COSATU deeply disturbed by no consequence culture in poor performing SOEs
27 November 2024
The Congress of South African Trade Unions (COSATU) is troubled by the impunity displayed by the majority of state-owned entities. Auditor-General Tsakani Maluleke presented audit outcomes of national and provincial departments for the year 2023-24 to a Joint Meeting of Parliamentary Committees this week. Whilst commendable overall improvement in audit outcomes over the past five years is noted, of the19 entities reviewed, only one received a clean audit.
Present risks such as weaknesses in procurement and contract management, lack of infrastructure delivery and maintenance were also detected, especially in the most critical and impactful government departments.
It’s deeply worrying that reports of shoddily performing state-owned entities are now a norm, yet accountability receives inadequate attention. Yearly, non-compliance with legislation is reported. When juxtaposed with stronger action against those implicated, it is frightening what the inevitable trajectory of these entities will become and the subsequent result of the country’s wellbeing.
In the private sector, a more stringent approach is applied should the executive fail to deliver. Where questionable conduct is found, consequence management is instituted. Practices of this nature are vital to safeguard the future of the business. In government institutions, complacency and kid gloves are used to address dysfunction.
Prospects of turning this around will only be a dream if anti-corruption agencies to date, are left to scramble for sufficient resources and the financial capacity to fulfil their duties. If the likes of the National Prosecuting Authority, the Special Investigating Unit (SIU) and the Directorate for Priority Crime Investigation (DPCI) are still forced to outsource special skills, are constrained by finances and face mountainous hurdles, slow progress will be the order of the day.
COSATU is encouraged that the powers granted to the Auditor General are proving to be of immense value. Since given authority to ensure compliance of accounting officers, provisions made in the Public Finance Management Act (PFMA) and the Public Audit Act have enforced consequences in the handling of taxpayers’ money and billions of Rands have been recovered.
We are however deeply concerned that government has to date not exercised the full powers allocated to it under the Auditing Amendment Act to recover stolen assets from complicit Members of the Executive and Accounting Officers. Utilising these progressive powers is key to winning the way against crime, corruption and state capture and to ensuing that public funds are utilised for their intended purposes of delivering public services and investing in working class communities.
Equally inspiring is the Development Bank of Southern Africa (DBSA)’s healthy finances and resilience affording it a clean audit. As it leads in championing its mandatory obligations, other SOE should be triggered to serve the country as they should.
With stringent ethical mechanisms and viable business models, achieving success is possible as we have also witnessed with the South African Airways (SAA), recording an annual profit for the first time in 12 years. Similarly to private entities, government institutions are capable of exhibiting efficiency which will create more employment and provide essential services.
The Federation hopes for the urgent realisation that any room for impunity leaves more room for disaster.
Issued by Zanele Sabela, COSATU National Spokesperson, 28 November 2024
