Economic Development Annual Report

Annual Report 2023/2024 Mpumalanga: Department of Economic Development and Tourism - Vote 6

Resolution No.

Subject

Details

Response by the department

Resolved (Yes/No)

The amount of R11 531 149.92 is in relation to the extension of contracts without following due processes. Although the relevant contracts were put to the market though a formal tender process, these processes failed, and the existing contracts remained in place in the meantime to ensure that the ongoing operations and service delivery were not interrupted.

- Photocopy machine contracts (R7 342 027) as previously outlined – the original contract was entered into without going through a tender process, and without evidence of the prior approval of the Accounting Office of the deviation from the tender process - Building rental contracts (R3 185 277) renewed by PWRT without going through a complete procurement process. - Switchboard contracts (R1 003 846) which continued installation difficulties with the replacement transversal contract. All resolved and replaced. The remaining amount of R2 307 907.86 relates to participation agreement not signed with the service provider, although the service level agreement was entered into with the service provider, and the Department indicated its intention to participate in the transversal contract, the participation agreement had not been signed. The participation agreement has subsequently been signed. to run on beyond the original term due to implementation and

6

Irregular as well as Fruitless and Wasteful Expenditure

125