GDID ANNUAL REPORT 2024/25

GAUTENG PROVINCE INFRASTRUCTURE DEVELOPMENT REPUBLIC OF SOUTH AFRICA

Contents

PART A: GENERAL INFORMATION............................................................................................................................5 1. DEPARTMENT GENERAL INFORMATION.............................................................................................................6 2. LIST OF ABBREVIATIONS/ACRONYMS................................................................................................................7 3. FOREWORD BY THE MEC..................................................................................................................................8 4. REPORT OF THE ACCOUNTING OFFICER..........................................................................................................10 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT.................22 6. STRATEGIC OVERVIEW.....................................................................................................................................23 6.1. Vision....................................................................................................................................................23 6.2. Mission..................................................................................................................................................23 6.3. Values....................................................................................................................................................23 7. LEGISLATIVE AND OTHER MANDATES..............................................................................................................24 8. ORGANISATIONAL STRUCTURE........................................................................................................................30 9. ENTITIES REPORTING TO THE MEC...................................................................................................................31 PART B: PERFORMANCE INFORMATION.................................................................................................................33 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES...........................................................................34 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE..............................................................................................34 2.1 Service Delivery Environment..................................................................................................................34 2.2 Service Delivery Improvement Plan.........................................................................................................35 2.3 Organisational environment................................................................................................................... 36 2.4 Key policy developments and legislative changes...................................................................................37 3. ACHIEVEMENT OF INSTITUTIONAL IMPACTS AND OUTCOMES........................................................................37 4. INSTITUTIONAL PROGRAMME PERFORMANCE INFORMATION.........................................................................38 4.1 Programme 1: Administration................................................................................................................38 4.2 Programme 2: Public Works Infrastructure.............................................................................................45 4.3 Programme 3: Expanded Public Works Programme................................................................................66 5. TRANSFER PAYMENTS......................................................................................................................................71 5.1. Transfer payments to public entities.......................................................................................................71 5.2. Transfer payments to all organisations other than public entities............................................................71 6. CONDITIONAL GRANTS...................................................................................................................................71 6.1. Conditional grants and earmarked funds paid.......................................................................................71 6.2. Conditional grants and earmarked funds received.................................................................................71 7. DONOR FUNDS................................................................................................................................................73 7.1. Donor Funds Received...........................................................................................................................73 8. CAPITAL INVESTMENT......................................................................................................................................73 8.1. Capital investment, maintenance, and asset management plan.............................................................73

1

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

2 PART F: FINANCIAL INFORMATION.......................................................................................................................133 4. REPORT OF THE AUDITOR GENERAL..............................................................................................................134 5. ANNUAL FINANCIAL STATEMENTS.................................................................................................................147 PART C: GOVERNANCE............................................................................................................................................75 1. INTRODUCTION............................................................................................................................................... 76 2. RISK MANAGEMENT........................................................................................................................................76 3. FRAUD AND CORRUPTION...............................................................................................................................76 4. MINIMISING CONFLICT OF INTEREST................................................................................................................77 5. CODE OF CONDUCT........................................................................................................................................77 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES...............................................................................................77 7. PORTFOLIO COMMITTEES................................................................................................................................79 8. SCOPA RESOLUTIONS......................................................................................................................................82 9. PRIOR MODIFICATIONS TO AUDIT REPORTS.....................................................................................................83 10. INTERNAL CONTROL UNIT...............................................................................................................................83 11. INTERNAL AUDIT AND AUDIT COMMITTEES....................................................................................................83 12. AUDIT COMMITTEE REPORT............................................................................................................................86 13. B-BBEE COMPLIANCE PERFORMANCE INFORMATION......................................................................................91 PART D: HUMAN RESOURCE MANAGEMENT........................................................................................................93 1. INTRODUCTION............................................................................................................................................... 94 2. OVERVIEW OF HUMAN RESOURCES................................................................................................................94 3. HUMAN RESOURCES OVERSIGHT STATISTICS..................................................................................................94 PART E: PFMA COMPLIANCE REPORT...................................................................................................................121 1. IRREGULAR, FRUITLESS AND WASTEFUL, UNAUTHORISED EXPENDITURE AND MATERIAL LOSSES.................122 1.1. Irregular expenditure............................................................................................................................ 122 1.2. Fruitless and wasteful expenditure.......................................................................................................124 1.3. Unauthorised expenditure.................................................................................................................... 125 1.4. Additional disclosure relating to material losses in terms of PFMA Section 40(3)(b)(i) &(iii))..................126 2. LATE AND/OR NON-PAYMENT OF SUPPLIERS.................................................................................................126 3. SUPPLY CHAIN MANAGEMENT......................................................................................................................127 3.1. Procurement by other means.........................................................................................................................127 3.2 Contract variations and expansions................................................................................................................127

2

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

3

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

2

4

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

Part General Information

5

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

1. DEPARTMENT GENERAL INFORMATION

PART

PHYSICAL ADDRESS:

Department of Infrastructure Development The Corner House Cnr. Commissioner and Pixley ka Isaka Seme Street Marshalltown 2107

POSTAL ADDRESS:

Private Bag X83 Marshalltown 2107

TELEPHONE NUMBER/S:

+27 11 355 5000

WEBSITE ADDRESS:

www.gauteng.gov.za

GPDID

GautengInfrastructure

@gautng_infrastructure

Department of Infrastructure Development (DID)

GPG Infrastructure

@gp_infrastructure

2

6

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

2. LIST OF ABBREVIATIONS/ACRONYMS

PART

Acronym Full Description

Acronym Full Description

ABT

Alternative Building Technology

MOU

Memorandum of Understanding

AGSA Auditor General of South Africa

MTEF

Medium Term Expenditure Framework

AO

Accounting Officer

MV

Military Veterans

APP

Annual Performance Plan

NYS

National Youth Services

B-BBEE

Broad-Based Black Economic Empowerment

OHS

Occupational Health and Safety

C-AMP

Custodian-Asset Management Plan

PEP

Project Execution Plan

CBD

Central Business District

PFMA Public Finance Management Act

CFO

Chief Financial Officer

PPP

Private Public Partnership

CHBAH Chris Hani Baragwanath Academic Hospital

PQR

Quarterly Performance Report

CHC

Community Health Centre

PRC

Peer Review Committee

CRSA Control Risk Self-Assessment

PSP

Professional Service Provider

CYCC Child Youth Care Centre

PwD

People with Disabilities

DHET

Department of Higher Education and Training RoFR

Right of First Refusal

DID

Department of Infrastructure Development

ROMC Risk Operational Management Committee

DLTC

Driving License Testing Centre

SDIP

Service Delivery Improvement Plan

EPWP

Expanded Public Works Programme

SLA

Service Level Agreement

EXCO Executive Committee

SMS

Senior Management Staff

HOD

Head of Department

SMME

Small Medium and Micro Enterprises

GIAM Government Immovable Asset Management

SCM Supply Chain Management

GPG

Gauteng Provincial Government

SITA

State Information Technology Agency

IAR

Immovable Asset Register

STARS

Sports, Transport, Agriculture, Rural Development and Social Development

ICT

Information Communication Technology

TA

Treasury Approval

IDMS

Infrastructure Delivery Management System TER

Township Economic Revitalization

IGR

Intergovernmental Relations

TR

Treasury Regulations

IRPS

Infrastructure Research, Planning System U-AMP

User Asset Management Plan

KPI

Key Performance Indicators

MEC

Member of Executive Council

7

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

3. FOREWORD BY THE MEC

PART

community access to essential public infrastructure, the Department has intensified efforts to reduce infrastructure backlogs by streamlining the project pipeline and prioritising the completion of stalled and distressed projects. As the implementing agency responsible for social infrastructure, the Department has also sharpened its focus on advancing socio-economic development and promoting spatial transformation through strategic infrastructure investment. Over the past five years, the Department has consistently achieved an unqualified audit outcome on both financial and non-financial reporting, as determined by the Auditor-General of South Africa (AGSA). This marks five consecutive years of clean audits – a milestone that reflects the Department’s unwavering commitment to good governance. It also highlights the constructive collaboration with the AGSA and the dedication of all Departmental branches to furnishing timely and accurate evidence of both achievements and areas requiring attention. Weekly Audit Steering Committee sessions, led by the Internal Control Unit and attended by all branches, remain a vital platform for resolving audit queries, strengthening internal accountability, and ensuring alignment with AGSA expectations. A key highlight has been the Department’s continued progress in embedding smart infrastructure solutions designed to enhance transparency, accountability, and operational efficiency. Central to this transformation is the Infrastructure Delivery Platform (iDEP) — a pioneering, homegrown digital innovation developed in partnership with the Gauteng Department of e-Government and the Council for Scientific and Industrial Research (CSIR). iDEP represents a significant shift in the province’s approach to infrastructure management. Since its introduction, iDEP has enabled the creation of a unified, end-to-end view of the infrastructure delivery value chain. Beyond DID, its application is already adding value to broader government initiatives, such as the Municipal Barometer, which is advancing water governance and conservation at the local government

Mr Jacob Mamabolo

MEC of the Department of Infrastructure Development and COGTA

2 In its pursuit of delivering smart public infrastructure in an efficient and effective manner, the Department successfully completed 109 infrastructure projects during the sixth administration. Of these, 23 were undertaken on behalf of various Client Departments, 18 were within the Health portfolio, and 68 were delivered for the Department of Education. This accomplishment highlights the Department’s critical mandate to drive socio-economic infrastructure delivery, investment, and management across the Gauteng Provincial Government. To improve The Department of Infrastructure Development (DID) continues to play a pivotal role in the Gauteng Provincial Government’s drive to stimulate economic growth and create employment through the provision of social infrastructure. In the 2024/25 financial year, the Department has made notable progress in strengthening internal systems to enhance the delivery of critical infrastructure that directly impacts the quality of life for communities across the province.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

By establishing a single source of truth, iDEP strengthens transparency, improves compliance, and enables real-time tracking of project performance. The automation of the Infrastructure Delivery Management System through the Project Readiness Matrix is central to this approach, ensuring that each phase of project delivery is meticulously planned, risks are proactively mitigated, and delivery timelines and budgets are upheld. Through this digital and governance transformation, the Department is modernising infrastructure project management in Gauteng – delivering infrastructure that is efficient, accountable, sustainable, and aligned with the evolving needs of the province’s communities.

level. Within the Department, iDEP is fully integrated into the operations of the Lutsinga Infrastructure House and comprises the following critical components: Project Readiness Matrix (PRM): A strategic tool ensuring project compliance and strengthening interDepartmental collaboration for successful delivery. Infrastructure Governance Lab (IGL): A mechanism that enhances infrastructure governance and supports the monitoring of turnaround strategy implementation. Smart Technologies: Advanced digital tools that drive productivity, ensure compliance, and promote sustainability. Project Finance Compliance: A dedicated function that reinforces financial oversight and mitigates the risk of cost overruns and project delays. Project Site Compliance: A structured framework standardising site operations and enforcing best practice through digital monitoring tools. Despite infrastructure’s centrality to economic development, inefficiencies across the three spheres of government continue to hinder progress. In response, the Gauteng Provincial Government has positioned iDEP as a cornerstone of its Turnaround and Culture Change Programme. This transformative platform is designed to enhance governance, streamline delivery, and embed smart, technology-driven solutions across all stages of infrastructure development.

PART

Mr Jacob Mamabolo MEC of the Department of Infrastructure Development

and COGTA 31 July 2025

9

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

4. REPORT OF THE ACCOUNTING OFFICER

PART

The province’s Growing Gauteng Together action plan and the 2030 National Development Plan’s objectives and goals to enhance community quality of life, which are based on the public infrastructure build programme as a major driver of economic growth and development, are in line with all of this work. The pursuance of maximum impact of Departmental programmes has seen the Department accordingly aligning its operational and strategic plans to the national and provincial government policies on equity. This includes procurement spent on previously disadvantaged groups such as women, youth, and people with disabilities. The procurement spent indicates that 54.24% of the procurement was allocated to women-owned enterprises against the target of 40%, with 30.38% to youth, and 5% went to people with disabilities-owned enterprises also benefiting in the procurement programme. The Department has established a solid foundation for achieving a clean audit in the future by implementing internal systems and controls that allow complete accountability for the use of public resources and funds entrusted to us. For the past five years, the Department obtained an unqualified audit outcome on the audit of financial and non-financial reporting, as determined by the Auditor General of South Africa (AGSA). This achievement is attributed to the cooperation that the Department has shown towards AGSA and the commitment of the Department’s branches to providing evidence for achievements and non-achievements of targets. Internal control facilitates weekly audit steering committee sessions that involve all branches and consider all audit queries to ensure the Department serves its purpose and complies with AGSA regulations. The Department continues to achieve 95% payment of invoices to professional service providers within the 30 day period. The Department has also accelerated its recruitment of competent human resources by prioritising and filling critical positions during the 2024/25 fiscal year as part of its ongoing efforts to increase state capacity. To this end, a total of 15 vacant positions were filled. This was

Mr Rufus Mmutlana

Accounting Officer: Department of Infrastructure Development

Overview of the operations of the Department:

2 The 2024/25 fiscal year marked the last financial year within the sixth administration of the Gauteng Provincial Government (GPG). As a result, there was an urgent sense of purpose in ensuring that the performance targets that had been established at the beginning of the term were achieved. The annual report is a reflection on the financial and non-financial performance of the Department against the targets and objectives that have been set out in the 2024/25 Annual Performance Plan. Therefore, it is the Department’s responsibility to assess the successes, milestones, and challenges that have occurred in executing the Departmental mandate. This is a mechanism for reemphasising the Department’s position in promoting and instilling a culture of transparency, accountability and good governance in support of the directive from the Gauteng Provincial Government.

10

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

In respect of health infrastructure projects, the Department undertook maintenance at 64 health facilities and completed renovations and refurbishments at the Helen Joseph Hospital Nurses Residence on behalf of the Health Department. This work has contributed to the building of healthy and sustainable communities. During the year under review, the Department maintained 37 government buildings and facilities under the STARS sub-programme and completed five infrastructure projects in total. These projects include sectional completion of the Wedela Primary School Combi Court (sectional completion), the Westhoven Regional Office, the Dr Fabian and Florene Ribeiro Treatment Centre, the Benoni DRT Regional Office and the Tshwane Tolab. It is critical to indicate that the focus is not only on completed infrastructure projects, but we also continue to track and report on the backlog projects, i.e., projects that have not been completed as planned in the previous financial years. This is part of the accountability measures that the Department has adopted over the years. Our commitment to efficient delivery of quality public infrastructure has also seen the Department launch a groundbreaking solution during the 2024/25 financial year. Known as the Infrastructure Delivery Platform (iDEP), with an integrated project management dashboard located at Lutsinga Infrastructure House, it is a transformative toolset to modernise and streamline project management across the province. The iDEP will assist in the critical stages of the project management process to eliminate risks. Furthermore, the Department is getting the basics right to complete projects on time to avoid project delays. The system’s innovative approach combines governance, smart technologies, and proactive infrastructure management and positions itself as a game changer in the way public infrastructure projects are managed and delivered in the province. In addition, the system will enable better co-ordination with municipalities and Client Departments and help eliminate non compliance and poor project management, as well as the management of litigation matters emanating from projects. Infrastructure Delivery Platform (iDEP) Implementation

coupled with capacity-building mechanisms through training and development of our staff members as one of the methods to ensure competency and delivery of our mandate. To this effect, the Department has provided capacity building to 1 583 staff members to increase efficiency in their respective scopes of work. These trainings are also a method of keeping staff updated with new developments on policies and legislation for implementation in their respective fields of work within the Department. Public Infrastructure Delivery Entrusted with championing socio-economic infrastructure delivery, investment, and management in GPG, the Department has worked tirelessly to reduce infrastructure backlogs through the rationalisation of our project pipeline and the prioritisation of incomplete projects, especially those in distress, to ensure increased community access to critical infrastructure. As an agent of social infrastructure entrusted with delivering public infrastructure for Client Departments, we have increased our focus on spatial and socio-economic transformation. Despite the challenges, the Department managed to complete a total of 18 infrastructure projects in the 2024/25 financial year. As the custodian and manager of GPG immovable assets and the champion of socio economic infrastructure delivery in Gauteng, the Department has, during the period under review, recorded a number of achievements. In an effort to improve service delivery, the Department ensured the provision of quality public infrastructure with the completion of 12 construction projects for the Department of Education. The following schools were sectionally completed in the financial year: Semphato Secondary School (sectional completion) and Dr WK Du Plessis (sectional completion), with renovations and refurbishments completed at Kokosi Primary School, Lotus Garden Secondary School (practical completion), Tshirela Primary School, Lenasia Secondary School, Robin Hills Primary School, Athlone Girls High School and Goudwesskool Secondary School whereas upgrades and additions were completed at Laerskool Queenswood, Thuto-Pele Secondary School (sectional completion) and Mogobeng Primary School.

PART

11

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

The iDEP is part of the back-to-basics approach for effective and centralised project management processes, governance and compliance using smart technologies. The iDEP is not only about managing infrastructure projects but also about ensuring that public funds are used efficiently and responsibly. With iDEP, the Department is creating an ecosystem that fosters accountability, transparency, and collaboration across all stages of project delivery. The Department is committed to building an infrastructure delivery system that is not only effective but also sustainable for future generations. All project managers have been trained on the iDEP system, while stakeholders have also been registered on the integrated dashboard to enable transparent tracking of project progress, updating of information and improvement of project communication. This is a move towards efficient and transparent project delivery, leveraging technology to improve outcomes in infrastructure projects to become Gauteng’s infrastructure implementor of choice. Our slogan is “Improving Lives through Quality Infrastructure “Proudly DID”. Management of GPG Property Portfolio As the custodian of the provincial property portfolio, the Department has verified 6 272 state-owned properties in accordance with Market Related Rentals and 15 properties have been sold, whilst a total of five properties were transferred to third parties. In addition, R30,3 million in property revenue has been collected by the Department, while the payment of municipal rates and taxes stood at R761 million. During the financial year, a total of 20

properties were released for socio-economic development, maintaining the number that was released in the previous financial year. Expanded Public Works Programme (EPWP) The Expanded Public Works Programme (EPWP) is aimed at providing poverty and income relief through temporary work for the unemployed to carry out useful activities. An important foundation of the EPWP is the provision of training and skills development to ensure beneficiaries gain work experience and prepare them for future job markets. This programme is the cornerstone for the creation of work opportunities not only in the province but also nationally. The Provincial Departments contributed to the national figures by creating 40 982 work opportunities, with municipalities contributing 49 805 work opportunities, respectively. The EPWP work opportunities target unemployed youth, women and people with disabilities whilst also benefiting male counterparts. The provision of training and skills development is another pillar of EPWP, benefiting a total of 1 200 young people across the province who successfully completed the programme. The Department looks forward to coordinating the implementation of Phase V of EPWP as launched in the 2024/25 financial year. EPWP remains critical in dealing with the fundamental issues of poverty and unemployment, where some of the participants are offered enterprise development as an intervention to empower them for entrepreneurship so that they become self-reliant.

PART

2

12

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

Overview of the financial results of the Department:

PART

Departmental receipts

2024/2025 Actual Amount Collected

2023/2024 Actual Amount Collected

(Over)/ Under Collection

(Over)/ Under Collection

Departmental receipts

Estimate

Estimate

R’000

R’000

R’000

R’000

R’000

R’000

Sale of goods and services other than capital assets Sales: Scrap, waste, other goods Interest, dividends and rent on land

33 450

13 477

19 973 23 367

13 744

9 622

- - -

1 783

(1 783)

- - -

-

-

1

(1)

74

(74)

Sale of capital assets

20 421 (20 421)

9 401

(9 401)

Financial transactions in assets and liabilities

881

724

157

843

853

10

Total

34 331

34 623

(292)

24 210

24 072

156

The annual revenue target for the year 2024/25 was R34 million against actual revenue collected of R34 million. Included in the current year’s collection is R11,4 million from commercial and residential property rentals, R1,7 million from the sale of obsolete equipment and R20 million from the sale of non-core assets. This represents a collection of 100,3% of the overall projected revenue Revenue from the sale of goods and services consists of rentals from dwellings amounting to R10,2 million, rentals of open and closed covered parking amounting to R567 000 and R844 000 related to other revenue. Included in R10,2 million is R6,6 million that was collected from 75 commercial properties’ tenants, R686 000 from 169 residential properties tenants and the remaining balance of R2,9 million was paid by tenants whose lease agreements have expired and gate takings from Roodeplaat Nature Reserve. Commercial properties generated 54% of the intended revenue for the year and they have the potential to meet the yearly revenue target compared to 5,2% for residential properties. R1,7 million received from scrap, waste, other goods related to the sale of the prior year’s obsolete generators and other technical equipment for which payment was received in the current financial year. Interest received of R1 000 related to interest charged on staff debts.

Sale of ten properties at public auction and the R12 million in proceeds from the illicit sale of property, an excess of R20,4 million in income was collected. Exco’s determination to sell non-core assets provides the basis for residential property sales. Financial transactions amounting to R621 000 in assets and liabilities pertaining to recoverable revenue for expenses from the previous year. Under collection on sales of goods and services is due to the inability to afford rentals by the tenants, especially residential tenants. Some of the lease contracts have expired and the Department is in the process of renewing the lease contracts with tenants that are paying their invoices regularly. Both residential and commercial tenants who failed to meet their obligations were handed over to legal services for recovery and evictions. Additionally, the Department has, during the year, appointed a debt collector to improve recoverability of old debts and assist with the current year’s collection. The Department has developed a framework for leasing of vacant and underutilised properties. The facilities identified by the Department as available will be offered through open tender process.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

Programme Expenditure

2024/2025

2023/2024

PART

(Over)/ Under Expenditure

Actual Expenditure

Actual Expenditure

Programme Name

(Over)/Under Expenditure

Final Appropriation

Final Appropriation

R’000

R’000

R’000

R’000

R’000

R’000

Administration Public Works Infrastructure Expanded Public Works Programme

513 317

513 318

-

531 820

530 334

1 486

2 605 569 2 605 569

-

2 969 044 2 953 562

15 482

286 937

285 725

1 211 1 211

272 421

272 421

-

Total

3 405 823 3 404 612

3 773 285 3 756 317

16 968

legal services. The programme’s budget was severely strained by the rising cost of court orders. The Department spent 100% of the allocated budget in the year 2024/25. The Office of the MEC spent 106% of the allocated budget. Corporate Service spent 99,92% of the allocated budget and Management spent 100% of the allocated budget. The Department has implemented more robust cost containment strategies and improved contract management processes as a stringent financial management. Programme 2 In the year 2024/25, Public works received a budget of R2,6 billion, up from R2,9 billion compared to the previous financial year. The purpose of this programme is to deliver essential service mandated to the Department. Compared to the prior financial year, the programme’s overall budget allocation dropped by 12,24%. The 329 t000 budget cut on alternative energy is the primary cause of the current year’s allocation reduction. This programme has a sizeable portion of the Department’s budget. In the year 2024/25 the Department has spent R2,605 billion of the R2,605 billion allocations. In the year 2024/25, the programme used up all of the funds allocated. The construction spent 99,5% of the allocated budget. 100% of the allocated budget was spent on maintenance and 100,11% was spent on Immovable Asset Management. The Department has accelerated the refurbishment and maintenance of infrastructure during the year in line with the infrastructure delivery model, OHS report and project readiness matrix.

2 Programme 1 This programme supports the Department’s primary role and is administrative in nature. Administration was allocated a budget of R513 million, and to date R513 million has been spent thus far, meaning that 100% of the budget has been spent within the programme. Overall budget allocation within this programme decreases by 3,4% compared to the previous financial year. The decrease in budget allocation is attributable to a reduction in allocation for the court order settlement budget under Analysis of the Departmental financial performance per programme is listed in the table above. The Department’s final budget allocation for the year 2024/25 was R3,405 billion; to date R3,404 billion of the allocated budget has been spent. Despite the Department spending 99,96% of the allocated budget, overall Departmental expenditure is well aligned with the budget, showing a slight net under expenditure of R1,211 million for 2024/2025. In the current financial year, the Department reflected significant improvement in underspending due to tighter financial management compared to the previous year, when there was an underspending of R16 million. Included in R1,2 million underspending are goods and services under EPWP. The final appropriation for the year 2024/25 decreased from R3,7 billion in the year 2023/24 to R3,4 billion, due to a compulsory budget cut on alternative energy amounting to R329 million. During the budget adjustment period, the Department was allocated additional funding for office accommodation amounting to R128 million and compensation of employees amounting to R42 million.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

Programme 3 This programme forms part of the key priorities of the province since it develops and empowers communities. The aim is to improve the skills of the beneficiaries and empower them to be self-sufficient after they have exited the programme. EPWP was allocated a budget of R286 million for the year 2024/25 compared to the previous year’s budget of R272 million. This increase in allocation for the training programme resulted in a slight increase in the overall allocation. This programme accounts for 8% of the

overall budget allocation for the Department. To date the programme has spent 99,66% of the current year’s budget allocation compared to 100% spent in the previous financial year. Programme support spent 98,03% and Community Development spent 100% of their allocated budget. The training panel for service providers was set up during the year as a mechanism to help the Department expedite the programme’s procurement process. Additionally, EPWP participants received training tailored to their qualifications and desired careers.

PART

Virements and Rollovers

Year- end Virements From

Adjusted Appropriation

Year- end Virements To

Final Appropriation

Balance after virements

Programme Name

R’000

R’000

R’000

R’000

R’000

Administration Public Works Infrastructure

473 557

-

39,761

531 317

- -

2 654 492

(48,923)

-

2 605 569

Expanded Public Works Programme

277 774

-

9,162

286 936

1 211

Total

3 405 823

(48,923)

48,923

3 405 823

1 211

Virements The virements requested are in line with the PFMA and within the prescribed 8% limit of the allocated budget of the programmes. Programme 1: Virements amounting to R52.9 million have been effected from the Compensation of Employees to Programmes 2 and 3. A further virement of R11,7 million has been made from Machinery & Equipment. The total adjustments will result in an increase of R39,7 million, with the budget rising from R473,557 million to R513,317 million. Programme 2: A virement of R21,8 million from Programme 1’s Compensation of Employees will be effected to balance the personnel expenditure. The budget will be reduced by R48,9 million, adjusting the total from R2,654 billion to R2,605 billion. Programme 3: A total of R1,475 million in virements has already been implemented to align the budget with

Funds shifted The shifting of the funds requested is to lighten overspending on items that were underfunded during the current financial year. The shifts are only cosmetic and are movements from underspending items to defray over expenditure on another items and will not affect the baseline of each programme. Programme 1: R21 million has been internally shifted within the programme to rectify overspending and bring expenditures into line with the budget. Programme 2: A R200 million reprioritisation of rates and taxes has been put into effect; of that amount, R87.9 million has been allocated to legal fees, and R95.5 million has been allocated to operating leases and other overcommitted items within the Goods & Services category. In addition, R11.7 million from Infrastructure Maintenance and R7.4 million from underspending capital projects have been shifted to rectify the overspending in facilities maintenance.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

actual expenditure. An additional virement of R31 million from Programme 1’s Compensation of Employees will be made to further address budget alignment. An increase

of R9 million will bring the adjusted budget from R277,774 million to R286,9 million.

PART

Rollovers

2024/2025

Description

Actual Expenditure

Available budget

Committed but not paid

Final Appropriation

% Spent

% spent

R’000

R’000

R’000

R’000

R’000

Compensation of employees Goods and services Interest and rent on land

1 311 697

1 311 699

(2)

100%

-

100%

1 262 848

1 261 562

1 286 99.90% 1 380

100% 100%

9 551

9 551

-

100%

-

Transfers and subsidies

766 847

766 920

(73)

100%

-

100%

Payment of Capital Assets

54 847

54 839

-

100%

-

100%

Payments for financial assets

41

41

-

100%

-

100%

Total

3 405 823

3 404 612

1 211 99,96% 1 380

100%

The above table represents commitments made by the Department before the end of the year but could not be processed for payment at year-end. This commitment can only be processed for payment in the next financial year provided approval was obtained from the Provincial Treasury. The commitment will be raised as year-end accruals provided the goods and services were received before year-end. Accruals are paid using the budget allocation for the following year since, at the time of closure of the payment system, suppliers failed to upload invoices on the electronic invoice submission on time. To date the Department spent 99.96% of the allocated budget, which resulted in underspending of R1,2 million,

should the rollover be approved the overall Departmental expenditure will improve from 99,96% to 100%. The application for rollovers is made in line with the Treasury regulations; paragraph 6.4 prescribes a limit of 5% of the Department’s payments for goods and services and no limit on Capex and Rates & Taxes. The Department’s adjusted budget for goods and services after year-end virements and shifts is R1,263 billion; therefore, 5% of the allocation is approximately R63,191 million, which will be the amount allowed for rollover on Goods and services.

2

Unauthorised, Irregular and Fruitless and wasteful expenditure

2024/25 R’000

Unauthorised expenditure – current year Irregular expenditure – current year

-

103,592

Fruitless and wasteful expenditure – current year

9,551

Total

113,143

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

Unauthorised expenditure The Department did not incur any unauthorised expenditure for the year ended 31 March 2025 Fruitless and wasteful Expenditure The above table represents the current year’s movement of fruitless and wasteful expenditure that was reported by the Department to the Accounting Officer of R9,5 million during the year 2024/25 in accordance with National Treasury instruction no. 4 of 2022/23 and Treasury Regulation 9.1.2. This amount consists of interest paid due to a court order settlement paid for various projects. Subsequently, the Department has issued a circular again to all officials to refrain from incurring fruitless and wasteful expenditure. The Department has concluded the investigation and referred them to the Accounting Officer for possible write-off. Irregular expenditure The current year movement, which totals R103 million, is shown in the above table. Included in the current year movement is payment made on expired lease contracts, of which the expenditure incurred was in contravention of the Supply Chain Management prescripts. The Department has since rectified the process through the issue of a notice for termination to the landlord and a tender advert for office accommodation. During the year the Department updated the SCM policy and aligned it to the new prescripts issued by National Treasury. The Department has concluded the investigation process of irregular expenditure and referred the outcome to the Provincial Treasury for condonement. Public-Private Partnerships • The Exco has given the Department a mandate to refurbish all head office accommodation for the province to comply with regulations and standards. The Department has undertaken this process and explored different funding options. The Public-Private Partnership is the preferred funding option that the Department will implement to provide office accommodation through the consolidation of the head office and administrative functions of all GPG Departments within the Johannesburg Central Business District.

• The feasibility report and Treasury Approval IIA relating to design and bid documents have been approved. The procurement process for Transaction Advisor is being managed by National Treasury through their entity (GTAC). The bid evaluation and bid adjudication stages have already been completed; the final award of the contract is underway. Discontinued key activities / activities to be discontinued Over the past two years the Department initiated the two programmes within EPWP aimed at reducing the number of unemployed persons. Below are the two programmes. Health Maintenance Programme: The Gauteng Department of Infrastructure Development (DID), jointly with the Gauteng Department of Health (DoH), is implementing the EPWP Health Maintenance Programme across three Metropolitan and two District Municipalities within Gauteng Province. This is conceived to benefit 1 230 participants across the five corridors in the province to do garden maintenance and clean administration blocks for a period of 12 months. The programme will have special emphasis on the targeted groups of women, youth and people with disabilities. This programme aims to draw significant numbers of unemployed persons into productive work. To this effect, the Department has allocated a budget of R52 million for the year 2024/25. Vacant Land and Facilities Maintenance The programme will be manually and physically clearing of provincial owned vacant sites and properties whose grounds and offices will be maintained through utilising the poorest of the poor as labour. The programme will be implemented as part of the Expanded Public Works Programme (EPWP) and be spearheaded by the Gauteng Department of Infrastructure Development as a contribution towards poverty eradication and job creation. The objective of this programme is to provide a cost-effective, labour-intensive method of routine site maintenance of the provincial vacant sites or other duties as determined from time to time by the Head of Department: Infrastructure Development or his/her duly appointed designee in a sustainable manner. The targeted group for this programme are women, youth and people with

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT

accelerate and govern infrastructure delivery in the Gauteng province. The iDEP is an infrastructure delivery ecosystem aimed at enhancing traditional project delivery methods through innovative technology. This platform provides a “single source of truth” for managing and distributing project information and documents, ensuring real-time, reliable data throughout the project lifecycle. The IDEP consists of two systems leveraged collectively to manage and deliver infrastructure in Gauteng, that is, the Portfolio of Risk system and the Portfolio of Evidence system. The information flowing through the systems is then visualised through Power BI (i.e., an insight visualisation tool).

disabilities.. Budget allocation for this programme is R43 million in the year 2024/25. Due to budget constraints, the Department has taken a decision to discontinue the above two programmes. Because of the budget constraints facing the Department the closures will have a direct impact on poverty eradication and job creation within the province. New or proposed key activities Infrastructure Delivery Platform (IDEP): To monitor, manage and expedite the completion of the infrastructure projects in the Gauteng Province, DID has launched an Infrastructure Delivery Platform (iDEP) in 2024 to

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• IDEP Portfolio of Risk System Capability:

Infrastructure Delivery System capabilities

IDEP Present Project Risk Management System

Enterprise Project Management

IDEP Presents an Infrastructure Project Risk Management System that serves a strategic intervention that seeks to improve the execution processes and operational efficiencies within the DID construction project management environment. • Presents automated • Provide timely data and information on the status of ongoing construction projects, maintenance, and design. • Enhances both strategic and operational decision-making in the Department. • Enhances transparency and accountability on infrastructure project performance by putting the monitoring of projects in the hand of stakeholders infrastructure project delivery KPIs

Project Summation

Resource Management

Schedule Development

Issue Tracking

Change Management

Risk Management

Supply Chain Tracking

2

Progress Tracking

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT