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GDID Report

Committees report on GDID performance for 2015/16 Financial Year

 

The Legislature’s Infrastructure Development Committee today tabled its oversight report on the Gauteng Department of Infrastructure Development’s (GDID) performance for the 2015/16 financial year.

 

Led by Chairperson, Hon. Lindi Lasindwa, the Committee has commended the Department for attaining an unqualified audit report for the 2015/16 financial year.  Whilst the Committee notes the unqualified audit report received by the Department it is important to note matters of emphasis as highlighted by the Auditor General.  This includes the fact that the Department is a defendant in a number of lawsuits, and is still unable to meet the target in relation to payment of suppliers within 30 days. This has been recurring since the 2012/13 financial year.

 

In its Report, the Committee notes that during the 2015/16 financial year the Department received a budget of R2 413 814 000 and spent R2 413 346 000, which translates to 100% of the allocated budget.  This is an achievement worth noting in that the Department managed not to overspend its budget nor underspend during the year under review.

 

The Committee, however, expressed concern that though the Department spent all its allocated budget, there were 89 targets in total – but only 50 were achieved.  This points to misalignment between the input and output, and is cause for concern for the Committee.

 

The achievement of pre-determined targets during the financial year under review represents a regression when compared to the 60% achieved in 2014/15. As such there has been a regression of 4% when comparing with the previous financial year.

 

During the financial year under review, one of the areas of non-achievement for the Department is in Programme 2: Public Works; where 64 targets were planned and the Department failed to achieve 31 (48%) of the planned targets.  This programme is the core mandate of the Department and ensures the provision of accommodation for all provincial departments; manages the provincial property portfolio for the optimum benefit of all concerned and renders maintenance, professional and technical services to Departments in respect of buildings and related infrastructure.

 

The Committee is concerned about poor planning within the Department and its client departments in terms of amending project designs after project has started.  The Committee finds it unacceptable that the Department continues to appoint poor performing contractors, which has a negative impact on projects being completed on time.

 

Furthermore the Department is still not in compliance with the PFMA in terms of payment of contractors within 30 days although this has been a finding by the Auditor General for the past three financial years. Another aspect that is worth noting is the fact that the Department has not been able to complete projects due to issues related to availability of land, and also the late payment of contractors poses a challenge in achievement of projects.

 

As part of the Committee’s intervention to assist the Department to address issues that are posing a challenge in the execution of its mandate, the Committee has conducted Focused Intervention Studies that dealt with issues of poor planning, appointment of poor performing contractors, 30 days payment of service providers, monitoring and Evolution in order to ensure that there is improvement in processes such as completions of projects within the agreed period, expenditure of the allocated budget, and that contractors are paid on time.

 

The Department has shown considerable commitment in integrating previously disadvantaged groups to the mainstreamed economy, through compliance with BBBEE policy framework. As such, it achieved targets that are related to spending a certain percentage to companies owned by women, youth and PwDs.  However the Committee is of the view that the Department is not doing enough to accommodate MVA companies for them to achieve targets on procurement for MVA companies.

 

The Committee has given the Department until 6 February 2016 to provide the Committee with plans on how it intends on addressing recommendation made by the Committee.

 

ISSUED BY GPLS MEDIA SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON INFRASTRUCTURE DEVELOPMENT, HONOURABLE LINDI LASINDWA

 

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