GDID ANNUAL REPORT 2024/25

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

Construction of Mayibuye Clinic not completed

59. 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 the construction of Mayibuye Clinic since termination of the previous contractor’s contract in August 2021 due to poor performance. By August 2021, R5.6 million had been paid to the previous contractor. 60. The Gauteng Department of Infrastructure Development was given an instruction to proceed with the project in March 2023 by the Gauteng Department of Health. The incomplete infrastructure is likely to be vandalised and deteriorate due to elements of weather. 61. 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. 62. The Gauteng Department of Infrastructure implements infrastructure projects on behalf of the Gauteng Department of Health. • Geotechnical, concept and viability reports finalised in September 2024 and December 2024 by professional service providers concluded that R124 330 401,65 is required to complete the project. Due to fiscal constraints, the Gauteng Department of Health has not approved the reports submitted in March 2025 as discussions relating to funding of the project have not been finalised. The budget finalisation process is expected to be done before end of October 2025. • A tender document will be prepared by the Gauteng Department of Infrastructure Development for submission to the Gauteng Department of Health for approval upon finalisation of the budget allocation process by the Gauteng Department of Health. • In responding to the weaknesses identified in the contract management process per the root cause analysis finalised in June 2024, the accounting officer 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. 65. 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. 63. The accounting officer was notified of the material irregularity on 19 July 2023. 64. The accounting officer has taken the following actions to address the material irregularity:

PART

66. I will follow up on the implementation of committed actions during my next audit.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT