DID ANNUAL REPORT 2022 23

Annual Report 2022-2023

The above table represents fruitless and wasteful expenditure that was reported by the Department to the Accounting Officer of R48 million in relation to current year’s expenditure. This amount consists of rental charge and court settlement. During the year, the Department paid R8,3 million rental charge to the landlord of the Game building, while reinstating the building to its original condition. The remaining balance of R39,8 million related to court settlement that was paid to the service provider for supplying oxygen at hospitals. During the financial year, the Department issued a circular to all officials to refrain from incurring fruitless and wasteful expenditure. The Department has since reported fruitless and wasteful expenditure to the accounting officer in accordance with National Treasury instruction no 4 of 2022/23 and Treasury Regulation 9.1.2.

Irregular Expenditure

2022/23 R’000

Descriptions

Opening balance

2 019 051

Irregular expenditure Register – prior year Irregular expenditure Register – current year

-

158 243 2 177 294

Closing Balance

The above table consists of opening balance of R2 billion and current year movement of R158 million. The current year movement consists of leases and security services, of which the expenditure incurred was in contravention of the Supply Chain Management prescripts. The Department has since rectified the process through tender advert for leases and security services. During the year, the Department revised the SCM policy and aligned it to the new prescripts issues by National Treasury. The Department has concluded the investigation process of irregular expenditure and referred the outcome to Provincial Treasury for condonement. The Exco has given the Department a mandate to refurbish all head office accommodation for the province to comply with regulations and standards. The Department has undertaken this process and explore different funding options. The Public-Private Partnership is the preferred funding option that the Department will implement to provide office accommodation through the consolidation of the head office and administrative functions of all GPG departments within Johannesburg Central Business District. The feasibility report and Treasury Approval IIA relating to design and bids documents has been approved. Bids documents were received from various companies, evaluation process in conjunction with Gauteng Infrastructure Financing Agency (GIFA) has been concluded and referred to National Treasury for further opinion. Based on the outcome from National Treasury the Department will proceed with the procurement process. Public Private Partnerships

Discontinued Key Activities/Activities to be Discontinued

There are no discontinued activities related to the Department’s functions.

New or Proposed Activities

The Department has initiated the two programmes within EPWP aimed at reducing the number of unemployed persons.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT