Members of the media,
Colleagues in the Department of Public Works and Infrastructure, 
Fellow South Africans,

Good Afternoon.

Thank you for joining us today at this important press briefing on the significant progress which has been made by the Department of Public Works and Infrastructure to turn the country into a construction site, grow the economy, and most importantly: create jobs. Today’s briefing is a crucial opportunity to outline the steps we have taken to bring stability to the Department of Public Works and Infrastructure, but also the work we are doing to transform this department into an economic delivery unit for South Africa in the coming months ahead.

Because, as mentioned yesterday, the success of the Government Of National Unity should be measured to what extent it brings down the country’s stubbornly high unemployment rate.  Any idea, policy or decision that is not evidence-based and does not aid in bringing down unemployment should be immediately discarded.

But, before we begin, allow me to extend my heartfelt thanks to two individuals whose support has been invaluable during this period of re-evaluation and change within the Department of Public Works and Infrastructure, and who are joining us here today. Firstly, our to your Director-General, Sifiso Mdakane. Since my appointment 56 days ago, Mr Mdakane has been a steadfast pillar of support. His commitment to excellence and his unwavering dedication to our shared goals have been instrumental in setting the tone for the reforms we are implementing.

Furthermore, I would like to extend thanks to Mameetse Masemola, our acting head of Infrastructure South Africa. Mameetse has been an incredible supporter of our vision to reimagine and revitalise infrastructure in this country. Her wealth of knowledge, strategic insights, and relentless drive have been pivotal in laying the groundwork for the infrastructure revolution we are embarking on.  

Ladies and gentlemen,  

We are gathered here exactly eight weeks since I took the oath of office on the third of July, 2024. It has been eight weeks of immense change for me personally, but also for the department as a whole, as we come to grips with the task ahead of us. Shortly after I was appointed, I made the firm commitment to use infrastructure as a catalyst for economic recovery and job creation.

My goal was that the Department of Public Works and Infrastructure should play a central role in using public assets for the public good, and to help turn South Africa into a construction site which will ignite economic growth and create jobs. Over the past eight weeks, I believe we have started to lay the foundation for the work to begin to see cranes in the sky all over South Africa.  

Central to our strategy for increased infrastructure investment is to see the expansion and the capacitation of Infrastructure South Africa, or ISA. We want to ensure that ISA functions as the single point of entry for all priority infrastructure projects, streamlining processes, and reducing inefficiencies that have previously hampered project delivery. This will not only improve efficiency but also ensure that we prioritise projects with the greatest economic and social impact.

And, this will increase investor confidence in public infrastructure projects, knowing that where Infrastructure South Africa is involved, construction projects are completed on time and within budget.

However, to realise our dream of increased Infrastructure investment, we have identified eight critical pillars in urgent need of reform:

1. Address Institutional Arrangements

Our first pillar focuses on establishing Infrastructure South Africa as a public entity under the Ministry of Public Works and Infrastructure, whereas it currently has dual reporting lines to both the department and the Presidency. This will empower ISA to lead the national infrastructure strategy, identify key projects, enhance project preparation, and create greater accountability.

2. Centralised Planning and Prioritisation

The second pillar involves streamlining the planning, identification, and prioritisation of infrastructure projects through a centralised system. ISA will act as the single point of entry for all major infrastructure projects, ensuring better preparation and prioritisation based on economic and social impact.

3. Accelerate Broader Budget Reforms

We are accelerating broader budget reforms by collaborating with the National Treasury to streamline the Public-Private Partnership (PPP) process and establish an Infrastructure Fund that reports directly to the National Treasury. These reforms will ensure a well-coordinated project pipeline and efficient resource utilisation.

4. Address Regulatory Bottlenecks and Red-Tape

To remove obstacles that delay infrastructure projects, we are working with Operation Vulindlela to identify and remove secondary regulatory bottlenecks. This includes streamlining permitting and approval processes, particularly for Independent Power Producers (IPPs).

5. Address Municipal Bulk Infrastructure Constraints

The fifth pillar focuses on enhancing the capacity of municipalities to prepare and package infrastructure projects, addressing the critical lack of municipal infrastructure such as water, sanitation, roads, and electricity.

6. Unlock Other Sources of Funding

We are diversifying funding sources for infrastructure projects by focusing on PPPs, blended finance, and social infrastructure programmes. ISA will work closely with the National Treasury to direct investments toward projects with the highest GDP impact and job creation potential.

7. Economic Regulation in the Construction Industry

The seventh pillar involves strengthening the regulatory framework governing the construction industry. We are reviewing the mandates of regulators such as the Construction Industry Development Board and the National Home Builders Registration Council to create a more competitive and transparent construction industry.

8. Cancellation of Tenders, Social Unrest, Damage to Infrastructure, and Crime

Our final pillar addresses the impacts of tender cancellations, social unrest, damage to infrastructure, and crime. We are working closely with law enforcement agencies to mitigate these risks, with a special focus on reducing the influence of the Construction Mafia.

Ladies and gentlemen,

As we push forward with these reforms to ignite infrastructure investment, it is important that we get our own house in order to ensure that we deliver on our core mandate. It will be impossible to build a house which can stand the test of time unless we have a strong foundation to build on.

In this regard, we are addressing the issues which have plagued our department in the past. Accountability and transparency should be at the core of everything we do, while we work to eliminate corruption and abuse in all spheres of our organisation. This is why, over the past few weeks, we have launched key investigations into failed public sector projects such as the Telkom Building projects in the Tshwane inner city where nearly a billion was spent on acquiring and redeveloping the buildings, but to date, they remain unusable. The Department has already issued tenders for the appointment of an independent investigator to, within 60 days following their appointment, provide my office with a detailed report on what went wrong, who’s to blame and what will be the best solution moving forward for the Telkom Towers which will limit further wastage of taxpayer money.

In the coming weeks, a tender for a second independent investigation will be released to investigate leases which have been established by the Department of Public Works and Infrastructure to ensure that these leases were completed within the confines of the law and that the state is paying market-related prices for each.

Furthermore, shortly after my appointment, we initiated an investigation into an R300 million IT security breach that spans a decade. The investigation builds on the work Deputy Minister Sihle Zikalala started earlier this year when vulnerabilities were discovered in the department’s Information and Technology Systems. Preliminary reports since the extent of the security breach was found suggest that the amount of money stolen over the period, confirms the seriousness of the matter. Unfortunately, due to the sensitivity of investigations, additional information cannot be released at this time.

Yesterday, I also authorised our Department’s legal services to assist the Special Investigating Unit (SIU) with litigation at the Special Tribunal to recover up to R20 million against Kroucamp Plumbers. This case involves tenders received by Kroucamp Plumbers in 2015 and 2018, where procurement processes were found to be unlawful and unconstitutional. The SIU discovered that payments were made to officials in our department amounting to over R300,000, and these actions are indicative of corruption that we are determined to root out.

In terms of Departmental Reforms and Stability, we have brought stability to key units within the organisation such as the appointment of Carmen-Joy Abrahams as Acting Deputy Director-General of Corporate Services. This move addresses past concerns about irregular practices, including the selling of positions, and ensures that all appointments are made with the highest level of oversight and transparency.

Furthermore, there will be increased oversight by both the Director-General and myself, particularly concerning senior appointments at the director level and above. I have tasked the Acting Deputy Director-General with undertaking a comprehensive skills audit across the Senior Management Service (SMS) level appointees in the department to ensure that the department is staffed with the most diverse and talented minds in the fields of construction and infrastructure.

Financial oversight has also been significantly tightened. I have restructured financial decision-making powers that were previously delegated, which allowed for expenditures of up to R20 million without the accounting officer’s approval. This measure is crucial in preventing the kind of financial mismanagement that contributed to the department's R3 billion overdraft.

Additionally, the Prestige Unit, which manages state properties such as Parliament, Ministerial houses, The President’s accommodation, the Deputy President’s accommodation, the houses of the Chief Justice and Deputy Chief Justice, has been moved back under the Director-General’s office to enhance oversight and prevent wasteful spending. It was the Prestige Unit which was responsible for the over R246 million spent on security upgrades to the Nkandla Homestead, the moving of the oversight of the unit is to ensure that it never happens again. The Minister has also imposed a moratorium on the procurement of new houses or offices for executives, insisting that the existing inventory of state-owned homes be utilised.

Ladies and gentlemen,

We have begun discussions on the possibility of restructuring the Property Management Trading Entity, or PMTE, into a South Africa Property Company. This entity would focus on converting state-owned assets into income-generating properties, with the revenue generated being reinvested into the maintenance of critical public infrastructure such as police stations, hospitals, and schools. Our department is the largest land and bustling owner in the country, and it is imperative that we leverage these assets to support our broader economic goals.

But, one of the most pressing issues we face is the influence of the Construction Mafia, which has disrupted the construction sector and eroded investor confidence. The 30% local procurement rule, intended to empower local communities, has unfortunately been hijacked by criminal syndicates. We are committed to policy changes that will protect legitimate construction businesses and ensure that infrastructure projects proceed without interference.

This is why I welcome the views expressed by the Black Business Council's Deputy President, Gregory Mofokeng over this past week, who has acknowledged that the 30% rule has been taken advantage of and hijacked by the Construction Mafia. This highlights the growing consensus that the support meant for Small, Medium, and Micro Enterprises, or SMMEs has been misappropriated, serving instead to enrich the pockets of the Construction Mafia rather than empowering legitimate businesses.

In terms of the reconstruction of Parliament, the department is discussing the possibility of using the Dome, which was used for Nelson Mandela’s funeral, as a viable option. The Development Bank of Southern Africa has been supplying fortnightly reports on the progress of the reconstruction as requested to during an oversight visit to the reconstruction efforts, and these reports indicate that the project is progressing well.
Ladies and gentlemen,

All this work we have done this far will be in vain unless we are able to attract additional infrastructure investment into South Africa. As part of this commitment, I will be accompanying President Cyril Ramaphosa on his state visit to China next week as well as joining Deputy President Paul Mashatile on a visit to London in the United Kingdom later in September. Both in China and in the United Kingdom, will be meeting with new development finance banks that the department has never engaged with before, indicative of the excitement and interest being generated by South Africa's Government of National Unity and our ambitious infrastructure build program.

Having engaged with various public and private investors over the past few weeks, I am increasingly convinced that there is a significant appetite to invest in construction projects across South Africa. South Africans are eager to collaborate and invest in building a brighter future for themselves and their children. However, these investors are often constrained by the limited availability of investable projects within the public sector.

This is why, as previously mentioned, one of our primary objectives moving forward will be to expand and strengthen Infrastructure South Africa to take a leading role in the planning and execution of construction projects. The Auditor General’s 2022-2023 Local Government Audit outcomes revealed that local municipalities not only underspend infrastructure grants by R3.34 billion, but also that 61% of local government infrastructure projects face delays, 9% encounter cost overruns, and 24% suffer from poor construction quality. These findings underscore the urgent need to inject skills and expertise into construction projects—an area where Infrastructure South Africa excels—to provide the private sector with the confidence that infrastructure projects will be executed effectively and yield strong returns on investment.

And, in line with my department’s commitment to collaboration with both the public and private sectors, the Department of Public Works and Infrastructure has extended invitations for participation in the Infrastructure Development Advisory and Public Assets Management Advisory committees. These committees, which I announced during my budget speech in July, are designed to offer a platform where experts can share their knowledge and provide strategic guidance to advance infrastructure development across the country.

The advisory committees will work closely with stakeholders and experts to turn South Africa into a major construction hub, creating much-needed jobs for our citizens. I strongly encourage experts in asset management and infrastructure to apply by the end of the month, because I know that South Africa’s biggest problems can be solved with the skills we have in the country present today.

Ladies and gentlemen,

We stand at the beginning of an ambitious journey to transform South Africa into a thriving construction site that will stimulate economic growth and create thousands of new jobs. As the Government of National Unity, our commitment to building a better South Africa for all its citizens has only just begun.

Over the past eight weeks, the Department of Public Works and Infrastructure has made significant strides in re-energising our efforts to serve the people of this nation. However, our success in unleashing a wave of impactful construction projects across the country depends entirely on our ability to work together as stakeholders, united in purpose.

The Government of National Unity represents a new willingness to work across different sectors of society and across many divides towards a common goal of building a better country for ourselves and our children. The GNU represents the reset our country desperately needs, and the Department of Public Works and Infrastructure is fully committed to playing its part to deliver on this promise.

Because, now more than ever, I know by working together, we can Build South Africa.

I thank you.

Media enquiries:
James de Villiers: DPWI Minister’s Spokesperson 
Cell: 082 766 0276