South Africa faces national bankrupcy

The cancer of corruption – appropriately referred to as a crime against the poor – is eating public resources at the speed of lightning, Public Protector Thuli Madonsela said on Friday.

Thuli Madonsela - South Africa's anti corruption fighter

“We may have reached the tipping point after which trying to end corruption will be like trying to bring water up from the bottom of a waterfall.”
Anecdotal evidence suggested that the most serious crisis lay in the state procurement system.
“It appears that if we don’t take drastic action there will soon be no money for service delivery,” Madonsela said.
“Billions of rands meant to deliver on the constitutional promise of service delivery in pursuit of a better life for all were “unlawfully and greedily siphoned into the private pockets of persons within and outside government”.
Even where there was no proven corruption, billions of rands were still wasted through lack of diligence in public sector procurement management.

“Who hasn’t heard about the pens that are bought from stationery shops for R3 and sold in bulk to government for R15 or more?
“How about stories that laptop computers that are purchased from retail outlets at the cost of R5 000 or so and bought by government through bulk purchasing at R40 000 per laptop computer?”
Ordinarily, bulk purchasing gave one leverage for lower pricing but that did not apply to the government, she said.
During stakeholder consultations last year, a municipal leadership implored her office to ask provincial and national government to step in with about R130 000 to fix street lights as the municipality’s budget had been exhausted.
An investigation into allegations of corruption within the same municipality in an unrelated manner revealed that millions of rands had been wasted on a contract issued irregularly and without due diligence in regard to pricing control.

“We get these kinds of cases at all levels of government, including state entities such as Transnet, Telkom, and Eskom, she said.
“The possibility of national bankruptcy is not a farfetched possibility. It is a real threat,” Madonsela said.

Article continues below...

Related Posts