SCOPA to tighten grip on municipalities as infrastructure billions go missing

Billion of rands meant for infrastructure and service delivery are being lost to corruption and poor financial management, according to Parliament's Standing Committee on Public Accounts, prompting a fresh probe.

South Africa is set to spend more than R1 trillion on infrastructure in the coming years.

But SCOPA Chair Songezo Zibi says too much of that money is slipping through the cracks.

“The government often pays too much.”

While graft is a concern, financial mismanagement at the municipal level (e.g. stalled projects, missed deadlines and contractors being paid without delivering) is an even bigger problem.

Municipal dysfunction is obstructive, says Zibi, adding that failure directly undermines growth and job creation.

"For years, we've spoken about load shedding as an impediment to investment, because people need electricity to run their businesses. You also need water, and if there isn't enough water, there is a problem."

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Zibi says municipalities are spending too little of their revenue on infrastructure.

"Typically, it's between 3-4%; it should be between 8 and 10%. That means ageing pipes, substations, and distribution points are not maintained as they should be."

Until that situation changes, says Zibi, it will be difficult for the finance minister to make much difference to his budget allocation.

SCOPA will now intensify oversight, starting with municipalities in the Eastern Cape, and working alongside the Auditor-General and the Special Investigating Unit.

The focus will be on whether public funds are not just spent, but spent properly and delivering results, says Zibi.

For more information, listen to Zibi using the audio player below: