DID ANNUAL REPORT 2023_24

Annual Report 2023-2024

Overview of the financial results of the department: Departmental receipts

2023/2024

2022/2023

(Over)/ Under Collection

(Over)/ Under Collection

Actual Amount Collected

Actual Amount Collected

Departmental receipts

Estimate

Estimate

R’000

R’000

R’000

R’000

R’000

R’000

Sale of goods and services other than capital assets Interest, dividends and rent on land

23 367 13 744

9 622 30 664 16 537 14 127

- -

74

(74)

- -

271

(271)

Sale of capital assets

9 401 (9 401)

11 378 (11 378) 7 534 (6 727)

Financial transactions in assets and liabilities

843

853

10

807

Total

24 210 24 072

156 31 471 35 720 (4 249)

The Department revenue target for the year 2023/24 was R24 million, to date the Department collected R24 million of its annual target. The current year’s collection includes R9,4 million from the disposal of properties, recoverable revenue related to prior year expenditure, and rentals from commercial and residential properties. This represents a collection of 99,4% of the overall projected revenue. Revenue from the sale of goods and services consists of rental dwellings amounting to R12 million, rental of open and closed cover parking amounting to R581 000and other revenue amounting to R820 000. During the year, the Department collected R1 million from 170 residential tenants and R8 million from 78 commercial tenants; the remaining balance of R3,2 million was paid by tenants whose lease contracts have expired. Commercial tenants have the potential to reach the annual revenue target since they collected 67% of the target. An improvement in revenue collection of R9,4 million is due to sales of five (5) residential properties during the year through public auction. Sales of residential properties are based on Exco’s decision to sell non-core assets. The Department also received R853 000 from recoverable revenue in relation to prior year expenditure. The Department has under-collected on the sale of goods and services due to tenants not being able to afford the rentals. Most of the lease contracts have expired and the Department is in the process of renewing the lease contracts. A total number of 112 tenants with outstanding debt value of R64 million have been handed over to legal services for recovery of outstanding debt and evictions, where needed. Intervention letters have been submitted to the Accounting Officers of all employees in occupation of government properties and not paying. The Department has engaged with e-GOV to explore options for recovering rental and outstanding debt through other avenues. The Department is currently developing a framework for the leasing of vacant and underutilised properties. The facilities identified by the Department as available will be offered through open tenders.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT