MTBPS: Budgetary betrayal of SA’s fight against corruption – Outa

Although there was a lot of understanding for the fine line finance minister Enoch Godongwana had to walk with the MTBPS, not everyone was happy with his speech, with civic organisation Outa calling the MTBPS a budgetary betrayal of the country’s fight against corruption.

Wanye Duvenage, CEO of Outa, says the MTBPS disappointingly lacks a strong focus on addressing rampant corruption and dealing with criminal syndicates that led to significant losses for the state. “The minister of finance’s address sends a concerning message that the government is not taking the fight against corruption seriously.

“Instead of allocating additional funds to strengthen various elements of the criminal justice system, the MTBPS skirts around essential short-term strategies and long-term procurement reforms and lacks concrete targets and enforcement measures.”

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Budget cuts for NPA and police

He says Outa is concerned about the dilution of direct anti-corruption efforts in this year’s budget. “This is evident in the R174 million reduction to the National Prosecuting Authority’s (NPA) budget for salaries, against the backdrop of a R221 million (45%) increase in remuneration for members of parliament and a substantial additional R3.5 billion allocation for South Africa’s military involvement in the DRC.

“We are also concerned that the police had R1.5 billion cut from salaries, mainly from administration, but also from visible policing and detectives.”

Duvenage believes these budget amendments starkly contradict the principles of a Government of National Unity (GNU), founded on shared sacrifice and commitment to the public good. “At a time when public trust hinges on responsible fiscal management and a clear dedication to combating corruption, prioritising significant pay increases for MPs appears disconnected from the pressing needs of South Africans.”

He points out that Outa believes substantial increases in budgets for key elements of the criminal justice system, such as the NPA, Special Investigating Unit (SIU), Sars administration and the Public Protector, are long overdue.

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Ongoing failure to address accountability and oversight gaps

“We believe that a lack of attention to these areas, combined with a clear oversight strategy and corresponding structure with systems, will lead to an ongoing failure to address the accountability and oversight gaps that plague many government departments.”

Duvenage says while Outa supports the move toward public-private partnerships (PPPs), particularly for build operate and transfer (BOT) programmes, it has witnessed significant corruption and profit gouging in these agreements due to insufficient oversight and accountability.

“Outa warns that billions will be wasted through overpriced infrastructure tenders and poor workmanship, which has become the norm in government infrastructure procurement programmes for far too long.”

He says while the government’s National Anti-Corruption Strategy has been in development over the past four years, little is evident in transparent, measurable timelines and funding allocations for anti-corruption enforcement to curb corruption, fraud and criminality, which gives rise to billions of rands lost to the state each year.

“Without a proactive approach to implement concrete anti-corruption measures, fiscal stability will remain elusive and South Africa risks further economic decline at the expense of its citizens’ welfare.

“Adding to our concerns is the additional R5 billion allocated to Sanral, ostensibly for the Gauteng Freeway Improvement Project (GFIP) debt relief. However, this general allocation lacks transparency, raising questions about whether these funds will be used for targeted debt relief or merely to perpetuate inefficiencies within this state-owned enterprise.”

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Debt management for municipalities—still no consequence management in MTBPS

While Outa welcomes Treasury’s plans to address debt-laden and mismanaged municipalities—somewhat focused on Eskom’s municipal debt relief programmes—the acknowledgement that “many of our municipalities face serious governance, planning, and financial management challenges” is of little consequence if the government continues to turn a blind eye to the lack of consequences and accountability for errant municipal management.

Duvenage says Outa welcomes the government’s intention to increase investment in bulk water, sanitation infrastructure, and efficient water management strategies while also implementing a new water pricing strategy.

“We note this comes on the back of a reduction of R225 million from the department of water and sanitation’s vote, particularly the infrastructure grant, and can only read the government’s intentions to tackle the water management crisis through its planned PPPs and BOT programmes.”

“Should this be the case, Outa believes these plans need to be done in conjunction with a revised strategy for the future management and control of wastewater treatment plants within local government, along with stringent oversight and procurement transparency processes.”

He says Outa remains steadfast in its commitment to protect taxpayer resources and secure South Africa’s future.

“We urge the government to prioritise fiscal responsibility and implement meaningful anti-corruption measures to restore public trust and ensure that all South Africans benefit from their contributions.”