The embattled Technology Innovation Agency (TIA) hopes a major restructuring process - which is likely to see a large portion of its staff get the axe - will help it shake off a long history of mismanagement and inefficiency.
The state-owned innovation hub is in consultation with labour unions, as it seeks to streamline its operations and deliver on its mandate to promote and market local entrepreneurs and innovators. However, this could come at the cost of up to a third of its current staff complement of 193.
But nothing has been finalised, says interim CEO Rivka Kfir, cautioning against attaching specific numbers to potential retrenchments. "This is just the starting point [of the restructure]; the situation is very fluid at this stage," she said this morning.
Kfir was appointed to oversee the agency in May, following the dismissal of CEO Simphiwe Duma and CFO Barbara Kortjaas for misconduct and maladministration. The probe into top management was initiated by former minister Derek Hanekom last October, who appointed Deloitte to look into allegations of nepotism, intimidation of external auditors, irregular investment transactions, procurement of goods and services, as well as some of Duma's declared expenses.
Allegations that former TIA board chairperson Mamphela Ramphele benefited from an agency cattle-breeding project located in her family's village were unsubstantiated, although Deloitte noted the project did not fall within the agency's mandate.
Adding to the agency's woes is the fact that its funding has been slashed by R130 million - to about R400 million - in the latest medium-term expenditure framework published by government. However, Kfir is adamant the budget has nothing to do with the upcoming retrenchments.
Instead, she explains, administration costs, which eat into a large portion of the agency's budget, need to be reduced. "We are working hard to streamline the agency's structure," Kfir notes.
'Bad spot'
Democratic Alliance shadow minister of science and technology Juanita Terblanche says while the agency has been plagued by a number of issues, news of the retrenchments "came as a shock. This wasn't expected and we were shocked to find out about it in the media."
Terblanche says the agency marks the only bad spot in an otherwise well-run Department of Science and Technology. "The agency has been embroiled in a lot of controversy, so it's difficult to say whether it has at all delivered on its mandate."
However, she warns the agency should get back on track as soon as possible, as the country risks losing innovative and entrepreneurial skills to other countries. "The TIA needs to support South African technology and create jobs. It needs to start delivering on its mandate."
But she points out that the agency is also grossly-underfunded, compared to similar entities in developing markets such as Brazil. "The funding levels are appalling. How are we supposed to compete with other countries, unless something is done to rectify this?"
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