DPWI / PMTE 2024/25 Annual Report (with Deputy Minister)

Annual Reports 2024/25 The Portfolio Committee first addressed matters arising from previous resolutions, particularly on the delayed submission of the George Building Collapse and Telkom Towers forensic reports by the Department. The Deputy Minister committed to ensuring the reports would be submitted, noting that the George Building report might need to be presented in camera due to ongoing investigations. The Department of Public Works and Infrastructure (DPWI) and the Property Management Trading Entity (PMTE) then presented the 2024/25 Annual Report, highlighting key achievements including the release of 45.08 hectares of land for development, the creation of over 923,000 work opportunities through the Expanded Public Works Programme (EPWP), and cost savings of R205.5 million through lease renegotiations. Financial performance showed a 99.5% expenditure rate, but the PMTE recorded a qualified audit and a R1.9 billion deficit, largely due to under-recovery from client departments. Committee members raised several concerns, including irregular expenditure, weak consequence management, the Department’s reliance on private leases despite owning many vacant properties, and underperformance in non-financial areas. They also questioned the Department’s capacity to manage infrastructure delivery, fill key vacancies, ensure accountability in the EPWP and providing support to contractors. The Department’s responses acknowledged ongoing financial, capacity, and operational challenges but cited reforms such as recovery plans to address R14.4 billion in outstanding debts, asset optimisation strategies, and the introduction of biometric systems to improve EPWP monitoring. It committed to strengthening internal capacity, accelerating recruitment, and improving collaboration with the National Treasury and the Construction Industry Development Board (CIDB) for emerging contractor development. An update was provided about the Strategic and Special Delivery Unit (SSDU) that provides interventions for blocked projects. The Committee discussed the EPWP’s effectiveness, with Members expressing concern over unspent funds, lack of post-programme tracking, and the Independent Development Trust’s (IDT) unstable role as implementing agent. The Chairperson directed that a special session on the EPWP be scheduled for 12 November 2025 to comprehensively address these issues. Members also interrogated the disposal of unutilised state properties, disciplinary cases, and infrastructure project timelines under the National Infrastructure Plan 2050. The DG reported that 1,650 out of 7,000 identified properties were ready for disposal, and R5 million had been recovered through Special Investigating Unit (SIU) interventions. Throughout the meeting, Members emphasised accountability, transparency, and measurable performance, urging the Department to submit written follow-ups on unresolved matters, including the forensic reports, EPWP statistics, and contractor development systems.