It was reported that the Department had an internal construction unit which carried out its infrastructure projects. Challenges in this regard were that this structure did not have adequate capacity. Often it outsourced projects to external contractors without following procurement procedures. Further challenges of failure to comply with supply chain procedures were reported in respect of this unit. The Committee was concerned that the way in which this unit operated was in conflict of the provisions set out in the Public Finance Management Act, No 1 of 1999.