Roads Agency Limpopo board to continue turnaround strategy
Limpopo Public Works, Roads and Infrastructure MEC Jerry Ndou has reappointed the Roads Agency Limpopo (RAL) board for another three years, providing it with a mandate to continue turning the agency around.
Ndou expressed gratitude for the agency's “rapidly improving financial situation”, which took place under the board’s watch and had seen the roads agency move from a disclaimer to a qualified audit opinion – a significant improvement for the agency.
The reappointment was preceded by a detailed assessment of the board's performance.
“We are quite happy and satisfied with the work that has been done and are confident that we will move from a qualification to a clean audit,” Ndou said.
The agency’s improved audit opinion, “though not satisfactory”, represented a step in the right direction towards the attainment of a clean audit opinion in the next financial year.
One of the outstanding prerequisites for improving the audit opinion further is cleaning up the asset register. Special focus is therefore being placed on properly identifying all assets, their condition and where improvements can be made.
In the last financial year, RAL completed 31 road construction projects.
Bermuda road between Ga Phasha, Mampuru and the Matsakale road in the Kruger National Park will be completed by the end of the year, or in early 2017.
The organisation has also entered into partnerships with private-sector companies, including mining giants Exxaro and Anglo American, Ledjadja Coal and cement company PPC to cofund the construction of roads that are considered key for the province's economy.
Road infrastructure improvement projects contribute massively to local economies through job creation and affording local small, medium-sized and microenterprises (SMMEs) the opportunity to service the main contractor in various aspects of the construction process.
In all road construction projects, RAL ringfences 30% of the construction value for local SMMEs and suppliers. This serves as a vehicle for supporting and growing local economies. In addition, a further minimum of 8% of the construction value is designed to support local labour.
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