THE Department of Basic Education has recovered more than R22 million over-payment made to one of the implementing agencies during the 2022/23 financial year.
The overpayment that was made to The Mvula Trust was established after the department conducted reconciliation of the expenditure incurred by the implementing agents to ensure funds were spent on projects duly procured and approved by the head of the department.
Basic Education Minister Siviwe Gwarube revealed this when she was responding to parliamentary questions from EFF MP Reneiloe Mashabela, who asked whether she has discovered any delays and/or financial mismanagement in the infrastructure projects of her department such as building new schools in rural communities or maintaining the existing ones.
Gwarube said the infrastructure delivery model used by her department involves the contracting of implementing agents such as the Coega Development Cooperation, the Development Bank of Southern Africa, The Mvula Trust, the Independent Development Trust, and the National Education Collaboration Trust to implement projects.
“The Department of Basic Education (DBE) appoints professional service providers and principal agents for the design, documentation, contract monitoring, and administration of infrastructure projects.
“Meetings are held between the DBE and implementing agents on a regular basis to report on progress to the ministry and the director-general,” she said, adding that meetings were also held between operational teams as part of monitoring construction progress and risks.
Gwarube said contracts entered into between the implementing agents and professional service providers make provision for imposing penalties in the event of late completion or non-completion by the contractor and termination for material breach of contract.
“The DBE holds implementing agents responsible for delays on any project related to the design, tender, and construction of the relevant public school infrastructure projects.
“Any cost of corrective action is for the account of the relevant implementing agent and may be set off against any payment due to such implementing agent.”
She also said it was important that the necessary accountability measures were adhered to and implemented when delays occurred to ensure corrective actions were taken promptly.
Gwarube said in terms of the financial management of infrastructure projects undertaken by the department, the infrastructure unit prepared monthly reconciliations of expenditures incurred by the implementing agents.
This was to ensure that the programme funds under the Accelerated School Infrastructure Delivery Initiative and the Sanitation Appropriate For Education programme were spent on projects which have been duly procured and approved by the accounting officer.
Regular site visits were conducted to physically verify that expenditures incurred and progress reported by the implementing agents were in accordance with contractual obligations.
“During the 2022/23 financial year, the Department of Basic Education established that there was possible overpayment made against the deliverables on-site.
“This matter was also raised with the affected implementing agents and a detailed reconciliation process was agreed,” she said.
Gwarube said the overpayment was also reported as a material irregularity by the Auditor-General in the 2022/23 audit report.
“The DBE visited all project sites to establish value for money and successfully managed to quantify the overpayment. The DBE recovered the full amount of R21 135 835.99 from The Mvula Trust,” she said.
