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CEO UPDATE
In this month’s CEO update, I want to share some of the behind-the-scenes work we do with you, as well as give our supporters a sense of the dynamics and unseen aspects we encounter throughout the year. Right now, as we hurtle towards the end of the year, we join the rest of society in grappling with a crunch-time workload – squeezing two months of work into one, tackling year-end deadlines and higher-than-normal workloads – all in order to enjoy a well-deserved summer break.
Corruption, however, is at work 365 days a year, and often more so during this intensified year-end work regime, when criminal syndicates and corrupt networks are hard at work, issuing tenders with tight deadlines and signing off on underhanded deals and contracts, hoping that civil society will be tuned out and operating at lower levels of focus. For us, this is a time of heightened vigilance.
WORK ENVIRONMENTAL CHALLENGES AND TRAPS
Because our work focuses on the challenges of corruption and inefficient governance, we have to constantly remind ourselves not to become caught in the negative trap of doom and gloom that pervades our working environment. If we allowed this to happen, ours would become a morbid and depressing place to work. So we don’t; quite the contrary, we find it a remarkably stimulating and positive place to be, due largely to a mindset of being able to see and feel the results of challenging and addressing areas of gross maladministration, or achieving improved accountability, exposure, and attention that drive change as a result of our work. We also refuse to allow the slow pace of the criminal justice system to weigh us down, which is why resilience and tenacity are two of our core values.
We also see and feel positive developments, such as the green shoots of change emerging in these early days of our Government of National Unity (GNU). Key improvements—such as greater access to the corridors of power, improved transparency, increased engagement with law enforcement, and a stronger willingness to collaborate—are extremely uplifting and signal a new trajectory toward a better future for South Africa, albeit slower than we would like. Encouraging signs, including discussions and requests for policy change input, have the potential to boost investor and business confidence and pave the way for improved economic prosperity. However, this progress will not come without resistance and pushback from entities like the EFF, MK, and internal ANC partners such as Cosatu and the SA Communist Party.
STRIKING A DIFFICULT BALANCE
One of the GNU’s most delicate challenges lies in managing public debt and unacceptably high public sector wages, which have ballooned over the years, placing immense strain on the national budget. High wage bills divert resources away from critical infrastructure and service delivery projects. Tensions will likely reach new heights between those advocating for growth-oriented and investor-friendly policies and those pushing a heavily socialist agenda that continues to place unbearable pressure on the tax base, leading to capital flight and reduced national prosperity.
We believe the GNU is making progress in finding a balance, attempting to curb excess while maintaining the support of its coalition partners. This balancing act will be crucial to keep the GNU intact; without it, efforts to stabilise the economy could falter under political instability.
MTBPS & TAX POLICY SUBMISSIONS: BALANCING TAX REFORM AND RESPONSIBILITY
OUTA recently made submissions on the Medium-Term Budget Policy Statement (MTBPS) and National Treasury’s call for input on “Proposals for the 2025 Budget.” In our submissions, we voiced concerns about unsustainable spending trends, taxation policy, and the urgent need for fiscal discipline. We welcome the GNU’s commitment to economic reforms, as well as the Minister of Finance’s focus in this year’s MTBPS—particularly highlighting the ongoing risks of escalating public debt and unchecked expenditure in key sectors such as public wages and infrastructure.
Our submission emphasised the need to reprioritise spending to ensure that resources and economic policies are aligned with sustainable, long-term growth objectives. Without addressing these structural challenges, there is a serious risk of undermining the economic recovery we aim to achieve.
In 2018, OUTA published a paper on tax policy recommendations, highlighting research on the Laffer Curve—a principle that illustrates a ceiling for how much tax can be extracted from society before increased pressure on the tax base becomes counterproductive and detrimental to government revenue collection. At the time, the ruling party succumbed too easily to the agendas of the SACP and trade union movements, leading to demands for excessive increases in public wages and state spending. These agendas relied heavily on raising taxes on an already strained tax base, generating short-term gains at the expense of long-term investment and economic growth. We are in the process of updating this and will share it with you later in the week.
With new political “partners” in government and growing interest in rational economic policies aimed at stimulating investment, job creation, and growth, we believe that input from OUTA, along with other researchers and economists, will need to be embraced. This is essential if the country is to embark on a healthier path toward sustainable growth and a reduction in poverty and inequality.
Preparing researched and rational submissions to government departments and Parliament is part of OUTA’s broad range of approaches and projects. While we place significant emphasis on challenging the state when it gets things wrong, we also invest considerable time in providing input and insights where it makes sense, particularly when there is a willingness to listen. This willingness appears to be a growing trend since the formation of the GNU.
A NATIONAL WAKE-UP CALL ON CORRUPTION
I recently had the honour of speaking at the Cape Town Press Club, where I addressed the ongoing scourge of corruption in South Africa. Despite some progress in key areas, corruption remains deeply entrenched, driven by weak governance systems, a lack of accountability, minimal consequences for wrongdoing, and an alarming culture of impunity. From national and provincial government departments to state-owned entities and local municipalities—particularly at the local government level—the systemic failure to deliver essential services is stark. This failure, caused by a combination of ineptitude (both unintentional and deliberate) and entrenched corrupt networks, is evident across the country. Its consequences are clear: soaring electricity costs, water shortages, a collapsing health sector, and rapidly deteriorating infrastructure. OUTA certainly has its job cut out for 2025 .
OUTA’S ROLE IN HOLDING THE LINE
Recently, we challenged Eskom’s excessive 66% electricity price hike proposal over the next three years. If unchallenged, this increase would further burden already struggling South African households and businesses. We have also highlighted the dire state of water and sanitation services, where poor contractor management and power outages continue to worsen the crisis. Additionally, we remain steadfast in advocating for a comprehensive review of the electoral system to strengthen democracy.
Throughout 2024, our new WaterCAN initiative gained significant traction by addressing South Africa’s water challenges, calling for urgent high-level action to resolve the ongoing sanitation crisis, and demanding accountability from municipalities. In Johannesburg, we have seen how power cuts and mismanagement have left residents in desperate situations, but also how decisive action—such as resolving disputes with Eskom—can bring some relief.
These examples remind us why our work is more critical than ever. Every day, we witness the impact of maladministration and corruption on ordinary citizens, and we are reminded of the immense responsibility we carry to advocate for better governance and accountability. This drives us to strive for even greater achievements.
A NEW TRANSPARENCY AND MONITORING PLATFORM OF PARLIAMENT’S PERFORMANCE
Following a successful grant allocation proposal to the European Union, aimed at assisting in the development of a meaningful dashboard and oversight platform for Parliament’s work, we are now one year into this 30-month project. Together with our partners, PMG and OpenUp, we are confident that our “ParliMeter” platform will provide immense value to a variety of stakeholders, including the media, the public, watchdog and other oversight organisations, as well as MPs and political parties. We will share more details about this informative platform once its initial version is made available to the public in the new year.
YOUR SUPPORT KEEPS US GOING
As our workload grows, so do the challenges we face. OUTA’s work is ever-expanding, yet our financial resources remain under strain. Inflation is a significant burden on civil action organisations, severely impacting cash flow.
I want to express my heartfelt gratitude to each of our supporters—your contributions make our work possible. You are the reason for our existence, and I sincerely appeal to you to invite and encourage your friends, family, and colleagues to join you in empowering civil activism that makes a difference. Every donation, no matter the size, strengthens our ability to hold those in power accountable and push for the change South Africa so desperately needs.
Yours sincerely,
Wayne Duvenage