Calls for vigilance in administration of KZN flood relief funds
South Africa's National Treasury will make R1 billion immediately available towards humanitarian relief efforts following the devastating floods in KZN that left thousands of people homeless. Treasury is also set to capacitate the Solidarity Fund to lead in crisis efforts with a separate bank account to be opened for individuals and business to make contributions towards the KZN relief efforts. To avoid a repeat of the abuse of funds and looting witnessed from the Covid-19 relief, Corruption Watch is calling for greater vigilance in the administration of the aid. Karam Singh, Executive Director at Corruption Watch joins CNBC Africa for more.
Tue, 19 Apr 2022 12:33:21 GMT
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AI Generated Summary
- Enhanced oversight mechanisms and transparency are crucial in ensuring the effective allocation and utilization of relief funds.
- The Solidarity Fund's successful track record may warrant a more central role in managing the relief efforts to ensure accountability and transparency.
- Immediate focus on promoting transparency in public procurement practices is vital, despite existing challenges in the legislative framework, to prevent mismanagement of funds.
South Africa's National Treasury has announced the immediate allocation of one billion rand towards humanitarian relief efforts in response to the devastating floods in KZN that have left thousands homeless. The Treasury's plan includes capacitating the Solidarity Fund to lead crisis efforts, with a separate bank account being opened for individuals and businesses to contribute towards the relief efforts in KZN. However, in light of previous incidents of funds abuse and looting during the COVID-19 relief program, Corruption Watch is advocating for enhanced vigilance in the administration of the aid. Karam Singh, Executive Director at Corruption Watch, emphasized the need for robust oversight mechanisms and transparency in the allocation and expenditure of these crucial funds. Singh highlighted the necessity of activating various oversight bodies, including the auditor general, the public accounts committee, and SCOPA at National Parliament, to ensure accountability and prevent corruption. The establishment of an oversight committee comprising individuals from the public and private sectors, as mentioned by President Cyril Ramaphosa, was acknowledged as a positive step towards safeguarding the relief funds. Singh also suggested a more central role for the Solidarity Fund, given its track record of effective fund management and transparency. It is essential to ensure that funds are administered efficiently and reach those in need effectively. Despite challenges in the public procurement system, particularly delays in the procurement legislation reform, Singh emphasized the immediate need for greater transparency and open contracting practices. He stressed the importance of publishing procurement data comprehensively and making it readily accessible for monitoring by the public and National Treasury. Singh expressed optimism about ongoing discussions at the Treasury regarding strengthening monitoring mechanisms to prevent a recurrence of past challenges. Ensuring effective utilization of the substantial amount allocated for various relief efforts, from infrastructure rebuilding to basic necessities provision, calls for stringent oversight and accountability measures. The government's capacity to implement and monitor transparent procurement processes will play a crucial role in preventing mismanagement and ensuring funds are directed towards genuine relief initiatives. With the significant sum of funds allocated for relief efforts, it is imperative for the Treasury to establish robust protective measures to safeguard against potential corruption and misappropriation of funds.