THE IMPACT OF THE GOVERNMENT IMMOVABLE ASSET MANAGEMENT ACT (GIAMA) ON THE DE-PARTMENT OF PUBLIC WORKS IN SOUTH AFRICA

Ayhasei V. Phathela and Chris E. Cloete

AfRES from African Real Estate Society (AfRES)

Abstract: PURPOSE OF THE PAPER: To investigate of the impact of the Government Immovable Asset Man-agement Act (GIAMA, No. 19 of 2007) on immovable asset management by the Department of Public Works (DPW), South Africa, which is mandated to be the custodian of all immovable assets utilized by National Departments.METHODOLOGY: Primary sources included survey questionnaires and interviews with relevant man-agers of all business units involved in life cycle asset management within DPW. The units are As-set Investment Management, Professional Services, Policy and Key Accounts Management. The population was subdivided into three levels of management (Chief Directors, Directors, Deputy Directors). Stratified random samplingidentified a total of 30 out of a total population of 80 man-agers from the four units. A total of 27 completed questionnaires were received and analysed. Secondary data included theory from previous research, current theories and official documents of the department including strategic plans, guidelines, policies and relevant legislations.FINDINGS: The study has established that the roles and goals of different business units within DPW involved in immovable asset management are not properly aligned to strategic goals of the department. The asset register in the department which was not updated had a negative impact on the effectiveness and efficiency of asset management and planning. The Department has a number of asset management policy and skills gaps which need to be addressed to comply with GIAMA. It is recommended that DPW should ensure that it addresses the gaps in the asset man-agement systems, policies, skills and asset management planning in the department to ensure that the department complies with all GIAMA requirements.PRACTICAL IMPLICATIONS: Implementation of the recommendations should contribute to the optimi-zation of the fixed assets owned by the South African government and also impact positively on service delivery to User Departments.

Keywords: asset management plan; asset register; asset strategy; Government Immovable As-set Management Act; immovable assets; life cycle asset management (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2017-09-01
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