Mubesko Africa’s MD Nico de Kock welcomes the announcement by Deputy Minister in the Presidency Kenny Morolong that over 1 000 civil servants face disciplinary action following the SIU investigations, and comments on the impact of corruption on service delivery.
Diminished Service Delivery.
Corrupt contracts awarded where merit is not necessarily the qualifying criteria often results in poor quality work, with corners being cut to maximise profit. This impacts negatively on durability and safety which leads to frequent maintenance, further denting municipal budgets. Ultimately, the community does not receive value of their rates invested in the region, and service delivery protests can occur.
Financial Mismanagement.
Critical functions such as SCM (supply chain management) are included in a municipality’s finance function, and if this function is not managed according to regulations, the door is wide open for corrupt activity. The Finance team is the guardian of a municipality’s finances, ensuring that contractors are qualified, and that services rendered are delivered before payment is made.
Public Trust Erosion.
Trust is arguably the strongest currency that a municipality has, meaning that the community believes in them. When corruption is rampant, community trust diminishes and typically, residents lose hope and stop engaging with the municipality.
Service Delivery Delays.
When corruption rules service delivery suffers. Projects earmarked for completion in a specified timeframe tend to drag on as funds are embezzled or the project runs out of funds leading to an incomplete project, or legal challenges which can take years. Municipal projects are critical for their communities, and delayed road upgrades, sanitation facilities and emergency services among others can have a devastating effect on communities (e.g. vehicle accidents, failed emergency equipment, outbreak of disease etc).
Cost Escalation.
Corruption increases service delivery costs when officials’ kickbacks are built into the pricing. With many municipalities struggling to collect or attract revenue and funding to deliver services, the costs of corruption erode funds earmarked to deliver essential services, especially to low-income communities.
Funds lost through corruption are frequently mentioned in the media but what lies behind it is devastating for hard-pressed communities – ersosian of trust, and denied access to basics such as water, roads, healthcare, and sanitation among others. And when infrastructure falls apart businesses and investors exit, and the final betrayal for the community is the loss of jobs.
The steps taken by National Treasury and the SIU are to be applauded.
Nico de Kock
MD Mubesko Africa
mubesko.co.za
Specialising in financial accounting and management support, asset accounting and modelling, and forensic investigations, Mubesko Africa is highly regarded as a consulting service to local government.