Question NW562 to the Minister of Public Works and Infrastructure

Reply:

1. I am informed that an investigation into allegations of irregularities pertaining to 46 projects executed by Limpopo IDT Provincial Office has been instituted. Gobodo Forensic & Investigative Accounting ("GFIA") was appointed by Independent Development Trust ("IDT") in May 2023 to conduct an investigation into allegations of irregularities pertaining to the 46 projects that the IDT Limpopo regional office completed on behalf of the Limpopo Department of Education (“LDoE”).
2. These contracts are said to have been awarded between the years 2014 and 2017, the bulk which are currently on final account and have all reached practical completion with the last projects completed in 2022.
3. The investigation was initiated against R15.2 million in outstanding invoices owed to service providers for work performed on school programmes that IDT Limpopo was unable to honour due to overclaims/overspending, as alleged by the Limpopo Department of Education.
4. The service providers submitted most of the invoices to the IDT in 2022. In all cases, the department (LDoE) rejected the claims, citing that the IDT had already claimed or used up all of the project funds.
5. In response to a barrage of complaints and concerns from affected parties regarding the IDT’s failure to honour the invoices along with accusations of project fund mismanagement, the IDT appointed Gobodo Forensic & Investigative Accounting ("GFIA") in May 2023 to conduct an investigation into the claims of irregularities and the misappropriation of project funds on the 46 affected projects.
6. The investigations were concluded in August 2023 and the findings are summarized as follows:

• In contrast to the claim by the Limpopo Department of Education, it was discovered that funding and budgets were available for twenty-five (25) projects, which the IDT may still claim from the department in order to offset the outstanding debts.
• Twenty-one (21) of the forty-six (46) projects have exceeded their budgets and the IDT over-claimed from the department.

7. The IDT Limpopo regional office has conducted internal reconciliation process and had recovered some funds from the department.

8. Of the R15.2m of the outstanding invoices, thus far R6.7m has been recovered and already paid to service providers.

9. Additionally, R8.5m worth of invoices have been submitted to the department to recover the balance. These funds will then be directed towards the payment of the remainder of the outstanding invoices.

10. Financial reconciliation is said to be in the process of being finalized to assure full recovery of monies from the Limpopo Department of Education.