The will of the people?
South Africa’s local government elections — held on March 1 — were neither an expression of the “will” of the people nor a sign that “our democracy is maturing” as President Thabo Mbeki, in collusion with the Independent Electoral commission (IEC), wants us to believe. Instead, the elections should be viewed in the correct context: an unequivocal message to the ruling African National Congress (ANC) that the country’s poor masses are gatvol (have had enough). Despite the ANC’s victory, a substantial number of voters have rejected the top-down neoliberal policies that have exacerbated the country’s poverty.
Is there any light at the end of this foetid tunnel?
This question assumed grand importance upon the release of a research report into 34 government departments and public entities. The overview is based on 135 annual audits conducted by the auditor-general over the past four years. A measly count of seven “clean” audits; 35 were either ‘Qualified’, received an ‘Adverse Opinion’, or a ‘Disclaimer’. The latter three findings, translated officially, amount to a finding that the affected entities are in a state of financial disarray and mismanagement. The worst performing entities (unclean in four out of four years) were Home Affairs and Correctional Services.
Union name change may take years
Renaming the Union Buildings – the seat of government in Pretoria – could take years, said the Ministry of Arts and Culture. The ANC Youth League (ANCYL) has submitted a formal proposal to rename the Union Buildings after former ANC deputy president Walter Sisulu, who died in 2003.
Millions lost in exceptional spending loophole
Officials are wasting millions by side-stepping tender procedures and abusing an exceptional spending loophole. The Gauteng standing committee on public accounts (Scopa) called on the Department of Finance and Economic Development to answer to R6,6 million of seemingly irregular expenditure. The department said exceptional circumstances applied to each transaction. The head of the transport department allocated a multimillion-rand taxi recapitalisation contract to Sydney Mufamadi’s wife in a similar manner.
SA must place an increased emphasis on technology
Mark Shuttleworth, CEO of the Shuttleworth Foundation, urged South Africa to decide on a global best practice in information and communication technologies (ICT) strategy in order to best position the country for success in the technology game. Shuttleworth cited a number of countries as setting the pace for emerging nations using progressive methods to transform themselves - from South Korea using broadband to evolve its economy and moving towards open source software as a key enabling technology, Spain driving technology into education using free software and China committing to putting all government procurement onto Linux by 2010.
Erwin comes to the rescue
DETAILS are still sketchy about what government intends to do with Infraco, a new company it unveiled last week to lower the cost of broadband. Its core asset is a national telecoms backbone built by Eskom, and R627m has been budgeted to develop the new state-owned entity. Public Enterprises Minister Alec Erwin has said is that Infraco is essential to make SA’s hi-tech sector globally competitive by rapidly increasing the availability of broadband and decreasing its cost to introduce “a genuinely competitive” supply of bandwidth. It is not surprising Erwin deems it necessary to step into the telecoms arena, given the failure of his colleague, Communications Minister Ivy Matsepe Casaburri. Despite her years in office, telecoms remain extraordinarily expensive, and President Thabo Mbeki’s repeated calls for cost reductions have washed over her.
Spy versus spy
It’s spy versus spy. Six of South Africa’s civilian intelligence organisations are under investigation for malpractice and abuse of state power and resources. They are the National Intelligence Agency (NIA), South African Secret Service, National Intelligence Co-ordinating Committee, National Communications Centre, Electronic Communication Security Centre and the Office of Interception. Intelligence Minister Kasrils said the establishment of a Ministerial Review Commission was necessitated by malpractice which occurred within NIA during 2005.
Get your facts right, Mr Lekota
The Department of Defence is a serial offender when it comes to mismanaging public money, says the government's main watchdog on public spending. Defence Minister Mosiuoa Lekota launched a scathing attack on The Star for its expose on the army's failure to account for 66 vehicles, 119 weapons and R27-million worth of supplies intended for the SANDF's peacekeeping base in Burundi. SANDF chief General Godfrey Ngwenya said "every single vehicle" had been accounted for - despite Auditor-General Shauket Fakie finding this year that "stocktakes were not performed at all army units during the year" and that stocktaking certificates received from certain units were found to be of "doubtful accuracy".
Recap plan will wreck taxi industry
The regime's plans to scrap old taxis and introduce new ones has provoked uproar in the taxi industry. The long-delayed multi-billion rand taxi recapitalisation programme is aimed at replacing the ageing taxi vehicle fleet with safer and more efficient vehicles in the next seven years. A R50 000 scrapping allowance will be paid to registered taxi operators - at a total cost of R7,7-billion to the government. The programme was initially scheduled to be implemented in 2000, but has been delayed many times. The plan has touched a raw nerve in the industry. It was not happy with the terms of the new operating licences. Even though operators had agreed to the conversion to the new licence, none of them knew what it looked like.
South Africans are living in cloud cuckoo land
The consumer orgy has started to get really messy. Cheap money mixed in with competitive Asian consumer products comprises a dangerous cocktail. In Pretoria, the lights are still on and the policymakers are still out, spending money fast. There is going to be a terrible price to pay for this madness. South Africa's trade deficit (surpluses are history) has exploded. No policymaker in South Africa has given the vaguest hint as to how the trade deficit is going to be financed sustainably. The story does get even more spooky. Contrary to the optimistic slime pumped out by public and private sector spin-doctors, South Africa's economic growth is largely jobless. Job creation running at a pathetic 3000 jobs a month.
Jobs up, but numbers not high enough
More than half-a-million jobs were created in South Africa in the past year, but economists and labour warn it is not enough to make a serious dent in unemployment. At a glance there seems to have been a very big increase in employment, but if it is put into perspective it is not so dramatic. Most of the new jobs were created in the agricultural sector and were seasonal. The problem is that the economy's direction is towards creating businesses that were service, knowledge and skills intensive, while the South African workforce is largely unskilled. The rate at which jobs are being created is not sufficient to keep up with the number of students leaving school every year. Economists have blamed South Africa's stringent labour legislation, which makes hiring an expensive proposition for small-scale companies, and have suggested that government relax legislation to enable small firms to easily hire and fire. Labour Minister Membathisi Mdladlana has described unemployment as a "ticking time bomb."