The achievements of the Roads and Transport Department have to be considered together with its shortfallings
The Gauteng Provincial Legislature’s (GPL) Roads & Transport Portfolio Committee, led by Jacob Khawe took questions on the annual report for the 2015/16 financial year by the Roads and Transport Department on Tuesday, November 1. The session took place at the GPL.
The progress has been mixed, with a number of successful projects, but also setbacks. It was revealed that under the year in review, the Department of Roads and Transport received R6 481 601 000 and spent R6 259 301 000.
According to the annual report, the Department’s actual expenditure increased by R387 217 000 (6.18%) between the year under review and 2014/15.
The under-expenditure of the Department remains at 3% in comparison with the previous financial year.
Projects
Despite this under-expenditure, a number of projects were achieved and these includes the completion of multi-year projects such as the N12 in West Rand, R25 Kempton Park to Bronkhorstspruit, Phase 2 of the R82, Tembisa Driver License Testing Centre (DLTC), Kagiso DLTC, Germiston Transport Operating License Administrative Board, road P39/1 Laudium to Diepsloot and Cedar Road.
In addition, progress is noticeable on Road K46 between William Nicol from PWV5 to Diepsloot/N14, and the N14 stretch between Hendrick Potgieter and Diepsloot.
The Department failed to meet some of its set targets due to delays in the completion of Roodepoort and Vereeniging intermodal facilities. In addition, the some of the contracted buses did not operate in some areas and this affected commuters. It also failed to construct some non-motorised transport infrastructure and distribute bicycles in the financial year under review, and these targets are deferred to 2016/17 financial year.
Inclusion targets
It is also noteworthy that most of the projects did not meet the gender, youth and disability (Geyodi) targets in relation to women and people with disabilities, failing to implement passed resolutions pertaining to Geyodi targets. Furthermore, the Department did not heed the call by the portfolio committee to strengthen project management and contractual management skills.
Broad Based Black Economic Empowerment (BBBEE) expenditure awarded for women and people with disabilities was also not achieved, affecting a national government priority to ignite growth and create jobs through unlocking the potential of small, medium, and micro enterprises, co-operatives, township and rural enterprises.
Oversight needed
While the performance of the Department was improving, the committee said however there were noticeable challenges recorded in the expenditure of administration programme, and poor project management in the intermodal facility projects.
The financial records of the Gautrain Management Agency also require further scrutiny as the entity had expenditure variance. The g-Fleet management organisational structures required a serious review, most particularly in the senior management level. The committee, according to the report, should also pay particular attention on the non-implementation of resolutions by the Department and g-Fleet management that were adopted under the financial year review.
GDED boasts unqualified audits
Led by Honourable Chairperson: Errol Magerman, the Portfolio Committee on Economic Development, Environment, Agriculture and Rural Development, received the Department’s 2015/16 Annual Report at a public meeting on Tuesday, 1 November in Rabie Ridge.
The Gauteng Department of Economic Development (GDED) and its public agencies have received unqualified audits from the auditor-general (AG) during the 2015/2016 financial year.
The Department’s agencies include among others the Gauteng Enterprise Propeller (GEP), Dinokeng, Cradle of Human Kind World heritage site, IDZ Development Company, Constitutional Hill Precinct, Gauteng Gambling Board (CGB), Gauteng Tourism Authority (GTA), and the Greater Newtown Development Company (GNDC).
In this period under review, the majority of departmental agencies received reduced allocations, namely: Gauteng Growth and Development Agency (GGDA), GEP, GTA, and Gauteng Liquor Board (GLB). The only agencies with increased allocations are Cradle of Humankind and Dinokeng, which received increases of R21.2-million and R28-million respectively. The GDED is headed up by MEC Lebogang Maile, and plays a very strategic role in the economic development of the province.
It’s strategic objectives are aligned with the National and Provincial priorities as well as working towards the realisation of Millennium Development Goals (MDGs) such as MDG 1 on eradicating extreme poverty and MDG 8 on developing global partnerships for economic development.
Out of the budgeted amount of R1 305 610 000, the GDED has spent R1 270 844 000, translating to 97.34%.
In the AG’s opinion, the financial statements of the GDED present fairly, in all material aspects, the financial position of the department as at March 31 2016 and are in line with treasury regulations and the Public Finance Management Act.
The Committee added that there were no material findings or matters of emphasis raised by the AG and that it was important to mention that the GDED and most of its agencies and entities have received unqualified audits with no findings. Only the GEP, GNDC and GLB received unqualified audits with findings.
The Committee noted that the agencies have delivered on most of their projects, but said they still required close monitoring. It said there were shortcomings in terms of realising strategic economic infrastructure projects such as the Special Economic Zone (SEZ). Furthermore, having noted the number of jobs facilitated, the department is encouraged to report consistently on jobs facilitated for each programme.
This analysis is aimed at assisting the Committee in considering the 2015/16 annual report, and to help provide a meaningful engagement with the department on matters of concern raised.
It will further contribute substantially in the nature of the oversight report to be produced by the Committee, and in turn be tabled to the House.