Page 52 - IRMSA Risk Report 2023
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TOP 5 CHALLENGES TOP 5 RISK TREATMENT OPTIONS AND OPPORTUNITIES
TARGETS ▶
TO ACHIEVING ▶
Public-Private Partnerships (PPPs) are essential for the building of capacity and skills in
government and parastatals. PPPs offer the opportunity to provide capacity in the short
Government and parastatal term and the transfer of skills in the medium term, to areas that desperately need the
inefficiencies, arising from assistance. The result is building infrastructure that is good for the economy and assists
inadequate and inefficient the government in improving its achievements towards the NDP objectives. Key areas
management of local authority 01.
and parastatal infrastructure. that PPPs should be focusing on would be transportation and utilities such as energy
Exacerbated, at a national level, and water. The existing opportunities through PPPs are to consider innovations through
solar, wind and other areas, this to improve energy creation and the hydrologic cycle.
by slow policy implementation.
The aim is to create new businesses that will not only solve problems regarding public
infrastructure but boost the economy too.
The recommendations by the Zondo Commission emanating from the Judicial
Commission of Inquiry into Allegations of State Capture report, such as establishing an
independent agency against corruption in public procurement, should be executed.
Responsible individuals should be held accountable for ethical and governance
nepotism and corruption in the 02. failures. The National Prosecuting Authority (NPA) – which is critical to the proper
endemic
continued
The
functioning of South Africa’s criminal justice system and upholding of the rule of law –
public and private sector. and the Investigating Directorate (ID), which investigates and prosecutes high-profile
and complex crimes*, need to retain independence from any other organ of state and
be free to continue the good work that is being done to turn the tide on continued
corruption.
*Especially under the Prevention of Organised Crime Act, the Prevention and
Combatting of Corrupt Activities Act and the Public Finance Management Act.
Lack of capacity and skills
have resulted in the slow pace The high turnover rate of accounting officers and parliamentary committees leads to
gaps and shortages in the continuity of public finance management. A combination
of digital transformation and of PPP to assist with resource and skills, as well as the protection of whistle-blowers
cyber security vulnerabilities 03. and strong and ethical leadership to curb fraud and corruption, will go a long way
within government and SOEs.
to improve the situation. Stronger debt-collection enforcement from municipalities,
in collaboration with National Treasury assistance where appropriate, is necessary to
Poor enforcement of the improve the current bad debt rates incurred by SOEs providing utilities to municipalities
Cybercrimes Act 19 of 2020 for further distribution.
and data privacy laws.
In July 2021, Transnet became a victim of a ransomware attack, which caused the
SOE to declare force majeure at several key container terminals, including the Ports of
Durban, Ngqura, Gqeberha and Cape Town. The operational integrity of the country’s
critical maritime infrastructure suffered a severe disruption leading to major delays at
those ports. This negatively impacted companies and the economy. In 2012, to meet
Lack of capacity and skills the rising threats, the South African government created a National Cybersecurity
of digital transformation and 04. Policy Framework (NCPF). The policy sets out measures and standards for coordination
have resulted in the slow pace
across government bodies. It also began a process of greater regulation in terms of
cyber security vulnerabilities private and public entity data management. Due to a lack of capacity and skills, many
within government and SOEs. government departments and SOEs are still vulnerable to cyber-attacks. The recently
enacted Cybercrimes Act 19 of 2020, as well as data-privacy laws, will need to be
enforced to encourage both the public and private sectors to improve their cyber-
security postures. The opportunity for the country is to establish centres of excellence,
to improve technology skills that will move the public sector forwards in innovation
relating to digital transformation.
The government should look to strengthening the regulatory framework governing,
Lack of infrastructure planning and budgeting for infrastructure maintenance. It should look to improving
maintenance and the vandalism the monitoring, evaluation and reporting of the maintenance of public infrastructure.
of infrastructure. Poor 05. Potentially also using technology to monitor and protect infrastructure from being
administration and corruption vandalised. PPP has a role to play in assisting with capacity and skills, to expedite
are the causes for lack of maintenance that is critical. Tied to PPP, the government should look at ways to enhance
maintenance. the attractiveness of infrastructure projects for private funding. The opportunity is to
claim back South Africa’s role as a gateway to Africa for foreign investors and businesses.
52 IRMSA RISK REPORT 2023/24
