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)

Disciplinary processes have been finalised, and the outcome was referred to the State Attorneys to advice on prospects for successful recovery. The State Attorney found that the finding of the investigation report that a supplier had been overpaid could not be substantiated on the facts, and as a result the recommendation to institute legal claims cannot be implemented. Counsel stated that the overpayment claim could not be substantiated because payment was made for services rendered on the principle of ‘quid pro quo’.

- 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

No

6

6.1.4- The Accounting Officer must submit a progress report on the irregular expenditure investigations outcome that was referred to the State Attorneys to advice on prospects for successful recovery, by the end of the 2023/24 financial year.

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