As government roped in the Solidarity Fund to facilitate the distribution of aid to victims of the deadly KwaZulu-Natal floods, questions are being raised about the level of trust in government entities to handle monies meant for social relief initiatives.

The Solidarity Fund, which is backed by donations from the private and public sector, is a public-benefit organisation set up in 2020 to manage the country's response to the Covid-19 pandemic.

President Cyril Ramaphosa has instructed it to undertake the task of disbursing assistance to those affected by the floods.

Ramaphosa's decision comes as the country grapples with increasing claims of embezzlement of public finances meant to cushion the public against the economic impact of the Covid-19 pandemic, which is still raging. Before the natural disaster that hit parts of KwaZulu-Natal and the Eastern Cape, the fund had in March announced that it would wrap up its operations by September.

But according to Gloria Serobe, chairperson of the fund, responding to the disaster falls within its second phase of operation, with assurances that it will account for its activities with the same transparency and corporate governance that applied to all its activities. 

"The Solidarity Fund Floods Response pillar has been established, which will ring-fence the floods response activities and will operate separately from the Covid-19 fund," Serobe said.

The amount of the initial funding for the initiative is yet to be announced. The control of the fund's purse strings lies with independent directors, with no direct interference from the state.

Thousands of people have been left destitute by the floods that damaged infrastructure and businesses in the worst natural disaster to hit the coastal province in recent years.

Over 400 people have died as a result of the heavy rains and the government is hoping to put together at least R1-billion to help rebuild infrastructure for the people of KwaZulu-Natal.

However, despite the great human tragedy, fears of corruption have been raised. 

Corruption Watch executive director Karam Singh applauded the Solidarity Fund for its positive track record in the handling of Covid-19 support funds, but added that its appointment "does raise questions around whether there is now a firm recognition by the government that it does not have the necessary preventative controls in place to stop corruption within its ranks when it comes to the administration of relief funds".

The organisation also pointed out that the "widespread perceptions of corruption" in the eThekwini municipality over the past few years "have not instilled confidence in the local government structures" or its commitment to addressing the needs of the most vulnerable communities in the city.

"The best way to ensure that funds are correctly allocated and spent is to have systems in place that allow government, oversight bodies and civil society to monitor the allocations and spending," said Singh.

Corruption Watch said lessons must be learnt from the personal protective equipment (PPE) debacle and the subsequent revelation of Covid-19-related financial irregularities associated with Digital Vibes and the Department of Health.

National Treasury is set to extend an initial amount of funding to the Fund to assist in implementing the government's support measures.