The Congress of South African Trade Unions (COSATU) welcomes the 18% or R42 billion increase in public infrastructure expenditure over the past year reaching a peak of R276 billion. This is a positive turnaround from the downturn in infrastructure spending since COVID-19 in 2021. We hope that it is a signal of a shift from the austerity budget cuts that have stifled economic growth.
Notable increases include Eskom boosting infrastructure allocations by R10.2 billion taking its total spending to R49.5 billion, Prasa raising expenditure by R5.9 billion taking its investments on restoring passenger rail lines to nearly R21.8 billion, and SANRAL increasing road spending by R3.9 billion to a total of R13.3 billion.
Whilst welcoming this hopeful sign that the state’s progressive infrastructure programme is gaining traction, much more must be done not only to achieve the R1 trillion infrastructure expenditure target over the next three years, but equally to ensure that the space for looting, wastage, theft and vandalism is drastically slashed.
Equally important is for government with the active involvement of law enforcement, to tackle construction mafia syndicates and other extortionists holding various construction sites to ransom, including threatening the lives of officials, construction workers and security guards.
The Federation welcomes plans by government to blacklist contractors who fail to honour their contractual obligations timeously. Similar discipline needs to be enforced with regards to price gouging and corruption that have become all too synonymous with public procurement.
Whilst welcoming the African National Congress led government’s R1 trillion infrastructure investment programme, it is not sufficient to shift the economy from its anemic 1% annual growth rate to the 3% needed to tackle our dangerously high unemployment level of 42.9%. A mass economic and social infrastructure financing package is needed that mobilises far greater resources from the state developmental finance institutions. Equally the private sector must be compelled to end its investment strike and contribute towards such infrastructure projects needed to stimulate inclusive economic growth and create decent jobs.
The state must pay much more attention to ensuring these infrastructure investments support local jobs, businesses and materials. This is not only a legal requirement but a moral obligation and an economic necessity.
We remain deeply concerned about the capacity of local government to meet its infrastructure commitments given the levels of anarchy and pilferage that have become the hallmark of far too many municipalities. Much greater support and adult supervision must be provided by National Treasury’s Chief Procurement Office, the Department of Public Works and Infrastructure, as well as the Development Bank and Industrial Corporation to capacitate municipalities and ensure that infrastructure grants are not only spent but spent correctly and timeously.
Treasury needs to finalise the Public Procurement Act’s Regulations and promulgation to ensure that such infrastructure expenditure is above board, monies are accounted for and space for mischief is closed.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za