Department of Infrastructure Development Annual Report 2021-2022

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

23. Fruitless and wasteful expenditure

23.1

Reconciliation of fruitless and wasteful expenditure

Note

2021/22

2020/21

R’000

R’000

Opening balance

22 583

-

Prior period error

As restated

22 583

-

Fruitless and wasteful expenditure – relating to prior year

-

17 341

Fruitless and wasteful expenditure – relating to current year

21 536

5 243

Less: Amounts recoverable

-

-

Less: Amounts written off

(44 119)

(1)

Closing balance

-

22 583

Fruitless and wasteful expenditure consisted of R21.5 million paid due to a court order Settlement for Jabulani Hospital, however, amount whole amount of R44 119 million has since been written off in the current year.

23.2 Details of current and prior year fruitless and wasteful expenditure – added current year (under determination and investigation)

Incident

Disciplinary steps taken/criminal proceedings

2021/22

R’000

Interest charged on settlement

21 500

Outcome of investigation

33

Interest on late payment

1

Cancellation of tender advert fee

2

Total

21 536

23.3

Fruitless and wasteful expenditure written off

Incident

2021/22

R’000

Outcome of forensic investigation (Shatsane)

17 341

Ilima Projects

21 500

78 Fox HVAC Project

5 242

Kone Solutions

3

Audit Committee

33

Total

44 119

224

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT