PMTE Business Model: engagement with DPWI and DPSA; with Deputy Ministers

Video The Portfolio Committee convened to discuss critical challenges and opportunities within the Department of Public Works and Infrastructure (DPWI) and its Property Management Trading Entity (PMTE). The meeting focused on the self-sustainability of the PMTE, budget shortfalls, asset management, unfinished infrastructure projects, and policy reforms. The meeting commenced with concerns over the absence of key government officials, including the Minister and Deputy Ministers, highlighting the Committee’s demand for greater accountability. Deputy Minister Zikalala (DPWI) emphasised the urgency of addressing long-standing inefficiencies in state asset management and the need for financial sustainability in the PMTE. The PMTE presentation detailed its strategic vision, highlighting objectives such as optimising government-owned properties, ensuring cost-efficient service delivery, and exploring alternative revenue streams. However, financial sustainability remained a pressing issue due to a significant budget shortfall of R27 billion, driven by inadequate cost-recovery models and non-payment from government departments. The Committee scrutinised National Treasury’s role in this financial imbalance, calling for its direct engagement in future meetings. Members raised concerns about the deteriorating state of government buildings, particularly hospitals and correctional facilities, linking poor infrastructure to service delivery failures. Several Members questioned why government departments preferred costly private leases over state-owned properties, leading to substantial financial losses. The discussion also highlighted challenges in completing infrastructure projects, with frequent contractor failures and delays. A key focus was the asset register, with Members demanding greater transparency in tracking government-owned properties. The Committee called for a detailed breakdown of unused land parcels and government’s strategy for asset disposal. Proposals included leasing state-owned land to municipalities, and ensuring that underutilised properties contribute to economic development. Recommendations included the need for monthly progress reports on the PMTE’s turnaround strategy, a comprehensive review of its organisational structure, and prioritisation of maintenance funding for government properties. The Committee also resolved to formally engage National Treasury on unresolved financial issues, including the feasibility of direct budget allocations to Public Works.