Value for money II by Pratik M. .. The Superfluous Budget Speech

Following the interest generated from my previous article “Value for money, institutional and budgetary reforms”, and subsequent posts on the economic mismanagement that has plagued the country over the last years, I feel comforted in the opinions I expressed on the Mauritius Finance Portal. This explains my further submission in the present article where I again draw attention to the inefficiencies of the budgetary systems and voice out the numerous budget measures that have remained ineffective and counterproductive.

The points raised hereafter expose the mockery that recent budget exercises have become, the fiction it portrays well beyond the vagaries of the daily lives of citizens, and reduced to a listing of projects that never materialise. Some of them are developed in this essay, and unfortunately lengthens the list of past failures in the previous article.

My aims are firmly grounded on the need to change course and revisit the way in which the policy making process is adopted by our policy makers. Mauritius deserves much better and has the potential to make the transformational change needed for us to become more prosperous as a nation and ensure that tax payers money are well spent for the benefit of all citizens of the country.

The National Development Unit (NDU)

In the 2014 budget speech, The Minister of Finance announced that Government will be investing in numerous community based infrastructure projects to ensure that essential facilities are accessible to the population across the island. Accordingly, the NDU, at that time under the aegis of the Ministry of Public Infrastructure, National Development Unit, Land Transport and Shipping, had been allocated the necessary budget to implement these projects rising to some Rs 1.5 billion. It was proposed that its aims and objectives should include:

The provision of community-based infrastructure and amenities;
Implementation of land drainage programme;
Provision of information, advice and related services to empower citizens

However, NDU largely exaggerated on the number of projects it could undertake and failed to assess the financial requirements of the additional projects. This resulted in significant outstanding commitments at year end.

All in all, the NDU has become the archetype of wastage through poor planning and management, borne out of the Government and public officials’ ineffectiveness in project management. Presently, many construction companies are in critical financial situation as a result of the NDU’s inability to pay them for their work.

Project Management System (PMS) under NDU

We can find yet another misuse of resources at the NDU. Internally a project management system (PMS) had been commissioned all the way back in 2004. The PMS is a management tool for the keeping of up to date records and information, exercising proper control at various stages and ensuring effective monitoring of projects. Its development cost some Rs 3 million, inclusive of supply of hardware and software with around Rs 2 Million spent upto August 2013 for maintenance.

12 years later, the PMS is still not operational. Moreover, records in Excel sheets from different Sections, for instance the Contract Register at Engineering Unit and Payments Records at Finance Section, are not reconciled and cannot be relied upon.

It is baffling that despite having the means to do so, the NDU makes no use of a proper information system for handling its different projects that have totalled more than Rs 1.3 billion annually over the past three years.

Value for money was not yet obtained for Rs 5 million spent on the PMS while unreliable information continued to hinder proper management control.

Management of Tourist Infrastructure at La Citadelle

Our national heritage has always been at the centre of much debate, with the historical value often at conflict with the economic implications. However, the potential of some sites have always been acknowledged to contribute to our economic development, in particular with their ability to play an important part in our tourism industry. One such site is La Citadelle.

The Ministry and the ex-Tourism Fund had already disbursed a total amount of some Rs 26.5 million to the Tourism Authority for infrastructural works at La Citadelle to transform the fort into a tourist attraction with a view to generating income and making a profit.

Since 2012, income generated by renting spaces have amounted to some Rs 115,000 per month only with 9 slots out of 14 still vacant. This is a poor return by any standard. With the Budget 2015/2016 announcing yet another transformation of La Citadelle, now into an ‘Espace Artistique’, the question that arises is that does the pitiable record of Government’s ability to use such sites properly warrant yet additional funding for another project?

Government Portal: E-Services/E-Payment

The budget speech of 2013 announced with some fanfare the coming of the Government into the digital age (already a few decades late) and announced the acceleration of the technology transition to improve the quality of life of citizens and improve the efficiency of Government departments.

The Government Portal was revamped in February 2013 at a cost of Rs 60 million, excluding maintenance charges and licences totalling Rs 30 million.

The main objective of this project was to achieve the e-Government vision to enable citizens and business to interact with Government electronically through the provision of e-Facilities (e-Services and e –Payment). While the Rs 60 million included an amount of Rs 6 million for the e-Payment option, the cost for the e-Services was not available.

Fast forward a few years later, the revolution in the Government-public interaction has remained nothing more than a distant dream with the usage of most of the 74 e-facilities having remained quite low.
Tellingly, 31 of them (42 per cent) have not been used at all and except for four e-facilities, the remaining facilities have been used sparsely, with the public still making applications/payments manually. Citizens and businesses remain largely unaware of the e-services and e-payment facilities that are available.
This once again demonstrates Government’s ineptitude in meeting the aspirations of the nation through projects that are not well thought out. While implementation is important, marketing of the services remain key to ensure its success.

Business Registration & Business Facilitation

Shaffick H. in his posts on the Facebook page of Mauritius Finance has endorsed the belief that policies taken till now have been poorly thought out, with institutions working in silo mind-sets trying to win an inexistent and facetious turf war while the priority should have been working together to safeguard the interests of the general public and businesses.

The under-utilisation of the BRN and the ID card and the ludicrous amount of overlapping paperwork to be summited to different Ministries, parastatal organisations and local government agencies have been rightly underscored as prime examples of the sludge we are currently anchored in.

The BRN and ID card should have been able to cut a swathe through the excessive bureaucratic burden needlessly imposed on business persons and citizens through a common interactive digital platform. As it is, we are left stagnating in a miasma of red tapism, congestive processes and a vicious circle of bureaucratic mediocrity.

Other Non-Implemented announcements

There are countless other examples that typify the budget speech’s metamorphosis into a bland series of grandiloquent announcements of projects and schemes that have no bearing, lack any substance and that are mostly red-herrings to deviate the public’s mind from incompetence.

Tourism Channel (Budget Speech 2009)

It was mentioned that a tourism channel will be set up to provide information to tourists to encourage them to move across the country. 7 years later, no tourism channel is available. Instead, we are contrived to suffer below average services and channels from the MBC.

Work from Home BPO scheme (Budget Speech 2010)

The setting up of a ‘work from Home’ BPO scheme by the National Empowerment Foundation and Board of Investment was announced. Six years later, we are still cemented in the same old work model.

Merger of BoM and FSC (Budget Speech 2011)

It was announced that the merging of Bank of Mauritius and the Financial Services Commission into one single regulatory body would take place to avoid duplication and to strengthen the financial services industry. Half a decade later, the duplication and wastage are being perpetuated.

Hydroponic villages (Budget Speech 2011)

Small planters in the non-sugar sector are still awaiting for the 2 hydroponics villages for small that were announced.

Budget Speech 2015/16

To bookend the series of unrealised budgetary measures announced, let me provide some updates on the status of some of the proposals in the last budget speech of Mr Lutchmeenaraidoo:

13 Mega projects will be implemented None has yet been implemented
Setting up of a regional shipping line Nothing has been done, as has been the case over the last 10 years
8 Trade and Investment Managers will be posted in major countries Posting in 3 countries only
A National Innovation Programme will be implemented to foster a new culture Non-starter
Relocation of gambling houses from City centres Gambling houses still to be found in City centres
Promotion of 2 new economic sectors namely Bio Farming and exploitation of hydrocarbon resources Nothing concrete has been done

If recent history of budget speeches is any yardstick by which we should measure the performance of Governments and public officials, the forthcoming one would inspire little faith and credibility from the public and yet another speech devoid of substance would inspire ridicule rather than hope.

It is therefore essential that care be taken to ensure that the forthcoming budget does not emulate the mistakes, false promises and unfulfilled dreams of the past. The new Minister of Finance has garnered support among the nation, he has generated hope and optimism among the business community and is poised to take an even more prominent leadership role in the future. I hope that my two articles on this platform will be the harbinger of change to come in policy formulation and a reality check on what budget announcements should not be. Only time will tell if my submissions have had any impact on policy making. If not, we shall continue to watch our politicians promising the moon while we as citizens watch patiently for the miracle to happen on earth!

Pratik M.

Posted by Minority Voice on Jun 8 2016. Filed under Economie, Featured. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry