DID’s poor management impacts negatively on entrepreneurs – DA

The Gauteng Department of Infrastructure’s (DID) alleged improved performance in meeting BBBEE targets for the second quarter does not reflect the true state of affairs.

This is according to DA Gauteng Shadow MEC Infrastructure, Alan Fuchs MPL.

DID’s mandate is to build and maintain infrastructure that provides improved access to services such as hospitals, clinics, schools and heritage sites.

“However, processes to establish the financial and technical skills of third party contractors are weak, resulting in a high turnover of emerging entrepreneurs.

“As a result, projects are delayed, and costs are escalated due to re-working and re-scoping projects, as well as inflationary price increases,” says Fuchs.

According to Fuchs, the department’s deficient performance is evident in its 2013/14 annual report and quarterly reports for the first six months of the current financial year:

Last year

*An average of only 59.2 per cent of key performance indicators were met.

* There was a massive underspend of 28.1 per cent to the value of R643-million on the core functions of the department: building and maintenance.

* Critical vacant posts remain unfilled.

* Irregular, fruitless and wasteful expenditure of R80-m.

* Only seven out of 14 schools and nine out of 20 health projects were completed.

* Disclaimer from the Auditor-General in terms of the reliability of performance data from the EPWP program.

* Failure to pay service providers within 30 days.

This year, April to June

* 63 per cent of key performance indicators were met.

* Based on a an even spending pattern throughout the year, an underspend of R453-m.

* Only 12 projects out of 26 were completed within budget and on time.

* Only one of 10 school fencing projects, three of 10 Grade R classes and none of seven health projects were completed.

* Failure to pay service providers within 30 days.

This year, July to September

* 66 per cent of key performance indicators met.

* Based on an even spending pattern throughout the year, an underspend of R226-m.

* Only 11 of 22 education projects and two of six health projects were completed.

* Failure to pay service providers within 30 days.

According to Fuchs, the performance of the department is deficient and MEC Nandi Mayathula-Khoza must be held to account.

“DID should work with other departments, in particular the Department for Economic Development to foster and grow emerging entrepreneurs through incubation programmes.

“This will ensure that suitable contractors are appointed, that targets are met and capacity is built – ultimately leading to increased job creation and skills development.

“The DA will continue to provide viable alternatives to the MEC to ensure this department achieves 100 per cent delivery on all targets that it sets for itself and client departments,” says Fuchs. – @IschkeBoksburg

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