Department of Infrastructure Development Annual Report 2021-2022

ANNUAL REPORT 2021 | 2022

Resolved (Yes/ No)

Committee with a progress report detailing the status of the investigations by 31 July 2021 and a quarterly progress report continuing up until finalization thereof. The details of the investigations are as follows: Yes

Yes

Yes

Yes

Resolution No. Subject Details Response by the Department 7 Irregular expenditure

• Supply Chain Management (SCM) training for all newly-appointed SCM officials regarding SCM prescripts and processes. Further to that the information sharing sessions with all SCM practitioners be held on a monthly basis to discuss new regulations and also to check if the process is applied the same. • Managers responsible for authorisation of transactions to ensure compliance to process prior to authorisation. • The SCM directorate has communicated via newsflash the procedure outlining the deviation from competitive bidding process to ensure adherence to this process and the disciplinary process thereof in case of transgression. • Updated delegations of authority must be communicated to all officials i.e. the limit of Rand value that officials can authorise for the procurement of goods and services • Plan to investigate irregular expenditure � The recruitment process to appoint investigators who will prioritise all irregular expenditure allegations is underway. It is envisioned that the appointments will be made by end of Quarter 1, 2021/22 financial year. � Harsh disciplinary action shall be instituted against officials who do not adhere to prescribed procurement processes.

All expenditure occurred that contravenes applicable legislature shall be recognised as irregular expenditure. It is therefore, incumbent that the Department focuses on the applicable legislature or prescripts governing procurement of goods and services and ensure that officials engaged in procurement activities are well informed on the same. Thus, the proposed to equip officials shall be as follows: • A central point in the Departmental website to house all relevant prescripts, policies, checklists, standard operation procedure, regulations, bid committee charters, delegations, practice notes for easier reference by all departmental officials.

The Department developed Audit Action Plans to address audit findings internal control deficiencies which were identified during the audit. The internal control deficiencies included lack of effective oversight to ensure that action plans were adequately implemented and monitored and proper record keeping. Request for information (RFI) by AGSA is tracked on a weekly basis through the Audit War Room meetings to ensure timeous submission of information for audit purposes. Refer to the attached Audit Action Plans “Annexure B”.

That the Department must provide the Committee with a progress report detailing the effectiveness of measures put in place to address findings on internal controls

deficiencies by 31 July 2021 and every quarter continuing up until the end of June 2022.

That the Department must submit its plan to investigate and reduce the irregular expenditure accumulated over years by 31 July 2021 and a quarterly progress report continuing up until finalisation thereof.

That the Department must submit its plan to prevent the occurrence of irregular expenditure, by 31 July 2021. This plan must include the

assessment of its effect in the 2020/21 financial year.

10 Investigations That the Department must provide the

9 Internal

control

deficiencies

8 Irregular

expenditure

69

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT