By: Bright Ntuli
The Public Servants Association (PSA) has welcomed the World Bank’s recent approval of a R27 billion loan to South Africa, but has urged the government to implement strict oversight measures to prevent potential mismanagement or looting of the funds.
The loan is intended to support long-overdue structural reforms across the country’s infrastructure and service delivery systems, including energy, transport, and water sectors – key components of South Africa’s economic recovery strategy.
PSA spokesperson Claude Naiker stressed that while the loan could bring about meaningful change, transparency and accountability must be prioritised to ensure that the funds are used solely for their intended purpose.
“We appreciate the World Bank’s commitment to helping South Africa unlock its reform agenda, but National Treasury must establish a multidisciplinary team to monitor the implementation of this funding. No unscrupulous hand should be allowed anywhere near public finance,” said Naiker.
The PSA has long expressed concern over poor financial governance and corruption within state institutions, warning that without stringent safeguards, critical funds risk being diverted or misused, a setback the country cannot afford amid ongoing fiscal challenges.
The loan forms part of the World Bank’s Development Policy Operation (DPO) initiative, which seeks to assist South Africa in enhancing economic resilience, boosting service delivery, and reducing poverty through structural change.
Naiker added that the PSA supports any measure that strengthens public sector efficiency, but reiterated the need for civil society, labour unions, and independent bodies to be included in oversight mechanisms to ensure the highest level of accountability.
