Putting effective systems in place to detect and prevent rampant corruption will help SA to regain the confidence of investors and society, public works minister Patricia de Lille said as the Special Investigating Unit (SIU) proceeds to recover R1.3bn from irregularly awarded public works contracts.
Stakeholders in the infrastructure-built environment convened on Thursday to throw their weight behind the Infrastructure Built Anti-Corruption Forum (IBACF) in a bid to bring a greater level of transparency and credibility to the implementation of the Infrastructure Investment Plan.
The plan is central to President Cyril Ramaphosa’s Economic Reconstruction and Recovery Plan, which is aimed at creating jobs and has started bringing SA’s construction industry back to life.
The sector has rebounded strongly from the negative effects of the Covid-19 lockdowns but activity levels and confidence are declining again, according to the Afrimat Construction index. Released last week, it showed construction activity was 3.5% less in the first quarter of 2022.
Speaking at the signing of the forum’s pledge on Thursday De Lille said corruption, particularly in procurement processes, hinders economic and social development in SA by redirecting much-needed resources to corrupt entities and individuals, while the country has to spend exorbitant amounts on investigating corruption after the fact.
The state capture commission of inquiry cost taxpayers R1bn, yet arrests of officials involved are still to be made. De Lille deplored this culture, saying resources should be invested in systems that can prevent fraud and corruption.
The minister said the success of the forum rests on a collaborative effort and on the finalisation of the procurement bill, which will assist in closing the loopholes that corrupt contractors use to defraud the system.
“We have to get the new procurement bill to become law as it will help to close the gaps and the holes,” the minister said.
“The crooks in the country have perfected the method of how to work around the Public Finance Management Act,” she lamented. The main task of the forum will be to make sure that systems are in place to prevent and detect fraud and corruption.
Corruption in SA’s construction and infrastructure industries ballooned in recent years with construction mafias operating unabatedly, a trend that has become an obstruction to progress in the building sector.
Role players that are part of the platform, such as law enforcement agencies, construction sector regulators, civil society, government departments and the private sector aim to monitor infrastructure projects more effectively through the IBACF.
Via the presidency the department has so far issued four proclamations to the SIU to probe capital projects, supply chain irregularities and renovations by the government.
Advocate Andy Mothibi, who leads the platform, said the forum will galvanise stakeholders into action and ensure that infrastructure build projects are monitored more effectively.
It puts “measures and systems in place to fight against fraud and corruption, identify areas of co-operation to enhance prevention, detection, civil litigation and prosecution of fraud and corruption in the infrastructure build sector”, Mothibi said.
Ramaphosa has vowed to undo the grip of corruption and rejuvenate the economy, and also to cut red tape to facilitate ease of doing business in SA, but construction and engineering firms bemoan the slow pace of project rollouts.
The multisectoral body led by the department of public works and the SIU includes entities such as the National Prosecuting Authority, Corruption Watch, the Financial Intelligence Centre, the Council for the Built Environment, and Master Builders SA.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.