AG’s second report into Covid relief fund could be worse than first one

Covid-19 not only brought with it death, suffering and economic ruin, the pandemic also exposed weakness and became a gorging frenzy for the crooked – with at least R5 billion of the R10.38 billion spent in relief efforts under investigation.

In April, President Cyril Ramaphosa announced a R500 billion package but, barely four months later, in August, his deputy David Mabuza revealed in parliament that the graft-busting Special Investigating Unit was probing up to R5 billion in Covid-19 related procurement.

In June, Finance Minister Tito Mboweni announced that local government – a hotbed of maladministration and financial mismanagement – would receive an increased budget from R133 billion to R140 billion due to Covid-19 devastation, with an additional R11 billion in equitable share.

Incoming Auditor-General Tsakani Maluleke is expected to release the much-anticipated second Covid-19 relief funds audit today, continuing on the first audit report released by her late predecessor, Kimi Makwetu.

The series of reports deals with the financial management of the government’s Covid-19 initiatives, covering R68.9 billion (47%) of the R147.4 billion expenditure spending.

Makwetu had lamented that the relief package redirected by government as a response to the Covid-19 pandemic “landed in a weak control environment”.

The audit report noted there was a risk that the R350 social relief grant was being paid to people not in distress, including government employees and the dead.

By 31 July, the Unemployment Insurance Fund had paid just over R37 billion in Temporary Employer-Employee Relief Scheme (Ters) benefits and the SA Social Security Agency had paid R19.6 billion in social grants.

Emergency responses and quick actions were required to save lives and livelihoods, but Makwetu had warned the easing of controls and the streamlining of processes and procedures to respond to the crisis exposed government to the risks of the misuse or abuse of public resources.

“There is nothing positive to expect from the second audit report,” said Andre Duvenage, political analyst and professor at the University of the North West.

“The situation has not improved and we have seen Covid-19 procurement corruption rise. Corruption is not under control despite President Ramaphosa’s promises. So, I cannot see a positive report. It will be the same or even worse.”

– siphom@citizen.co.za

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