DID ANNUAL REPORT 2023_24

Annual Report 2023-2024

47. Gauteng Department of Infrastructure Development implements infrastructure projects on behalf of the Gauteng Department of Education. 48. The accounting officer was notified of the material irregularity on 4 September 2023 and invited to make a written submission on the actions taken and to be taken to address the matter.

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

• Appointed a contractor in August 2023 to complete the project and construction work was completed in January 2024 with learners attending school from February 2024. • A completion certificate for the external civil works was issued in March 2024. • A root cause analysis finalised in June 2024 concluded that established contract management processes were not followed and a process to implement recommendations from the report is expected to be finalised before end of October 2024. • Established a panel of construction contractors with construction industry development board grading between level 6 and 9. This will enhance turnaround times on the appointments of contractors, in particular appointing replacement contractors where the contractor has failed to perform. 50. To prevent a re-occurrence of the material irregularity, the accounting officer holds bilateral meetings with senior management on a biweekly basis to enhance oversight and support. This ensures speedy turnaround times on projects. 52. 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 the termination of the contractor’s contract in August 2021 due to poor performance. 53. The department 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. 54. 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. 55. Gauteng Department of Infrastructure implements infrastructure projects on behalf of the Gauteng Department of Health. 51. I will follow up on the implementation of committed actions during my next audit. Status of previously reported material irregularity Construction of Mayibuye clinic not completed

56. The accounting officer was notified of the material irregularity on 19 July 2023.

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

• A root cause analysis finalised in June 2024 concluded that established contract management processes were not followed and a process to implement recommendations from the report is expected to be finalised before end of October 2024. • Appointed a professional team which is currently reviewing project technical reports to determine suitability of the structure on site which will inform the finalisation of the design development report to be submitted

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT