🗞️ Why This Series Matters

Years ago, I explored the critical role of Fixed or Lifecycle Asset Management and plant maintenance in our newsletter. Eskom’s recent load-shedding statements—blaming outages on overdue maintenance—have reignited this conversation.

With decades of expertise in Infrastructure and Maintenance Management, I’m frustrated by recurring excuses and systemic neglect. This new series of newsletters aims to:

• 🔍 Expose the consequences of poor maintenance planning
• 🛡️ Advocate for robust asset protection processes
• 📣 Urge decision-makers to act with urgency and foresight

🏗️ Why Tangible Asset Management Is Non-Negotiable

Asset Management is a strategic, systematic approach to maintaining, upgrading, and operating physical infrastructure—roads, bridges, substations, treatment plants, and more.

Benefits include:

• ✅ Enhanced accountability
• 🌱 Sustainable service delivery
• 📉 Risk reduction
• 📊 Improved financial forecasting and control

📘 What Is Asset Management?

Asset Management is the lifecycle process of planning, acquiring, operating, maintaining, renewing, and disposing of assets. Its goal: maximize service delivery while managing risk and cost.

Implemented through: A comprehensive Asset Management Plan that guides decisions across departments and generations.

Challenge: Many asset custodians lack a full understanding of this discipline—leading to fragmented efforts and missed opportunities.

🆔 Identification of Immovable Assets

Thorough identification is the foundation of effective Asset Management. Skipping this step—often due to cost—undermines every subsequent process.

A proper Asset Register enables:

• 🧭 Asset condition tracking
• 🔄 Replacement planning
• 📜 Compliance with accounting standards
• 📍 Location and custodian mapping
• 🛠️ Maintenance scheduling
• 💸 Lifecycle cost analysis by asset, program, and activity

🔍 Verification of Fixed Assets

Physical verification confirms that listed assets are present and accurately recorded. But true verification goes deeper:

• Match nameplate data to register entries
• Validate over 90 specification fields for complex assets (e.g., vehicles)
• Ensure insurance compliance and audit integrity

Example: Make, model, type, and serial numbers alone are insufficient. Every detail must align.

🧱 First Step in Managing Immovable Assets

Before any maintenance planning begins, you must know:

• What assets you own
• Where they are located
• Their current condition
• Last service date
• Next scheduled intervention

A spreadsheet is not an Asset Register. An Asset Register is a dynamic, historical record of financial and non-financial data across the asset’s lifecycle.

Without it, you cannot:

• 📜 Meet accounting and legislative standards
• 📊 Monitor performance
• ✅ Ensure accountability

⚠️ Consequences of Poor Asset Management

Deferred maintenance leads to exponential cost increases:

• 🔺 Repairs can cost 15× more if delayed
• 🔺 Deterioration can escalate costs up to 40×
• 💰 Early intervention = positive cash flow

Solution: Implement a Preventive Maintenance Program and act immediately at the first signs of decay.

Municipal Managers and CFOs must creatively secure funding before deterioration becomes catastrophic.

🧑‍💼 Councillors & Board Members — Know Your Role

Many Public Service Board Members and Councillors lack clarity on their Asset Management responsibilities.

To bridge this gap, we’ve distributed special newsletters outlining their roles in Non-Monetary Asset Management.

🧭 Final Thought: Maintenance Is Not Optional

Asset Management is not a luxury—it’s a legal, financial, and operational imperative. This series is a call to action:

• 🛠️ Build robust maintenance frameworks
• 📊 Invest in proper registers and verification
• 🧠 Educate decision-makers
• 💡 Plan for sustainability, not just survival