Transformation Charter for the Property Sector Presentation to

Transformation Charter for the Property Sector Presentation to Public Works Portfolio Committee 13 June 2006

The Process (1) • Process Initiation – Process initiated in Sept 2004 – All property sector stakeholders invited to participate – Launched by Minister Sigcau in November 2004 • Management of the process – Integrated Management Committee – Government led by National Department of Public Works – Other State Agencies: Provincial DPW, Metro’s (PE, Durban, CT) SOEs (Propnet, Johannesburg Property, Eskom) National Depts (DPE, Do. T) – Business: All Associations involved – Technical Committees: constituted by all stakeholders 2

The Process (2) • Engagement with stakeholders – Integrated Management Committee – engaging with the different stakeholders through the mandated representatives in the IMC – Provincial road shows (Feb & Mar 05) targeting private and public sector stakeholders – Property Charter Indaba (June 05) 3

The Process (3) • Engagement with stakeholders (cont) – Public Sector Workshop (June 05) – Various informal engagement between stakeholders – Parliamentary briefing (Sept 05) 4

The Process (4) • Charter development process – Charter Framework – lays a foundation for the charter and a vision for the sector for the next 5 years – Technical Committees – research & proposals on the charter – Scorecard – weightings and targets across all elements – Sign off all stakeholders in March 2006. 5

The Charter Framework • • Preamble Status quo of the property sector Commitment of stakeholders to the charter Application and reporting Components of the scorecard Definitions Scorecard 6

The Scorecard - 1 (Elements) • Direct Empowerment – Ownership – Control – Management • HRD – Employment Equity – Skills Development (training, learnerships, bursaries, mentorship) 7

The Scorecard - 2 (Elements) • Preferential Procurement • Enterprise Development • Residual – CSI – Other 8

The Scorecard - 3 (Weightings - %) Ownership 20 Management Control 10 Employment Equity 10 Skills Development 15 Preferential Procurement 20 Enterprise Development 15 Residual 10 9

Targets • Negotiations finalised on Oct 2005 • Have achieved the ownership target of 25% (less than the 30% challenge by the late Minister of Public Works; • Other key achievements: Development in under-develop areas (8%) 10

Way Forward - 1 • Charter submitted to lawyers for legal verification • Submission to Minister by 15 June 2006 • Submission to Minister of Trade & Industry by 30 June 2006; • Communication to stakeholders: - Portfolio Committee 11

Way Forward - 2 - Select Committee - Min-MEC - HOD meeting - other relevant DGs - Operational staff • Establishment of a representative Property Charter Council 12

Observations (1) • The signed Property charter in line with BBBEE Act [section 12 (a) to (g)] – Consultation – voting rights, economic entitlement, net economic interest – Women participation – Designated groups participation 13

Observations (2) • Opportunity for racial transformation within the sector: – Ownership – Control – Management • Opportunity for growth & development of the sector and enhancing skills base: – – – Employment equity Skills development Procurement Enterprise development Development in under-developed areas 14

Challenges • Commitment by other govt departments / agencies • Fronting • Synergy in govt supporting programmes to maximise economies of scale. 15

Thank you. . 16