Sunday Times

Mogajane: SA heading for failing state

Treasury DG tells top officials and politician­s to ‘do your jobs’

- By SAM MKOKELI

● SA is showing the signs of a failing state more common in countries like Sierra Leone and Liberia, says National Treasury directorge­neral Dondo Mogajane.

Most South African townships are slums and informal settlement­s randomly spiral out of control, Mogajane told a conference organised by profession­al services firm Deloitte to unpack the budget unveiled by finance minister Enoch Godongwana two weeks ago.

Mogajane said senior public servants and politician­s need “to get off your high horse and do what we have to do to ensure we create access and a conducive environmen­t for people’s lives to change”.

“If that’s not going to be a motivating factor, we can start calling South Africa a failing state because the things that define a failing state are beginning to show, where we don’t care about the poor and improving their lives.”

Mogajane warned that the budget and the economic estimates that underpinne­d it may be distorted as a result of the Russian invasion of Ukraine, which has already seen a spike in the price of oil.

He said SA needs to implement its reform agenda and improve economic performanc­e to avoid a worsening economic and social situation.

South African Revenue Service commission­er Edward Kieswetter said a strong public administra­tion was necessary to boost economic performanc­e.

Kieswetter shared similar sentiments to Mogajane about the failures of public administra­tion and how they hamper economic and social developmen­t.

“Leaders should be taking their work seriously instead of taking themselves seriously. There is a saying that China works because of the government and India works in spite of the government. We are edging closer to being a place where things work in spite of the government,” he said.

Political analyst Sithembile Mbete said SA’s public service delivery failure is demonstrat­ed by the reliance of those who have the means on the private sector for basic services such as health.

“South Africa does not have a money problem. It has an administra­tion problem.”

Mbete said some of the problems are basic and cut across key sectors like public health, which are “falling apart despite remarkable people working there”.

“Nobody knows where this paper that you have filled in goes ... you go to home affairs and you don’t know where that paper goes. The problems facing this country are that basic.”

Deloitte CEO-designate Ruwayda Redfearn said Godongwana’s maiden budget speech was “very positive”, although there were worrying signs.

“The one aspect of the budget that should have us worried, though, one that should give all of us as executives, business and political leaders sleepless nights, is the minister’s assertion that over the next three years South Africa’s economic growth will average less than 2% — around the 1.8% mark,” she said.

“We know that this is inadequate to address our country’s challenges or to meet all of our population’s needs.”

Economist Thabi Leoka said increasing internet access through the release of spectrum would help to create jobs and speed up economic growth.

She said that 50% of the population receiving some form of a government social grant is a problem and suggested that shortterm solutions are preferred over lasting ones.

Municipali­ties are enablers of growth but are overwhelmi­ngly dysfunctio­nal, she said.

“Only 5% of municipali­ties are financiall­y sound, 62% of municipal workers cannot use a computer, 65% of municipali­ties are dysfunctio­nal. How do you expect growth in that environmen­t?”

Instead of removing obstacles to growth, the government opted to “pacify” the problem by doling out more social grants.

“The problems are in our faces but the solutions are elsewhere,” Leoka said.

 ?? ?? Edward Kieswetter
Edward Kieswetter
 ?? ?? Dondo Mogajane
Dondo Mogajane

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