ASSET MANAGEMENT PLAN - South Africa

1 Part 4 ASSET Man Pages 68 - 71 5/7/03 8:37 AM Page 68. DEPARTMENT OF FOREIGN AFFAIRS. 68. Strategic plan 2003 2005. PART 4. ASSET MANAGEMENT plan . Part 4 ASSET Man Pages 68 - 71 5/7/03 8:37 AM Page 69. DEPARTMENT OF FOREIGN AFFAIRS. 69. Strategic plan 2003 2005. INTRODUCTION consultation with missions accord- dences in Malawi, a residence and It is the a priority of the Depart- ing to set norms and prescripts. chancery each in Madeira and ment to effectively meet its office and The majority of these properties Bonn, a residence each in London, residential accommodation needs. The are leased or rented while a small Brussels and Zurich and one park- Department is also responsible for pro- number are State-owned properties. ing bay in Paris.

2 The future utilisa- viding the same accommodation for tion of these properties, especially the partner Departments. Residential INVENTORY the ones in London and Brussels accommodation and facilities are pro- Currently, South Africa is repre- will have to be reconsidered while vided in such a way that allows all sented in 85 countries globally with the others will be disposed of in South African transferred staff to best 96 missions. This number will consutation with the Department of perform their official activities. increase by 7 with the opening of Public Works. Three types of accommodation new missions during the 2003/04 The State-owned properties were requirements can be identified for mis- financial year. valued during 2000/01 and will be sions abroad: The following is a summary of re-valued during 2006/07.

3 Chanceries or office accommoda- the ASSET inventory split between tion. This type of accommodation is Chanceries, Official Residences, staff STRATEGIC REVIEW. mostly found in office blocks. In housing and redundant properties: Currently the Department is man- some instances houses or villas Chanceries: The South African aging its property portfolio in consul- have been adapted to serve as Government owns 22 Chanceries tation with the Department of Public offices. and rents 74 Works. It is vital for the Department to Official Residences are procured Official Residences: The South reconsider the role it wants to play in for Heads of Missions. These resi- African Government owns 29 the MANAGEMENT of properties dences are normally located in suit- Official residences and rents 67 abroad.

4 Able areas of the city in which the Official Residences. During 1999 the Minister of mission is located. Particular care Staff housing: Approximately Public Service and Administration is paid in the selection of these res- 415 properties (excluding partner instructed that with effect from May idences to ensure that the resi- departments) are rented to accom- 1999, the Department of Foreign dence is representative and befits a modate transferred officials. A fur- Affairs will be responsible for the man- Head of Mission. Attention is also ther 57 transferred officials are agement of the Department's proper- paid to ensure that the residence accommodated in State-owned ties and accommodation needs can be used for representational properties abroad.

5 Abroad. duties and official entertainment. Redundant properties: There Prior to the decision of the Staff housing is procured for all are currently 24 surplus or redun- Minister of Public Service and other transferred officials in areas dant properties abroad. There are Administration, the Department of identified by the Department in 13 residences in Namibia, 3 resi- Foreign Affairs was only responsible Part 4 ASSET Man Pages 68 - 71 5/7/03 8:37 AM Page 70. DEPARTMENT OF FOREIGN AFFAIRS. 70. Strategic plan 2003 2005. for aspects regarding rentals, alter- user fees and rent to the Department Completion of the Kinshasa ations, day-to-day maintenance, minor of Public Works for the services ren- Chancery and Diplomatic village refurbishment, facilities in respect of dered.

6 Project in May 2003. fixed assets abroad. The decision of Before the Department of Public Refurbishment and emergency the Minister for Public Service and Works initiated the Government Wide repairs at the Official Residence in Administration resulted in the transfere ASSET MANAGEMENT Strategy the Rome, the Official Residence and of the responsibility for the procure- Department was in the process of Chancery in Copenhagen and ment and major refurbishment of developing a Foreign Property Act, maintenance requests by mission State-owned immovable property which would have allowed the as scheduled in the individual mis- abroad were added to the already Department to manage the properties sion maintenance plans. existing ASSET MANAGEMENT function of abroad.

7 This would bring the Ad hoc maintenance request as the Department of Foreign Affairs. Department in line with current trends per maintenance plans budgeted It has since transpired that the abroad. Almost 95% of the countries by missions. Department of Public Works is review- polled by the Department indicated ing its role and functions regarding that their Foreign Ministry is responsi- 2004/05 FINANCIAL YEAR. the MANAGEMENT of properties. The ble for the MANAGEMENT of their prop- The Departmental operational proposed Government Wide ASSET erty portfolios abroad. plan for the 2004/05 financial year MANAGEMENT Strategy, which they are entails the following: developing, makes provision for the PROPERTY STRATEGY. Commencement of Chancery addi- MANAGEMENT of properties abroad by The Department will draw up its tion project in Washington.

8 Funds them. property strategy during the 2003/04 allocated on mission budget. In terms of this strategy, financial year. The planned property Commencement of the planning Departments will determine their strategy will make provision for new phase for the construction project needs and priorities in an ASSET projects and acquisitions as well as in Maseru, which will include a MANAGEMENT plan and the the implications that existing assets Chancery, Official Residence and Department of Public Works will then will have on the strategy. staff village. evaluate the plans and priorities and Commencement of the planning include this in the government wide OPERATIONAL plan phase for the construction project ASSET MANAGEMENT plan . The in Abuja, which will include a Department of Public Works will also 2003/04 FINANCIAL YEAR Chancery and Official Residence.

9 Be responsible to source funding from The Departmental operational Refurbishment and emergency Treasury for implementation of the plan for the 2003/04 financial year repairs at the Official Residence Departmental ASSET MANAGEMENT plan entails the following: and staff residences in Lilongwe. and will oversee the execution of Completion of the Berlin Chancery Refurbishment and emergency these plans. Departments will pay project by August 2003. repairs at the Chancery, Official Part 4 ASSET Man Pages 68 - 71 5/7/03 8:37 AM Page 71. DEPARTMENT OF FOREIGN AFFAIRS. 71. Strategic plan 2003 2005. Residence and staff residences in a Chancery and Official with the disposal of the redundant Windhoek. Residence. properties. During the 2003/04 finan- Ad hoc maintenance request as Refurbishment and emergency cial year the 13 properties in per maintenance plans budgeted repairs at the Chancery and Namibia, the three properties in by missions.

10 Official Residence and staff resi- Malawi and the 2 properties in dences in Maputo. Madeira will be targeted for disposal. 2005/06 FINANCIAL YEAR. Refurbishment and emergency During the 2004/05 financial year the The Departmental operational repairs at the Official Residence 2 properties in Bonn, the property in plan for the 2005/06 financial year Vienna. Zurich and the property in Paris will be entails the following: Ad hoc maintenance request as targeted for disposal. Continuation of the construction per maintenance plans budgeted A pro forma income statement project in Maseru, which will by missions. from the sale of these properties will include a Chancery, Official be prepared and attached as an Residence and staff village. DISPOSAL OF REDUNDANT ASSETS Annexure to the strategic plan .