A transfer of funds from the Department of Public Works (DPW) to the Independent Development Trust (IDT), to help the organisation get back on its feet, has been approved by National Treasury.
In his response to oral questions in the National Council of Provinces (NCOP) on Tuesday, Public Works Minister Nkosinathi Nhleko said National Treasury had approved a transfer of funds from the Department of Public Works (DPW) to assist the organisation. The transfer, however, was subject to stringent conditions.
"These include the submission of monthly revenue and expenditure reports to National Treasury and the DPW; the proposal of revised drawings by the Department of Public Works to National Treasury for approval on the basis of an accurate estimation of the IDT's monthly costs, and the submission of the Organisational Development Review Report by the end of November 2017," said Minister Nhleko.
The Minister said the conditions include the 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.
The Public Works intervention follows the disclaimed audit outcome that the IDT received over three consecutive years, which had an adverse impact on revenue generation and its ability to fund its operating costs.
In an effort to improve the organisation's performance, governance and sustainability challenges, which led to client dissatisfaction and reputational damage to the public entity, a new chairperson, Nhlanhla Ngubane and deputy chairperson Allan Baloyi was appointed in August 2017.
A moratorium has also been placed on filling any vacancies from July 2017 until finalisation and implementation of a turnaround strategy, which has to be submitted for approval by National Treasury by January 2018.
Minister Nhleko said the submission of the final business case to National Treasury has to be presented by the end of November 2017.