased by R 8, 9 million to offset over spending under transfers and subsidies. • Programme Five was reduced by R 51, 000 to offset overspending of transfers and subsidies in programme One and Two. The R 51 000 is the net effect of R 2, 017 million for current payments from programme Two and R 2, 068 million to programme One and Two. PCMS GEN: 383698 43

DPW Audit Report PCMS GEN: 383698 44

Basis of the disclaimer on the Audit Report Immovable Asset Register • I was unable to obtain sufficient and appropriate audit evidence to satisfy myself as to the completeness, existence, rights, valuation and allocation of properties recorded in the immovable asset register of the Department stated at R 3 498 747 000 in note 34 to the financial statements. • As disclosed in note 34 to the financial statements, the corresponding figure for immovable assets has been reduced by R 6 091 920 000 in order to address a prior year misstatement. No supporting documentation was available for the restatement. Consequently, I was unable to obtain sufficient appropriate audit evidence to satisfy myself as to the existence, completeness, valuation and allocation of, and rights pertaining to, the restated immovable assets corresponding figure of R 2 238 000. PCMS GEN: 383698 45

Basis of the disclaimer on the Audit Report • Management Response The Department downloaded all construction projects which were completed between 1 April 1999 to 31 March 2011 from WCS system and the same was done for purchases for the same period. This information was captured on an excel template. At the same time the regions continued to populate information on vested properties and also correcting the Title deeds numbers, Erf number, etc. The exercise was completed after submission of the AFS including the population of information gathered into the PMIS. This led to the challenges of providing reconciliations to the AG and also validating the information captured by the regions. We have now appointed a service provider who will assist the Department in conducting a more comprehensive analysis of the register and then determining the scope of work for completing of the asset register. The appointed service provider will act as a Programme Manager for the comprehensive enhancement of the asset register. PCMS GEN: 383698 46

Basis of the disclaimer on the Audit Report cont. Irregular Expenditure (17, 948 million) • Payments amounting to R 16 552 542 were made in contravention of the supply chain management requirements. The amount was not included in irregular expenditure relating to the current year, disclosed at R 1 396 000 in note 26 to the financial statements, resulting in irregular expenditure being understated by an estimated R 153 025 890. Management Response • While the Department agreed with some of the findings, there a number of cases where we are not in agreement with the findings of the AG. We are currently compiling a comprehensive report on each of the disputed amounts for further discussions with the Auditor General and National Treasury. • Measures were put in place during the year to detect and proactively prevent the irregular expenditure however, some of the issues discovered by the AG which we are in agreement with shows that there was gross negligence and deliberate transgression of policies. • All cases are currently being assessed to enable speedy identification of root causes and responsible people. We are now in a better position to deal with the responsible officials decisively as controls were put in place in the previous financial year. • PCMS GEN: 383698 47

Basis of the disclaimer on the Audit Report cont. Other expenditure Estimated value = R 154 648 753 • • Documents supporting the above could not be accessed by the AG as they are still with the SIU. This amount was then extrapolated to the total goods and services budget of R 819 million and the capital budget of R 1. 3 billion. Management Response: • The Department disputes the manner in which it was raised to a disclaimer. PCMS GEN: 383698 48

Basis of the disclaimer on the Audit Report cont. Lease Commitment • The Department erroneously did not include operating lease commitments in the prior year financial statements, hence the corresponding figure for operating lease commitments has been restated by R 115 039 000 in order to address the prior year misstatement. No supporting documentation was available for the restatement. Consequently, I was unable to obtain sufficient appropriate audit evidence to satisfy myself as to the obligation, valuation and classification of the operating lease commitments corresponding figure of R 115 039 000 as disclosed in note 24. 1 to the financial statements. Management Response • The schedule was available but not submitted on time to the AG. The CFO has issued a warning letter to the Director responsible for the error. PCMS GEN: 383698 49

Basis of the disclaimer on the Audit Report cont. Contingent liabilities & Assets • The Departmental Financial Reporting Framework Guide, Chapter 8, section 29. 1 stipulates that civil claims against the state must be disclosed as contingent liabilities at the most likely amount that the court will settle on. The Department however did not perform any assessment as to the most likely settlement amounts, therefore the valuation of claims against the Department of R 29 395 000, disclosed in note 20 to the financial statements, could not be confirmed. • Unconfirmed balances to the value of R 3, 6 million were not included in the disclosure note resulting in the contingent liabilities being understated. Management Response We are currently developing systems and processes relating to contingent liabilities. The circular will outline: • Validation of cases • Separation of contractual obligations • Methodology for assessing litigation cases • Reporting at Regional and Head Office level • Separation of PMTE and DPW cases PCMS GEN: 383698 50

Basis of the disclaimer on the Audit Report cont. Public Private Partnership • The Departmental Financial Reporting Framework Guide, Chapter 8, section 39 stipulates that amongst others, the Department must disclose all current and capital expenditure relating to the PPP arrangement in the disclosure notes. Furthermore, the guidance states that Departments must take care to provide information about all obligations they might have in terms of these agreements. • As disclosed in note 30 to the financial statements the Department is participating in a PPP for the lease of vehicles. However neither lease expenditure nor lease commitments has been included in the disclosure note. Management Response • The schedule was available but not submitted on time to the AG. The CFO has issued a warning letter to the Director responsible for the error. PCMS GEN: 383698 51

Emphasis of Matters Material Losses Amounts written off: R 2, 369 million Duplicate Warrant Vouchers issued between the period 1996 - 1999. The amounts were written off on the basis that the actual documents are missing and the debts are irrecoverable. . . AUDIT 2011JOBURG OFFICE WRITE OFFS OF WARRANT VOUCHERS. xls Amount written off: R 48, 20 million This amount relates to transactions which happened between the period 1999 - 2004. Extensive reconciliations were conducted with the support of the Sizwe Ntsaluba consultants. The Department used to have an account called “No Projects”. This account was used mainly for capital projects, and any other transaction that could not be accounted for properly. . . AUDIT 2011Copy of Consolidated Khathu-write off-No project. xls PCMS GEN: 383698 52

Report on other legal and Regulatory Requirements Predetermined Objectives: Usefulness of information • The reported performance information was deficient in respect of the following criteria: – Consistency: The reported objectives, indicators and targets are not consistent with the approved strategic plan. – Measurability: The indicators are not well defined and verifiable, and targets are not specific and measurable. Reliability of information • The reported performance information was deficient in respect of the following criteria: – Validity: The reported performance did not occur and does not pertain to the entity. – Accuracy: The amounts, numbers and other data relating to reported actual performance have not been recorded and reported appropriately. – Completeness: All actual results and events that should have been recorded have not been included in the reported performance information Management Action Plan: 1. Capacitation and refocusing of the M&E unit 2. Improved quarterly reporting 3. Enforcing Accountability and Responsibility 4. Enhance Internal Auditing of performance information PCMS GEN: 383698 53

PMTE Annual Report PCMS GEN: 383698 54

Statement of Financial Position 2011 Assets 2010 2009 R’ 000 Current Assets Trade & Other Receivables 2 035 134 2 238 045 2 073 435 2 158 8 997 6 567 2 037 292 2 247 042 2 080 002 (404 674) (363 339) (188 470) Trade & Other Payables 1 187 203 934 936 722 197 Bank Overdraft 1 254 763 1 675 445 1 546 275 Total Accumulated Funds & Liabilities 2 037 292 2 247 042 2 080 002 Cash & Cash Equivalents Accumulated loss Liabilities Current Liabilities PCMS GEN: 383698 55

Note 3 - Trade & Other Receivables Claims recoverable - PACE Claims recoverable – CA Disallowances Debtors operating lease Accommodation debtors – State owned Accommodation debtors – Private leases Debtors – Municipal services Municipal deposits Provision for impairment Less than 1 to 3 Older than Total 1 years 3 years R’ 000 113 515 143 911 216 595 18 183 190 497 11 633 220 313 443 059 31 627 11 907 13 762 57 296 221 955 241 101 52 211 515 267 360 030 2 282 (18 166) 1 532 991 179 040 4 122 (148 279) 478 388 (53 851) 23 755 539 070 6 404 (220 296) 2 035 134 PCMS GEN: 383698 56

Statement of Comprehensive Income 2011 R’ 000 Revenue 2010 R’ 000 4 755 326 3 799 249 123 657 0 4 878 983 3 799 249 (392 416) (225 448) 76 192 0 Garden & Services (67 238) (68 887) Cleaning Services (129 312) (72 217) Property Maintenance (812 909) (626 821) (3 011 552) (2 431 249) (583 083) (549 496) (4 920 318) (3 974 118) (41 335) (174 869) Other Income Total Revenue Operating Expenses Other operating expenses Impairment reversal Lease Rentals on operating leases Municipal Rates & Taxes Total Loss for the year PCMS GEN: 383698 57

Note 8 – Revenue 2011 R’ 000 2010 R’ 000 948 403 825 812 3 058 138 2 291 395 Government grants (Augmentation) 612 967 588 411 Management fees 135 818 93 631 Accommodation charges – State Owned Accommodation charges – Private Leases 4 755 326 2011 R’ 000 2010 R’ 000 3 799 249 The amount included in revenue includes: Income collected from immovable properties which are disclosed under the Department of Public Works 948 403 825 812 PCMS GEN: 383698 58

Audit Report PCMS GEN: 383698 59

Basis of the disclaimer on the Audit Report Irregular Expenditure • Payments amounting to R 291 668 886 were made in contravention with supply chain management requirements. The amount was not included in irregular expenditure, disclosed in note 12 to the financial statements. , resulting in irregular expenditure being understated. Management Response • During the year under review internal controls around the irregular expenditure were • • • significantly improved, however, it would seem the monitoring of those controls was inadequate. We are currently analyzing each case reported with the aim of instituting disciplinary measures and also addressing the root causes. We have also acknowledged the challenges around document management. Most of the cases reported are as a result of missing tax clearance certificates and SDB documents. The Department has already taken a decision of centralizing all contracts within the legal services. A project is currently undertaken to compile a list of all contracts currently running in the Department. This will enable the Department to proactively identify old transactions which are not complying with the prescripts. The implementation of procurement plans will assist in reducing the number of urgent cases PCMS GEN: 383698 60

Breakdown of Irregular Expenditure Nature of Irregularity Amount R’ 000 Bids not advertised through the open tender process 34 858 Tax Clearance not attached 20 025 Winning bids not advertised 33 858 Payment made without a contract (Leases) 10 456 Variation order not authorised by delegated official 181 515 PCMS GEN: 383698 61

Fruitless Expenditure Analysis of current Fruitless and wasteful expenditure Agreed settlement on breach of contract & legal fees 118 326. 00 Courts ruling 76 238. 15 Interest Paid on Overdue Accounts 4 307 925. 19 Rental payment- Non occupation of the building 2 268 581. 73 Other 500. 53 6 771 571. 60 PCMS GEN: 383698 62

Basis of the disclaimer cont. Apart from the irregular expenditure reported under the PMTE, the basis of the disclaimer is largely attributable to the preparation of the Financial Statements for the PMTE. SA GAAP COMPLIANCE • Trade & Other receivables (IAS 39(AC 133) • Revenue • Related Parties • Trade and other payables During the preparation of the FS it became very clear that the only solution to correcting the debtors balances once and for all was to embark on a project of reconstructing all the debtors accounts from the date of inception of the PMTE, 2006. • Municipal Services • Private and State owned accommodation • PACE( Project Accelerated Construction Expenditure) • Current Account Capital Projects While this was a sensible thing to do, it distorted the Trail Balance as the reconciliations were done outside the system, which meant some of the journals passed in the previous years could not be properly accounted for. The reconciliation revealed a number of challenges including invoices which were not raised in the early years as result of system challenges. These discrepancies impacted on the opening balances of the FS PCMS GEN: 383698 63

Status of the Billing and Accounting system • The PMTE was implemented in 2006 without a system, structure and relevant skilled staff. • All invoices are issued manually and recorded in Excel. Money received are recorded in the same fashion. – Risk of understating Revenue and misstatement of Debtors – No functionality to calculate discounting of amounts reported • All trial balance items to be converted manually to accrual basis at year end. – Risk of error in calculations – Additional journals to process • Age analysis done manually by consolidating individual reports – Risk of incorrect reporting • All accounts were reconstructed as from 1 April 2006 PCMS GEN: 383698 64

Operationalization of the PMTE - Progress to date • The structure has been approved and it is now 80 % filled by qualified accountants. • We have started with the sourcing of a financial management system • Improvement of the monthly reconciliations • Development of policies that are GAAP compliant • Engagement with National Treasury on technical issues that could not be resolved with the AG. • Preparation of the interim FS which will require that we also lease the Case. Ware system. • Fast tracking the i. EWorks system to enable better management of leased portfolio PCMS GEN: 383698 65

Achievements to date • • • Improved controls with regards to the authorization of journals Reduced incorrect allocations resulting with lesser correction journals Correct billing Reconciliations of systems Almost completing the exercise of validation of accommodation with user Departments to enable itemized billing • A new structure was approved during 2010/11 to make provision for Debt management, etc. • 80% of positions were filled. Three Accountant employed. • The balance will be finalized before the end of the year • This will strengthen the management (1 CD & 1 D increased to 2 CD’s and 4 Directors) and the functioning of the unit. • Increased Client focus and debt management • Transfer of skills PCMS GEN: 383698 66

UPDATE ON THE PROCESS TO ADDRESS ASSET REGISTER CHALLENGES

Immovable Asset Register Programme- Objectives – A complete and accurate immovable asset register – 2 year period • Compliance with GRAP, GIAMA, PFMA and NT sector specific guidelines – Appoint a Programme Manager • Produce GAP 1 – Reconciliation to produce a list of properties • Produce GAP 2 – Compliance with accounting standards – Appoint Secondary Service Provider (SSP) to collect information as required from GAP 1 – Reconciliation to produce a list of properties – Address management assertions & ensure there is sufficient audit evidence: • Existence • Completeness • Rights and Obligations • Accuracy • Valuation and Allocation • Presentation and disclosure – Address vesting of state-owned properties – Oversee the Amnesty Initiative (Operation Bring Back) – Assist with the 2011/12 year-end close – Working papers, Disclosure notes etc – Advise on future IAR processes/ systems PCMS GEN: 383698 68

GAP 1 - Reconciliation process PCMS GEN: 383698 69

VESTING PROCESS ► Ascertaining quantum & recon of National and Provincial DPWs, other? Source: DRDLR ► ► ► Identify & assess gaps/ bottlenecks: Revise projections Develop required actions ► Resources/ process changes/ improvements PCMS GEN: 383698 70

GAP 1 – results to date Deeds Total number of records in Deeds File Total number of Properties in Deeds File No registered information on Deeds State Land (Category 1) Parastatal (Category 2) Municipality (Category 3) Private (Category 5) 68, 457, 997 7, 545, 715 State Land as per Deeds Total State Land DRDLR Provincial DPW Total Remainder of National Registered properties to be compared to the PMIS Immovable Asset register in order to identify properties on Deeds but not on PMIS - Unique land parcels to be added to PMIS list after Investigations. 703, 796 147, 009 21, 369 893, 474 5, 780, 867 147, 009 20. 093 84, 468 42, 448 Analysis of PMIS: Deemed DPW IAR Total land parcels per PMIS Less: Devolved Land parcels matching to PMIS = Total Deemed DPW land parcels (To be subjected To Desktop Team) This is the starting point for the project and the desktop team is verifying these properties 86, 237 -39, 408 46, 829 Land parcels for separate investigation (also considered as part of the Operation Bring Back) Land in PMIS and Provincial IAR's (Duplicated) Land in PMIS and not in DEEDS Land on devolved list but not in PMIS Devolved Land not in Provincial IAR but still in PMIS Land Parcels between Deeds and the DRDLR for Investigation with DRDLR PCMS GEN: 383698 489 11, 916 417 1, 168 5, 465 71

GAP 1 Way forward: Review of Devolved Properties and Vesting • Review and analyse the devolved property list to provinces • Identify National properties erroneously included on the devolved list • Assist on the process to handover devolved provincial properties to provinces for vesting • Fast Track Vesting PCMS GEN: 383698 72

Devolved Properties & NT Sector Specific Guide • • • DPW has devolved +- 39, 408 properties in 2005/6 “Removed” from DPW IAR Not consistently disclosed in Provinces IAR Vesting process to 2014 Sector specific guide requires that DPW discloses in its IAR – Provinces already “control” these properties – If DPW can prove “control” lies with Provinces it would not make sense that DPW includes in its IAR – DPW to incur expense to record property properly (in compliance) only to pass on to Province once vested? • Suggest amendment to sector specific guide to incorporate control definition PCMS GEN: 383698 73

Programme Progress Phase 1 GAP 1: 90% Complete • Reconciliation of data (DPW IAR - PMIS) to DEEDSWEB, Provinces, DWA and DRDLR, Vesting reconciliation Phase 2 GAP 2: 100% Complete • Assess IAR fields • Determine population for enrichment • Analyse legislative compliance (PFMA, GRAP, NT and GIAMA PCMS GEN: 383698 Terms of Reference: Draft completed • Define T. O. R • Appoint Secondary Service Provider Enhancement of Immovable Asset Register: March 2012 • Data enrichment for a period of 24 months • Complete and compliant Immovable Asset Register 74

GAP 2 and Condition Assessment GRAP, PFMA and NT requirements “Ideal end –state” info All Provinces Yes Yes & desktop UAMP/ PPM/ WCS Vesting Out – need to agree with other parties * Devolved Properties Yes No No PCMS GEN: 383698 Accessibility ratings Heritage status Refer to PPM Not required for base IAR Maintenance requirements and maintenance cost Condition Assessment checklist (amend 15 pager) GIAMA Section 4, 13 and 14 Performance measurement = Square meters and headcount Region No as not required for baseline IAR Yes No No 75

UPDATE ON THE AUDIT OF LAND FOR HUMAN SETTLEMENT PURPOSES

Land Released to Municipalities Province Municipality Property Description Extent Gauteng City of Johannesburg Farm Zuurbult 240 IQ 754 hectares Northern Cape Province Kai-ma Erf 14 Pofadder 4 hectares Kai-Garib Ptn 128 & Rem of farm Kousas 459 Gordonia 976 hectares PCMS GEN: 383698 77

Land Released to Municipalities…. Cont. Province Municipality Property Description Extent Northern Cape Province Breede Valley Ptn 65 (Ptn of Ptn 33) of farm Roode Zandi No 82 known as Sand Outspan 40 hectares Kgatelopele Erf 1130, 1131 & 30 hectares 1428 Dunnieskuil Kgetleng Ptn 25 of farm Rietfontein 372 JQ North West Province PCMS GEN: 383698 77 hectares 78

Land Released to Municipalities…. …. Cont Province Municipality Property Description Extent Northern Cape Province Breede Valley Ptn 65 (Ptn of Ptn 40 hectares 33) of farm Roode Zandi No 82 known as Sand Outspan Western Cape Stellenbosch Erf 221 La Motte 11 hectares North West Province Kgetleng Ptn 25 of farm Rietfontein 372 JQ 77 hectares

Properties to be released Province Municipality Property Description Extent Eastern Cape Province Makana Ptn of farm Donkerhoek 276 161 hectares Buffalo Rem of Ptn 1 of farm 871 Greydell 271 hectares Tshwane Rem of Ptn 153 of farm Elandsfontein 316 hectares Gauteng PCMS GEN: 383698 80

Properties to be released…Cont Province Municipality Property Description Extent Western Cape Province City of Cape Town Erf 1117 Milnerton/Blaauw berg 128 hectares Overberg Erf 14443 Strand 2, 6 hectares City of Cape Town Erf 2772 Everdale 3, 6 hectares TOTAL HECTARES= 134 HECTARES PCMS GEN: 383698 81

THANK YOU PCMS GEN: 383698 82