R12.2 billion trapped in South Africa’s capital
The latest official report by Tshwane’s Strategic Asset Management Committee (SAMCO) reveals that R12.2 billion is trapped.
The money is stuck in projects that have already been completed, are partially completed, or for which plans and payments were made long ago.
However, these projects were never officially loaded onto the City of Tshwane Metropolitan Municipality’s asset register.
“These funds, which represent desperately needed infrastructure for communities, are trapped due to administrative negligence and incompetence,” the FF Plus said.
The completed or partially completed projects which are not legally transferred have a big impact on residents in the city.
“Residents must contend with crumbling roads, dark streets and stalled housing projects,” the FF Plus said.
“Because these assets do not appear on the active asset register, the Metro may not maintain or insure them.”
Consequently, properties are neglected, damage occurs, and projects have to be redone at a higher cost later.
This basically means that taxpayers pay twice: first for the initial construction and then again for the repair of damage that occurred in the interim.
This is a direct consequence of poor to no project management and a culture of indiscipline, which are undermining the Metro’s financial health and service delivery.
This asset crisis amounts to a betrayal of taxpayers, because it affects precisely those sectors and communities that bear the brunt of collapsing service delivery.
“The trapped R12.2 billion could have made a tangible difference to residents’ daily lives,” the party said.
It said an independent forensic audit should be conducted to determine who is responsible for these delays and to ensure that projects do not remain stalled.
“In addition, the Metro’s project management model should be reviewed to prevent tax money from being squandered like this in the future,” it said.
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“In addition, the Metro’s project management model should be reviewed to prevent tax money from being squandered like this in the future,” it said.
This is a nice sound bite but it means nothing. It all comes down to who is in charge. If you have a competent person they won’t waste money.
If you have the wrong person in the job, everything goes to hell in a hand basket. You can change project management models, have strategy meetings, implement corporate governance, heck you can have money falling from the sky – nothing will work with the wrong people.