Mashaba’s insourcing error
Sowetan and Business Day should be commended for publishing stories regarding the appointment of Akhter Deshmukh by Joburg mayor Herman Mashaba to craft a financial model of insourcing of security personnel (Police are welcome to investigate me, Herman Mashaba urges council, February 22). It is disingenuous for Mashaba to divorce Deshmukh from his company, Lephatsi Financial Services. The Mashaba family holds shares in this company.
Mashaba’s response to the Sowetan article shows him as a mayor who does not fully understand governance. The role of politicians is to pronounce on service-delivery priorities, provide political leadership and exercise oversight.
The role of the mayor is to articulate “the what”. In this instance, “the what” was the insourcing of security officers.
Once “the what” has been articulated, the city manager (accounting officer) should determine “how” the insourcing will be implemented.
“The how” would have answered questions such as “How will we craft the financial model?”; “Will we do this internally or outsource to an independent service provider?”; “Should we appoint an outside service provider?”; and “How will we select such a service provider?”.
The responses to these questions should be guided by the Constitution, the Municipal Finance Management Act and the city’s supply chain policy. By pronouncing both “the how” and “the what”, Mashaba became both a referee and player. He had usurped the powers of the city manager. This is a serious breach of the law and code of conduct of councillors.
How will the mayor exercise his oversight responsibilities when he gets involved in the selection of service providers? Mashaba and his sympathisers are mistaken to think that he didn’t commit any wrongdoing just because the service was provided free. Lephatsi Financial Services could put it onto its profile that it did work for the biggest city in SA and this would give them a competitive advantage.
It is on this premise that Joburg had to put the OUTsurance 702 Pointsmen project and Dial Direct Pothole Brigade, initially done for free, out to tender.
I don’t think Mashaba had any ulterior motive, but he should accept his mistake.
Dr Rabelani Dagada
Former Joburg MMC Finance