DID ANNUAL REPORT 2023_24

Annual Report 2023-2024

Unauthorised Expenditure

The Department did not incur any unauthorised expenditure for the year ended 31 March 2024

Fruitless and Wasteful Expenditure

Descriptions

2023/24

R’000

Opening Balance

48 135 11 301 (59 436)

Fruitless and wasteful expenditure - Relating to current year

Less: Amount Resolved

Closing Balance

-

The above table represents fruitless and wasteful expenditure that was reported in the previous year and current year. As at the end of 2023/24 the Department reported a closing balance of R59 million which has been written off. This amount consists of interest paid due to court settlements paid to suppliers for various projects. A circular was also issued to all officials to refrain from incurring fruitless and wasteful expenditure. The Department has since reported fruitless and wasteful expenditure to the accounting officer following National Treasury instruction no 4 of 2022/23 and Treasury Regulation 9.1.2.

Irregular Expenditure Descriptions

2023/24 R’000

Opening Balance

2 177 294

Irregular Expenditure - Relating to current year

130 227

Less: Amount Resolved

-

Closing Balance

2 307 521

The above table consists of an opening balance of R2,1 million and current year’s movement of R130 million. The current year’s movement consists of expired lease agreements for office accommodation and projects, of which the expenditure incurred was in contravention of the Supply Chain Management prescripts. The Department has since rectified the process through a tender advert for office accommodation. This process will eliminate future irregular expenditures. The Department has concluded the investigation of the irregular expenditure and referred the outcome to the Provincial Treasury for condonement. Public Private Partnership 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 explored 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 bid documents have been approved. The request for proposals (RFP) was advertised through an open tender process for bidders to respond to. At year end the RFP advert had not yet closed.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT