Parastatals spend R60m on consultants in year

EASTERN Cape government parastatals spent close to R60-million hiring consultants during the 2011-12 financial year.

Last month, five provincial government departments and various municipalities said they spent more than R150-million on hiring consultants to perform the duties civil servants are meant to do.

East London Industrial Development Zone (ELIDZ) spokeswoman Ayanda Ramncwana said more than R35.25-million – 10% of its budget – was spent on consultants.

“We only engage consultants in areas where specialised or technical services are required and these are not available in-house,” Ramncwana said.

Coega Development Corporation (CDC) spokesman Ayanda Vilakazi said it spent R20-million – 3.5% of its budget – on consultants.

Eastern Cape Parks and Tourism Agency (ECPTA) spokeswoman Veliswa Mhlophe said the agency had spent more than R1.1-million on consultants in 2011-12.

Most Eastern Cape municipalities depend on consultants to prepare their financial statements at a total cost of more than R24-million.

But there has been no noticeable improvement in audit outcomes.

The auditor-general (AG) revealed that during the 2010-11 financial year consultants were appointed to perform core departmental functions.

“They are not adequately monitored, even though staff are paid to monitor them. Furthermore, reliance on consultants is not accompanied by an appropriate level of skills transfer,” the AG said.

The AG also said consultants were hired for tasks despite there being enough time for departments to recruit and train their own staff to do the work. The report also showed most senior management positions had been vacant for more than 12 months.