By Simon Nare
The Public Service Commission (PSC) has pointed at several challenges in the Public Works and Infrastructure Department that have led to the deterioration of state-owned assets.
They include the underspending of budgets due to inefficiencies and unskilled professionals.
Addressing journalists on the commission’s quarterly plenary meeting outcomes in Pretoria on Monday, Commissioner Anele Gxoyiya said the deterioration of assets affected the operational capacity of government departments and hindered their ability to serve the public.
Gxoyiya said the department’s core responsibilities were to manage national government’s immovable assets as well as providing office accommodation and expert-built environment services to department.
But it has encountered challenges and inefficiencies.
These include state infrastructure issues, which was the result of lack of uniform guidelines for property investment decisions.
There was also the matter underspending of budgets due to inefficiencies, exorbitant leases, outstanding debt to municipalities, inadequate funding from low tariffs, and a significant repair and refurbishment backlog leading to portfolio deterioration.
Gxoyiya added that organisational challenges in the department led to inappropriate structures, lack of skilled professionals, incomplete asset inventory, inefficient leasehold management, maintenance backlogs, absence of performance management, perceived fraud and corruption, a leadership vacuum and declining capacity due to high turnover.
“The challenges mentioned have led to the deterioration of state-owned assets, impacting the operational capacity of government departments and hindering their ability to serve the public, especially the most vulnerable,” said Gxoyiya.
He added that an effective asset management plan required a complete and accurate Immovable Asset Register (IAR), which served as the primary source of data for all state property-related activities.
“Having an updated IAR is crucial to ensure proper accountabilities for all state-owned assets,” he said.
Gxoyiya cited examples where staff were locked out of where they worked.
“Buildings like Poyntons and Civitas had to be vacated due to infrastructure concerns. In March 2024, officials were evacuated from Telkom Towers, declared unfit for use. The building was flagged by the Auditor-General as one of 12 irregularities,” he said.
He further revealed that only one of the nine buildings procured for the SAPS had been used by the police, costing the government at least R592 million.
In addition to that, unlawful occupation of inner-city buildings, mainly in major city centres, has led to revenue loss and hampered government service delivery.
“State-owned asset deterioration has compromised operational capacity. To address these issues, the state’s asset management plan must be enhanced for an accurate and complete asset register throughout its life cycle,” he said.
He said that to improve efficiency and effectiveness within the department, the commission has made several proposals, including developing a functional business model, an audit of government-owned buildings and a reconfigured accounting structure.
Gxoyiya added that the department should embark on a culture change programme with a view of embedding constitutional values, encouraging principles, and infusing innovation, creativity and technology in the functional accommodation and property management processes.
“By addressing these challenges head-on and implementing strategic reforms, the DPWI can ensure seamless service delivery to client departments, which in turn will facilitate effective and efficient service delivery to the public,” he said.
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