South Africa’s controversial skills transfer deal with Cuba, previously known as Project Thusano, has been rebranded as Project Kgala despite racking up R1.7 billion in irregular expenditure. The deal, which aimed to provide professional and vocational training for South African National Defence Force (SANDF) personnel, has faced scrutiny for its high costs and inefficiencies. Now, the Department of Defence and Military Veterans (DoD) is reviving the project under a new name, promising improved oversight and cost management.
What Was Project Thusano?
Project Thusano was a bilateral agreement between South Africa and Cuba signed in January 2012. It focused on providing professional transport and medical training services for SANDF personnel in Cuba. Over its 10-year lifespan, the project cost South Africa approximately R3 billion, with R1.7 billion flagged as irregular expenditure by the Auditor-General (AG).
The AG’s report highlighted several issues, including:
- Lack of Cost-Benefit Analysis: The DoD failed to conduct a proper cost-benefit analysis before launching the project.
- Inadequate Record-Keeping: Poor documentation hampered financial reporting and decision-making.
- High Costs: Training SANDF personnel in Cuba was significantly more expensive than local alternatives. For example, medical students cost 136% more to train in Cuba, while mechanics cost 86% to 162% more.
The Rebirth: Project Kgala
In January 2024, Project Thusano officially ended, and its successor, Project Kgala, took effect. The DoD presented the revised project to the Portfolio Committee on Defence and Military Veterans, emphasizing its historical importance and the need to continue the relationship with Cuba.
Key Features of Project Kgala:
- Reduced Costs: The new project is budgeted at R537 million over five years, a significant reduction from the R3 billion spent on Project Thusano.
- Streamlined Operations: The DoD plans to reduce the number of traveling managers and leaders while streamlining administrative tasks for efficiency.
- Focus on Self-Sustainability: The project aims to enhance the SANDF’s professional skills and innovation capabilities to achieve self-sustainability.
Irregular Expenditure and Accountability
The AG’s report revealed that Project Thusano accumulated R1.7 billion in irregular expenditure, including:
- R1 billion for professional training services.
- R600 million for vocational training.
The DoD has assured the Portfolio Committee that these issues have been addressed. Fees have been reduced, costs have been fixed, and vocational training will now be classified as a “foreign learning opportunity.”
Controversy and Criticism
The revival of the project has drawn criticism from opposition parties and stakeholders:
- DA’s Christiaan Hattingh: “By changing this animal’s name from Thusano to Kgala, it remains the same animal.” Hattingh questioned whether South Africa had benefited from the project over the past decade and highlighted the contrast between the AG’s findings and the DoD’s objectives.
- EFF’s Carl Niehaus: While acknowledging the need for collaboration with Cuba, Niehaus urged the DoD to operate within the Public Finance Management Act (PFMA) and provide a clear needs and costs assessment.
What’s Next for Project Kgala?
The DoD has defended Project Kgala as a necessary step to address the SANDF’s skills gaps and maintain its relationship with Cuba. However, the project’s success will depend on improved oversight, transparency, and cost management.
Key challenges include:
- Ensuring compliance with the PFMA.
- Delivering measurable outcomes to justify the investment.
- Addressing concerns about the high costs of foreign training compared to local alternatives.
Project Kgala represents a fresh start for South Africa’s skills transfer initiative with Cuba, but it carries the baggage of its predecessor’s failures. As the DoD moves forward with the revamped project, it must demonstrate accountability, efficiency, and tangible benefits for the SANDF and the South African taxpayer. Only time will tell if Project Kgala can overcome the controversies of Project Thusano and deliver on its promises.
{Source: The Citizen}
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