GDID ANNUAL REPORT 2024/25

Construction of Nancefield Primary School not completed

2 74. Resources of the department were not utilised economically, as required by section 38(1) (b) of the PFMA. The department did not address concerns raised by the Gauteng Department of Education to ensure that a replacement contractor is appointed to complete the construction of Mayibuye Primary School between July 2020 and July 2023. By July 2023 R98 million had been paid to the previous contractor. 75. 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 construction of the school. 76. The Gauteng Department of Infrastructure Development implements infrastructure projects on behalf of the Gauteng Department of Education. 67. 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 Nancefield Primary School since termination of the previous contractor’s contract in December 2021 due to poor performance. By June 2022, R33 million had been paid to the previous contractor. 68. 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 construction of the school 69. The Gauteng Department of Infrastructure Development implements infrastructure projects on behalf of the Gauteng Department of Education. • A contractor appointed in April 2024 is expected to complete construction of the school before end of September 2025. I visited the project in June 2025 and confirmed that construction work is in progress. • 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. 72. 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. 70. The accounting officer was notified of the material irregularity on 26 July 2023. 71. The accounting officer has taken the following actions to address the material irregularity: 73. I will follow up on the implementation of the planned action during my next audit. Construction of Mayibuye Primary School not completed

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77. The accounting officer was notified of the material irregularity on 4 September 2023.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT