National Dialogue’s big question of cost shrouded in mystery

The National Convention – the preclude to the National Dialogue – is supposed to be the launchpad for months of citizen-led talks about South Africa’s future.

However, it will be held later this week amid big questions over budget and readiness, and without the buy-in of several foundations that were behind the initial process. 

Read more: The National Dialogue falters — there may be a better way

Last Friday, legacy foundations including the Thabo Mbeki Foundation, Steve Biko Foundation, Desmond and Leah Tutu Foundation and four others withdrew from the gathering, citing concerns over government control, the continued absence of a confirmed budget, and a rush to stage the National Convention on 15 and 16 August. 

“The continued absence of a confirmed, approved budget allocation and a last-minute commitment of initial funds has made sound preparation impossible. This raises real risks of a poorly organised and unaccountable process. 

“The push to proceed has created pressure to engage in emergency procurement, which may violate the Public Finance Management Act (PFMA),” the foundations said in a statement on Friday, 8 August. 

They said the withdrawal of their participation in the Preparatory Task Team (PTT) – which comprised the foundations, NGOs, community groups and representatives from the Presidency – and the first National Convention, did not mean a withdrawal from the National Dialogue project itself. 

Read more: ‘Dialogue cannot be built on haste’ — Key organisations withdraw from National Convention

While the Presidency has insisted that costs are being managed and will be largely covered by in-kind contributions, it has not revealed a final budget for the National Dialogue. 

This is because a budget for the National Dialogue will be finalised only after the National Convention, according to Presidency spokesperson Vincent Magwenya.  

“The total budget for the National Dialogue will be developed as the structure and form of the community dialogues are finalised by the Convention, and will depend on in-kind contributions, donations and other resources that can be mobilised,” a statement from Magwenya said on Sunday, 10 August. 

In response to questions, Magwenya told Daily Maverick: “[The] total budget will be confirmed after the finalisation of the full roll-out process of the Dialogue by the National Convention.”

Read more: From consultation to action: The critical role of the National Dialogue in SA’s future

Cost confusion

Questions surrounding the total cost of the National Dialogue have been made ever more complicated by a recent report in the Sunday Times, which suggested a clash was taking place behind the scenes between President Cyril Ramaphosa and former president Thabo Mbeki, over arrangements for the National Dialogue.

In its report, the Sunday Times cited government insiders who claimed that the foundations had proposed an initial R853-million budget for the National Dialogue, which they then “begrudgingly” lowered to R700-million, after Ramaphosa refused their request. This allegedly then went down further to a budget of R452-million, the publication reported. 

The Sunday Times article seems to suggest that the total budget for the National Dialogue has been finalised at R452-million.

However, this is untrue, with the Presidency confirming the budget hasn’t been finalised. 

In addition, the foundations dispute the claim that they proposed an R853-million budget. Magwenya didn’t respond to questions on the matter.

CEO of the Steve Biko Foundation Nkosinathi Biko, who was the chairperson of the PTT, and CEO of the Desmond and Leah Tutu Foundation Janet Jobson told Daily Maverick that the figure of R853-million reported by the Sunday Times was, in fact, never put forward among the PTT for consideration. 

“I have never heard of a figure of R853-million, and I was chair of that PTT,” said Biko. 

Read more: Transformative or talkshop: Ramaphosa’s National Dialogue welcomed, but will it lead to real change?

Jobson told Daily Maverick that the PTT had proposed an initial R76-million for a National Dialogue that was first conceptualised as a digital platform.

“That was for quite a different vision of the Dialogue National; largely as a digital platform and through the process of engaging citizens through technology. But, in discussions, it emerged that we felt it necessary for it to be a face-to-face process, and one that reached every corner of the country,” said Jobson. 

“After that, we started the budgeting process for a much more extensive initiative,” she said.

The PTT workshopped scenarios and approaches for a face-to-face dialogue, and a request was made to cost the roll-out of that model, which came back at R700-million, according to Jobson. However, she said, R700-million was never a figure considered for approval. 

A figure of about R450-million was also a proposed scenario that was discussed among the PTT, but again it was never approved, according to Jobson. 

‘Transparent and accountable’

In their joint statement, the foundations called for the National Dialogue to be “transparent and accountable, with no space for corruption or mismanagement of funds in its process.”

Chairperson of Parliament’s Standing Committee on Appropriations Mmusi Maimane, in a statement on Monday, expressed “serious concerns” over the funding and implementation of the National Dialogue, saying he would seek clarification on the funding from the National Treasury. 

“While the National Dialogue is vital for our democracy, we are deeply troubled by the absence of a concrete funding strategy. There is no dedicated allocation in the national budget and, in an already constrained fiscal environment, we cannot afford to divert resources from other critical priorities,” said Maimane.

He said the funding model had to be sustainable and accountable, and could not place an added burden on taxpayers.

Maimane said the committee had written to the National Treasury requesting clarity on the budget vote funding the National Dialogue, and an impact assessment report on programmes that might be affected by diverted funds.

In Sunday’s statement, Magwenya said that all budgetary processes relating to the National Convention were consistent with the PFMA. 

He said the costs of the convention were being funded from the existing budgets of the National Economic Development and Labour Council (Nedlac), and the Presidency for secretariat support, communications and logistics. 

“The provisions in the Appropriation Act and the PFMA will be used to reimburse the Department of Employment and Labour, and Nedlac, in the Adjustments Budget later this year. All procurement and management of public funds will adhere to the PFMA and applicable Treasury regulations. All funds will be accounted for through the normal public finance mechanisms,” said Magwenya. 

In response to questions from Daily Maverick about the concerns over transparency and accountability, Magwenya said: “The National Convention could not be pre-empted. Any finalised budget prior to the National Convention would have been speculative. The National Treasury has made provisions for the National Dialogue, which will be finalised after the Convention. In-kind support or sponsorship has been secured for the Convention and more support will be secured for the Dialogue roll-out. 

“Any talk of an absence of a funding strategy is devoid of reality and truth. Public expenditures are reported in Parliament and in budgetary processes. I don’t understand what informs concerns about transparency,” he said. DM