Department of Infrastructure Development Annual Report 2021-2022

ANNUAL REPORT 2021 | 2022

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES The Auditor-General of South Africa (AGSA) currently performs certain audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.

Refer to page 168 of the Report of the Auditor General, published as Part E: Financial Information.

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 Service Delivery Environment During the financial year under review, the Department could not complete all the infrastructure projects that were envisaged to be completed, due to various challenges experienced including the slow pace on site in compliance with government protocols as a result of COVID-19. One of the lingering challenges that prevented the Department from delivering on its mandate is the funding that still resides with client departments, resulting in the late payments of service providers, and in turn which led contractors to abandon the sites. In addition, contractors assigned inexperienced personnel to manage projects which results in poor workmanship. On the other hand, emerging contractors did not have cash flow to deliver projects on time, they depended on the budget they receive from the Department. In most cases projects were delayed by labour unrest and/or strikes. As a corrective action, the Department is gradually building internal capacity by offering bursaries to its employees to equip themselves with technical skills and thus ensure that institutional memory is preserved. The Department is in a process of re-investing in the systems, such as Primavera and Archibus to ensure project monitoring assisting to improve performance. Moreover, efforts to empower professional candidates to register in their respective fields are gaining momentum to ensure readiness on project management using proper systems for reporting project performance. The government continues to enforce initiatives aimed to tackle the challenge of high unemployment, particularly among the youth population. The Department is responding to this challenge which requires appropriate interventions through a range of initiatives aimed at alleviating unemployment. These include the provision of short-term paid work opportunities coupled with skills training and promoting the use, as well as the development, of artisans. The high rate of unemployment and poverty continue to affect delivery of infrastructure, as there are ongoing site disruptions by business groups demanding contracts for built works. The Department is keen to improve existing job creation programmes and ensure effective oversight its role of coordinating EPWP in the province.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT