Department of Infrastructure Development Annual Report 2021-2022

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

22. Irregular expenditure

22.1

Reconciliation of irregular expenditure

Note

2021/22

2020/21

R’000

R’000

Opening balance

1 679 451

559 570

Prior period error

As restated

1 679 451

559 570

Add: Irregular expenditure – relating to prior year

-

-

Add: Irregular expenditure – relating to current year

339 600

1 119 881

Less: Amounts written off

-

-

Closing balance

2 019 051

1 679 451

Analysis of closing balance

Current year

339 600

1 119 881

Prior years

1 679 451

559 570

Total

2 019 051

1 679 451

22.2

Details of current and prior year irregular expenditure – added current year

Disciplinary steps taken/criminal proceedings

2021/22 R’000

Incident

SCM processes not followed correctly

125 343

Three quotations

61 623

Expired lease contract

131 134

Settlement agreement

21 500

Total

339 600

The current year balance of irregular expenditure relates to the following: • Expenditure incurred in quarter 4 relates to security companies appointed on a quotation basis and to month-to-month cleaning services. • The Department has appointed 14 new security companies through a tender process for a 3-year period. • Cleaning services, tender has been awarded and implemented from January 2022 • Property leases: 11 Diagonal, Game building and Turbine Hall properties • Jabulani Hospital court order (DPTRW).

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT