GDID ANNUAL REPORT 2024/25

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

• After assessing the costs required to maintain the system, the information communication technology steering committee recommended the decommissioning of the system in February 2025. • Through the Gauteng Department of e-Government, requested the State Information Technology Agency to decommission the system in July 2025. • Initiated a process of identifying officials responsible in May 2025 and the process is expected to be finalised before the end of September 2025.

50. I will follow up on the implementation of the planned actions during my next audit.

Status of previously reported material irregularities

Construction of new Khutsong South Clinic not completed

51. 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 construction of the new Khutsong South Clinic since termination of the previous contractor’s contract in November 2019 due to abandonment of site. By August 2021, R42 million had been paid to the previous contractor. 52. The department was given an instruction to proceed with the project in July 2022 by the Gauteng Department of Health. The incomplete infrastructure is likely to be vandalised and deteriorate due to elements of weather. 53. The non-compliance is likely to result in material financial loss for the Gauteng Department of Health if a replacement contractor is not appointed on time to complete construction of the clinic.

54. The accounting officer was notified of the material irregularity on 22 August 2023.

55. The Gauteng Department of Infrastructure Development implements infrastructure projects on behalf of the Gauteng Department of Health.

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

2 In responding to the weaknesses identified in the contract management process per the root cause analysis finalised in June 2024, implemented an infrastructure delivery platform to enhance transparency, streamline communication and ensure accountability with contractors. • No official could be held responsible for the material irregularity based on the outcome of the root cause analysis performed. • Established a panel of construction contractors with construction industry development board grading between level 6 and 9. This enhances turnaround times on the appointments of contractors, in particular appointing replacement contractors where the contractor has failed to perform. 57. 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. • Appointed a replacement contractor in April 2024 to complete construction of the clinic; however, construction has not commenced as discussions relating to the scope of work and final budget allocation are still ongoing with the Gauteng Department of Health. The process is expected to be finalised before the end of September 2025. •

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT