While commending improvement and progress in the audit outcome of Water and Sanitation Department (DWS), the Portfolio Committee on Water and Sanitation says the underspending of over R2 billion across the department’s programmes negates the good governance being achieved.
The committee raised its concerns about the department’s continuous high underspending following a briefing on the 2021/22 annual report, including performance and financial expenditure of the department and its entity, Trans-Caledon Tunnel Authority (TCTA).
The committee warned that continued high underspending, has a direct impact on the delivery of essential water and sanitation services to the people.
Committee chairperson, Robert Mashego, said the department must do more to ensure that it maintains a balance between achieving good governance targets, and spending the appropriated funds to deliver the projects to the people
“The reality is that people want water and the continued underspending undermines the good governance that the department is maintaining. The committee is concerned that the underspending on programme 3 mainly relates to underspending on the Regional Bulk Infrastructure Grant, which is affecting directly on the completion of infrastructure projects.
“What is even more concerning is the root causes identified that lead to underspending, including, inadequate project management, inadequate supervision of contractors resulting in the late identification of poor performance of contractors and protracted supply chain management processes,” Mashego said.
Financial recovery plan
The committee welcomed the assurances by the department, including implementing a procurement strategy anchored on a financial recovery plan. This plan aims to improve an overall financial environment, including improving the audit opinions within the portfolio.
The plan also includes implementation of the Infrastructure Procurement Strategy to improve procurement within the department, and the implementing agent, which is expected fast-track implementation at project level and increase efficiency.
The committee further commended the appointment of 854 engineers and scientists’ posts filled which will greatly improve the skills capacity within the department to deliver on its mandate.
“The stability brought by the appointment of leadership in key strategic areas is welcomed and is something that the committee has advocated for since the inception of the 6th Parliament.
“The attainment of an unqualified audit opinion, albeit with areas of emphasis, attests to the importance of capable and skilled leaders in driving the objectives of the department. However, the committee has called on the senior management team to urgently implement the audit action plan to address areas of concern,” the Mashego said.
The committee also welcomes the move by the department to offer enhanced support across the water value chain, which will ensure the resolution of challenges within the value chain.
Call for consequence management
The committee has raised a concern that there are 73 internal disciplinary cases that have not been investigated.
“While the committee has welcomed the progress in investigating incidents of irregular, fruitless and wasteful expenditure, it has called on the department to conclude all investigations and implement consequence management. It continues to reiterate the importance of adherence to procurement policies to ensure that the department is able to implement its mandate,” Mashego said.
TCTA commended for continued impressive work
The committee commended the continued impressive work by the TCTA in delivering on their mandate.
“In line with this, the committee welcomes the assurance that on all the projects, capital and interest payments were made on due date and the borrowing limits were not breached. The committee also welcomes the unqualified audit opinion of the entity and the assurance that the entity continues to operate driven by its long-term solvency as well as the ability to meet all its obligations,” Mashego said.
The committee emphasised the need for the department to work with the Water Research Commission and products produced by the entity to resolve the water loses challenge, which continues to be a challenge across the system.
