DPWI/PMTE Q3 2025/26 Performance; with Deputy Minister

The Committee met to receive a briefing from the Department of Public Works and Infrastructure (DPWI) on its third quarter financial and non-financial performance for the 2025/26 financial year, and to consider the report of its oversight visit to Mpumalanga. The meeting formed part of Parliament’s oversight responsibility to assess infrastructure delivery, financial management, real estate governance and the safeguarding of state assets. The meeting included robust exchanges between Members and the executive regarding accountability for missed targets, with Members emphasising that performance benchmarks were set by the Department itself, and that the executive must accept responsibility where targets were not achieved. The Department reported total expenditure of R5.485 billion against an adjusted budget of R7.648 billion, reflecting 72% spending by the end of the third quarter, with a positive variance of R508 million. Average quarterly expenditure stood at 70%, broadly aligned with the time elapsed in the financial year. Spending pressures were identified in maintenance (79% spent), goods and services (85%), and cleaning and gardening (80%), raising concerns about potential overspending in the final quarter. At the same time, significant under-expenditure was recorded in DPW infrastructure (34%), client capital (40%) and repair projects (51%). Members expressed concern that persistent underperformance in capital programmes undermined service delivery, and questioned whether projects were planned with realistic timelines and confirmed funding flows, particularly considering the bridge construction targets, where five bridges had been completed against a target of 25. Non-financial performance across programmes averaged 65%, below the Department’s desired benchmark of 75–80%. Implementation delays were attributed to procurement bottlenecks, capacity constraints, lapses in facilities management contracts, delays in confirmation of funds, municipal non-compliance within the expanded public works programme (EPWP), and broader infrastructure delivery challenges. Members criticised the expiry of total facilities management panels, questioned the vacancy levels in technical posts, and raised concerns about increasing targets despite limited prior performance. Concerns were also raised about persistent weaknesses in real estate management, including delays in leasing commercial properties, slow progress in the Operation Bring Back (OBB) property recovery programme, and the status of the policy. The Department reported that more than 6 000 properties had been identified for disposal, with an initial batch of approximately 600 to be released, but Members questioned verification processes, disposal safeguards, and the equitable release of land across provinces. The Department acknowledged policy and due diligence weaknesses in past disposals, and committed to strengthening oversight and compliance mechanisms. The Committee expressed dissatisfaction with continued delays in the Sarah Baartman Centre of Remembrance project, despite allocated funding. The Department attributed delays to multiple contractor failures, procurement irregularities -- including a fraudulent Construction Industry Development Board certificate -- community disruptions relating to wage demands, and weaknesses in panel due diligence. The project had since been reassigned to the Independent Development Trust, with a contractor expected to be appointed before the end of March and additional financial capacity safeguards introduced. In several instances, the Department was unable to provide detailed responses regarding timelines, vacancy projections, debt recovery implementation and consequence management, and undertook to submit outstanding information in writing. Members also questioned the reprioritisation of funds toward G20-related and other state event expenditure, particularly where internal capacity constraints and maintenance backlogs persisted. The Department indicated that certain events were nationally mandated and that funding decisions involved National Treasury processes, but Members maintained that infrastructure delivery and technical capacity must remain the primary focus. The Committee resolved to prioritise engagement with National Treasury on funding mechanisms affecting implementation. The Committee also considered its oversight visit to Mpumalanga, where concerns were raised about vandalism of state facilities, illegal occupation of residential units, structural defects at the Mbombela High Court, contractor payment delays, non-compliance with 30-day payment requirements, and inadequate preventative maintenance planning. Recommendations included strengthened maintenance planning, improved coordination with provinces and municipalities, urgent remedial action at affected facilities, and measures to address provincial and departmental capacity shortages. The Committee resolved that outstanding responses should be submitted in writing by Monday, and agreed to amend its programme to prioritise engagement with National Treasury on financial mechanisms affecting implementation before meeting with other departments.