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HIGH RISK: DBSA chairman Jabu Moleketi says the institution is required to invest in high risk areas shunned by commercial banks. Photo: Financial Mail

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Acting chief executive TP Nchocho told Parliament's finance portfolio committee that often when the bank finances and supervises infrastructure projects at smaller municipalities there is not enough support from municipal officials to maintain the assets.

"We would send planners, engineers and financial experts there to assist, but the reality is that very often there are no officials to build capacity around. At a particular point when our intervention is withdrawn, the municipality deteriorates back," he said.

He called on the Department of Cooperative Governance and Traditional Affairs and on provinces to partner with the bank to help smaller municipalities attract and retain the kind of skilled officials needed to manage large-scale infrastructure development projects.

According to the bank, there are 158 under-resourced municipalities that cater for 34% of the population. They are sitting with massive infrastructure backlogs and high unemployment rates.

It has invested R40-billion mainly in energy, roads and drainage and water projects. Nchocho said the bank was now planning to invest R20-billion to partner the private sector and government in the development of public health facilities; R40-billion in water, sanitation and energy projects; and between R30-billion and R50-billion to assist in the R300-billion transport infrastructure development projects spearheaded by Transnet.

DBSA board chairman Jabu Moleketi said as a development bank, they were required to have an appetite to invest in high risk areas that are traditionally shunned by commercial banks.

National Treasury said it understood that developmental finance was a risky business and that the bank needed further capital injection to undertake investments that are not necessarily attractive to other commercial lenders.

DA finance spokesman Tim Harris called on Finance Minister Pravin Gordhan to provide details of the planned recapitalisation of the DBSA as the bank's mandate had shifted from financing high capacity metros to low capacity municipalities.

Meanwhile, Moleketi told the committee that a recruitment process was under way to find a replacement for CEO Paul Ngobeni who left at the end of March.

The Sunday Times reported last month that top spy Mo Shaik had been earmarked for the position.

Comments

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Wed Jun 19 20:12:10 SAST 2013 ::

Apr 26, 2012

MommaC

Many years ago, banks would do aptitude tests at high schools. Those who scored well would be offered a position in the bank with inhouse training being part of their employment package. Would it not be sensible for the Development Bank to do something similar? The only drawback would be Cosatu. Those who were in training didn't earn much.
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Apr 26, 2012

CheeseBoy

We would send planners, engineers and financial experts there to assist, but the reality is that very often there are no officials to build capacity around

But of course. this is cadre deployment at its best.
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Apr 26, 2012

Blackstone.lebs

Frustrating yes, but not surprising. It happens at all levels of government from small municipality up to national parliament, no skills required just loyalty. What's the point in transferring engineering skills to someone who's only interest is the taxpayers cookie jar?
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Apr 26, 2012

Notorious

I'm an unemployed engineer

how can i get into those vacancies, i have been seeking for a job for years ago without any success. please make your advertisement accessible.
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Apr 26, 2012

22112JO

SOME ONE HAS WOKEN UP THAT WE HAVE A SHORTAGE OF SKILLS .A MILLION OR SO SKILLED PEOPLE LEFT THE RSA AND OTHER COUNTRIES CONSIDER THEM AS VERY PRODUCTIVE PEOPLE AND GREAT ASSETS.
THERE IS A LACK OF SKILLED PEOPLE IN , GOVERNMENT ETC AND SOME UNSKILLED PEOPLE ARE IN SENIOR POSITIONS ALL OVER AND THEY ARE WINDOW DRESSED.

DO NOT WORRY EVERY DARK CLOUD HAS A SILVER LINING.....IN 40 TO 50 YEARS FROM NOW
THE PICTURE WILL BE DIFFERENT PROVIDED WE ARE LESS PRODUCTIVE IN MAKING MORE POOR PEOPLE.
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Apr 26, 2012

bnthe

....Too many billions for one article....
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Apr 26, 2012

TKay

Politicians in municipalities are selfish, they think they own the municipality and therefore they get rid of qualified people who know what they are doing cause they do not suck-up to them. Government hire on friend, relative favours and live the skilled people out - Government and Municipalities are full of empty tins who run around with meetings having no clue how to put an idea into an implementation process
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Apr 26, 2012

Blackstone.lebs

@Notorious
I'm an unemployed engineer

how can i get into those vacancies, i have been seeking for a job for years ago without any success. please make your advertisement accessible
++++++++++++++++++++++++
they only advertise for audit purposes...posts are filled before the advert goes out.
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Apr 26, 2012

fisto1

U are talkin nonsense now, how can u have a shortage of qualified officials whilst u hire your nephews and other of your relatives? I thot they are highly qualified, they have skills and qualification than us, coz are de one who gets 1st preferences. They must do de job once and for all nxaaa
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May 7, 2012

Neete

What Frustration? Everything is bribe from traffic departments to Government job posts? U don't want to risk new people its always the same people moving from job to job..... Mxxm! Frustration frustration tell someone who cares

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