GDID ANNUAL REPORT 2024/25

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES The AGSA currently performs certain audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.

Refer to page 134 of the Report of the Auditor General, published as Part E: Financial Information.

2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 2.1 Service Delivery Environment PART

2 The ongoing use of leased office space on account of the non-availability of suitable buildings or funding for the refurbishment of buildings to bring these in line with the needs of user Departments continues to undermine the strategic role of the Department as custodian of provincial immovable assets. There is a dire need for maintenance of government buildings to house government Departments. GIAMA and the Land Administration Asset Management Act provide the Department with sufficient muscle to exercise its powers as custodian of provincial government assets. However, there are hindrances to the exercise of this mandate since the budget remains with user Departments. This is a gap that requires attention and possible review of legislation to enforce commitment of funding towards assets identified in the U-AMP by user Departments for inclusion in the C-AMP. Internal Environment analysis of Service Delivery Enablers Our geographic spread across all TISH areas facilitates ease of access for clients and proximity to facilities being serviced for maintenance and construction works. The review of the organogram to align it with the IDMS and the new service delivery model remains key to achieving meaningful service delivery to Client Departments and other stakeholders. Delays in the implementation of the organisational structure to get the right fit between the Departmental strategy, service delivery requirements and the shrinking budget have had a negative effect on operations. External Environment analysis The high rate of poverty, inequality and unemployment in South Africa, coupled with a widely recognised skills shortfall in key sectors of the economy, presents an opportunity to introduce meaningful interventions to realise Gauteng’s goal of inclusive economic growth through improving the efficiency, innovation and variety of government-led job creation and skills development initiatives. The Department’s response to these challenges is through EPWP, which is an intervention aimed at reducing unemployment and poverty in the province. The EPWP seeks to contribute to reducing unemployment by creating temporary employment by being responsive to the number of unemployed, as well as contribute to social protection for the unemployed by providing them with income support. The Department acknowledges that it needs to improve its approach to project management to deliver quality infrastructure on time and at a reasonable cost. However, there are still challenges with the completion of infrastructure projects on time and within budget and this is attributed to the funding that is still located with the Client Departments. In some cases, this has resulted in delayed payments to contractors, which in return has led these contractors to be unable to continue with the work, thus abandoning sites. The projects have experienced cash flow challenges due to delayed payment and this has exacerbated labour protests and the closure of construction sites. The Department continues to engage Client Departments through various platforms on the delayed payments and their implications for projects’ progress. One of the mitigation strategies to address this challenge was the introduction of technologies for project management, such as the iDEP system.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT