DPWI progress implementing Audit Action Plan

The Department of Public Works and Infrastructure (DPWI) and the Property Management Trading Entity (PMTE) briefed the Portfolio Committee on their audit action plans and progress in addressing material irregularities. The presentations covered key headings, including audit outcomes, qualified programmes for the DPWI, qualified components for the PMTE, and updates on outstanding material irregularities such as the under-utilisation of Telkom Towers and lease overpayments. The DPWI main account had maintained an unqualified audit opinion with findings. However, it faced challenges with performance information in the Expanded Public Works Programme (EPWP) and Real Estate Management Services due to inadequate supporting evidence. Meanwhile, the PMTE’s audit outcome had remained unchanged, with qualification matters increasing from four to six, particularly regarding capital commitments and accruals. Members expressed deep concern over the recurring nature of the audit findings, questioning why previous action plans had failed to resolve issues that had persisted for over a decade. A major point of discussion was the lack of internal control measures, which often resulted in irregularities being discovered only after they had occurred, rather than being prevented. The Committee specifically interrogated the Department on the irregular appointment of service providers and the slow pace of consequence management against poor-performing contractors. There was also significant frustration regarding the "ticking time bomb" of occupational health and safety non-compliance in government buildings, and the accuracy of performance data when nearly half of the required assessments for irregular expenditure remained incomplete with only a month left in the financial year. The "Telkom Towers" crisis dominated much of the deliberation, with Members demanding to know why state resources continued to be wasted on a precinct that the South African Police Service (SAPS) had officially refused to occupy. The Committee questioned the Department’s legal recourse when client departments unilaterally withdraw from agreements after significant investment had been made. This led to broader concerns about the "devolution of funds" model, which Members argued left the DPWI with massive financial liabilities while client departments controlled the budgets. The recurring failures at the Port Shepstone police station were also highlighted as a symbol of the Department's reactive maintenance culture and systemic inability to compete with the private sector. Legislative gaps were identified as a primary hurdle, with the Committee noting that the absence of regulations under the Government Immovable Asset Management Act (GIAMA) prevented the DPWI from exercising its mandate as the state’s primary landlord effectively. Members were baffled that a client could request accommodation and then pull out without legal consequences, leaving the DPWI to account for the resulting "fruitless and wasteful expenditure." There was a strong call for the Department to stop offering analogies for systemic failures, and instead present solid legislative proposals for the upcoming Public Works Bill that would ringfence infrastructure budgets and mandate the use of state-owned properties over private leases. The Committee concluded that the Department must resubmit a rectified audit action plan alongside the next quarterly performance report, strictly supported by a full portfolio of evidence. Members insisted that they would no longer accept verbal presentations or "copy and paste" reports, requiring tangible documents to verify progress on the "Road to a Clean Audit" and other strategic interventions. The meeting ended with the Chairperson leading Members on an unannounced site visit to investigate a building collapse, emphasising that the Committee must shift from passive oversight to being active custodians of infrastructure standards across the country.