R50 million job creating projects delayed due to mismanagement

13 May 2016

The DA has learned of the Tourism Department’s failure to implement R50 million-worth of projects associated with the Social Responsibility Implementation (SRI) programme an Expanded Public Works Programme aimed at poverty alleviation and job creation through tourism.

According to a reply on a parliamentary question submitted by the DA, six projects have been placed on hold due to poor management from project managers, who are now under forensic review. Even more concerning is the fact that some of these projects and investigations date back as far as 2011. 

To date, the results of the forensic review have not been made to known to Parliament, nor is it clear if any action has been taken against corrupt officials. 

Revenue from tourism has a deep running effect on a local economy. Because tourism is a labour-intensive industry, and because most of the participants are micro to small business operators, the effect is felt quickly and directly through local spending. 

For those communities that do have the potential to become a successful tourism destination, and are willing to commit to its ongoing development, the benefits are more than just economic.

These failed projects are therefore a lost opportunity to create jobs and economic stimulus for normal South Africans, because if implemented successfully, we could have had R50 million worth of job creating projects. 

In committee, I pointed out that, with the failure of so many projects, the Department has failed to develop tourism infrastructure in rural communities that would advance job creation for many unemployed.

The Department must act swiftly to implement a turnaround plan to ensure that these projects are implemented with the aim of creating opportunities, especially in rural communities. 

I will be conducting my own oversight visits to some of these locations to ascertain all the facts and evaluate progress. I believe that any failure by government to deliver on projects within budget and on time will stand in the way of our country achieving its goals of creating jobs for the 8.2 unemployed citizens.  

Issued by James Vos, DA Shadow Minister of Tourism, 13 May 2016