IDT interventions addressing client dissatisfaction and reputational damage -Minister Nhleko
The appointment of a new Chairperson and Deputy Chairperson to the Independent Development Trust (IDT) Board was aimed at dealing with performance, governance and sustainability challenges which led to client dissatisfaction and reputational damage to the public entity, Public Works Minister, Nkosinathi Nhleko told the National Council of Provinces (NCOP) in his response to oral questions on Tuesday.
“The disclaimed audit outcome that the IDT received over three consecutive years has had an adverse impact on revenue generation and its ability to fund its operating costs,” pointed out Minister Nhleko.
He indicated that National Treasury has approved transfer of funds from the Department of Public Works (DPW) to assist the organization subject to stringent conditions.
“These include submission of monthly revenue and expenditure reports to the National Treasury and the DPW, Proposal of revised drawings by the Department of Public Works to the National Treasury for approval on the basis of an accurate estimation of the IDT’s monthly costs, Submission of the Organizational Development Review Report by end of November 2017,” he said.
Nhleko said that the conditions include submission of a costed business plan demonstrating how the IDT will, by the end of 2017/18, bring costs into alignment with own-generated revenue.
A moratorium has also been placed on filling any vacancies from July 2017 until finalization and implementation of a turnaround strategy that has to be submitted for approval by National Treasury by January 2018, he indicated.
He stressed that submission of the final business case to the National Treasury has to be presented by the end of November 2017.
“The lapse in key controls such as financial and performance management prompted the Board to take the decision to part ways with the Accounting Officer, the CEO,” he added.
An interim CEO has been appointed and tasked with driving the Turn-Around Strategy to turn the fortunes of the organization for the better.
“This entails the review of the IDT’s Operating Model, the organizational development exercise, remedial action on the issues raised by the Auditor-General and strengthening relations which have deteriorated with the client departments, amongst other things,” he concluded.
For more information contact:
Lesiba Kgwele, Ministerial Spokesperson
Cell: 082 803 5133
Email: Lesiba.Kgwele@dpw.gov.za
