Transport Portfolio Audit Outcomes; Department of Transport & Transnet 2023/24 Annual Report; with Ministry

Transport Transnet The Portfolio Committee on Transport convened to be briefed by the Auditor-General of South Africa (AGSA) on the audit outcomes of the transport portfolio for 2023/24. The Committee then met with the Department of Transport and Transnet on their annual reports for 2023/24. The meeting focused on audit outcomes, infrastructure challenges, governance issues and the financial standing of the key entities, Transnet and PRASA. The AGSA presented mixed audit results, noting clean audits for some entities such as the South African Civil Aviation Authority (SACAA), while others, such as PRASA, received qualified opinions due to unresolved procurement and asset management challenges. Irregular expenditure remained a significant problem, with PRASA being the largest contributor to the R5.6 billion total. The AGSA recommended stricter consequence management and improved financial controls across the transport portfolio. The DoT reported that 79 of the 91 performance targets were achieved, reflecting a strong performance in infrastructure projects and public transport initiatives. However, significant challenges were highlighted in sectors such as civil aviation, where only 40% of targets were met. PRASA’s infrastructure recovery remains slow and SANRAL faces a growing backlog of road rehabilitation projects. Transnet's financial position remains precarious, with increasing debt and operational inefficiencies. The AGSA flagged weak internal controls and material misstatements in its financial reports. The Committee emphasised the importance of governance reforms and urged Transnet to expedite the implementation of its recovery plan, particularly regarding locomotive availability and infrastructure maintenance. The meeting concluded with the Committee requesting detailed responses from Transnet and a follow-up visit to further assess the situation