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Sun May 19 16:51:22 SAST 2013

Government blows R33bn on advisers

SIPHO MASOMBUKA | 25 January, 2013 00:17
Parliament during finance minister Pravin Gordhan's 2012 Budget Speech. File photo.
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.

SHARE YOUR OPINION

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Mike123

Posted 114 days ago
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Based on my own experience consulting for government: generally speaking they need two people to get a single job done. An AA body to sit behind the desk and pick its nose, and a consultant, to actually do the job.
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RSA.MommaCyndi

Posted 114 days ago
Been there too, Mike.
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SuiGeneris

Posted 114 days ago
I personally know about a person who worked for a certain government department. He was second in charge in this department, but he was their IT and financial brain so to speak.
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.
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Sasha*-Fierce

Posted 114 days ago
Sui

So true, that is the culture and essence of the present ANC cadre!

FrankieDewing

Posted 114 days ago
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In the business world ,if a company spends money in excess on consultancy and doesnt get the required business, bankuptcy will follow very swiftly. This government is risking the already unstable future of OUR country....Who is then accountable for this ???

QUOTE: 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
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traveljunkie

Posted 114 days ago
The difference is this government unlike a business that needs to sell something to make money, this government get money for free from tax payers on an ongoing basis.

They spend other peoples money without any repercussions consequences, and that is the big difference

Gormogon1

Posted 114 days ago
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This is no surprise. I bet many of the “Consultants” were brothers, sisters, uncles, aunts, and so forth, of the people in charge of consultant recruitment. One big scam and money making racket. The ANC filth has no shame.
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BornintheRSA

Posted 114 days ago
And if it's true that the companies awarded the consulting (any) contracts give 10% back to the ANC party coffers, then there can be no incentives to end this.

fransvan_erk

Posted 114 days ago
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The problem lays much deeper than just employing friends and family.
When 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 ago
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If people were being employed on merits and relevant qualifications, we were going to need very few people to work for government. The job that is being done in government is very easy to execute. But however you find 20 people working in for example a Facility unit but when you compare private institutions the very same job is being done by three people. Is a question of creating jobs and survival tactics for friends and families in a very difficult hostile present economic conditions so that they can ''eat and drive cars'' without being educated.
Government 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 ago
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Problem No1. Affirmative action. At any cost.

Now 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 ago
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They employ advisors because ether don't have a clue whats going on, so they need someone to tell them
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BokfanSaffer

Posted 114 days ago
But they can't understand the information that is given nor can they implement the programs recommended. This culture of entitlement has led to culture of total dependency. Its sadly funny really.

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 ago
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Several issues which arise from this:
1) 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.
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traveljunkie

Posted 114 days ago
And this what the ANC stalwarts can not get into those thick skulls of them.

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 ago
Avatar
Ours is not the first government with an overstaffed, underfunctioning, under-performing beaurocracy giving hand-outs(jobs) to "cadres" and "kickbacks" which are funneled into the party(ANC) coffers!

Any 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 ago
Avatar
This is no real surprise. A bit min if you think about it. Actually I heard the number 102 Billion being used on SAFM this morning.

Now 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 ago
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Shame, this forum is becoming the Timeslive-DA Supporters Club. No objectivity at all.
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BokfanSaffer

Posted 114 days ago
Harzit Mangy. I fail to see how your comment improves the picture.

Are you saying this is how a well managed govt does its thing?
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SuiGeneris

Posted 114 days ago
Perhaps you should enlighten the forum with your expert objective solutions.
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Black-Moses

Posted 114 days ago
@manga

Objective reasoning in your head, is as rare as an honest politician, full stop.
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Wiseguy

Posted 114 days ago
Manga, humour us then with your ANC-aligned objectivity! I see it in your comment...."shame"(which is an emotion, btw) and political party bashing(which is hardly objective) in ANYONES opinion!!

We await your objective solutions to the problems highlighted in this article? Come on Einstein....we HAVE got all day!
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Bruster

Posted 114 days ago
This is typically how things work these days. The truth, reality or being honest with ourselves = 'lack of objectivity'. So we don't solve the problems. As Zuma would say, "let's debate the matter" rather than get off our asses and fix it.
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deebee

Posted 114 days ago
By objectivity you obviously mean toeing the ANC line or risk being called a racist, un-African, unpatriotic or a bloody agent?

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.
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Wiseguy

Posted 114 days ago
I think he means "objective".....as in killing freedom of speech and expression---as in "hiding away" all the comments on and around "Transformation conundrum"!! ANC style debate!
NICE objective debate......NOT!
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Bono

Posted 114 days ago
@manga
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.
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buddi

Posted 114 days ago
Manga
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.
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ByronSmit

Posted 114 days ago
Just quickly glancing over the previous posts, there are roughly 13 different people, and only one seems to mention the DA (unless I have missed other mentions). How does this make it a Timeslive-DA Supporters Club? Maybe this is partially the problem, that you irrationally equate non-compliance with ANC-style functioning, with an opposition party, and not simply, a better SA.
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....
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manga2

Posted 114 days ago
Seems like I touched a nerve there. The guilty are afraid.

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.
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Wiseguy

Posted 114 days ago
Manga, yes u did touch a nerve, because unlike yourself, most of the commentators here are NOT a party mouth piece and ACTUALLY put the needs and well being of this country and ALL its people before a political party(any party) or their personal GREED! We are intelligent enough to seperate state(issues of governance) from party......you could learn a little maybe? Just a little?? Are you able to seperate issues of state from Party? Can you make that distinction?

Still awaiting your OBJECTIVE solutions to the problem of overspending by government?

Tick tock tick tock!!
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Wiseguy

Posted 114 days ago
Manga2, and if you didn't understand that...try this, you assuming the commentators here who are critical of issues of governance, must therefore belong to an opposition party just points to total intolerance, a clear lack of intelligence or a complete inability to grasp the concept of good clean governance of the people, by the people...FOR THE PEOPLE, on YOUR behalf!

Mbeki_2

Posted 114 days ago
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Manga - so you think its OK for the govt to carry on doing this just because its ANC and Madiba is a great person? Wake up - blind obedience to everything the party does is what how this money start to get wasted in the first place. You don't think this money could be used for education and hospitals rather???

RedCoat

Posted 114 days ago
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R33Bn well spent................... just imagine how 'great' things would be if they'd relied on their own 'expertise'..............
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SuiGeneris

Posted 114 days ago
R 33 Billion, directly related to incompetence ! Just to be objective....without prejudice....
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buddi

Posted 114 days ago
That is the scary thing - they spent so much on consultants and look where we are.

Shongweni

Posted 114 days ago
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This policy of first hiring "loyal cadre" to the top management position to execute a job for which they are totally ill suited and completely inexperienced and then "fixing" the subsequent mess by spending even more money to bring in a expensive outsiders with the requisite skills has been the hallmark of this administration since the first democratic election.

I 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.
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karon

Posted 114 days ago
well written.....the total anc government should be ashamed of this state of affairs....billions wasted that should be spent on important things...shame on you all,you will go down in history as a joke!

buddi

Posted 114 days ago
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"The government hires people who have no clue ...... AND they get paid over the top salaries!!
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buddi

Posted 114 days ago
They don't know how to plant trees!!
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SuiGeneris

Posted 114 days ago
Now buddi....Are you not a little bit subjective here ?.....LOL !!!
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buddi

Posted 114 days ago
Maybe I can offer my services - why can only a select few reap the benefits. I'm very good at planting trees, ask my gardener! LOL
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Robrt010Mugabe99

Posted 114 days ago
so why do you vote DA for govt

traveljunkie

Posted 114 days ago
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stunning with a 2.4milj work force they still need 33bilj on consultants. That amount could have paid for the toll roads.

Stirrer

Posted 114 days ago
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The ANC inherited a working public service (admittedly skewed if racially profiled) when they assumed control in '94. Instead of tweaking here and there and adding a bit where required to ensure that this public service now serves all it's citizens equally, they embarked on a "total destruction, only solution" route. This resulted in starting from scratch with an inexperienced (and largely incompetent) staff of mainly cadre-deployees. Obviously out of their depth, their knee-jerk quick-fix was to use the ex-public servants as "consultants" - obviously money is no object (taxpayers will provide!)

That's how the ANC rolls, folks - can you dig it?
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SuiGeneris

Posted 114 days ago
That's how the ANC rolls, folks - can you dig it?

''ONLY'' 33 BILLION !!!!
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Jakes_Mathews#

Posted 114 days ago
Stirrer

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 ago
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R2 billion was spent on TBWS in the Western Cape by Hellen Zille , she acknowledge on R702 with John Robie that they are nt competent
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RedCoat

Posted 114 days ago
R2Bn on one province....as opposed to >R4.1Bn each for the other 8.................. so what are you saying? That the DA is only half as incompetent?
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BokfanSaffer

Posted 114 days ago
Scuse my ignorance but who and what is TBWS?? and how did the WCape Gov spend so much with them?