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 auditorgeneral (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.