R115m bail out bid for Independent Development Trust
Cape Town - Public Works Minister Patricia de Lille has requested R115 million from the National Treasury to fund the Independent Development Trust’s (IDT) operational cost shortfall.
In a written reply to DA MP Samantha Jane Graham, De Lille said the management of the financial assistance would be monitored closely.
She said the IDT would remain the implementing agent for the Non-State Sector (NSS), Non-Profit Organisation (NPO) and Extended Public Works Programme (EPWP) for the 2021/22 financial year until the 2023/24 financial year.
This stems from a five-year memorandum of agreement which commenced in 2019/20.
“However, there are engagements currently under way to determine the future of IDT which will inform on whether the IDT will remain the implementing agent for the NSS NPO Programme in the 2021/22 financial year,” said De Lille.
“Noting that the process for the consideration of the reconfiguration of the IDT is currently under way, the Department of Public Works and Infrastructure is considering the institutional arrangement for the management of the implementation of the EPWP NSS NPO programme. As such, at this stage the department cannot advise if there will be changes to this responsibility,” she said.
To ensure that a full complement of staff was appointed to manage the implementation of the programme, an amount of R1 069 928 000, inclusive of an amount of R49 514 000, had been made available as the management/intermediary fees in 2021/22 financial year, De Lille said in her response.
“From this budget, an implementing agent is supposed to ensure that a full complement of staff is appointed to manage the implementation of the EPWP NSS NPO programme in all provinces.”
Graham also raised questions about the progress on the appointment of a functional board of the IDT and whether the board would be able to fulfil their mandate, including employing the requisite staff to ensure that the trust succeeds.
De Lille said that a selection panel was appointed in January to undertake the process of nomination of the new board for appointment by the executive authority.
“The selection panel is now in the process of determining the suitable candidates to be recommended to the executive authority for appointment to the IDT Board of Trustees by way of short-listing and interviews.
"Once the executive authority has considered the recommended candidates, they will be subjected to a further process of consideration by the Cabinet for the purpose of giving concurrence on the executive authority-approved individuals to be appointed as the new board of trustees for the IDT.
“Following Cabinet concurrence, the approved candidates’ particulars will be submitted to the Master of the High Court, who will issue them with letters of authority, which upon receipt will allow the new trustees to start with their board duties.”
De Lille added that the executive authority had carefully considered the need for the IDT to have the accounting authority to assume its fiduciary responsibility and take full charge of the IDT to fulfil its mandate.
“Considering that there is a process to reconfigure the entity, the executive authority will work closely with the accounting authority to map the future of the IDT. Part of the process of reconfiguring the IDT is a consideration on ways for the public entity to be self-sustainable.
"Working with the new board of the IDT, we will establish whether the IDT has the requisite capacity to take on additional work, including projects from my department.”