DID ANNUAL REPORT 2023_24

Annual Report 2023-2024

and approved by the Gauteng Department of Health. The final report is expected to be submitted to the Gauteng Department of Health before end of October 2024. • A tender document will be prepared for submission to the Gauteng Department of Health for approval upon confirmation of the budget availability by the Gauteng Department of Health • 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. 58. 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. 60. 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 the termination of the contractor’s contract in December 2021 due to poor performance. 61. 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 62. Gauteng Department of Infrastructure Development was managing the project on behalf of the Gauteng Department of Education. • Appointed a contractor in April 2024 to complete construction of the school. • Compliance verification process was finalised in July 2024 and contracting process is expected to be finalised before end of August 2024. Construction work will commence upon finalisation of the contracting process. • 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. 65. 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. 59. I will follow up on the implementation of committed actions during my next audit. Construction of Nancefield primary school not completed 63. The accounting officer was notified of the material irregularity on 26 July 2023. 64 The accounting officer has taken the following actions to address the material irregularity:

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

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT