Incomplete Public Works projects bill reaching almost R4bn

The Auditor General of South Africa (AGSA) has highlighted the scale of stagnation within the Department of Public Works and Infrastructure (DPWI).

The financial custodians briefed the portfolio committee overseeing the department, confirming that over 100 projects were sitting incomplete or fallow.

Noting the cost of the unrealised benefits of the projects, the AGSA counted their value at R3.9 billion.   

Only 20% of targets achieved

The AGSA’s report stated that public works repeatedly failed to deliver projects on time and within budget.

It added that 86% of the department’s budget had been spent, but only 20% of the mandated targets were achieved.

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More than half of the mentioned projects, 63 out of a total of 107, have been delayed for more than three years

Poor contractors were cited as the overwhelming cause of the delays, as many projects have had to institute disciplinary investigations or replace contractors.

“It is important that the department is able to take action against those construction companies which are not performing or have not performed,” stated the Portfolio Committee.

One example is Telkom Towers, the police headquarters in Pretoria, which cost the department R700 million to purchase in April 2016.

The building is currently unoccupied after failing safety tests, with some sections unused since the building was purchased.

Notably, irregular wastage had jumped from R98 million to R521 million in the space of the last three financial years.

Minister to implement reforms

New Minister of Public Works and Infrastructure Dean Macpherson announced on Wednesday the measures he would be taking to address the issue.

“It is important that drastic action is taken to improve oversight, accounting, and reporting within the department as quickly as possible,” Minister Macpherson said in a statement to The Citizen .

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Among Macpherson’s reforms include removing officials’ ability to spend up to R20 million without accounting officer approval, as well as implementing a skills audit from senior management.

“The actions we are taking today are part of our goal to lay a strong foundation at the Department of Public Works & Infrastructure,” said Macpherson.

“It will not be an overnight journey to resolve these problems, but it is something I am committed and determined to do at all costs,” he added.

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