Public Works Portfolio Audit Outcomes; with Deputy Minister

Video 2024/25 Annual Reports The Portfolio Committee met virtually to receive a briefing from the Auditor-General of South Africa (AGSA) on the audit outcomes of the Department of Public Works and Infrastructure (DPWI) and its entities for the 2023/24 financial year. The AGSA reported that while Agrément South Africa and the Council for the Built Environment had maintained clean audits, both the DPWI and its Property Management Trading Entity (PMTE) had remained qualified, and the Construction Industry Development Board (CIDB) had regressed from a clean audit to one with findings. Major issues included poor record-keeping, weak financial controls, non-compliance with supply chain management, and a lack of consequence management. The PMTE’s financial position remained critical, with a R4.4 billion overdraft and R8.9 billion in current liabilities, raising concern about its viability. Irregular expenditure had increased to R2.6 billion, and fruitless expenditure stood at R63 million, much of which remained unresolved. The Committee expressed concern about ongoing governance failures, particularly the Independent Development Trust's (IDT's) failure to submit financial statements, persistent irregular expenditure, and the PMTE’s unsustainable financial state. It called for accountability, stronger debt collection, updated asset registers, and progress on the Telkom Towers forensic investigation. The Chairperson questioned whether the Director-General and Deputy Director-General provided regular financial and performance reports to the Minister, and asked the AGSA to comment on the Department’s turnaround strategy and the extent of its enforcement powers. The Deputy Minister noted that consequence management and financial reporting remained weak, but emphasised that the Department must engage thoroughly with the CIDB’s regression before taking action. The Department's DG confirmed that monthly expenditure reports were submitted to the Minister and National Treasury, acknowledged slow progress at the PMTE, and said consequence management was beginning to take shape, with investigations being finalised more efficiently. He added that an official had been seconded to support the IDT until November, and highlighted the asset optimisation strategy, which aimed to reposition the PMTE and improve revenue generation.