Having last year declared that infrastructure development would be a primary focus of government, President Jacob Zuma used his 2013 State of the Nation Address to offer a report back on progress made, while also warning large construction companies that government would take a hard line against fraud, collusion and corruption in the sector.

Addressing lawmakers in Cape Town on Wednesday night, Zuma outlined progress that had been made in delivering on water, energy, transport and social infrastructure programmes.

He said that between 2009 and the end of March 2013, more than R860-billion would have been invested on projects that laid the basis for increased exports, particularly mining exports, higher economic growth and social development.

The comments were made against the backdrop of ongoing criticism about the sluggish pace at which infrastructure programmes had unfolded, with many projects having been delayed owing to insufficient funding, incomplete engineering designs and the slow processing of environmental and regulatory approvals.

Zuma acknowledged that the programmes had been a “valuable source of learning for government”.

“The lessons are that we must coordinate, integrate and focus on implementation,” he said, promising that, in the year ahead, key projects would be fast-tracked with the support of the Presidential Infrastructure Coordinating Commission.

Business Unity South Africa (Busa) said it welcomed the fact that infrastructure projects had begun to gain traction and the emphasis placed on fast-tracking future programmes.

"Busa believes that the private sector will play a bigger role in helping to expedite the implementation of the infrastructural programme."

PRIVATE SECTOR CHALLENGED

But the address was critical of many private construction companies, many of which were the subject of investigation by the Competition Commission and the Directorate for Priority Crime Investigation, or the Hawks.

“We are cracking down on corruption, tender fraud and price fixing in the infrastructure programme. The State has collected a substantial dossier of information on improper conduct by large construction companies,” Zuma said.

Busa said it supported the initiative to crack down on corruption, tender fraud and price fixing in the infrastructure programme.

The cooments on the construction sector formed part of a broader focus on corruption, against which Zuma stressed a “war” was being waged.

He said the capacity of the Special Investigating Unit (SIU) had been expanded from 70 to 600 staff, while assuring that “all vacant posts at the upper echelons of the criminal justice system” would be filled. The SIU had been without a permanent head since the departure of Advocate Willem Heath more than a year ago.

Nevertheless, Zuma elaborated on the successes of the unit, as well as that of the Asset Forfeiture Unit, which had seized assets valued at more than R541-million.

“Last year, additional funding of R150-million from the Criminal Assets Recovery Account was approved for the work of the Anti-Corruption Task Team which comprises the Hawks, the Special Investigating Unit and the National Prosecuting Authority.  These resources are aimed at strengthening the capacity of these law enforcement agencies in our resolve to fight corruption.”

He called on the private sector to “also take this fight against corruption seriously so that we tackle it from all angles”.

Also emphasised in the address was the desire to use the large-scale infrastructure programme, which is led in the main by State-owned companies (SoCs) such as Eskom, Transnet, the Passenger Rail Agency of South Africa and others, to support other government priorities, such as youth employment and industrialisation.

Besides flagging an imminent announcement on a new youth-employment incentive that had been consulted on at the National Economic Development and Labour Council, Zuma said that SoCs had been instructed to increase apprenticeships and learnerships.

He also appealed to the private sector to absorb the 11 000 further education and training college graduates, who were currently awaiting placements.

Another priority was developing black-owned enterprises and black industrialists around the infrastructure programmes. The revised Broad-based Black Economic Empowerment Act and associated sector codes would support this process.

The National Planning Commission's National Development Plan (NDP), which was delivered on August 15 last year, provided the framework for the address, with Zuma arguing, at the start of his address, that the NDP offered a roadmap for tackling the problems of poverty, inequality and unemployment.

"It is a roadmap to a South Africa where all will have water, electricity, sanitation, jobs, housing, public transport, adequate nutrition, education, social protection, quality healthcare, recreation and a clean environment."

Busa indicated that it was pleased at the reinforced commitment to the NDP, but said much remained to be done to "concretise and implement the plan in the period ahead".