opinion
Asset management of government properties: Time for a reboot? The purpose of this article is to delve deeper into the nature of asset management of government’s vast fixed property portfolio. The aim is to clarify, predominantly for the private-sector reader, where government asset management finds its genesis, and how effective asset management in government could form a central solution to some of the pertinent issues facing us today, such as the continued need for housing and spatial redress
GIAMA: A big step in the right direction
Shaheen Adams, Managing Director at Wingapo Property Group
The Government Immovable Asset Management Act (GIAMA) was promulgated in 2007 by the national government (Act No. 19 of 2007), and was made applicable to national government and provinces. Local authorities, in anticipation, also followed its guidelines and prescripts to a large degree. The purpose of GIAMA was, in part, to “provide for a uniform framework for the management of an immovable asset that is held or used by a national or provincial department; to ensure the coordination of the use of an immovable asset within the service delivery objectives of a national or provincial government…”. GIAMA was intended as an act that could lever the vast government-owned property portfolio to the benefit of society, and this was an admirable and powerful intention. It was meant to herald a complete change in how government managed its property assets. GIAMA was an acknowledgement that it owned tremendous quantities of land and property assets throughout all three spheres of government, and that it had a responsibility to the public to implement effective asset management practices. Prior to the promulgation of GIAMA, each province already had its own provincial land administration legislation, but these acts mostly set out the authorisations and administrative procedures within each province for the buying and selling of property, and did not venture into the realm of asset management. Why is it, then, that nearly 13 years after the promulgation of GIAMA, government still struggles to find meaningful ways to bring vast amounts of unused or underutilised property into service for the benefit of the people? To dive into this, we must evaluate what custodianship and usership looks like within government.
Custodians and users GIAMA defines the relevant National Minister, and the Premier at provincial level, as the custodians of government property within those respective spheres of government. Practically, this custodial role is delegated to either the Minister/MEC or the Director General/HOD of the Department of Public Works of both the national government and provincial governments. Public Works therefore fulfils the function of Custodian. A User Department (User) is broadly defined as any department that utilises property for the execution of its duties. Users are required to compile and submit annually a User Asset Management Plan (UAMP) to both the Treasury and the Custodian, and custodians are meant to compile and collate these UAMPs and provide strategic direction through a Custodial Asset Management Plan (CAMP), annually to their respective Treasury. 22
SOUTH AFRICAN PROPERTY REVIEW – APRIL 2020
