Vishaal Lutchman

This article serves to take advantage of a opportunity created by the failures in state owned companies and government agencies responsible for the provision and maintenance of infrastructure in South Africa. The ability of many SOC’s and public sector agencies to deliver on their mandates sustainably may no longer be the case. Whilst some may believe in restoring such entities to the way they were, there remains an alternative which is to reinvent these entities to make a direct and positive impact on the needs of the country now. Should we restore such agencies to their former selves. I argue that even when the agencies were duly constituted with staff, resources and robust mandate, they made little impact on inequality for example. I will however acknowledge that the failures have significantly deteriorated social sustainability in South Africa. This article articulates that three main strategic contributions will enable turnaround in infrastructure provision thereby enabling a sustainable growth trajectory giving South Africans opportunity to accelerate an equitable life for all.

This article supports the notion that three attributes are required to create the collaborative network namely, effective organisational strategy, leadership that has motivated by ESG and the sustainability pillars, and technical astuteness. It is postulates if the three attributes are enables by society, interested and affected parties, shareholders and business partners, the reformation of an effective ecosystem is possible. If not we society remains in a quagmire of reflection on what could have been, ongoing legal challenges, perpetuated criminality, loss of life, carelessness and high levels of selfishness including undoing any progress made with respect to social cohesion and racial cohesion. We are already seeing glimpses of anarchy with the design and implementation of mafias soon to become legitimate economic actors.

Infrastructure agencies operate at national, provincial and municipal tiers of government. Corruption and maleficence have seen calculated removal of key capability, subversion and respect for governance processes leading to loss of revenue, high working capital and depletion of capital reserves and reduced their ability to raise additional capital. Many leaders of these entities are no longer concerned about exposing constituencies to threats as result of little to no access to services. Such leadership behaviours see severe impact on the quality of life for those living in such jurisdictions. In some cases, those that are able and can afford it, move to geographies that are sustainable both local and abroad. However, it does not solve the problem for those that remain and others that have made a choice to stay.

For as long as there is the willingness and ability to change the status quo, there remains hope that we can improve the situation. In my opinion, leadership has to be effective. Current leadership is failed if not effective in leading change towards sustainability. Existing leadership in SOC’s can improve to move on a few fronts. This can happen should the shareholder give such entities the mandate to implement without political interference. Until then, it not expected that much will change. Effective, should they be found, need to be allowed to resource with the needed skills. The calculated removal of skills to make way for the corruption project will make it difficult for the same to return however in my opinion there are residual skills in the country and many that want to see the country prosper all. This would apply to many civil engineers that choose to stay in South Africa whilst they are in demand in significantly more sustainable geographies who call South Africa, home.

Whilst the public sector, that continues to separate itself from skills, it also laments the shortage of skills which is an absurdity, will start to attract similar skills if trust can be reestablished. Trust in government is at lowest it has ever been, hence dissuades the attraction of skills as employment in such entities is not sustainable, lack support systems needed for career growth, professionalism, ethics, and integrity. To enable public sector reforms than start to create sustainable ecosystems. Perhaps a misunderstanding, convenient or otherwise, the majority of South Africans what the public sector to transform towards a higher level of performance and will support as is needed. Effective leadership has the propensity to draw and keep talent needed to implement strategy. Such leadership requires that shareholder mandates remain pure to what is needed to operate. In addition, boards need to perform and avoid the temptation to manifest influence in operations. There are just too many cases of boards being used to drive the corruption project or to legitimise certain transactions which must stop immediately. Effective boards enable the executive to stay focussed on organisational KPIs. 

As we rebuild the public sector in the country, there exists the opportunity to revise how we structure the key performance indicators of such agencies. There remain reparations that have been ignored or left at a policy level thinking redress would happen, which sadly has not been the case. This applies to access to quality education, true and meaningful wage inequality, employment, poverty, sanitation and the provision of potable water on tap, provision of reliable and consistent power, common user facilities, transport systems that are affordable, safe and reliable and now what has become increasingly visible, is the ability to manage disasters caused by changes in climate and associated weather patterns which existing infrastructure is insufficient and not available to mitigate risks. It is not clear that any organisational strategy is able is focussed on such phenomena.

Whilst it may not be incorrect to focus on achieving an unqualified audit, it’s obvious and will not mean sustainability. Whilst there is no implementation of an economic development plan, expecting sustainable collection of revenues can remain a fallacy. What is the expected social response when such services are cut. We risk that the provision of services of water, power, waste removal, transport and others will become black market service offerings. Other focus areas are a clear and definitive training and development of suppliers to allow for growth and entrepreneurship, bringing back research and development to enabling the transformation towards a digital economy which may reduce the cost of doing business form saving time, customer focus, and most important to develop a realisation that working in government means working to serve others and is absolutely necessary to build South Africa that can be inclusive and a resilient place to live, play and work.

Hence the urgency is real that socio-economic KPIs are included in public sector agencies that provide infrastructure to enable, keep and protect their integrity whilst empowering them to be allowed to function freely whilst ensuring accountability. The arrogant stranglehold on public sector agencies has to stop so that they may be allowed to resume their role to uplift society as is intended. To date, many SOC’s for example are no longer a going concern relying on national austerity measures that are not sustainable, yet executives are paid substantial bonuses, effectively meaning that taxpayers are rewarding executives for non-performance in the public sector for many years gone by and continue to do so, whilst the shareholder argues that they have done very well. It is clear that that we are setting precedents of below par performance and making acceptable. In my opinion there is no rationale for company that funded by austerity measures to pay executives bonuses as they have not led the business into sustainability and remains a financial burden to society. It also shows of an ineffective leadership.

I have argued how effective leadership, revised organisational strategies and attracted skills will bring about the transformation needed to stabilise the infrastructure ecosystem after which we can focus on enhancements. It is currently broken with services provided at costs that are rising at rates higher than inflation making living. Whilst we may fuss about procurement which has proven not deliver the quality and value for money, we can rest assured that hope exists at this time, but for how long depends on what we do now and into 2024.