Part 1: Summary

In 2015, the Commission of Audit (CA) collected the information from all government departments about renting private properties. The result showed that from 2004 to 2014, there were 68 government departments renting workplaces and parking spaces, with an expenditure of nearly 4 billion on rent and about 1.03 billion on the first renovation. According to the authority stipulated in the Organic Law of the Land, Public Works and Transport Bureau (hereinafter referred to as “DSSOPT” according to Portuguese abbreviation), DSSOPT is responsible for the urban planning of Macao. As the planning of government office buildings is part of the urban planning, DSSOPT should be accountable for the planning of government office buildings. Taking into consideration of expenses spent by the Government of Macao Special Administrative Region (hereinafter referred to as “SAR Government”) on rent and office renovation every year, and the stability of the daily operation in government departments, CA explored whether DSSOPT properly addressed the planning and the construction of government office buildings.

1.1 Audit result

1.1.1 DSSOPT’s overall planning for government office buildings

Regarding the overall planning of government office buildings, DSSOPT explained that since there was no specific legislation to regulate the urban planning in the past, and no indications received before the commencement of audit work, DSSOPT has not yet conducted an overall planning for government office buildings, and only has dealt with the individual department’s need for constructing office buildings. As per DSSOPT, it reserved land for the construction of government office buildings in the New Urban Reclamation Zone (hereinafter referred to as “New Urban Zone”), and set aside a certain proportion of land and podium space for the construction of government office facilities; nevertheless, the relevant planning only included area B for the buildings of political and judicial institutions, and area E1 for the buildings of security forces, without a specific planning for other departments and detailed information, such as showing the supply of the land and space for constructing government office facilities.

1.1.2 The political and judicial area in New Urban Zone

In the Policy Address for the Fiscal Year 2012, SAR Government specifically put forward “The proposal to construct office buildings for political and judicial institutions in New Urban Reclamation Zone”. In this proposal, SAR Government plans to build 7 office buildings in the political and judicial area for the following political and judicial institutions: the Court of Final Appeal, the Court of Second Instance, the Court of First Instance, the Public Prosecutions Office, the Commission Against Corruption, the Commission of Audit and the Unitary Police Service. Since 2006, DSSOPT has begun to engage in the planning and the study on the political and judicial area, and has often played a proactive role in the process. Up to the execution of on-site audit, any specific construction of the political and judicial area has not yet been commenced for over 6 years since the State Council approved the development of New Urban Zone in November 2009.

1.1.3 DSSOPT’s response to the request of Financial Services Bureau for constructing government office buildings

From 2012 to 2014, Financial Services Bureau had prepared two proposals to Chief Executive which recommended the construction of government office buildings, indicating the extremely high level of SAR Government expenditure on rent each year, and providing specific cases to reflect the current difficulties faced by government departments in renting the real estate. The two proposals were passed to DSSOPT subsequently to follow up after having the approval of the Chief Executive. In response to the proposals, DSSOPT indicated that since there is no suitable land for the construction of government office buildings in this stage, the available land will be provided after the planning of New Urban Area is completed and approved, and then it filed the proposals without taking further follow-up actions.

1.1.4 The situation faced by government departments in renting offices

In order to understand the difficulties encountered by government departments in renting offices and their practical needs for the permanent office buildings, CA carried out on-site interviews with 6 departments. Without the permanent government office buildings, the difficulties that the departments are facing can be summarized into the following aspects:

(1) Causing inconvenience to residents;

(2) Increasing the workload of departments;

(3) In a disadvantage position when negotiating the lease agreement with the owners of the office buildings;

(4) Additional expenses on relocating to new office buildings.

1.1.5 Audit opinion

DSSOPT has the responsibility in urban planning, including the planning of government office buildings. The result of this examination revealed that DSSOPT failed to properly discharge its duty on the overall planning of government office buildings, and the details are as follows:

DSSOPT failed to make an overall planning for the construction of government office buildings, collect scientific data and conduct study on the specific demand for the government office buildings. Therefore, it is possible to find inadequacies in the past community planning, the progressing New Urban Planning, or the Macao’s overall urban planning implemented under the Urban Planning Law, which causes difficulties in producing reasonable results in the planning and solving the shortage of government office buildings in a proper way.

According to DSSOPT, the construction of political and judicial area will be postponed until the whole planning of New Urban Area is accomplished. Based on the result of study on the overall planning of New Urban Area, the purpose of building political and judicial area is not only to address problems such as the temporary office site and the substantial rental expenses, but also to particularly enhance the dignified image of political and judicial institutions, and to improve the latent safety problem. The inappropriate handling by DSSOPT in the planning and construction of political and judicial area which has clearly proposed for many years, neither achieved the purpose of developing the political and judicial area, nor effectively fulfilled the target of SAR government’s policies.

DSSOPT had a clear understanding of the rising problem posed by government departments in renting offices, and of the pressing need to construct government office buildings. However, instead of having other specific researches and analyses, initial ideas or proposals, it still stated that since there is no suitable land, the recommendation of usable land could only be made after the New Urban Area Planning is approved, and then directly closed the proposals without taking follow-up actions. Therefore, DSSOPT did not resolve the construction of government office buildings in a positive manner during the whole process, which further emphasized its failure to discharge the relative responsibility.

CA on-site interview revealed that renting private office causes various problems in the operation of departments. When departments face the relocation, they also have to take on the burden of cost and work imposed by the move. Moreover, if the relocation involves offices that provide service to the public, it is inconvenient for residents to be accustomed to their new locations. Departments have to continuously rent private offices and encounter the consequent problems until DSSOPT make a suitable plan on the construction of government office buildings. Besides, when DSSOPT is required to conduct a renovation due to the relocation of office, it takes time to carry out the procedures such as tendering and awarding; if the number of renovation project implemented by DSSOPT increases, the time spent on renovation will be extended, which would contribute to a vicious circle in the work of DSSOPT, so DSSOPT’s failure to perform the related duties not only has impact on others departments, but also affects its operational efficiency.

The overall planning of government office buildings affecting the financial management of SAR government, the operational efficiency of each department and the commitments made by SAR government to Macao citizens, has a significant and profound implication. To achieve the objectives of Government’s policies, all departments should fully perform their duties and operate efficiently, but if DSSOPT fails to properly take its responsibility for providing departments with the permanent workplaces, it is difficult for departments without the basic facilities to execute the government’s policies effectively.

1.1.6 Audit suggestions

DSSOPT should: