Government blows R33bn on advisers
Image by: POOL / REUTERS
The government spent R33.5-billion on consultants employed to develop media monitoring projects, plant trees, offer basic adult education to police officers and audit staff skills - tasks that could have been done by public servants.
Deputy auditor-general Kimi Makwetu yesterday revealed that in some instances government departments wasted millions on contracting consultants to monitor the work of other consultants.
Consultants were even roped in to deal with sensitive security issues, including the development and management of the police firearms control system.
"Consultants have been employed to provide services such as the preparation of financial statements, for which departments should have internal staff. However, since these skills were not available internally or departments were not successful in recruiting suitable staff, they relied on consultants to perform these functions," Makwetu said.
The biggest amount spent, according to the audit report, was the R10.44-billion the Department of Defence paid consultants between 2008 and 2011. Water Affairs spent R4.263-billion on consultants and the police R4.039-billion.
Correctional Services spent R2.03-billion, Transport spent R1.86-billion and Rural Development spent just over R1-billion.
The billions were lavished despite austerity measures introduced by Finance Minister Pravin Gordhan in October 2009. Gordhan urged government departments to trim consultancy, entertainment, conference and travel spending.
Last night, government spokes-man Phumla Williams said ministers and heads of administration of affected departments had engaged extensively with the A-G's office and had committed to take ''immediate action to remedy the situation''.
SA Institute for Accountability director Paul Hoffman said that the widespread use of consultants was due to the government employing incompetents.
"People are given jobs that they have no capacity to do," he said.
Hoffman encouraged victims of poor service delivery to complain to Public Protector Thuli Madonsela about the millions paid to consultants.
Many state departments, however, blamed the overspendingon "change of leadership", high vacancy rates, "people with existing skills not being used in the correct roles" and "realignment of organisational structures".
Some of the big spenders:
- Rural Development and Land Reform spent more than R49-million on recruitment consultants because its human resources division did not have the capacity;
- Lack of capacity in Correctional Services resulted in consultants being paid to monitor the work of other consultants responsible for the development of an IT system. The department also paid more than R1.8-million for media monitoring.
- Defence spent R76.6-million to clear audit qualifications because staff did not have the necessary skills. Air Force skills supplementing cost the department R859.9-million and the provision of general and unskilled labour cost R10.9-million.
- Environmental Affairs spent R14.2m on financial services and R264480 on consultants for the development of a business plan for the Greening Project 2010.
- The police outsourced the development and management of their firearms control system at a cost of R92.8-million; R10.2-million was spent on adult basic education;
- Water Affairs spent R3.1-million on the "enhancement of job evaluations";
- Transport spent R14.3-million on the management of the Transport Month campaign;
- Poor planning in the appointment of a contractor for the supply of a maritime pollution prevention strategy cost R98-million because the contract was extended three times.
DA spokesma n Mmusi Maimane said : " Hire people who can do the job. The government needs to ensure that people appointed to key positions are fit for the purpose."
United Democratic Movement leader Bantu Holomisa blamed the ANC government's cadre deployment policy.
"The government hires people who have no clue and I can bet it is worse at local level."
The audit report details departments' non-compliance with regulations, including not following competitive bidding processes. It states that contracts worth millions were open-ended in terms of costs and time, and contracts were awarded without tax clearance certificates or proof of registration with the appropriate professional body.
The A-G recommended:
- Sanctions in instances of non-compliance with legislation, regulations and policies;
- Specific oversight of the use of consultants quarterly by portfolio committees;
- Planning must be done before inviting tenders;
- Vacancies and capacity should be assessed regularly and internal processes that hinder the filling of posts should be revised;
- Contracts must provide for skills transfer.


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Posted 114 days agoRSA.MommaCyndi
SuiGeneris
When it was time for his superior to retire, it was assumed by every one in the department that he would be next in charge.
Not to be.
Next thing that happened was a new cadre deployment boss was the new head of the department.
He resigned after 6 months and started his own business.
Four other people from this department, and trained by him, also resigned two followed him and now work for him.
The next year he was requested by his ex boss to come and sort out the financial mess in that very same department as a consultant.
He now earns 5 times more just from this department alone compared to the salary that he earned while he was employed by this department.
Sasha*-Fierce
So true, that is the culture and essence of the present ANC cadre!
FrankieDewing
Posted 114 days agoQUOTE: SA Institute for Accountability director Paul Hoffman said that the widespread use of consultants was due to the government employing incompetents.
"People are given jobs that they have no capacity to do," he said.
Hoffman encouraged victims of poor service delivery to complain to Public Protector Thuli Madonsela about the millions paid to consultants
The public should not be responsible for this disgraceful mess by complaining to a Public Protector....If people cannot do the job FIRE THEM.......
It seems like the whole Government is being advised by Consultants....expensive ignorance...corruption in all departments...ENOUGH IS ENOUGH...
Maybe we should have a CONSULTANCY ruling Party
traveljunkie
They spend other peoples money without any repercussions consequences, and that is the big difference
Gormogon1
Posted 114 days agoBornintheRSA
fransvan_erk
Posted 114 days agoWhen the head is rot, it cannot delegate the brains, arms, legs etc. only the Spear is in "overdrive".
Ministers, dept ministers, HODs and go down the ladder, are carbon copies of criminal zuma. Looting the coffers, kept by an incompetent pharmacist, is the only task what this anc is doing with dedication. Their only concern is to keep their international reputation as a South Africa's clown.
This anc government is a disgrace for all governments. Since zuma is put in SA's presidency the world population increasingly distrust their own governments as a result of the information leaking out of SA.
South Africa is the rotten apple on this earth.
Sasha*-Fierce
Posted 114 days agoGovernment finds itself having to source services from out side because its original employees cannot perform those task, because MEC's Premiers, Ministers and President are only hiring their relatives and romantic friends to help them pick up their standard of living.
Bruster
Posted 114 days agoNow we are seeing the cost.
Less money for upliftment. For 'PDI's'...Including, and mostly, blacks.
Less money for education. For all. Including Blacks. Less money for Infrastructure. Infrastructure that we all use. Including Blacks. Less money for health care. Care we could all use. But is all but destroyed and not usable by anyone. The list goes on.
Get the picture?
What money there is is being administered by 'incompetents'. So the cycle continues.
Sadly, the DA told the ANC all this in the beginning. But because they were not 'black' enough, no one listened.
Now people are crying.
Kimi Makwetu stands up and tells us what the DA said years ago. The DA is effectively the government consultant. They are right 95% of the time. Then the ANC announces what they said 5 years previously like it's a revelation.
[The DA is supported by the same 6 million-odd tax payers that pay 95% of the ANC's wasted expenditure. (incidentally SARS seems to be the only efficient and well run department the government considers it worth hiring competent people for)]
We are only talking about the public sector here. Then there's private consultants you can use to get just about anything done with any useless government department. Rates. Water. Deeds. Home affairs. Licensing.
You have to hire: private security, private health care, private education, private everything, to get anything done.
We are all worse off for it.
And yet we still push affirmative action.
Banana republic.
WillGranzier
Posted 114 days agoBokfanSaffer
To use a colloquialism "They all wanted to score goals so they dressed up in golden boots. 24 karat solid ones."
deebee
Posted 114 days ago1) Government's wage bill for the last financial year was R371bn. If you consider that the tax rate is 30% for most companies, it required R1.2 TRILLION in productive activity to generate this. So it's not just that it's R371bn - it's the massive effort required to generate that sum, which is then not produc tively used in many instances;
2) According to the 2012 Budget Review, the state has budgeted R394bn for compensation of public sector employees for the 2013/2014 financial year. The figure rises to R417bn for 2014/2015. Obviously a lot of that goes to teachers, nurses, doctors, cops etc (whatever you think of their levels of service, we'd be far worse off without them at all);
3) R33bn in consulting fees, would likewise require over R100bn in productive activity to cover this cost. And for what? Because government employees can't do the high paying jobs they're appointed to?
4) Surely it's time that we introduced a de-politicised civil service: bring back the town engineer, who was a civil engineer who could oversee all maintenance projects without having to have a raft of consultants to check up on contractors. Bring in the type of civil servant who simply shuffles papers, relatively effectively and waits to retire on a comfortable pension, rather than the tenderpreneurs who rig contracts (including consulting ones!) in favour of inadquately equipped contractors.
5) I have absolutely no problem with retaining BEE in quotes as we need a strong, vibrant black business class - not elite, class - to ensure that we don't plunge into racial turmoil again. I'm happy to pay this price in order to ensure that I can live a lovely life in this wonderful country. But BEE should not be the be all and end all of government procurement: it has to be based on delivery, not box ticking.
traveljunkie
They have the gull to go off on mines and FNB when criticised, they do not understand where the money comes from they spend with impunity on them selves and the Guptas and Reddy's.
WE PAY YOUR SALARIES GOVERMENT!!
Wiseguy
Posted 114 days agoAny educated, intelligent person will tell you where this will lead us.......and it is NOT pretty or good!
Those 2 words that made the USA the most efficient powerful country in the history of the world need to be used widely and urgently.....YOU FIRED! YOU FIRED! YOU FIRED!!!!!!
BokfanSaffer
Posted 114 days agoNow as one of those consultants even I cannot wait for this to change. But while the anc is in charge it won't happen. There is a total misalignement between the talents employed and tasks required. The deputy ag speaking today declined to try and find an explanation for this disaster. I don't blame him. In Zuma's abc you dare only tell the tale they want to hear.
The fact is that the titanic has already hit the iceberg. What we are seeing is the systems packing up as the sinking becoming more and more evident.
In the meantime the captain (LOL) is having a pomp in the stateroom before getting aboard his solid gold lifeboat.
The noisy drunk lower decks are looting the bars and banks, burning lifebelts and smashing flotation devices to demonstrate their displeasure.
The rest of us watch in horror while the smartest are stocking up their own rafts ready for the big swim.
Strangely no rescue ships are rushing to our aid.
manga2
Posted 114 days agoBokfanSaffer
Are you saying this is how a well managed govt does its thing?
SuiGeneris
Black-Moses
Objective reasoning in your head, is as rare as an honest politician, full stop.
Wiseguy
We await your objective solutions to the problems highlighted in this article? Come on Einstein....we HAVE got all day!
Bruster
deebee
The thing is, which the ANC is too stupid to understand, is that people who decry wasteful expenditure of state funds are the MOST patriotic: they are the ones who want a BETTER South Africa - not just a parasitic elite swanning around in waBenzi's and eating and drinking themsleves to a standstill at 5-Star hotels whilst the Andries Tetane's and Zandela 4's of the world are beaten and shot to death by the police for the temerity of wanting a better life.
Mark my words manga2 - this is the start of the new revolution in South Africa and those who're being bludgeoned to death by the jackboot thugs of the state's police enforcers will hopefully be held in the same light as the Cradock 4 or Steve Biko: ordinary South Africans doing extraordinary things to try and ensure, wait for it - A BETTER LIFE FOR ALL.
Wiseguy
NICE objective debate......NOT!
Bono
Yes typical one-dimensional mentality. If things go wrong within Government blame Apartheid or the DA. Not that you are directly blaming the DA but you don’t seem to have the mental capacity to offer any other solutions on this forum. The best form of defence is attack… Take of your blinkers and smell the coffee. If you cannot see that we have a problem then I pity you brother.
buddi
The facts are there given by the AG in black and white - how much more objective can it be? Unless you can put an almighty spin on it.
ByronSmit
From the looks of things, your comment is based purely on emotion; most of the comments above, on the Auditor General's report. No objectivity indeed....
manga2
Let's wait till the report indicates expenditure per province. You'll wonder why the DA even need a spokesperson - God blessed it with chihuahuas in abundance. No questions asked - it just cant be, not our DA or leader - they take turns yelping.
Pathetic, to say the least.
Wiseguy
Still awaiting your OBJECTIVE solutions to the problem of overspending by government?
Tick tock tick tock!!
Wiseguy
Mbeki_2
Posted 114 days agoRedCoat
Posted 114 days agoSuiGeneris
buddi
Shongweni
Posted 114 days agoI believe the underlying cause of the problem is that many South Africans still carry an apartheid mindset that the funds in the tax coffers is the "white man's money" and can therefore be pissed away - we need to all understand that the tax box is our collective and very FINITE resource to fix a huge mountain of problems in our nation. Who pays what share of the tax is irrelevant. What is relevant is that everyone pays their taxes trusting that the money will be used frugally, wisely and to maximum effect. Paying 2 people to do one persons job is not frugal.
karon
buddi
Posted 114 days agobuddi
SuiGeneris
buddi
Robrt010Mugabe99
traveljunkie
Posted 114 days agoStirrer
Posted 114 days agoThat's how the ANC rolls, folks - can you dig it?
SuiGeneris
''ONLY'' 33 BILLION !!!!
Jakes_Mathews#
Of course that's how the ANC leeches rolls moreover as much as stupid like dancing for a penis! I mean in the mind of the tripartite alliance dancing for and on behalf of a penis is very important
Robrt010Mugabe99
Posted 114 days agoRedCoat
BokfanSaffer