Tag Archive | Cyril Ramaphosa

Parliament looses control on government spending

SA’s big black hole in its fiscal galaxy…..

It  looks like the governing party knows even more about the daylight robbery going on in certain provincial and local government structures than was originally disclosed.    A big hole in local givernment spending is still swallowing up millions in taxpayer revenue.    Not good news when an election is happening.

As a result of the disclosures, this is a delicate moment for South Africa waiting to learn the make-up of the parliamentary political balance and who is nominated to Cabinet, and just as important as it is to see the structure of provincial government where most of taxpayer’s money is spent.

With the economy in peril, what happens now in terms of responses with regard to the outcomes on state capture and corruption, and how it is handled, is a matter of dancing on the edge of a financial cliff.  Financial commentators from the around the world are watching.

Gearing up

With Parliament re-opening, the third pillar of the South African democratic structure will again assume its critical role in debating and shaping government policy.    Equally important, it will resume its position as a listening post for business and industry.   We have sharpened our pencil.

Its seems such a short time since 1994 when Parliament started its first five-year government term. Looking back over the five terms, what a roller coast ride it has been.

Watching, waiting

Now, for the sixth time, 400 members on the national political party lists are allocated to the National Assembly (NA) and a further 90, representing provincial interests, go the National Council of Provinces (NCOP) in the form of 10 delegates for each of the nine provinces.

The NCOP has the task of monitoring the NA in fact, therefore representing, somewhat tenuously, the voice of the people in those provinces.

Good start

The home of the NCOP is a building opened in 1884 as the first parliament of the Cape of Good Hope which interestingly enough was multi-racial, condescendingly so some say.  Its good-looking edifice dominates the central portion of the parliamentary precinct, next to the more modern National Assembly building.

With political balance of the 490 MPs on the precinct about to be established and the voice of the people thus represented, there is a shadowy side to Parliament as well which many politicians at national, provincial and local government have learned to use or abuse.

 In reality, the NCOP is the combined voice of the nine legislatures of the provinces acting as a watch-dog and checking that the National Assembly is not disregarding their interests.

The watchers

Only 54 of its 90 seats allocated have voting powers, the balance of 4 members per province having a special status to be heard but who cannot vote.  One of those members with special status is the Premier of each province, all Premiers rarely attending being too busy with their legislatures.

The other three seats allocated as special status are for provincial members assigned for particular reasons, maybe on a specific debate, and who travel from the provinces.  Ordinary citizens cannot be heard unless invited to do so but may watch, unless the meeting is closed for good reason.

Basic work

When legislation is tabled, it goes first to the NA for debate and approval.  If it has strong provincial interests it is “tagged” to go to the NCOP not just for simple “concurring”. In this case, the matter is sent with a special call to all nine provinces for comment Houses_of_Parliament_(Cape_Town)and majority vote or rejection.  This mandate in reply from provincial power bases is then expressed upwards by the NCOP.

In the National Assembly, the 400 members are spread out into “portfolio” committees for debate on national government reporting on policy matters and in accounting terms.  Their main tasks are to approve the budget and allocate same to the nine provinces, also to debate tabled legislation and monitor how all national departments are performing against targets.

Numbers game

In the NCOP there is a problem. There are only 54 members allocated to it and who can vote.   With and far too many government departments to watch, as a result their monitoring brief on national departments is broken into selected groups. (Hence the term used by Parliament of “select” committees.)

In addition to the provincial presence, local government is represented in the NCOP by SALGA who can also attend meetings in the NCOP with a voice but have no voting powers. This really is the only contact Parliament has with local government.

Three-tiered cake

However, the snag with the system now becoming more and more evident is simply that the traffic on money matters is one-way only.  It goes from the top, downwards.    That is not because the system is wrong, since it was designed that way so that the NCOP is fully briefed on budgets and allocations to the provinces.

However, such a system can be easily “worked” to provide an outcome that hides criminal intent or sloppy accounting since no information is coming upwards other than when MPs decide to make personal visits as a committee team on a specific issue and travel themselves “downwards”.

Mushroom club   

Consequently, nobody in the NA has really any idea of what is happening in the nine provincial legislatures or how municipalities and local governments are spending the budget in a reportable audit form other than what is reported by to it by national government entities and departments.

For example, in the Free State, heaven knows what has been going on there for a number of years with past Premier Ace Magashule and his cohorts, who seemingly have only been monitored by AmaBhugane but certainly not properly by the Premier and the Free State legislature.

Nobody seems to have listened the DA in the Free State complain and their accounting experiences with Free State audits investigated, such matters having been brought up in question time in the NA again and again but written off as opposition trouble making. The NCOP, of course, does not come into the equation.

Another world

The net result is that none of the frightful qualified audits on Free State budget spending on infrastructure representing an accounting malaise of epic proportions have come fully before Parliament. At the moment the big black hole in the economy at provincial level appears to have much to do with the distortion in accounting terms between how the money was used for spending and what actually was the value of the work done, if at all.

When the power shortly returns to Parliament the President will only have a very short time to deal with his compatriots who, as Archbishop Tutu put it, have lost their moral compass and taught so many how to steal from the poor.

Perhaps the new challenge of the Sixth Parliament is to have better contact with provinces, municipalities and local government, since here lies the gaping hole in the economy coupled to lack of service delivery.

 

ends/ editorial /parlyreport/1 May 2019/sent to subscribers

 

 

 

 

 

Posted in cabinet, Finance, economic, Home Page Slider, Special Recent Posts0 Comments

ANC MPs face to face with reality

….SA on world stage for Parliamentary opening

….editorial 27 January 2018

Who is going to be doing what in the ANC as Parliament re-opens for the first session of 2018 is far from clear as the party cogitates over leadership factors.    However, the vessel, the SS Rainbow Nation, may have righted itself and could commence the long and difficult voyage to economic recovery, although the vessel could well be said to be currently in damage control mode.   But at last the glass is half full, not half empty.

For the next few weeks, all eyes will be on Parliament.  The Bard could not have put it better.   “All the world’s a stage: all have their exits and their entrances…”, to paraphrase a little.

Patience called for

Those who feel that injustices have taken place and people must go to jail will just simply have to wait and learn to control the anger and frustration in the coming weeks as we learn of further exposés indicating the real depth of the corruption and mismanagement during the Zuma era.  The wound has been lanced but it took far too long for the doctor to arrive and apply a dressing.

In the meanwhile, somehow, South Africans are going to have to put this ten year period of atrocious governance behind and just simply get on with the job.. The endless denials of who did what to whom and whose hands are clean will go on for a very long time.  Replays of past speeches which are totally contrary to current statements will be the order of the day and prepare for brazen lies about how so many people all miraculously got to stay at the Oberoi Hotel in Dubai, for example.

They told us so

AmaBhungane and Daily Maverick told us about the Vrede Dairy Project theft of R220m as long ago as June 2017, the scam set up by still current Minister Mosebenzi Zwane and ANC Secretary General Ace Magashule, then Free State Premier, and contemptuously planned as a siphon for personal financial gain.   It was almost tiring to see the whole story splurged again in the weekend press. The “I am innocent until proven guilty” answers from Minister Zwana were equally as absurd.

Consequently, for the last six months, it has also been most difficult to watch Zwane strutting about in parliamentary portfolio committee meetings in the confident manner that is his hallmark busily destroying half of the mining industry on behalf of the Guptas knowing that all around him knew what he was up to.

Fortunately, partner Ace Magashule appears rarely Parliament. His time may come, however, once his position at Luthuli House is clarified.

Failure of disciplines

Under Jacob Zuma, the habit of state “fruitless and wasteful” expenditure has become endemic ever since the example had been set by the top with Nkandla. This was probably the first awful display of arrogance in the face of overwhelming knowledge of the truth. Now with Eskom debacle included, we know that that the total of money stolen in the Zuma era is around R700bn. This is according to the Institute of Internal Auditors.

If the “fruitless and wasteful” aspect of bad governance are added to this already frightful figure, then whomsoever said “Every nation gets the Government they deserve” is right, meaning of course that if Parliament and the Auditor General fail in oversight of government expenditure then all are poorer for not having applied consequences.  A private member’s Bill, recently tabled in Parliament to give the AG more teeth, is most welcome.

How low can it get?

If the Sunday press coverage of the Vrede dairy swindle was not enough,  once again we had to watch, with no satisfaction we might add, this same sickening story of corruption and greed repeated by a TV announcer standing outside a sliding gate and a wall located in the back and beyond of the Free State with a few building structures in the distance.  The total sum of assets still technically belonging to the Department of Agriculture from their project from which the R220m had been blatantly diverted.

As had been told to us six months before by Amabhungane and by Jacques Pauw,  Minister Zwane’s son who works for the Gupta family, was the recipient of a good slice of this money.   Even the President’s son is deeply involved as a beneficiary.   One turns one’s head away in shame. All in the name of a few cows and a group of hapless indigent farmers. A line which should not have been crossed.

Parliament is the people

What has been learnt is that Parliament is the people’s place of refuge. That is all we have, however ineffectual it may seem at times.  The proof of this is in the pudding. That creaky old system invented centuries ago won the day and in the end the people spoke. Parliamentary enquiries, whilst not courts of law and cannot judge, have produced the questions which leave the ordinary person, “the people”, to judge for themselves.

It seems pretty common cause, therefore, that  “people say”  that President Jacob Zuma should no longer be allowed to occupy Tuinhuis with a whopping salary and a rather large home and family.  The “people” were supported, brilliantly, by a strong civic voice and whistleblowers who have not benefited.

The stage is set and the play will end where it started.  In  the people’s Parliament.

Fresh start

Time now to forget the past. We must start again. It would be good to rise above the obsession to see these partners in crime and state capture go to jail. The systems, it appears, are back in place to ensure whether this happens or not.

Revenge is not the issue, however. The job in hand is to get on speedily repairing the damage. One remembers with warmth the leadership style, vision and courage endowed to us all by Nelson Rolihlahla Mandela, who asked us to rise above the sins of apartheid and focus only upon building a country. Many feel the time has come for the ANC to repeat the exercise.

A long road

Africa is indeed rising again and for the first time, in a long time, we can look forward to newscasts that don’t leave one feeling helpless, as has been the case ever since the Gupta e-mails emerged. In the few days after Cyril Ramaphosa returns from Davos (with whatever title he may have assumed by then) parliamentary business can return to normal.

All eyes in the next few weeks will focus upon the State of Nation Address and the Budget. Why exactly is the glass half full and not half empty? Because the governing party has been given a chance to put things right. Their endeavours to do so will be for all to see on the stage called Parliament.

Previous editorials
Parliamentary start to 2018 will be stormy – ParlyReportSA
Parliament SA: the top half of the iceberg.. – ParlyReportSA

Posted in earlier editorials, Special Recent Posts0 Comments


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