GDID ANNUAL REPORT 2024/25

Material irregularities

38. In accordance with the PAA and the Material Irregularity Regulations, I have a responsibility to report on material irregularities identified during the audit and on the status of material irregularities as previously reported in the auditor’s report.

Material irregularities identified during audit

39. The material irregularities identified are as follows:

Restoration repairs at Kwa-Dedangendlale Secondary School not completed

40. Resources of the department were not utilised economically, as required by section 38(1)(b) of the PFMA. The department did not take appropriate steps to ensure that a replacement contractor is appointed to complete restoration repairs at Kwa-Dedangendlale Secondary School since the termination of the previous contractor’s contract in March 2023 due to poor performance. By July 2024, R13 million had been paid to the previous contractor. 41. The incomplete infrastructure is likely to be vandalised and deteriorate due to elements of weather. The non compliance is likely to result in material financial loss for the Gauteng Department of Education if a replacement contractor is not appointed on time to complete restoration repairs. 42. The Gauteng Department of Infrastructure Development implements infrastructure projects on behalf of the Gauteng Department of Education. 43. The accounting officer was notified of the material irregularity on 26 August 2024 and invited to make a written submission on the actions taken and that will be taken to address the matter.

44. The accounting officer has taken the following actions to address the material irregularity:

Approved bill of quantities in June 2025.

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• Committed to appoint a replacement contractor to complete restoration works before end of September 2025. • No official could be held responsible for the material irregularity and no investigation was performed as it would have arrived at the same conclusion. • To prevent a re-occurrence of the material irregularity, the accounting officer holds biweekly bilateral meetings with senior management to enhance oversight and support. This ensures speedy turnaround times on projects.

45. I will follow up on the implementation of the planned action during my next audit.

Payments made for information technology system that is not accessible

46. Resources of the department were not utilised economically, as required by section 38(1) (b) of the PFMA. The department has not taken appropriate steps to ensure that the information technology system meant to assist with management of infrastructure projects is upgraded. By July 2024, R31 million had been spent on the system. 47. The department is likely to suffer a material financial loss if appropriate steps are not taken to upgrade the information technology system. 48. The accounting officer was notified of the material irregularity on 13 September 2024 and invited to make a written submission on the actions taken and that will be taken to address the matter.

PART

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT