DPWI/PMTE Q1 and 2 2024/25 Performance; with the Minister

Video The Portfolio Committee on Public Works and Infrastructure met virtually to receive a briefing from the Department of Public Works and Infrastructure (DPWI) and the Property Management Trading Entity (PMTE) on their performance in the first and second quarters of the 2024/25 financial year. The Minister presented the Department's performance for the first two quarters, covering both financial and non-financial aspects. He emphasised that the report reflected the Department's performance during the transitional period into the Seventh Administration. Financially, the Department had spent 26% of its R7.6 billion allocation by the end of June 2024. Only 22% of the budget for the compensation of employees had been spent due to delays in filling critical vacancies. Transfers and subsidies accounted for 27% of the allocation, with challenges such as exchange rate fluctuations impacting payments to international entities. Goods and services expenditure was low at 15% of the allocation, attributed to inefficiencies in procurement processes. The Minister assured the Committee that the Department was addressing these issues. On the DPWI's non-financial performance, the Minister highlighted varying levels of progress across different programmes. While some sub-targets were achieved, non-compliance by public bodies had delayed grant disbursements and hindered programme implementation. He identified human resource challenges, underutilisation of budgets, procurement bottlenecks, and delays in infrastructure projects as key areas of concern. He detailed interventions aimed at resolving these issues, such as partnering with the Auditor-General of South Africa to improve accountability and introducing live audits and interim financial statements. During the discussion, a Member criticised the inefficient management of the state's property portfolio and the reliance on private leases, urging the Department to prioritise refurbishing state-owned properties for public benefit. Concerns were also raised about the limited involvement of black-owned and emerging businesses in property portfolio management, with a call for measures to ensure their participation. Other issues included the delays and cost overruns in construction project management, inadequate implementation of the Expanded Public Works Programme (EPWP), delays in the payment of service providers, and concerns over the security of the Department's SAGE accounting system, which the Minister described as "not fit for purpose," and should never have been acquired in the first place.