DPWI Annual Performance Report 2024/25 Showcases Fiscal Gains and Enhanced Service Delivery Amid Push for Infrastructure Boom

Pretoria – The Department of Public Works and Infrastructure (DPWI) has highlighted significant strides in its fiscal management and service provision in its 2024/25 Annual Performance Report. Presented by Deputy Minister Sihle Zikalala and Director-General Sifiso Mdakane to the Public Works and Infrastructure Portfolio Committee on Wednesday, the report underscores a year of robust leadership under the 7th Administration, led by Minister Dean Macpherson and Deputy Minister Zikalala. It reflects improved handling of financial resources and tangible benefits delivered to clients and the broader public.

The annual report serves as a vital accountability mechanism, detailing the department’s operational and financial outcomes to Parliament and South African citizens. It emphasises key achievements while outlining a strategic path forward, aligning with national priorities such as transforming South Africa into a major construction hub, leveraging public assets for societal benefit, and expanding job opportunities through the Expanded Public Works Programme (EPWP).

Restoring Stability and Fiscal Discipline

The 2024/25 report marks a turning point for DPWI, showcasing enhanced fiscal stewardship following challenges in previous years. The department achieved an unqualified audit opinion for its main account, with no material misstatements in the annual financial statements—a notable improvement from prior audits that flagged issues in performance information and receivable impairments. The Property Management Trading Entity (PMTE), a key arm of DPWI, reduced its audit qualifications from seven to four, addressing concerns in areas like property, plant and equipment, payables, accrued expenses, and contractual commitments.

A major highlight is the resolution of five out of 12 material irregularities identified by the Auditor-General, including the recovery of funds related to state funerals, events, the Beitbridge border fence procurement, lease overpayments, and underutilised properties. This demonstrates proactive measures to curb wasteful expenditure and recover misspent funds, bolstering the department’s financial integrity.
The report also details a response to a cyber security breach on the SAGE financial system in April 2024.

The system was shut down promptly, an incident response plan implemented, and enhanced controls introduced, such as privileged access management and segregation of duties. Payments were restored by early May 2024, minimising disruptions. Additionally, 98% of contractors were paid within 30 days, tracked via the Rea Patala system, reflecting improved efficiency in procurement and financial processing.

These fiscal gains are attributed to governance reforms, including the completion of 48 lifestyle audits (with 380 more in progress) and the deregistration of 15 non-compliant contracts (40 additional in process). The department’s budget for the period supported critical transfers, with R19.7 billion (82% of total) allocated to entities, EPWP wages, conditional grants, and infrastructure support, showing prudent resource allocation.

Meaningful Service Delivery to Clients and Communities

DPWI’s report emphasises its role in delivering essential services, with a focus on infrastructure development and community upliftment. The department created approximately 63,000 job opportunities through the EPWP in the 2024/25 financial year, contributing to poverty alleviation and skills transfer. This aligns with the programme’s goal of labour-intensive projects, which have benefited over a million people nationwide.

In property management, DPWI finalised updates to its immovable asset register and repurposed vacant office spaces for government use or social programmes, such as initiatives addressing gender-based violence. Efforts to reduce private leases involved relocating client departments to state-owned facilities through refurbishment and operating transfer models, saving costs and optimising assets.

Infrastructure coordination saw advancements via Infrastructure South Africa (ISA), supporting feasibility studies, planning, and compliance for major projects. The department piloted a new procurement system in KwaZulu-Natal to address delays, ensuring timely delivery of services like court building maintenance in the Eastern Cape and KwaZulu-Natal.

Digital transformation was a key focus, with process automation, modernisation of the asset register, and e-procurement systems introduced to enhance efficiency. The Adopt-a-Municipality Programme fostered intergovernmental collaboration, aiding local governments in infrastructure maintenance and development.

These efforts have directly benefited clients, including other government departments relying on DPWI for facilities management, and the public through improved access to services and job creation. The report notes that such initiatives have helped in community regeneration, sustainable textiles, and traditional skills training at sites like Dumfries House in Scotland, adapted for local contexts.

Overcoming Challenges and Audit Action Plans

Despite the positives, the report acknowledges ongoing hurdles, including a R9–14 billion shortfall in PMTE funding due to stagnant budgets over the past decade, fiscal pressures, procurement inefficiencies, and maintenance backlogs. Risks like economic challenges, skills shortages, and high vacancy rates were identified, with mitigation through governance reforms, skills audits, and process improvements.

The audit action plan addresses remaining material irregularities and qualifications, with quarterly tracking dashboards for accountability. Enhanced performance information controls via ICT and direct appointments for projects aim to reduce delays and irregularities.

Strategic Priorities for the Future

Looking ahead, the report aligns with the 2025–2030 strategic plan, emphasising priorities like “Turning South Africa into a Construction Site” through innovative asset management and quality infrastructure delivery. Other focuses include advancing digital transformation, optimising under-utilised state assets to generate revenue, and expanding the EPWP for more job opportunities.

The department plans to roll out 11 programmes, including administration, intergovernmental coordination, property and construction policy, and facilities management, with quarterly targets for monitoring. Skills development for 1,200 beneficiaries in the built environment pipeline and increasing state properties let out from 60 to 90 by 2028 are among the goals.

Minister Macpherson and Deputy Minister Zikalala’s leadership has been credited with steering these improvements, fostering a capable, ethical, and developmental state. The report’s presentation to the Portfolio Committee underscores transparency, inviting scrutiny to ensure continued progress.

🔴Central News Weekly Edition | Issue 115 🔴Download the Latest Print and E-Edition | Headline: Ngwathe Municipality Refuses to Back Down, Heads to Supreme Court of Appeal

Download Here:

Direct PDF File Here:

https://centralnews.co.za/wp-content/uploads/2025/07/Central-News-Issue-114-1.pdf

Read all our publications on magzter:

https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues

Central News also offers Sponsored Editorial Content,  Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.

We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.

Advertisement:

To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za

For Business Related:
business@centralnews.co.za

Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za

General Info:
info@centralnews.co.za