Collaboration between the private and public sectors – styled as Public-Private Sector Partnerships (PPPS) – has been around for some time. Unfortunately, it has been frustrated by mistrust, bureaucratic constraints, diverse operational cultures and corruption.
Mistrust.
Mistrust can centre on the private sector seemingly earning vast fees, but fees are a function of complexity, specialist skills, and the value derived. The issue of high fees comes to value derived. Mature and progressive municipalities see private sector costs as an investment in their region. These municipalities are also adept in supply chain management and auditing to ensure that it is indeed an investment and not wasteful expenditure. Also, to gain private sector trust that tender awards are fair and correct.
Bureaucracy.
There is a view that local government is over-regulated which can be off-putting for the private sector. Irrespective, when a municipality is characterised as practicing good governance and it achieves clean audits from the Auditor-General, bureaucracy tends to be less of an issue. Visionary, ethical and qualified municipal managers and executives tend to find a way to make things happen without resorting to intended or unintended non-compliance.
Operational cultures.
The good municipalities are already working closely with the private sector to enhance service delivery effectiveness. There are cultural differences, but this can be overcome through respect and understanding and focusing on common purpose. In time, the public sector will augment characteristics of ethical leadership, effective governance and service delivery with private sector traits of competitiveness, operational efficiencies, and profit to sustain service delivery.
Corruption.
Corruption is a function of the lack of ethical leadership and effective governance. With reputation and payment so important, the private sector is reluctant to operate with dysfunctional, corrupt municipalities. Municipalities which are short on ethics, governance, and are resourced with unqualified managers, are typically dysfunctional which leads to negligible service delivery, and potential unrest. These regions are not investible and will struggle to attract the level of developmental funds required for a public-private sector partnership (PPPS) to thrive. Corruption is an issue, but the will to change must be driven from national government. In the meantime, PPPS initiatives will develop in strong, successful and visionary pockets of South Africa.
Mubesko
With an established track record in the public and private sectors, Mubesko is well-positioned to play a role in the private-public sector transition and contribute towards South Africa as a developmental state.
Nico de Kock
MD Mubesko Africa
mubesko.co.za
Mubesko is a well-established consulting company offering financial management and support services, asset accounting and modelling, and forensic investigation services to the public and private sectors.