Over Half a Billion Spent on Tourism Projects With Little to Show for It

Dear Editor

The DA calls on Tourism Minister, Patricia de Lille to conduct a comprehensive audit of all tourism projects initiated over the past ten financial years, regardless of their completion status.

This follows recent oversight visits to numerous tourism projects across the country, along with reports from the Department of Tourism and the Auditor-General, that have made it abundantly clear that many of these initiatives are in a state of neglect. Infrastructure intended to bolster our tourism industry remains unfinished, abandoned, or subjected to vandalism, exacerbated by budget inconsistencies.

These projects include Muzi Pan, which had only two months remaining on its contract as of March 2024. However, progress on-site stands at a mere 15% completion. Work began at Monyane Lodge in November 2023, but by March 2024, the project had already fallen behind schedule.

The so-called chalets were paid for in the initial phase, but the Development Bank of Southern Africa (DBSA) had to be called in. Now, additional taxpayer money is required to refurbish the very same chalets. Furthermore, R4.1 million was paid to a service provider for The Dome project, yet no work was done. This underscores the extent of irregular expenditure.

Despite the millions already allocated, the expected benefits remain elusive.

Minister Patricia de Lille has cited various reasons for the non-completion of these projects, including geotechnical instability, budget shortages, and structural defects caused by substandard workmanship. However, the real issue appears to be the lack of oversight by project management units responsible for ensuring these projects are executed properly.

The key question here, Minister, is: Why have strong internal audit mechanisms not been implemented?

Our rich heritage, represented by countless nearby sites, remains untapped and inaccessible. These could significantly boost tourism, yet their potential is being squandered through poor management.

In response to my written question, the Minister confirmed that a staggering R284 566 547.67 has already been spent on various projects across the country, with an additional R289 681 700.65 earmarked for their completion.

As well as my question with regard to irregular expenditure of R100 million.

The AG highlighted 5 of 17 (29%) of infrastructure projects have fallen behind schedule.

What is even more alarming is that at least seven contractors have yet to be appointed, which will undoubtedly inflate the budget further. The department appears to be on a redundant path, doubling expenditure on the same projects.

This begs the question: Why weren’t comprehensive financial feasibility studies conducted from the start to prevent such waste?

The feasibility studies and quality control measures that were supposedly in place to prevent vandalism, fire risks, and incomplete projects are now under scrutiny. I request that these feasibility studies be made available. The outcomes of these projects must align with the expenses incurred if we are to build a thriving tourism sector in South Africa.

We further urge the Minister to ensure the position of Head of the Audit Committee is filled immediately, to guarantee proper internal audit controls and effective oversight. Adequate resources must be provided to the internal audit team.

Additionally, we call for the establishment of a strong project management team to oversee these projects, ensuring they are implemented correctly, on time, and in line with the Public Finance Management Act (PFMA).

We call on Minister De Lille to address these pressing concerns and to commit to greater transparency and accountability. it’s time these tourism projects reflect the substantial investments made and truly enhance South Africa’s tourism potential to create jobs.

Regards

Haseena Ismail MP
DA Spokesperson on Tourism