We strongly refute the allegations in the article, which are based on inaccurate information and assumptions that cannot go unchallenged. The DBSA has held meetings with PRASA and we reiterate the point made in an email response sent to the Daily Maverick on 8 August that no written draft agreement has been considered nor has any agreement been reached.
Both PRASA and the DBSA are Public Finance Management Act (PFMA) listed entities and organs of state, to whom section 239 of the Constitution applies. In terms of the framework provided by National Treasury’s Standard for Infrastructure Procurement and Delivery Management, state organs can enter into service delivery agreements to implement projects on behalf of each other.
The DBSA’s competence as an implementing agent is also questioned in the article. The DBSA is a development finance institution and an organ of state, operating across the whole infrastructure value chain. In addition to financing, we offer planning, project preparation as well as infrastructure delivery and implementation support through the Bank’s Infrastructure Delivery Division, which was established in 2013 and has since implemented over R15 billion of projects on behalf of various organs of state. The Bank’s Infrastructure Delivery Division is solely on a cost recovery basis hence the Bank makes no profit out of being an implementing agent.
The DBSA has a strong financial foundation and an excellent reputation built on its exemplary record of governance controls and oversight. There is zero tolerance for corruption and to suggest otherwise without proper evidence is irresponsible.
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