Public Works Entities Must Create Income-Generating Initiatives and Not Rely on Government Funding

 

The Portfolio Committee on Public Works and Infrastructure has called on entities within the Department of Public Works and Infrastructure portfolio to explore innovative solutions to improve their financial sustainability, rather than relying solely on the parent department for funding and bailouts.

The committee today received a briefing from four public works entities on their 2025/26 annual performance plans and budget allocations. The entities include the Independent Development Trust (IDT), Agrément South Africa (ASA), the Construction Industry Development Board (CIDB), and the Council for the Built Environment (CBE).

The committee expressed concerns over the absence of both the Minister and Deputy Minister of Public Works and Infrastructure from the meeting. Members of the committee were not pleased with the Minister’s backlog in oral and written questions. In addition, the committee also raised alarm over the continued lack of transparency regarding the costs associated with the Minister’s overseas travel, which remain undisclosed.

Regarding the IDT, the committee raised serious concerns about the entity’s continued financial dependence on the department. Members of the committee questioned whether the entity has any concrete plans to improve its revenue-generating capacity and reduce its reliance on bailouts. The committee also urged the entity to promote inclusivity for categories of previously disadvantaged people, women, youth, and the people with disabilities.

The committee further expressed concern over the high legal costs incurred by the IDT and recommended that the entity strengthens its internal capacity to mitigate litigation risks, especially during ongoing projects.

The committee called on ASA to identify alternative revenue streams, as continued dependence on government funding is unsustainable. It criticised the weak transformation and job creation targets presented and called for bolder, measurable commitments. ASA’s ICT systems were also flagged and the committee encouraged the entity to work collaboratively with departments such as Human Settlements to broaden its impact. T

The committee further urged ASA to establish testing sites and laboratories to ensure compliance with technical standards, noting that current operations do not adequately support this function.

Committee Chairperson, Ms Caril Phiri, expressed concern over irregularities in contractor grading by the CIDB. She highlighted reports of contractors receiving higher grades without completing corresponding project scopes and urged CIDB to address and dispel public perceptions that grading statuses are being bought.

The committee also raised alarm over the CIDB’s claim that contractors involved in the recent collapsed building in George were not registered with them, but rather with the National Home Builders Registration Council.

The committee called for greater regulatory alignment and oversight between these entities, the national and provincial departments of human settlements, and all municipal councils to prevent such tragedies.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.